Ten of the largest pension schemes in the UK have written a joint letter announcing their support for the Cost Transparency Initiative (CTI).

The schemes endorsing the strategy, which includes the Royal Mail Pension Plan, Nest and the Universities Superannuation Scheme, represent over 19 million members who have more than £150bn in assets under management.

The initiative aims to implement, promote and encourage the use of new cost transparency templates proposed by the former Institutional Disclosure Working Group.

Under the standards, schemes can report their costs and charges in a standardised format while allowing trustees to make cost and charge comparisons across their different investment management suppliers and asset classes.

Commenting on the announcement, CTI chair, Mel Duffield, said: “I’m delighted that so many pension schemes have engaged and are adopting the standards already and that ten of the largest DB and DC schemes in the UK have made this public commitment of support.

“We will keep working across the industry to encourage adoption and will be working with schemes and providers to showcase just how important these Standards can be for them and indeed for the millions of savers who will ultimately see the benefits of greater cost transparency.”

The CTI expects trustees to engage with their investment management and consultants immediately and for asset managers to be able to report against December 2019 and April 2020 year-ends using its new standards.

The pension schemes that issued their support were DHL Pensions Investment Fund Limited, Kingfisher Pension Scheme, National Grid UK Pension Scheme, Nest, RBS Group Pension Fund, Royal Mail Pension Plan, Smart Pension, Superannuation Arrangements of the Universities of London, The People’s Pension and Universities Superannuation Scheme.

The Cost Transparency Initiative is partnership initiative between the Pensions and Lifetime Savings Association, the Investment Association, and the Local Government Pension Scheme Advisory Board.

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