IPE: UK parliamentarians step up pressure on defined contribution pension fees

17 May 2012

Clarity and accuracy in disclosing the management fees of defined contribution plans must be improved, according to the National Association of Pension Funds, which gained backing for the launch of an industry-wide code of conduct from both union and fund management representatives.

NAPF chief executive, Joanne Segars, said it was important that scheme members be told in language they understood how and why certain management fees were being levied on their savings. Jonathan Lipkin, head of research and pensions at the Investment Management Association, said he was "pleased" by the discussions, and that employers needed to be assured of the best possible scheme arrangement for workers.

Shadow pensions minister, Gregg McClymont, said that while the fees charged by the National Employment Savings Trust (NEST) were "competitive" by UK standards, how they compared with Dutch and Danish AMCs would define the "challenges" facing the country. The Labour MP also echoed recommendations by the Work and Pensions select committee to remove restrictions currently placed on NEST, barring the transfer of assets and annual contributions in excess of €5,260.

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