Pension exit charge cap extended to occupational schemes

Altmann-Ros-2010-700x450.jpgOccupational schemes will be subject to the same charge cap as contract-based schemes, pension minister Ros Altmann has confirmed.

Yesterday the Government set out plans for legislation that would place a duty on the FCA to cap ‘excessive’ early exit charges for those eligible to access their pension pot under the new pension freedoms.

The pensions minister says she will ensure this duty is extended to those in occupational schemes that are overseen by the Pensions Regulator and not by the FCA.

The FCA will be responsible for setting the level of the cap and will consult on its level. It is not yet clear whether TPR will have a role in fixing the cap.

Altmann tweeted this morning: “Will ensure cap on exit penalties in trust-based pensions alongside FCA cap for contract-based. Want all pension savers helped the same.”