Government publishes proposals to reverse decline in membership of workplace pensions and restore tr
The Government has today published its first proposals to rebuild confidence and trust in workplace pensions.
A paper called, Reinvigorating Workplace Pensions, contains new ideas for sharing the risks more equally between employer and employee, and for helping people get the most out of what they save in a pension.
The paper includes a range of ideas for restoring confidence in pensions, including:
- the creation of new Defined Ambition pensions;
- achieving greater scale in pension funds;
- more transparency on charges; and
- other ways to help people recognise a good pension scheme.
The paper draws on extensive discussions with pension providers, actuaries, investment firms and lawyers, including with an industry working group led by Andrew Vaughan, Chair of the Association of Consulting Actuaries. It contains an emerging strategy on how to deliver real and significant change.
This follows a challenge to the industry earlier this year by the Pensions Minister to develop more attractive and affordable ways to save.
Steve Webb, Minister for Pensions, said:
“Automatic enrolment is a huge step forward, but it's only the start; we must ensure people are saving in high-quality, value-for-money pension schemes.
“For nearly half a century, we have seen declining numbers of people in workplace schemes - I am determined to reverse this trend and ensure we have pensions that are affordable to employers and attractive to employees.
“To rebuild confidence and restore trust in our pensions system, we need better value-for-money, good governance and greater transparency. The ideas we are publishing show the progress we are making on these issues.
“Now is the time to reinvigorate workplace pensions, if we simply stand by as too many previous Governments have, another generation could miss the chance to put something by for their old age.”
The document is available here.