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  Changes to our workplace pensions

Our response to the DWP's command paper

In March, the government announced a package of measures to improve workplace pensions for employees, outlined in the DWP paper, 'Better workplace pensions'.

What’s happening

Chief among the changes is a charge cap of 0.75% from April 2015, the banning of commission from April 2016, an end to active member discounts from April 2016 and a new approach to scheme governance. 

You can download a copy of the DWP command paper from their website

At Aviva, we made the decision to implement a number of these measures early, so that employees can start benefitting from them sooner. You can read full details of what we plan to do in our ‘Changes to our workplace pensions’ guide, but in summary we’re making the following changes to existing workplace pensions:

  • 31 October 2014

    We removed AP initial commission. 

  • 28 November 2014

    We removed transfer/single initial commission and LAUTRO initial commission.

  • 1 December 2014 

    We capped scheme charges at 0.75% - any schemes with higher annual scheme charges will have them reduced.

    We removed active member discounts (AMDs) and adjusted customer annual fund charges accordingly.

  • 6 April 2015

    We've replaced any existing default funds* which could breach the 0.75% charge cap.

    * a default fund according to DWP definitions.

    We started charging some employers and 'employer pension charge' so that we can continue to run their schemes at a reduced scheme charge.

    The Financial Conduct Authority (FCA) has introduced new rules which means that workplace pension providers must establish an Independent Governance Committee (IGC). They will have a duty to act in the interests of relevant scheme members. We've created a customer site to explain the IGC's duties to your clients.

We recognise that some of the DWP’s measures will be challenging for advisers. So while we removed some types of commission in 2014, we’re keeping ongoing commission in place until its ban in April 2016 where we can. However, we might need to remove fund based commission in stages for some schemes. You can find out full details of our plans to remove commission in our ‘Commission and charges transition’ guide.

‘Changes to our workplace pensions’ - our guide outlines all the changes we plan to make over the next two years, when they will happen, plus an overview of how we intend to implement them. 

Commission and charge transition – we’ve provided as much information as we can about the removal of commission, to help you through the transition. 

Timeline of events – we’ve created a one-page overview of all the activity taking place between now and 2016.  

Default fund decision tree – explains how we’ve reached our decision on what constitutes an ‘unsuitable’ default fund.

Here’s some examples of the workplace benefits we offer

Auto-enrolment support

With so many different types of employers needing your help with auto-enrolment, you need the confidence to offer them something that can really perform for them.

Find out more

Work:Life Benefits – the stylish, easy-to-use employee benefits platform.

Work:Life Benefits gives your clients’ employees access to a host of benefits through a single, user-friendly website. The platform is modular, so you can tailor your client’s system to suit their business and budget. Plus it’s packed with features that employers will love.

There’s more!

We have a comprehensive range of workplace pension and employee benefit services – read our interactive guide to find out more.

DWP news

Workplace Wellbeing Focus - 5 in five

Jon Blackburn

Jun 15, 2017

Resilience in the workplace

More choice for your pension clients

IGC merge

May 16, 2017

Changes to support the new pension freedoms

Workplace Wellbeing focus: 5 in five

Jon Blackburn

May 15, 2017

Mindfulness in the workplace

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WA04167 07/2015