On the go: A radically stripped down pensions bill could appear later this month, according to the shadow pensions minister, as politicians try to squeeze in legislation before the uncertainty of Brexit and a new government kicks in.
Labour MP Jack Dromey told attendees at the Association of Member Nominated Trustees conference on Thursday that the bill will focus on delivering increased powers for the Pensions Regulator, enabling collective defined contribution schemes and creating the pensions dashboard, our sister title FT Adviser reports.
That means key features of the bill, including a framework for the safe operation of defined benefit superfunds, will not be included in the bill, according to Mr Dromey, who referred to the laws as “quickie” legislation.
In theory, consolidators like Clara-Pensions and The Pension SuperFund do not need legislation to begin receiving transfers from DB employers. However, the need for regulatory approval and the lack of government response to its consultation on the topic have put the brakes on – in April, Clara was eyeing a June deal but is now understood not to have submitted a deal for clearance.
Mr Dromey said: “DB consolidation will not be included in the Pensions Bill at this stage, but this doesn’t mean that this has been kicked into the long grass.”
The MP said he had hoped for a June bill, but has hopes it will still come out in July.
He said: “We still hope that the bill will be introduced this month, as I don’t want it to plunge into the uncertainty of what will happen in September and October when the government will be handling Brexit.
“The longer the delay, the more chance there is of another BHS or Carillion pension scandal,” Mr Dromey added.
