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A pensions scheme has announced it is slashing charges on pension providers this year - saving £45 million across 5,000 pension schemes. The change has been made to give more flexibility to free up money and adjust contributions each year.

The so-called 'lifeboat' scheme is designed to ensure that people still receive their workplace pension even if the company they work for collapses.

It will no longer be charging a levy to pension providers, meaning that £45 million will be saved across 5,000 defined benefit (DB) pension schemes - a type of workplace pension that promises a guaranteed income for life in retirement.

The Pension Protection Fund (PPF) levy is a charge on eligible pension schemes that pays into a central reserve, which sits at a £14 billion surplus.

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