View more on these topics

Standard Life hits small firms with £1,200 fee following charge cap

Standard Life will impose a £1,200 annual fee on small employers which have agreed auto-enrolment terms with the provider above the 0.75 per cent charge cap.

Last month, pensions minister Steve Webb confirmed that any scheme with a charge above 0.75 per cent would not be eligible for auto-enrolment from April 2015. Also in March, Standard Life chief executive Paul Matthews warned employers they could have to pay extra pension fees as a result of the cap.

The provider has now confirmed it will levy a £100 per month “scheme management fee” on plans with fewer than 50 members and average contributions below £150 per month. This will allow Standard to reduce its charge below the 0.75 per cent cap.

Standard Life head of workplace strategy Jamie Jenkins says: “We have been considering ways of sharing the cost of providing the pension scheme between the employee and employer, while mitigating any cross-subsidy between schemes. This will result in us asking some employers to pay separately for emp-loyer administration services.”

Aegon is also considering imposing employer levies for schemes with charges above the cap. 

A company spokesman says: “The cap creates a challenge for the ind-ustry of achieving commercially via-ble charges for small or low contribution schemes. Levying a charge on employers is one way of addressing this. 

“We consider pricing on a case-by-case basis.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com