Aegon has warned the government against eradicating active member discounts (AMDs) in pension schemes.
AMDs are a practice where the pension scheme charges members of company pensions more to manage their pot if they have left the company than current employees.
The government has announced it will cap deferred member charges as part of its Pensions Bill reforms.
However, Steven Cameron, head of regulatory strategy at Aegon, said capping AMDs will damage savings.
"There are many costs within group schemes which do not vary with size of fund and which apply whether a member is active or deferred," said Cameron.
"Is it really fair to expect those who stay within the scheme to subsidise early leavers?
"AMDs were introduced because many employers see ‘mono charging' as unfair. They want to reward, not penalise, those employees who stay with them."
Aegon has called for an industry-wide debate on AMDs and said it is surprised the Pensions Regulator (TPR) has singled out AMDs as unfair in recent guidance.
"Dismissing AMDs runs a real risk of worsening member outcomes," Cameron said.
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected