Charge cap would lead to 90,000 AE schemes being reviewed

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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 impact assessment.

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 (PP Online, 30 October - www.professionalpensions.com/2303754). 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%. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/253873/better-workplace-pensions-consultation-ia.pdf If the cap was set at the higher level, the number of schemes that would need reviewing ...

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