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This publication sets out the government’s response to the consultation on a range of measures to address pension charges, to protect employees in workplace defined contribution pension schemes.
The new measures outlined in this paper are also based on the evidence gathered from
- a call for evidence from the pensions industry on the quality of defined contribution schemes
- the Office of Fair Trading market report into workplace defined contribution schemes
Chapter 1 includes a further consultation on the minimum governance standards and transparency of workplace pension schemes. The government’s response to this is included in Better workplace pensions: putting savers interests first.
This consultation sets out a range of measures to address pension charges in defined contribution workplace pension schemes aimed at protecting employees from poor pension returns due to pension charges. The consultation seeks views on whether:
- further action is required to improve transparency and disclosure of pension charges
- a cap on charges in default funds of defined contribution qualifying schemes should be introduced
- differential charging between active and deferred members, consultancy charges and commissions should be banned in defined contribution qualifying schemes