In February this year, the Department for Work and Pensions published a Green Paper looking at what more needs to be done to ensure consumer confidence and secure the future of defined benefit (final salary) pensions schemes.
Building on this Green Paper, the Department intends to publish a White Paper later this year which will set out proposed next steps on what reform is needed to support the sector. It will address the commitments in the Government’s manifesto in relation to the regulation and rules governing defined benefit private pensions. The paper will also consider innovative delivery structures, such as consolidation and measures to drive efficiency within the sector.
While the sector is broadly working as intended, the White Paper will consider the need to evolve and adapt the regulatory regime to improve security for members. With more than £1.5 trillion invested in these schemes, people need to have confidence that they are resilient and robustly regulated.
The Government wishes to ensure that the defined benefit pensions system continues to balance the needs of consumers, the schemes themselves and business for the future.
Throughout the Green Paper process the Department has worked closely with a range of external stakeholders to develop sensible policy proposals. We are grateful to those who have contributed to the consultation and it is our strong intention that this collaboration should continue throughout the White Paper process.
This statement has also been made in the House of Lords