Defined Ambition legislation expected in 2015
24 February 2014
Legislation for defined ambition (DA) pension schemes is expected to reach Parliament in 2015, allowing the necessary changes to take effect before contracting-out ends in 2016.
A consultation ‘Reshaping workplace pensions for future generations’ was published in November which looks to provide a way forward towards both reforming and reinvigorating workplace pensions.
The Defined Ambition Industry Working Group was set up in the summer of 2012 to look at the market gap in relation to affordable pension guarantees and to provide the products consumers are seeking. Over the year this Group held extensive discussions with a wide range of providers and employers and the proposals contained within this consultation provide a way forward towards both reshaping and reinvigorating workplace pensions. They offer a range of new options that will be attractive to different employers and their employees – all part of a new framework that looks beyond the current regulatory extremes of defined benefit and defined contribution.
According to a report by Professional Pensions a spokesman for the Department for Work and Pensions (DWP) said there was no firm timeline to publish a response to the consultation, but it will be made public “in due course" and “This will require some sort of legislative vehicle. We would be looking to see if this is in the Queens' Speech; if it is, we would expect this to be a bill in the next parliamentary session."
Previous related CIPP news
- Defined Ambition workplace pensions consultation published - 8 November 2013
- Pensions update on Defined Ambition scheme proposals - 11 November 2013