0.75% charge cap to remain on auto enrolment pension schemes 20 November 2017
Government has confirmed that the cap that applies to member-borne charges in default investment funds within defined contribution pension schemes used for automatic enrolment, will remain at the current percentage of 0.75.
In a written statement, Guy Opperman the Parliamentary Under Secretary of State for Pensions & Financial Inclusion, confirmed the decision saying that after seeking a range of industry and consumer views and considering the findings of the recent Pension Charges Survey, which captures data from providers covering 14.4 million scheme members, “we do not feel that now is the right time to change the level or scope of the cap.” Opperman’s statement continues, “the cap is working broadly as intended, helping to drive down member-borne costs, whilst allowing flexibility to allow asset diversity or tailored services for members and employers…The Government remains committed to ensuring AE members are protected from unreasonable and unfair charges, and recognises that there is on-going concern amongst consumers.” According to Opperman government will actively monitor the situation which will also inform the next review. In 2020 there is the intension to examine the level and scope of the charge cap, as well as permitted charging structures, to see whether a change is needed to protect members.
The statement concludes that, “whilst we are not pre-judging the decision, we expect there to be a much clearer case for change in 2020.”
The full written statement is available on the UK Parliament’s website .
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Pre-Christmas automatic enrolment spot checks 27 November 2017
The Pensions Regulator (TPR) is carrying out spot checks in Sussex, Surrey, Hampshire and Kent to ensure employers are complying with their pension duties.
Inspection teams will visit more than 200 businesses from Southampton in the west to Ashford in the east in the weeks before Christmas to check that qualifying staff are being given the workplace pensions they are entitled to.
The move is part of a nationwide enforcement campaign which began in London in April to ensure employers are meeting their automatic enrolment duties correctly.
This is the first time these checks have been done in these counties. Short-notice inspections have previously been carried out in Greater Manchester, Sheffield, Birmingham, Scotland and South Wales.
The checks will help TPR understand whether employers are facing any unnecessary challenges that we can help them with, such as helping them improve their systems. But they will also highlight employers who have not taken the required steps to become or remain compliant, paving the way for enforcement action.
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31% of employees feel their employer is responsible for their workplace pension 23 November 2017
Capita Employee Benefits has conducted research among 1,200 UK employees covering their views on pensions, barriers to saving, flexibility around retirement and the role their employer plays in workplace pensions.
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Policy News Journal
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