Pension Schemes Bill passes through final Parliamentary stage
20 January 2021
The Pension Schemes Bill, first introduced in the Queen’s Speech on 14 October 2019, has passed through the final stage of Parliament, and will shortly receive Royal Assent.
The first reading of the Bill took place on 7 January 2020, as the general election back in December 2019 delayed its initial debate in Parliament. It was postponed again due to the outbreak of COVID-19, as the Government had to turn its focus towards emergency health legislation, implemented to curb the spread of the virus.
The Bill includes rules surrounding the long-awaited pension dashboards, new powers that will be awarded to The Pensions Regulator (TPR) and collective defined contribution schemes.
In the final reading of the Bill, on November 16 2020, the House of Commons voted against an amendment, which would have meant that the Government had to contact members five years prior to them being able to access their pension pot, to offer them an appointment with Pension Wise. There was also deliberation over whether pension dashboards should let users engage in financial transactions, including the merging of pension pots and transfers between providers.
Experts have stated that secondary legislation is required in order for the changes to come into effect, so none of the changes will happen straight away.
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