Data from Bristol-based advisory firm Hargreaves Lansdown revealed that many employers auto-enrolling today will probably have to review their scheme before April 2015.
According to the figures, 41 per cent of group personal pension schemes pay commission to an adviser, which will be banned from April 2016.
The data also revealed that one in three schemes charge more than the 0.75 per cent cap, which will be effective from April 2015. Employers with these schemes will have to select a new default fund or switch to a new scheme.
Additionally, 13 per cent of GPPs have an active member discount, which will be banned from April 2016. These schemes will need to be rewritten.
Laith Khalaf, head of corporate research, said: “The raft of reforms announced over the past two weeks are great for pension savers. But they will be a headache for employers who have just put the finishing touches to their auto-enrolment game plan, only to have the government come along and rewrite the rules.
“Employers now need to go back over their scheme to review whether it will still be compliant this time next year. They may also have to start paying fees to their adviser, which should prompt a reassessment of the value of the services provided, and whether they can get a better deal elsewhere.”
His comments came as 1 April (today) marked the date on which 30,000 small- to medium-sized enterprises start to auto-enrol staff into a pension over the course of the next year.
Some 5000 companies are expected to be auto-enrolled today.