Govt moves to outlaw high pension charges

A Department for Work and Pensions (DWP) consultation, announced by pensions minister Steve Webb in parliament yesterday, includes three options: • Retaining a higher charge cap of 1% of funds under management - reflecting the current stakeholder pension cap for certain scheme members • Installing a lower charge cap of 0.75% of funds under management - reflecting the charging levels already being achieved by many schemes • Or a two-tier ‘comply or explain' option. There would be a standard cap of 0.75 per cent of funds under management for all qualifying schemes. A higher cap of 1 ...