UK - The Association of Consulting Actuaries (ACA) has endorsed the simplification of private pensions legislation and regulation by the government.
The government said that the aim of the move was to make the pensions policy system easier to understand and to reduce costs: “Complexity makes it difficult for pension scheme members to understand how their pension scheme is run and provides scope for bad practice to continue undetected.”
The ACA has been highly critical of the growing toll on pension arrangements caused by two decades of complex legislation and regulation.
Welcoming the review, Mike Arnold, chairman of the ACA, said: Alongside the pension tax simplification review already underway and the reform of the Minimum Funding Requirement, this review led by one of the pension industry’s leading figures offers great promise.”
He added that the ACA will be keen to assist Alan Pickering in the exercise.
The ACA welcomes the breadth of the terms of reference of the review and the challenge to have proposals ready by July 2002.
According to the Department of Work and Pensions, the review will:
- consider the principles behind the legislation as well as the processes and ensure that the law is proportionate to the policy purpose; - consider the means by which the regulatory framework is enforced;
- identify areas of simplification which can be achieved by secondary legislation and identify more fundamental reforms to be achieved by primary legislation;
- report to the Secretary of State by July 2002 with proposals for simplifying the regulatory framework that do not compromise the security of individual’s investments.
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