Pensions Minister calls for exit charges cap across all pensions
02 June 2016
Proposals to prevent people in occupational schemes facing exit charges for accessing their pensions early have been launched by ministers.
The changes proposed in the consultation will give people in occupational pension schemes access to pension freedoms without the prospect of high penalty charges and will ensure greater consistency across the pensions landscape.
Minister for Pensions, Baroness Ros Altmann said:
“These changes are about giving everyone who has worked and saved hard for their retirement a fair deal by removing the final barriers to the pension freedoms. I encourage the industry and all those with an interest to contribute to this debate.
I urge people to continue to work hard, plan and save for their future, and we will continue to reform the pension system so that it delivers for them.
The Department for Work and Pensions (DWP) will engage with industry on the proposals to introduce a cap for occupational pension schemes. The consultation will build on past government consultations and considers what action is required to ensure equality of treatment for members of occupational pension schemes.”
Economic Secretary to the Treasury Harriett Baldwin said:
“The government are delivering the most far-reaching changes to pensions in a generation. Over 230,000 people took advantage of our pensions freedoms in the first year by accessing £4.3 billion flexibly from their pension pots.
Today’s consultation signals our continued commitment to ensuring that pensions freedoms work fairly for people in practice and that hard-working individuals who have taken out occupational schemes are not disadvantaged.
The intention is that any cap should apply across both occupational and personal pension schemes.”
The consultation Capping early exit charges for members of occupational pension schemes will run for 12 weeks until 16 August 2016.