In our November 2013 update, we reported on the Department for Work and Pensions’ (DWP) consultation on proposals to limit charging in schemes used for auto-enrolment. In an announcement which will be of interest to all employers, the Government has now confirmed that any cap on such scheme charges will not be introduced before April 2015.
The options under consideration are:
- a charge cap of either 0.75 or 1 per cent of funds under management; or
- a two-tier “comply or explain” cap, under which the standard cap would be 0.75 per cent, with a higher cap of 1 per cent available where employers were able to justify this to TPR.