DENMARK - Eight of Denmark's nine political parties have backed a proposal to create a standardised measure for pension scheme costs, according to a poll conducted ahead of tomorrow's general election in the country.
Industry-wide scheme PensionDanmark questioned all nine of the parties represented in parliament, about an idea to introduce a single figure to show pension scheme customers the total amount they pay in costs.
The proposed measure would be along the lines of the ÅOP model which Denmark's banks use to give a comparable rate for all loan costs, according to PensionDanmark.
More generally, all nine of the parties agreed there was a need for more openness and better transparency within pensions in the country.
"It is very positive that all the political parties support the task of increasing openness and transparency within costs in the pensions arena," said Torben Möger Pedersen, PensionDanmark's administrative director.
"There is a clear need for customers to be informed via one figure for all administrative costs that they pay - including those costs that many companies now include as part of insurance premiums, or are paid out of customers' reserves," he said.
All costs paid by individuals insured by PensionDanmark are included in one rate, he continued, known the ÅOK (annual costs in Danish Kroner).
Seven out of the nine parties surveyed said it should initially be up so the pensions industry finds a solution to transparency, while two parties - the Socialist People's Party and the Red-Green Alliance - suggested there was a need for clearer legislation in this area.