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In response to the report from the Independent Project Board - Defined contribution workplace pensions: The audit of charges and benefits in legacy schemes - published this morning, a spokesperson for Legal & General commented:
"We welcome the findings of the Independent Project Board (IPB) review of legacy pension charges published today, which shows there is more work to do to stamp out high charges for savers in legacy pension schemes.
We believe the Govt needs to reduce its 0.75% charge cap, and cap charges at 0.50%, to drive out these high charges once and for all. Legal & General was the first insurance company to cap charges at 0.50% on default auto-enrolment schemes. We have rejected unfair charging practices such as poorly named Active Member Discounts and already have Independent Governance Committee in place to oversee value for money. We have been at the forefront of ‘value for money’ pensions since 2001, which is why Legal & General pensions account for only 0.7% of the £25.8bn assets under management potentially exposed to charges of above 1% quoted by the IPB today." |
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