‘Gamechanger’ Pension Schemes Bill laid in Parliament

The Pension Schemes Bill is being introduced into Parliament today. Intended to “transform the £2 trillion pensions landscape to ensure savers get good returns for each pound they save, and drive investment into the economy”, the wide ranging suite of measures includes increased flexibility for DB pension schemes to release surplus, legislating for DB superfunds and DC megafunds, requiring occupational DC schemes to deliver value for money, simplifying retirement choices by requiring all schemes to offer default routes to retirement income, and bringing together small pension pots worth £1,000 or less under a single roof.

Commenting on the changes, David Saunders, senior partner, says: “Described by the Government as a ‘game changer’, the Bill paves the way for some very major pensions developments. But a Bill’s passage through Parliament is a long and winding road, and there could be several twists and turns along the way. With detailed regulations to follow in many cases, there is therefore still a lot of ground to cover before the Bill’s provisions reach their ultimate destination as law.

New obligations included in today’s Bill represent the culmination of many years’ work in some instances. But the scale of some of the changes, coupled with ambitious Government timescales, means that the pensions industry should take a collective deep breath to ready itself for the weeks and months ahead.”