Ten of the UK’s largest pension schemes have written a joint letter publicly endorsing the Cost Transparency Initiative.
The schemes representing over 19 million members and who have more than GBO150 billion in assets under management have set out their support and intent to use the new Standards that comprise of templates and guidance and will help deliver greater value for money for millions of savers.
During the launch of the Standards in May, the Cost Transparency Initiative said it expects trustees to engage with their investment management and consultants immediately, and for asset managers to be in a position to report against December 2019 and April 2020 year-ends using the new Cost Transparency Initiative tools.
The Standards allow reporting of costs and charges in a standardised format while giving trustees the chance to make clear costs and charges comparisons across their different investment management suppliers and asset classes.
The pension schemes who have set out their support are:
• DHL Pensions Investment Fund Limited
• Kingfisher Pension Scheme
• National Grid UK Pension Scheme
• RBS Group Pension Fund
• Royal Mail Pension Plan
• Smart Pension
• Superannuation Arrangements of the Universities of London (SAUL)
• The People’s Pension
• Universities Superannuation Scheme
Mel Duffield, Chair of the Cost Transparency Initiative, says: “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 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.”
Launched in November 2018, the Cost Transparency Initiative was tasked with implementing, promoting and encouraging the use of the new cost transparency templates – as proposed by the former Institutional Disclosure Working Group (IDWG) – across the pensions and investment industries.
The Cost Transparency Initiative is supported by the Pensions and Lifetime Savings Association (PLSA), the Investment Association (IA) and the Local Government Pension Scheme Advisory Board following on from the IDWG’s report to the Financial Conduct Authority last year.
Interest has continued to come in for the Cost Transparency Initiative templates and guidance with further expressions of support expected in the near future.