Up to 90,000 employers would be forced to review their defined contribution (DC) schemes if a charge cap was introduced, according to a government paper.
The Department for Work and Pensions (DWP) is currently consulting on a range of options to crack down on excessive charges in DC, including a cap of 0.75% or 1% on annual fees. In its impact assessment on the report, the DWP states that 90,000 schemes would need to be reviewed if the limit was set at 0.75%. If the cap was set at the higher level, the number of schemes that would need reviewing would be between 25,000 and 35,000. The pensions industry has warned that many employers due to begin auto-enrolling staff in 2014 will not have enough time to react to any changes introduce...
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