The new Pension Schemes Bill will be published today, after being introduced to the House of Lords yesterday.
This bill — which was included in the recent Queen’s Speech — contains legislation to boost the power of the pensions regulator, introduce Collective Defined Contribution (CDC) schemes, and provide a framework for the pensions dashboard.
This bill was initially introduced before the election but failed to make it onto the statute books before Parliament was dissolved.
Many in the industry are hoping for a quick passage through Parliament, but no dates have been set out for its progress or royal assent.
The Pension Regulator’s chief executive Charles Counsell says: “We welcome the prompt re-introduction of this bill and look forward to working with the Department of Work and Pensions as it progresses.
“The bill will give us the power to set and enforce clearer scheme funding standards in Defined Benefit pension schemes, while also providing early warning of potential problems.
“Where problems do arise, new criminal sanctions and civil fines will act as a strong deterrent against risky and reckless behaviour, giving us flexibility to issue fines at the appropriate level, depending on severity.”
The TPR said it was also working closely with government to ensure an effective regulatory regime for new CDC schemes to ensure they provide better outcomes for savers and employers without increasing risk.
Counsell adds: “We support new powers to protect individuals’ pension savings. Pension dashboards will be a vital tool for savers to understand their pensions and plan for retirement.”