The Pension Scheme Bill

October 2019 saw the Queen’s speech confirming the implementation of the pensions schemes bill, proposing not only the establishment of pensions dashboard but also the introduction of collective defined contribution (CDC) schemes for the first time in the UK. Under this new bill, the TPR’s regulatory power will also be strengthened, introducing new criminal offences and making adaptions to the penalties regime.

Guy Opperman provided further insight into the bill, which we know now includes 45-50 clauses for CDC schemes and compulsion for the pensions dashboard. The bill is also set to limit transfer rights and make revisions to the Pension Protection Fund compensation.

The bill was also met with some disappointment, referred to some as the ‘Pensions lite bill’. Failing to include regulation on DB consolidation, “no vision” for AE reforms and coming in the midst of Brexit preparations, many people were left unsatisfied by its proposed reforms.

Nevertheless, Royal Mail is set to initiate the first CDC scheme, with other large-scale employers potentially following suit. The strengthening of TPR enforcement will also bring with it stronger deterrents against improper behaviour and an increased commitment to a clearer, quicker and tougher regulation.