Employee Benefits poll: Half (52%) of employers said they were unsure if the new Pension Schemes Bill will help defined contribution (DC) schemes to prove they are value for money, according to a survey of Employee Benefits readers.
More than one-fifth (24%) of employer respondents said they think the new Pension Schemes Bill will help defined contribution (DC) schemes to prove they are value for money, while the same figure said they did not think the bill would help in this area.
In June, Employee Benefits reported that the government introduced the Pension Schemes Bill, which has been designed to make pensions easier to understand and manage, and drive better value over the long term.
The bill will work to ensure savers get good returns and drive economic investment by requiring defined contribution (DC) schemes to prove they are value for money to avoid underperforming schemes, simplifying retirement choices by all pension schemes offering default routes to a retirement income, and consolidating and professionalising the Local Government Pension Scheme, with assets held in six pools to invest in local areas infrastructure, housing and clean energy.
It will also bring together small pension pots worth £1,000 or less into one scheme certified as delivering good value, create new rules for multi-employer DC scheme megafunds of at least £25 billion, so bigger and better pension schemes can drive down costs and invest in a wider range of assets.
Liz Kendall, work and pensions secretary, said: “Hardworking people across the UK deserve their pensions to work as hard for them as they have worked to save, and our reforms will deliver a huge boost to future generations of pensioners. The bill is about securing better value for savers’ pensions and driving long-term investment in British businesses to boost economic growth in our country.”
