Pensions minister Steve Webb has announced that a charge cap on auto-enrolment pensions will be implemented a year later than the April 2014 date originally planned by the DWP.
Speaking at a CBI conference this morning Webb said more time was needed to consider how best to implement a charge cap. He is reported to have confirmed that active member discounts will also not be outlawed by April 2014. A ban on historic commission on auto-enrolment schemes is also believed to have been pushed back to 2015.
CBI director for employment and skills Neil Carberry, says: “The Government has listened to business concerns about the impact of a charge cap announcement at short notice. “What we now need is a system that ensures choice for companies trying to do the best for their staff.”
Aegon managing director of workplace solutions Angela Seymour Jackson says: “Making a success of auto-enrolment is the top priority. The decision to defer introducing any price restrictions until April 2015 supports this. It will allow employers and providers to get on with enrolling many thousands of employees into workplace schemes, often for the first time. Rushing new scheme conditions through at this critical stage would have disrupted many employers’ plans to use good existing schemes. The Pensions Minister’s decision will avoid employees losing out on valuable contributions while employers made alternative arrangements.
“Aegon has already committed to participate in an industry-wide audit of existing schemes managed by an Independent Board. This will ensure all members – new and old – can have confidence they are receiving value for money from pensions.”