The Society of Pension Professionals (SPP) has submitted its response to the Pension Schemes Bill Committee’s Call for Evidence, backing many of the Bill’s objectives but raising concerns over key provisions.
The Pension Schemes Bill sets out reforms across LGPS, DB and DC schemes. These include LGPS fund consolidation, DB surplus sharing, a permanent DB superfund framework, DC small pot consolidation, Value for Money reporting and default retirement products. The Bill also strengthens the Pensions Ombudsman’s powers and updates the Pension Protection Fund (PPF) and Financial Assistance Scheme (FAS).
The SPP’s response supports measures on PPF levy flexibility, surplus release, default decumulation and steps to improve Value for Money in DC schemes. It also restates opposition to the government’s proposed reserve power to mandate investment in private markets, a position outlined in its recent Power in Principle? paper.
SPP also set out recommendations to strengthen the Bill which includes changes to default decumulation to address trustee liability, compliance with equalities legislation and data protection. It calls for the FCA to monitor Value for Money rules to ensure parity with occupational schemes. The response further urged inclusion of a clause scrapping the PPF Administration Levy.
SPP president Sophia Singleton says: “The SPP very much supports the Pension Schemes Bill and, as always, we are committed to assisting policymakers in delivering the best possible outcomes for the UK economy, industry and most importantly savers. Our response to this Call for Evidence makes a number of constructive suggestions to help further improve the legislation whilst also making clear the strength of SPP’s opposition to the threat of mandation.”
