Its first measure will be to ban consultancy charges in automatic enrolment schemes. The new legislation will also ban employers from reimbursing themselves from their workers' pension savings pots for costs paid to consultants for advice.
Trade groups including the National Association of Pension Funds (NAPF) have criticised the measures, but some consumer and labour groups have welcomed them.
In the past six months, the Government has conducted a thorough review of consultancy charges and concluded existing measures to prevent advisers deducting high charges from members' pension pots are inadequate.
It also found consultancy charges can have a disproportionately negative impact on people who move jobs regularly.
Pension minister Steve Webb said: "With millions of people taking up pension saving for the first time under auto-enrolment, we have to give people confidence they will get good value for money."
Chief executive of the NAPF Joanne Segars agreed excessive consultancy charges can be a "serious problem" but said a "blanket ban" is just too "simplistic".
She added: "Employers should not be allowed to pass on charges for advice that does not directly benefit the saver, such as guidance on complying with auto-enrolment laws.
"But sometimes savers can benefit from the advice that comes with these charges. They may find that their pension is better governed and that they get stronger communications about their savings."
Paul Wilson, head of employee benefit consulting at Barclays Corporate and Employer Solutions, said: "We have always believed consultancy charging and auto-enrolment would not work together and so decided not to offer the option of consultancy charging to clients.
"We welcome the changes announced today which allow for greater transparency, however, as ever, the devil is in the detail."
He added: "The fact that this ban applies only to auto-enrolment schemes could cause confusion and potentially add another layer of complexity regarding which schemes can use consultancy charging."
The Government has also announced the launch of a consultation on setting a cap on the maximum charge that can be levied on savings in default funds, which account for 80% of pension pots.
The Office of Fair Trading is conducting an inquiry into pension savings and a consultation paper on capping charges is expected to be released after the report is completed this summer.
