Under the Retail Distribution Review (RDR), which will come into effect on 31 December 2012, commission payments from contract-based defined contribution pension providers to benefits consultants and advisers will be banned. Instead, employers will have to pay a fee and/or commission to their consultant or adviser, agreeing upfront how much investment advice will cost them and how they will pay for it. This has led to concerns about the levels of financial education that will be provided to employees once the RDR comes into effect.
Just under two-thirds (63%) of respondents that off er a contract-based DC scheme, such as a stakeholder scheme, group personal pension (GPP) or group self-invested personal pension, have considered how the new rules will affect their scheme. Just as in the last two years, the highest percentage of respondents believe it will have no impact on their pension provision.
Read more from Employee Benefits Pensions and Workplace Savings Research 2012
