UK - The decision to postpone provisions for new member-nominated trustee arrangements and end employer opt-outs was welcomed by consultants William M Mercer yesterday.
Short draft regulations were published by the Department for Work and Pensions which allow pension schemes to extend the approval of current arrangements beyond their original six years.
The now-postponed proposals to change existing trustee selection arrangements prescribe too much detail, and would have thrown into disarray arrangements that work perfectly satisfactorily, said Paul Greenwood, worldwide partner at Mercer.
The new provisions, included in the Child Support, Pensions & Social Security Act 2000, were aimed at achieving greater member representation on trustee bodies, but their introduction has been further delayed due to complications.
The Department for Work and Pensions is now likely to wait until the summer when the review by Pickering to simplify pension scheme regulation has been carried out.
The extension to the current six-year period will be a huge relief to the pensions industry, employers and trustees. It will give them more time to consider the implications of the new provisions and plan for their implementation, said Greenwood.
He added: Mercer looks forward to seeing more flexibility in member-nominated trustee arrangements in the future, and hopes that Pickering’s review will help loosen the grip of regulation on employers and trustees.
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