In the run up to the introduction of automatic enrolment, the Government has today launched a call for evidence to review the regulatory differences between trust-based occupational pension schemes and contract-based workplace personal pension schemes.
The call for evidence is the first step towards ensuring that the legislative framework for workplace pension schemes is straightforward and supports the goals of increasing individuals’ retirement savings.
Minister for Pensions, Steve Webb said:
"We need to ensure that differences in regulatory regimes don’t result in some people failing to save for their retirement. The use of short service refund rules is an area where we will take action if it appears the rules risk the success of the workplace pension reforms."
The Department is interested in views on potential solutions to address problems created by regulatory differences, particularly short service refunds which provide a valuable administrative easement. Any solutions will be considered against the benefits to individuals, the potential burden on schemes and employers, and the Government’s de-regulatory agenda.
The consultation will run for 12 weeks from 31 January 2011 until 18 April 2011.
Notes to Editors
- The call for evidence is available here: www.dwp.gov.uk/consultations/
- The Pensions Bill, which is currently in the Lords, will implement measures in the Making Automatic Enrolment Work review. The Pension Bill is available at www.dwp.gov.uk/policy/pensions-reform/ The review is available here: www.dwp.gov.uk/policy/pensions-reform/latest-news.
- The Pensions Act 2008 introduced measures to encourage greater private saving which includes workplace pension reforms due to come into effect in 2012. These included new legal duties requiring employers to automatically enrol eligible jobholders into a qualifying pension scheme; a compliance regime enforced by the Pensions Regulator; and a new workplace pension scheme, the National Employment Savings Trust (NEST).
- The Pensions Regulator (TPR) has also published a discussion paper on its approach to the DC pension market and this call for evidence should be read in conjunction with their discussion paper. The document is available at: www.thepensionsregulator.gov.uk/doc-library/consultations.aspx
http://www.dwp.gov.uk/newsroom/press-releases/2011/jan-2011/dwp011-11.shtml
http://www.dwp.gov.uk/consultations/2011/personal-pensions.shtml
PDF version Steve Webb (Minister of State (Pensions), Work and Pensions; Thornbury and Yate, Liberal Democrat)
Today the Government will publish their call for evidence on regulatory differences between trust-based occupational pension schemes and contract-based workplace personal pension schemes. We want to hear about areas where the existing rules or requirements appear to be at odds with our aim of getting people saving in a workplace pension. We do not want to see instances of regulatory differences being exploited.
In particular we are interested in views and evidence concerning the use of short service refunds and disclosure of information, which provide a valuable administrative easement for many occupational schemes but need to be considered carefully against the potential risk to the success of the workplace pension reforms.
Automatic enrolment will play a major part in reinvigorating the pensions landscape, bringing millions of individuals into pension saving. We need to make sure that the legislative framework for workplace pension schemes is straightforward and supports our goals of increasing individuals' retirement savings.
The Government will respond to the call for evidence in the autumn, outlining the actions we intend to take in response to the evidence presented.
A copy of the call for evidence document will be placed in the Libraries of both Houses, and is available on the Department's website at: www.dwp.gov.uk/consultations.
The Work and Pensions Committee will hold an oral evidence session with Steve Webb MP, Minister of State for Pensions in relation to the Committee's inquiry on the Government's plans for pension reform.
This session will take place on Wednesday 9 March 2011 at 9.30 am at the House of Commons (venue to be confirmed).
Watch the Committee meeting
http://www.parliament.uk/business/committees/committees-a-z/commons-sele...