Pension charges code is ‘a big step forward', says TUC

date: 27 November 2012

embargo: 00.01 Wednesday 28 November 2012

The TUC has welcomed the new code of conduct on communicating information about charges in defined contribution (DC) schemes to employers, published today (Wednesday) by the pensions industry.

As part of automatic enrolment many employers are required to set up a workplace pension scheme for the first time. Under the new code, providers and advisers will be required to tell companies how their staff will be affected by charges taken out of individual pension pots.

TUC General Secretary Brendan Barber said: 'The code is a big step forward. Employers need help in choosing the best auto-enrolment pension, and their staff need to know they have made a good choice too.

'This new code brings greater transparency to charges. This is vital as even small variations can make a big difference to the pensions people receive.

'It's good to see consumers, unions, employers and the pensions industry working together on this code. This co-operation must continue to ensure compliance with the code.

'And whilst the charges code will be of great help we still need to develop more ways to ensure that both employers and employees get the best possible return from each pound saved.'

NOTES TO EDITORS:

- The TUC was represented on a working group, established by the National Association of Pension Funds, which helped to compile the code of conduct

- The code of conduct, Pension Charges Made Clear, can be found at www.napf.co.uk

- All TUC press releases can be found at www.tuc.org.uk

- Follow the TUC on Twitter: @tucnews

Contacts:

Media enquiries:
Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: rholdsworth@tuc.org.uk