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. Howev...
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