The National Association of Pension Funds (NAPF) has commented on today’s (Wednesday) publication of the regulations for implementing the charge cap in April 2015.
Richard Wilson, Policy Lead for Defined Contribution, NAPF, commented:
“Today’s publication of the final regulations setting out how the charge cap for default funds in DC will be implemented is very welcome. But with many pension schemes already charging well below the 0.75% charge cap − NAPF members have an average annual management charge of 0.43% − it’s important that Government understands that charges are only one aspect of good value in DC schemes, along with appropriate default funds, good governance and clear communications. In future, providing a clear and good value pathway to a retirement income will also become important. None of these standards can be delivered without costs being incurred.
“With only eight weeks to go until both the charge cap and the pension freedoms reforms come into force, the NAPF remains concerned about the last-minute publication of these final regulations on both the charge cap and the expected regulations on signposting to guidance for trust based schemes. This is very unhelpful for pension schemes that want to keep costs down, develop and test systems in a timely manner and manage a smooth transition. We are concerned good quality pension schemes risk being punished as a result.
“This is why the NAPF is reiterating the call for government to introduce an Independent Retirement Savings Commission (IRSC) that will oversee future pension legislation – putting the long-term interests of savers at the heart of pensions policy and ensuring that policy changes are well-evidenced and introduced with adequate lead time.”
Notes to editors:
The NAPF is the voice of workplace pensions in the UK. We speak for over 1,300 pension schemes that provide pensions for over 17 million people and have more than £900 billion of assets. We also have 400 members from businesses supporting the pensions sector.
We aim to help everyone get more out of their retirement savings. To do this we spread best practice among our members, challenge regulation where it adds more cost than benefit and promote policies that add value for savers.
Lucy Grubb, Head of Media and PR, NAPF, 020 7601 1726 or 07713 073023, [email protected]
Eleanor Bennett, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]