The ‘poor value' legacy pension schemes highlighted by the Office of Fair Trading (OFT) account for just 10% of the market but the industry audit will "sort any problems", the Association of British Insurers (ABI) has said.
The OFT's pension investigation, released this morning, said hundreds of thousands of savers were being unfairly penalised due to high charges in old fashioned pension schemes.
The ABI has agreed to do an audit of these "old and high charging contract and bundled trust schemes" to address the OFT's concerns.
The OFT said: "The audit will give a full understanding of the charges and any benefits associated with these schemes and ensure savers are getting value for money. This will be overseen by an independent project board."
The audit should be completed by December 2014.
However, the ABI said average overall charges are now at their "lowest ever level" and the schemes flagged account for 10% of a £300bn market.
Director general Otto Thoresen said: "Auto-enrolment has the potential to transform retirement savings in the UK and the pensions and long-term savings industry is determined to do all it can to make the reforms necessary to build confidence and trust in workplace pensions.
"The schemes principally identified by the OFT as potentially having charges not representing good value for money account for around 10% of the nearly £300bn assets managed by the industry, including closed schemes and schemes that will not be used for automatic enrolment.
"But we agree with the OFT that it is important to review charges to ensure they represent good value for money for today's employers and savers. Pension providers have agreed to an audit of all legacy and higher charging schemes to ensure any problems can be sorted out."
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