The Work and Pensions Committee has launched an inquiry into the government's recent white paper on defined benefit security and sustainability, asking how the proposed measures are likely to be most effective and whether legislation should be fast-tracked.
The Department for Work and Pensions said any legislation can only be brought into effect in 2019-20 at the earliest. The select committee is asking whether this should be brought forward, along with questions on the definition of 'prudence' and how to create an effective clearance regime.
Written submissions can be sent to the committee until May 18, addressing:
To what extent is improving the Pension Regulator's effectiveness a matter of greater powers, better use of resources or cultural change in the organisation?
What can be done to strengthen the regime for clearing corporate transactions (like dividend payouts, selloffs, and takeovers) that might weaken a pension scheme?
Will a criminal offence provide a meaningful deterrent?
What should "prudent" and "appropriate" scheme funding mean?
How can consolidation of the fragmented DB landscape be best achieved?
Given the difficulties facing DB schemes, is a faster legislative timetable warranted?
A spokesperson for the regulator said the white paper would support its "ongoing drive to be clearer, quicker and tougher in the way it regulates".
They added: “Through our TPR Future programme, we have taken stock of the changes faced by the pensions industry and we have already started implementing a wholesale review of our approach to regulation so that we are ready to meet the challenges of the future.”
