UK proposes greater power for Pensions Regulator

20 March 2018
| By Hannah |
image
image
expand image

The Department for Work and Pensions (DWP) in the United Kingdom has proposed giving the Pensions Regulator the power to fine employers who deliberately place defined benefit (DB) schemes at risk, as it takes a tough line with bosses.

In a much-anticipated white paper released this week, the DWP outlined its plan to safeguard the £1.5 trillion DB pension sector, giving the Regulator greater power to try to protect pension scheme members.

The DWP emphasised that it would strive to ensure that the proposals improved “the effectiveness and efficiency” of the Regulator’s anti-avoidance powers while mitigating any “adverse effect on legitimate business activity and the wider economy.”

Secretary of State for Work and Pensions, Esther McVey, told the British Parliament that it was important to ensure that DP system delivered retirement income

“As we said when we published the green paper, DB schemes are an important pillar in the UK economy. We know the vast majority of employers with these schemes want to do the right thing by their employees,” she said.

“However, to help trustees and employers work even more effectively towards a long-term goal, we are introducing changes to scheme funding. Where employers want the best for their employees, we want to ensure that the system supports this.”

Pensions expert at Old Mutual Wealth, Ian Browne, told International Investment in the United Kingdom that the recommendations were “squarely in favour of pension scheme members” as it gave the Regulator the ability to take “a tougher and more proactive role.”

“The long-awaited government white paper on Defined Benefit Schemes placed the Pensions Regulator at the heart of its solutions, with the ‘regulator’ referred to 357 times in the 76-page report,” Browne said.

“The White Paper took a tough line with employers and its recommendations were squarely in favour of pension scheme members.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

11 months ago
Kevin Gorman

Super director remuneration ...

11 months 1 week ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

11 months 1 week ago

Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Co...

1 day 5 hours ago

Demand from institutional investors was the main driver of growth in Australia’s responsible investment (RI) market in 2023, as the industry continued to gain momentum....

1 day 5 hours ago

In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges....

1 day 6 hours ago