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Great Britain Pension Schemes Bill: superfunds regime, DC value-for-money enforcement, small-pot consolidation, trustee decumulation duties, Ombudsman powers, and PPF/FAS terminal illness reforms; PPF consolidator absent

Published on: 17 July 2024

Published by a Law360 reporter
Legal News
Article summary

The Pension Schemes Bill

Presented in the King’s Speech and set to extend across Great Britain, the Pension Schemes Bill introduces, among other elements, long-anticipated rules for commercial superfunds and a new value-for-money regime intended to weed out small, under-performing defined contribution arrangements. It is billed as ‘designed to increase the amount available for pension savers and could help an average earner, who saves over their lifetime in a defined contribution scheme, to have over £11,000 more in their pension pots with which to secure their retirement income.’ These steps build on proposals first trailed by the former Conservative administration and follow years of engagement with the industry. During the State Opening of Parliament, King Charles confirmed: ‘Bills will be brought forward to strengthen audit and corporate governance, alongside pension investment.’ Yet several anticipated changes are absent, notably the move to make the Pension Protection Fund (PPF) a public sector consolidator for smaller schemes that cannot achieve buyout in the commercial insurance market...

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