Standard Life head of pensions policy John Lawson says the firm has had calls from consultancy firms asking in-depth questions about its GPP operating costs.
Which? has been putting pressure on the Department for Work & Pensions to make sure employers that opt to provide qualifying GPP schemes rather than personal accounts will offer similarly low charges.
Which? principal policy adviser Dominic Lindley says: “We have said to the DWP that it has to make sure these qualifying schemes are of significant quality, which includes low charges. From the consumer’s point of view, I do not see anything wrong with providers having to reduce prices but we are not arguing for a specific charge cap.”
Lawson says: “The DWP seems to be wanting to set our profit margin for us rather than leaving it to competition.”