The Government is expected scrap the 0.3 per cent national pension savings scheme charge and allow pension providers to play a key role in the admin of an NPSS-style system in the White Paper on pension reform.The Government is expected to propose that consumers should be able to choose personal accounts from a limited number of pension providers, broadly in line with the Association of British Insurers’ version of the NPSS. Reports say that it will propose the creation of a central Government-controlled organisation to oversee admin of the scheme, as suggested by Lord Turner in the second report from the Pensions Commission. The White Paper also appears to have ditched Turner’s 0.3 per cent annual management charge, focusing instead on a charge of 0.5 per cent in line with current stakeholder charges. The ABI says the White Paper, due for release on Thursday, is only a preliminary report and will be followed by a paper in the autumn focusing on more technical details of the NPSS. Standard Life head of pensions policy John Lawson and others in the industry are lobbying the Government to seriously consider alternative charging structures such as a dual-charging structure or a regular monthly admin fee on top of an annual management charge. Legal & General pensions strategy director Adrian Boulding says: “This is a good opening shot for further consultation. We have moved away from the daft 0.3 per cent debate which has proved to be a bit of a red herring. Now the Government needs to move away from a single charge to a dual-charge structure.” Hargreaves Lansdown head of pensions research Tom McPhail says: “We have got to remember that we still do not have the definitive strategy and the important debate about means-testing still has not been resolved. We must be careful not to be seduced by the political agenda.”
Montpelier has increased its shareholding in Millfield from 10 per cent to 14.76 per cent, making it the second-biggest shareholder behind Amvescap with 21.5 per cent.
The Treasury select committee has challenged the ABI to prove how its version of the NPSS would drive down costs rather than create more red tape. The committee’s report on NPSS regulation says simplicity and near-universal suitability are the overriding factors in deciding who should run the scheme. It says the ABI’s introduction of consumer […]
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HBOS says it plans to keep all five of its mortgage brands and is hinting that it could set up a sixth brand. When asked by brokers at a conference for its top 20 intermediary partners this month whether any of its brands would be merged, the response was a firm no, with the company […]
As 11,000 athletes descended on the sporting venues of Rio de Janeiro, the back pages have been awash with news from Brazil. At the same time, the country has been one of the best-performing global equity markets in 2016, with the MSCI Brazil Index up a staggering 79 per cent in sterling terms year-to-date.* Indeed, emerging markets […]
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The Financial Services Compensation Scheme has declared self-invested personal pension operators Stadia Trustees, Brooklands Trustees and Montpelier Pension Administration Services in default. The lifeboat fund has received around 150 claims for compensation relating to the three businesses. Those claims relate to how the businesses set up, operated and administered Sipps through which people invested in […]
The Department for Work and Pensions has confirmed it will not change the pensions triple lock and will explore bolstering the powers of The Pensions Regulator in the forthcoming legislative period. The DWP published its “single departmental plan” yesterday, which sets out five objectives it is working towards over the next four years. It has […]
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