§ Mr. PollardTo ask the Secretary of State for Work and Pensions whether regulations on stakeholder pensions to require pension funds to spread charges evenly throughout the year will increase the cost of auditing such pension charges; what plans he has to amend these regulations to allow charges to be deducted on an annual or monthly basis; and if he will make a statement. [61788]
§ Mr. McCartneyOne of the key features of stakeholder pensions is the 1 per cent. charge. The calculation of the charge by reference to a daily amount is the best way of taking an average 1 per cent. of the member's fund over a year.
Although charges have to be calculated as a daily amount, the valuation of the fund, on which the charge is based, can be made on a daily, weekly or monthly basis.
We have no plans to change the rules on the way that the stakeholder charge is calculated. However we are looking at the audit requirements for stakeholder pension schemes, and any changes will be announced in due course.