UK - Key measures of the government's pension reforms package include:
- The introduction of a Pensions Protection Fund to guarantee current and deferred members 90% of their pension, and retired members 100% of their pension, when a sponsoring company becomes insolvent. This will be funded using a “per member” levy and a second levy which relates to a scheme’s solvency position.
- Reducing mandatory indexation from 5% to 2.5%.
- A requirement on solvent employers which choose to wind up their pension schemes to meet their pension promise in full. This will be retrospective from June 11.
- Replacing the minimum funding requirement with scheme-specific funding arrangements.
- Setting up a new pensions regulator which will concentrate on rooting out fraud and bad practice.
- Revising the priority order which applies on wind-up to ensure the fairest possible sharing of assets between pensioners and current/deferred members.
- Extending TUPE rules to cover pension schemes for workers in the private sector.
- Reduction of the maximum vesting period in pension schemes from two years to three months.
- A requirement for employers to consult workers before making changes to pension schemes to ensure they are developed in partnership with the workforce.
- Increasing the flexibility for schemes to rationalise the structure of their benefits by massively overhauling section 67 of the Pensions Act.
- Simplifying contracting-out – including changes to the administration of guaranteed minimum pensions.
- Removing the requirement to provide facilities for Additional Voluntary Contributions.
- Extending combined pension forecasting across the private pensions industry.
- Raising the normal pension age for public service pension schemes from 60 to 65.
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
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The Pensions Regulator (TPR) has granted Now Pensions a six-week extension for its master trust authorisation application after the 31 March deadline, PP can reveal.