Pension Schemes Bill becomes law
Both the House of Commons and the House of Lords have agreed on the text of the Pension Schemes Bill 2016-2017, which received Royal Assent on 27 April 2017.
This is the final stage of the Bill going through Parliament and becoming an Act, making it law.
The Bill will improve the protection available to master trusts by giving greater powers of intervention to the Pensions Regulator and will make scheme authorisation necessary.
The Pension Schemes Bill aims to:
- protect savers and maintain confidence in pension savings;
- ensure that those saving into a Master Trust scheme, a form of multi-employer occupational pension scheme which employers are able to select for their workers rather than needing to set up their own pension scheme, are protected; and
- amend existing legislation to support the Government’s intention to cap early exit charges and ban member-borne commission charges in certain occupational pensions schemes.
Hargreaves Lansdown Senior Pension Analyst, Nathan Long, said:
“Members of certain workplace pensions like Group Personal Pensions or Group SIPPs already benefit from rules to protect them. The rubber stamping of this legislation is a solid step forward in bringing master trusts and other occupational schemes more in line.
“Nobody should be less well protected simply because of the pension chosen by their employer. In fact, we would like to see the next government build on this by allowing employees choice over the provider to which their employer pension contributions are paid. Doing so would prevent the endless merry-go-round of having to change the home for your retirement savings just because you have changed jobs.”