Pension exit fee consultation excludes common 'high charge trigger'

Jenna Towler
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The government's consultation on pension exit fees will not cover market value reductions (MVA) and other investment deductions that are common triggers of perceived high charges.

MVAs, sometimes called market value reductions, are an adjustment to the underlying value of a person's rights in a with-profit fund contract when that person leaves the scheme before their selected retirement date. Talbot and Muir head of pensions technical Claire Trott said the exclusion of MVAs was "interesting" as these were often the cause of high charges experienced by people looking to access their pension pots using freedom and choice. She added their exclusion could mean there is "little need for the government to legislate" to reduce exit charges for those taking their bene...

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