Moves have been made to launch an industry-wide code of conduct on pension charges to help employers to choose the best pension for their staff.
A group of employer representatives, pension industry members, union and consumer groups and pension providers has launched a public consultation seeking views on the parameters of the code of conduct, which will aim to ensure all charges on defined contribution (DC) pension schemes are clearly and accurately stated in writing before an employer picks a pension scheme.The code of conduct will be launched in late summer.
The group includes Accenture, Association of British Insurers (ABI), B&CE, Confederation of British Industry (CBI), Federation of Small Businesses (FSB), Heineken, Investment Management Association (IMA), Legal and General, National Association of Pension Funds (NAPF), National Employment Savings Trust (Nest), Now:Pensions, Trades Union Congress (TUC), Which? and Whitbread.
Joanne Segars, chief executive of the NAPF, said: “We need to boost faith in pensions, but charges are a big concern for many people and often the information on offer is unclear.
“People need to see what is being charged and why, and in a language they understand. This code could really flush out the detail on charges by making sure that the fine print gets magnified.
“Auto-enrolment is just around the corner and many businesses will be looking at pensions for the first time. This code will help employers make the right pension choice for their staff.
“Greater clarity will make it much more likely people will stick with their new workplace pension if their employer has banked them the best deal possible.”
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