On the go: The Department for Work and Pensions has reintroduced its pension schemes bill in the House of Lords, after the December general election delayed its debate in Parliament.
Pensions and financial inclusion minister Guy Opperman had originally promised a "refined" version of the bill presented in the last Queen's Speech, but according to DWP sources the new incarnation remains unchanged.
New powers for the Pensions Regulator in relation to defined benefit schemes form a key pillar of the legislation, along with the creation of collective defined contribution schemes and steps to facilitate the pensions dashboard.
Key features of the pensions bill
Providing a framework for the establishment, operation and regulation of collective money purchase schemes (commonly known as CDC pensions).
Strengthening the Pensions Regulator’s powers and the existing sanctions regime. This will include introducing new criminal offences, with the most serious carrying a maximum sentence of seven years’ imprisonment and a civil penalty of up to £1m.
Giving the regulator powers to obtain the right information about a scheme and its sponsoring employer in a timely manner, ensuring that it is able to gain redress for pension schemes and members when things go wrong.
Providing a framework to support pensions dashboards, including new powers to compel pension schemes to provide accurate information to consumers. This will include provisions for the regulators to ensure relevant schemes comply.
Creating regulations to set out circumstances under which a pension scheme member will have the right to transfer their pension savings to another scheme.
Improving the DB scheme funding system by requiring a statement from trustees on their funding strategy.
Amending the legislation for the Pension Protection Fund compensation regime to enable the fund to continue to apply the compensation regime as intended and amend the definition of administration charges.
Mr Opperman said: "With this bill, we’re pushing ahead with our revolutionary pensions agenda and delivering for the millions of people brought into saving for later life by our reforms.
“We’re ensuring those who put pension schemes in jeopardy feel the full force of the law, transforming the way people get information about their retirement savings and introducing a new pension that could boost returns for millions.
“This legislation is the crucial next step in making the UK the best place in the world to retire.”
