The IPB was established in response to the Office of Fair Trading’s 2013 market study which found that £30bn of savers’ funds in defined contributions (DC) workplace pensions were at risk of delivering poor value for money.

The IPB recommended that scheme providers put in place plans, by the end of 2015, to reduce fees and charges to provide better value for money. 

The research shows that as a result, over a million individuals within contract-based and trust-based schemes are now subject to lower charges than before. 

It points out, however, that a small number of providers have put in place actions that rely on a response from another party, such as individual savers or the trustees of the scheme.

Both the FCA and the DWP say they will continue to work with providers to ensure that customers are not being disadvantaged over the long-term, especially if responses have been slow or low in number.

Overall, the survey found that for 16% of the assets under management in contract-based schemes, and 15% in trust-based schemes, the progress is unsatisfactory or unclear, with customers still at risk of high costs and charges.  The FCA and DWP will shortly be contacting these providers and say they will expect them to explain the reasons behind this and to ensure that savers are being treated fairly.

Andrew Bailey chief executive at the FCA said: ‘We have seen good progress towards the goals that the IPB laid out but this is not the end of the story. Firms should continue to work to ensure that value for money is being consistently delivered.

‘There is still more to do so we will be contacting the providers who have not yet taken satisfactory actions to remedy poor value schemes and we expect them to act swiftly to ensure good value for customers.’

 Remedying Poor Value Legacy Workplace Pension Schemes: Findings from the Joint Review of Industry Progress against the Independent Project Board Recommendations is here.