UK - Mellon Human Resources and Investor Solutions has called for the establishment of a new pensions authority to help create a more stable and cost-effective system for pensions in the long-term.
The radical plan has been devised by Mellon’s head of technical services, Kevin LeGrand. The authority would comprise experts from the pensions industry.
Mellon believes the new authority should be given the freedom to draft legislation - in the same way that the Bank of England sets interest rates with the idea of placing a greater weight upon the views of full-time pensions experts, rather than politicians.
LeGrand believes the authority should comprise experts in actuarial work, law, accountancy, taxation and employment who would be drawn from the Treasury, the departments for work and pensions, trade and industry and employment.
He said: “There should be greater weight placed upon the views of full-time pensions experts, and the means found to carry those through into practice.”
“Anybody who has looked at pensions legislation and has lived with it over the years has come to the conclusion that there is an awful lot wrong with it, but all we do now is change little bits of it in isolation.”
Le Grand believes the authority would need to amend a great deal of what is already in the Pensions Bill and that this change would initially be painful. But, he says, in the long-term it will create a more stable and cost-effective system.
UK inflation unexpectedly rose to 2.7% in August, beating analysts' expectations of a drop to 2.4% from 2.5% the previous month.
The Pensions Advisory Service (TPAS) helped 187,000 people in 2017/18, a 9% fall on the previous year despite setting up special helplines for specific scheme members.
The Liberal Democrat party has passed a motion pledging to cap tax-free lump sums under Freedom of Choice at £40,000 if elected into government.