New Pensions Bill should protect savers and build on success so far
27 May 2016
The new Pensions Bill was announced in the recent Queen’s Speech. The Pensions and Lifetime Savings Association (PLSA) has laid down five ways that the government can make it a Pensions Bill for savers:
Ensure stable pensions policy by establishing an Independent Retirement Savings Commission
A commission will help ensure savers’ long-term interests are at the heart of pensions policy and rebuild savers’ belief that they can save for their retirements today, confident the goal posts won’t be moved radically tomorrow.
Safeguard savers from scams by removing transfer requirement on trustees
The Pensions Bill should ensure that any scheme receiving a transfer would have to be listed on a registry of legitimate transfer schemes maintained by the Pensions Regulator Help savers make good decisions under pension freedoms by empowering trustees.
Help savers make good decisions under pension freedoms by empowering trustees
The Pensions Bill should give trustees and providers powers to help savers spot good value products that are likely to work for them by signposting scheme members to products with a Retirement Quality Mark.
Ensure all savers in Master Trusts are protected by improving regulation
The Pensions Bill should grant power to the regulator to make sure all Master Trusts have strong financial backing and competent trustees.
Help defined benefit schemes by simplifying administration and GMP conversion
The Pensions Bill should amend the Pension Schemes Act 1993 and clarify the legal process for conversion of GMPs to scheme benefits.
Joanne Segars, Chief Executive, Pensions and Lifetime Savings, said:
“Thanks to automatic enrolment, over six million people are saving in a workplace pension today who were not six years ago and pension freedoms have given people a sense of autonomy and possibility about how they can use their pension savings - but there is still work to do.
For the millions of people saving through automatic enrolment we must make sure their money is working hard for them and is secure in strong and high quality schemes. For many savers who now want to make use of their hard-earned savings it seems pension freedoms bring as many questions as answers – and savers will be looking to schemes and providers for help.
This Pensions Bill is an opportunity for the Government to secure the success of automatic enrolment and pension freedoms.As importantly, it should lay down a sure foundation for a long-term savings policy in the UK and establish a pension commission.”
Click here for further details on the PLSA’s recommendations.