Provider Friends Life has scrapped active member discounts (AMD) on all its pension schemes, giving schemes the chance to move to a single charge at the current member rate.
All members - whether active or deferred - will pay the current active member charge. The change means that all future deferred members will not suffer increased charges when they move jobs or stop contributions.
The minimum charge for active members is 35bps. The provider said 30bps will apply if a five-year commitment is agreed.
Friends Life corporate benefits managing director Colin Williams said: "The introduction of auto- enrolment means that, under current AMD scheme structures, large numbers of employees pay higher deferred member charges on each pension they accumulate as they move between employers. We're taking action now to remove deferred member charges.
"We have already started working with a number of our clients who proactively wished to move to a flat charge structure, at the active member rate, and we are now extending this offer to all of our clients with an AMD scheme."
About 10,000 pension schemes in the UK use AMDs, according to the 2013 Office for Fair Trading report into workplace pensions.
"If all pension providers take the same stance as Friends Life, there will be a large number of members that stand to benefit," added Williams.
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