Policy reform still achievable despite no Pensions Bill in King’s Speech

The Pensions and Lifetime Savings Association (PLSA) comments on the King’s Speech.

Nigel Peaple, Director Policy & Advocacy, PLSA, said: “Earlier this summer, the Government set out very ambitious plans for a wide range of reforms on pensions. These covered both DB and DC pensions, accumulation and decumulation, the consolidation of pension funds and the quality of those managing and advising them. Some of these changes require primary legislation, a Pensions Bill, but others can be driven forward by secondary legislation or guidance.

“While the absence of a Pensions Bill in the King’s Speech does mean we won’t have a statutory basis for some of these initiatives, for example, support for savers at retirement, DB Superfunds, and Small Pots, we do expect Government and regulators to continue to pursue these objectives through guidance and standard setting. Indeed, some of the recent speeches by the CEO of the Pensions Regulator on consolidation and value for money make this very clear. Moreover, following the Government’s support for a Private Members Bill in the last session, we expect the Minister for Pensions to shortly propose secondary legislation to increase automatic enrolment contributions by introducing saving from the first pound of earnings and from age 18 instead of 22.

“Although it is disappointing that the Government did not include a Pensions Bill in today’s announcements, its absence will mean more time can be allocated to ensuring any reforms are well designed after in-depth consultation with the pensions sector. The PLSA looks forward to feeding into such work as it arises.

“Finally, we still believe it very likely that the Government soon will take more action on pensions, this time in the context of UK growth, at the forthcoming Autumn Statement. The PLSA recently proposed six necessary policy and regulatory reforms aimed at providing support to pension funds that wish to invest more in UK growth assets.”