This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government
The Department for Work and Pensions today publishes a Working Paper which presents the findings from research exploring the administrative costs of running occupational pension schemes. The research provides a broad assessment of the scale and range of costs involved in administration of pension schemes.
The key findings were as follows:
Responding trustee boards with schemes containing 12-999 members tended to face higher running costs per member than trustee boards with 1,000+ members in their schemes.
Respondents reported that the annual cost of employing professionals was highest for investment managers at a mean cost per member per year of £63 and lowest for independent financial advisers (for members) at less than £1 per member per year.
The most commonly cited priority for deregulation was reducing the levies (spontaneously cited by 12 per cent of responsing schemes), followed by reducing scheme valuation/audit requirements (ten per cent). Schemes perceived the general and PPF levy to be a significant cost.