News

Pension fees cap delayed

The proposed cap on annual pension management charges will be delayed for at least a year, Pensions Minister Steve Webb has announced.

A cap of up to one per cent was originally scheduled for April this year but it is now thought that the changes will be introduced in April 2015.

Mr Webb said that it would be “only right and fair to give employers a minimum of 12 months’ notice of the changes” but that he remained focused on “tackling” high charges.

Yvonne Braun, Head of Savings Retirement and Social Care at the Association of British Insurers (ABI), welcomed the delay:

“Millions more people are saving into a pension due to the early success of automatic enrolment.

“It is a sensible and pragmatic decision not to make changes now which would cause disruption at an operationally sensitive time with thousands of new employers setting up schemes and provider capacity already strained.”