28 February 2013
The Pension Quality Mark (PQM) is lowering its cap on charges from 1% to 0.75% of pot size per year.
These tougher restrictions mean that total charges paid out by savers, covering management, administration, contribution and consultancy costs, will not exceed 0.75% a year.
It is thought to be good news for all savers, with the regulations applying to both active and inactive pension contributors.
The current 1% cap has been in place since the PQM was launched by the National Association of Pension Funds in September 2009. The changes will come into force on April 1, 2013.
PQM provides a mark of excellence that is reserved for well-run pension schemes, with good contribution rates and clear communication with staff.
Chris Hitchen, PQM chairman, explained that changes are needed because when auto-enrolment is fully brought in there will be up to 11 million people joining schemes.
"We want to push fees down so that savers can enjoy better pensions," he added.
Copyright Press Association 2013
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