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ABI responds to Steve Webbs pension charges cap announcement

Pensions Minister Steve Webb today announced a cap on pension charges from April 2015.

Otto Thoresen

Responding to the announcement, Otto Thoresen, Director General, Association of British Insurers, said:

“The OFT, in its workplace pensions review last year, came out against a charge cap. We agree with them. Average workplace pension charges are at their lowest ever levels. Despite this, the Government think a charge cap is necessary, and in this context the decision to phase in the implementation of these changes is helpful, as is the intention to review the best way to improve transparency on transaction costs before decisions are made in 2017.

"The implementation of auto-enrolment, combined with the radical reforms in last week’s Budget, have created a challenging environment for employers and pension providers. The industry will do all it can to meet these challenges successfully to ensure employees can look forward to a financially secure retirement."

Last updated 01/07/2016