Pensions  

IMA call for pan-Europe single pension charge

The director of public policy at the Investment Management Association said a single figure for ongoing charges could be extended to pension schemes across Europe to help raise transparency and allow members to assess value for money.

Speaking at the Westminster Employment Forum on pensions this morning (5 November), he said: “This term would be used by everyone and while pension funds are not the same as investment funds, this element of standardisation would put arguments about transparency and the difficulties of comparison to rest.”

Mr Lipkin acknowledged that bringing all costs under a capped number runs the risk of being “misleading and unduly constraining”.

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He added that there needs to be distinction between the notions of transparency and “meaningful disclosure” on charges in pension funds.

Summarising, he said: “Policy makers should understand what really matters to employees in terms of costs, how disclosure of those costs will be used and how metrics can be compared so they really make sense for members.”