Queen’s Speech brings Pensions Dashboard closer

Today’s Queen’s Speech, at the state opening of Parliament today, has brought the Pensions Dashboard closer and unveiled a number of other measures. The monarch pledged that her Government would focus on delivering “stability and new opportunities for the financial services and legal sectors” and would bring forward a Pensions Schemes Bill.The Bill would tackle “irresponsible” pension scheme managers.The Pensions Bill also proposes legislation which should eventually allow new ‘Collective Defined Contribution’ (CDC) schemes to be introduced in the UK. Promised action on internet security could also guard against online scammers. The legislative programme also brought the Pensions Dashboard closer being realised according to Margaret Snowdon, chair of PSIG. Ms Snowdon said: “PSIG is pleased to see the Pension Dashboards take a step closer to reality, because this will help people understand what they’ve got, but we wait to see if the Bill gets through Parliament. “We are disappointed that yet again, an opportunity has been missed to help limit the broad statutory right to transfer which encourages thousands of people to transfer their DB benefits to risky arrangements. “While limiting the statutory right is not a silver bullet, and could bring its own problems, at present we have limited weapons against scammers.” Tom Selby, senior analyst at AJ Bell, said: “The [Pensions] Bill sets out severe punishments for company directors who neglect defined benefit schemes. “This comes in response to a series of high profile corporate failures – most notably BHS and Carillion - which have resulted in members being hit with cuts to their pensions. “The new deterrents include a criminal offence for bosses who demonstrate ‘wilful or grossly reckless behaviour’ in relation to defined benefit schemes.“While the rhetoric here is tough, what constitutes ‘wilful or grossly reckless behaviour’ has not yet been spelled out. “Ultimately it may be the courts that decide how this sanction is applied in the real world.”While many of the proposed measures were welcomed, the speech was attacked for not including enough on pensions. Steve Webb, director of policy at Royal London, said: “This Bill is notable more for the things that have been left out than for what it contains. “The absence of vital measures on automatic enrolment and on regulating new ‘superfunds’ is a sign of a battle inside government where the Treasury once again has defeated the DWP. “As a result, the vital expansion of automatic enrolment is now on hold, and the regulation of pension superfunds has been left in regulatory limbo. “It is one of the biggest failings of UK pension policy that the Department with lead responsibility for pensions can be thwarted in bringing forward sensible reforms by an over-mighty Treasury which has no vision for pensions.”The speech also included new pledges on law and order, education, trade and the NHS and reaffirmed the Government’s commitment to leaving the EU on 31 October.

Queen’s Speech brings Pensions Dashboard closer

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