Pensions Schemes Bill will bring much needed reforms – People’s Pension

People’s Pension the largest commercial master trust in the UK, has today described the Government’s Pensions Schemes Bill as a “pivotal moment”, which will shape a brighter future for both savers and the industry.

The Bill, which will be launched in Parliament today (June 5th) includes a raft of proposed market reform measures focused primarily on improving outcome and value for members, the growing scale of funds, consolidation of the pensions market as well as how pension schemes invest their members’ savings.

The highlights of the Bill include:
• The introduction of a “mega-funds” framework
• The introduction of value for money (VfM) metrics for workplace pensions
• A legal framework to embed the “default consolidator” means of consolidating small, deferred pension pots
• A new duty on schemes and Trustees to offer a default retirement product.

Commenting on the publication of the Bill, Patrick Heath-Lay, Chief Executive of People’s Partnership, provider of People’s Pension to seven million people, said:

“This is a pivotal moment in pension reform. The Bill contains many measures that will require providers to deliver better outcomes for savers and improve the workplace pension system. We are encouraged by the introduction of default consolidator schemes, which will be the most effective way to solve the dormant small pots problem.

“We’re also very pleased to see the inclusion of value for money metrics within the Bill as it is vital that savers better understand the real value that is offered by different providers.

“These reforms must prioritise savers, and we look forward to participating in a constructive dialogue with Government on how all the measures in this Bill can be implemented to achieve this, while continuing the success story of automatic enrolment.”

ENDS