Permitted charges within Defined Contribution pension schemes
Consultation on the government’s proposal to move to a single, permitted universal charging structure for use within qualifying Defined Contribution schemes for automatic enrolment.
In the government’s ‘Review of the Default Fund Charge Cap and Standardised Costs Disclosure’ published on 13 January 2021, we set out our intention to introduce a threshold – or ‘de minimis’ – below which the flat fee element of the combination charge used by pension providers, cannot be charged to members. The de minimis will be set at £100.
We are now consulting on the policy around the implementation of the de minimis and also on the Statutory Instrument required to bring about this change.
This consultation seeks views on the broader direction we should take on the future structure of charges that are permitted within the charge cap. The consultation sets out the government’s proposal to move to a single, permitted universal charging structure for use within the default fund of qualifying Defined Contribution pension schemes used for automatic enrolment.
The consultation is aimed at:
- pension scheme service providers, other industry bodies and professionals
- pension scheme trustees
- civil society organisations
- pension scheme members and beneficiaries
- any other interested stakeholders