Stakeholder pension providers can decline contributions in the form of cash, according to amendments...
Stakeholder pension providers can decline contributions in the form of cash, according to amendments to the product regulations laid before Parliament by pensions minister Jeff Rooker last week, says Investment Week.
Product providers have been lobbying to have restrictions put in place to limit the methods by which contributions can be paid due to the expense it would create in alterations to systems. Other regulation amendments will also amount to cost savings for product providers, according to Ian Naismith, head of pensions at Scottish Widows.
Providers will no longer have to tell pension members each year the cash amount of their charges, schemes will instead be required to state the percentage amount of the charge.
This will be a big saving for groups, he said. However, the Government has said in three years it will return to the requirement for providers to show the monetary amount of charges.
As first reported in Investment Week, the Government has conceded that stakeholder pensions that invest in Oeics can allow the dilution levy to sit outside the 1% charging cap. However, according to Autif the Government is still considering the application of custodian costs on funds within the 1% charge and in the interim this is to be included in the cap.
This story was first published in Investment Week.