A working group set up by the National Association of Pension Funds (NAPF) has today launched a public consultation over a new industry-wide code which will be designed to improve transparency on all DC pension charges. It will also help employers to select the best pension for their staff.

The group, which consists of members from 14 organisations such as the National Employment Savings Trust (Nest), B&CE and the Association of British Insurers (ABI) will gather views from the consultation to help generate the final code of conduct at the end of the summer. The code will help employers to understand pension charges on their employee pension pots and with auto-enrolment just around the corner, the initiative has been welcomed by many pension experts.

NAPF chief executive Joanne Segars said: “We need to boost faith in pensions, but charges are a big concern for many people and often the information on offer is unclear. People need to see what is being charged and why, and in a language they understand. This code could really flush out the detail on charges by making sure that the fine print gets magnified.

“This code will help employers make the right pension choice for their staff. Greater clarity will make it much more likely people will stick with their new workplace pension if their employer has banked them the best deal possible.”

Which? executive director Richard Lloyd highlighted the importance of the consultation for auto-enrolment. “Alongside greater transparency, we want clearly defined minimum standards to protect consumers from being automatically enrolled into poor value schemes.”

The consultation can be accessed here:

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