Select committee presses govt on superfund commitment
On the go: The Work and Pensions Committee has voiced its concerns about the government allowing the creation of defined benefit superfunds in the absence of a dedicated regulatory regime.
Committee chair Frank Field wrote to Guy Opperman, the minister for pensions and financial inclusion, earlier this month to echo fears raised by the Pensions Regulator about a voluntary compliance regime.
The facilitation of commercial consolidators for DB schemes had long been one of the Department for Work and Pensions’ stated policy priorities, with a consultation on the matter closing in February.
However, shadow pensions minister Jack Dromey revealed recently that superfunds will miss out on a drastically shortened pensions bill. As it stands, no laws block the creation of consolidators, which would only have to seek clearance from the regulator on a voluntary basis.
The committee has asked Mr Opperman when a bill is likely to appear and whether consolidation will feature. If not, it has asked whether the government will block the creation of consolidators or strengthen the regulator via other means.
“It is clearly important to get the legislation right in this complex area. Leaving the risk that super funds become active in a regulatory system not designed to accommodate them, however, cannot be an option,” wrote Mr Field.