Prudential’s independent governance committee reports increased value for money for members in 2016
17 March 2017
- Successful removal of all initial charges across Prudential’s workplace pensions
- ‘Small pot’ fixed charges to be eliminated by July 2017
- Default investment strategies continue to outperform benchmark
- Initial review of transaction costs completed
- All agreed service standards met in 2016
- Participated in industry-wide consumer research
The second annual report on workplace pensions, published today by Prudential’s Independent Governance Committee (IGC), highlights the actions that have been taken during 2016 to improve customer outcomes.
The report, which covers Prudential’s contract-based defined contribution workplace pension schemes, looks at the areas identified by the IGC in relation to Value for Money (VfM) – charges, investment strategies and performance, service and communications – and concludes that as a result of the actions taken in 2016 many members are receiving improved value for money from their pension savings with Prudential.
Removal of charges in 2016
As a result of a series of actions agreed between the IGC and Prudential, all initial charges, including exit charges, were removed across Prudential’s workplace pensions, going beyond the Financial Conduct Authority (FCA) cap of one per cent on exit charges. Charges taken for adviser commission payments were also successfully removed for all members.
Following the implementation of these changes, many workplace pension members are now benefiting from lower charges, which over time may increase the size of their pension pots.
In 2015, reductions in fixed policy fees were agreed which were implemented during 2016. Following a review of the impact of these reductions, it has now been agreed to remove these charges completely by July 2017.
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