§ Mr. Clifton-BrownTo ask the Secretary of State for Work and Pensions what the average overall percent age cost of administration is in private pension schemes run by life companies; and what plans he has to require the full extent of this cost to be more transparent to existing and future pension plan holders.[119598]
§ Malcolm WicksInformation on the average cost of administration of life company private pension schemes is not collected by the Government. The Government's requirements on the transparency of fund administration costs to individual policyholders relates to stakeholder pensions and are as follows.
There is a maximum annual charge of one per cent. of the value of the member's fund to cover all the costs associated with membership of the scheme. No payments in addition to the one per cent. charge may be made from the member's fund other than a payment; for the purchase or provision of an annuity for the member in accordance with the scheme, or for the making of payments of income (otherwise than by way of an annuity) to a member under arrangements made in accordance with the scheme (income drawdown facilities); for the discharge of the trustee' or managers' liability concerning a pension credit under a pension sharing arrangement; for any stamp duty or other charges incurred by the trustees or manager directly in the sale or purchase of securities or property held for the purposes of the scheme, by the amount of such of those charges as are attributable to the member's rights; made in compliance with a court order to return excessive pension contributions made by a member.