PLSA comments on Review of the Default Fund Charge Cap and Standardised Cost Disclosure

Lizzy Holliday, Head of DC, Master Trusts and Lifetime Saving at the Pensions and Lifetime Savings Association (PLSA) comments on the Review of the Default Fund Charge Cap and Standardised Cost Disclosure.

“The PLSA supports today’s call for evidence on costs and charges in the defined contribution (DC) pension market.

“The charge cap on DC pension schemes is an important consumer protection, ensuring savers receive better value for money from their pensions. DWP’s findings are consistent with our own: in practice most DC schemes’ default funds operate well below the charge cap.

“We’re pleased that DWP recognises the work the pension and investment industries have undertaken via the Cost Transparency Initiative (CTI) to establish and promote new industry standards for cost reporting. Recently, the CTI published additional templates which will further help pension schemes drive value for money for their savers by allowing them to compare costs across their investments more easily.

“That doesn’t mean the pension industry is standing still. The PLSA is working with our members to achieve even better outcomes for all savers, including finding solutions to the small pension pots issue.”

Mark Smith, Senior PR Manager
 020 7601 1726 |  [email protected]k

Steven Kennedy, PR Manager
 020 7601 1737 | 07713 073024 | [email protected]