Four million people have been automatically enrolled into workplace pensions since 2012—a significant step as we expand retirement saving in the UK. Millions more will be enrolled before 2018 as the workplace market is transformed.
We must make sure workplace pensions are well governed, with competent trustees and managers and members’ interests at the heart of everything they do. Today’s Command Paper confirms that we intend to place minimum governance standards on all money purchase schemes. The Pensions Regulator and the Financial Conduct Authority will continue working with the DWP to make sure members are protected regardless of the type of workplace arrangement they are saving into.
We will also press on with the charges measures we announced in March—protecting members from high and unfair charges. Today we provide more detail on how these protections will be implemented, along with more information on measures to drive greater transparency, so pension savers and those running schemes know exactly what they are paying for.
Alongside today’s Command Paper we are publishing draft regulations on the governance and charges measures that, subject to parliamentary approval and any changes as a result of this consultation, will commence from April 2015. The consultation will last for four weeks and we look forward to engaging with our stakeholders during that period to make sure we get this important legislation right.
This Government are putting savers at the heart of the pensions system. Alongside the flexibilities announced in the Budget, these measures will provide savers with the best chance of securing a financially independent retirement.