HC Deb 22 February 1999 vol 326 c162W
Mr. Webb

To ask the Secretary of State for Social Security what assessment he has made of the current charging levels of unit trusts, with respect to the feasibility of incorporating lifetime individual savings accounts within the stakeholder pension framework. [71173]

Mr. Timms

The consultation paper "Helping to deliver stakeholder pensions" indicates that the proposed new investment mechanism could be used for all existing types of defined contribution pension scheme and, in due course, for stakeholder pension schemes.

Pooled investment schemes, including unit trusts, typically take most of their income from an annual percentage charge on the funds under management and should therefore be well placed to deliver flexible arrangements with charges that do not penalise individuals who stop paying in, or who wish to transfer their pension savings to another scheme. Details of the minimum standards that all stakeholder pension schemes will be required to meet, including those on charges, will be set out in due course.

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