On the go: An independent review of the communications and support provided to steel workers as part of the British Steel Pension Scheme ‘Time to Choose’ exercise has called for better guidance for trustees to help them plan and manage a restructuring.
The comprehensive report, authored by former Money Advice Service chief executive officer Caroline Rookes, was commissioned by the Pensions Regulator.
It looks at whether lessons could be learned from the BSPS restructuring experience, and whether these lessons can help schemes facing similar situations in the future.
The review recommends legislative changes, such as legislation to simplify the choices in the event of a restructuring – whether through allowing a partial default into a new scheme or setting requirements for a new scheme to provide better benefits than the Pension Protection Fund.
It also asks whether there is scope for framing a new power for the Pensions Regulator to consider the preparedness of a scheme to handle the member consultation in the event of a regulated apportionment arrangement.
The report calls for more effective guidance for schemes on communication content, clarity and channels. The report also recommends a number of ideas for strengthening support for members thinking of taking a cash transfer.
It encourages collaboration between regulators and public bodies, and calls for more and better guidance for trustees facing restructure and other major changes.
The Pensions Regulator, Financial Conduct Authority and Single Financial Guidance Body today issued a joint statement welcoming the review and outlining how they are “already working closely together to provide an increased level of support to trustees and scheme members where there is uncertainty around the future of a DB pension scheme”.
