5 June 2025
Responding to the UK Government’s release of the Pension Schemes Bill, Debbie Webb, Pensions Board Chair at the Institute and Faculty of Actuaries (IFoA), said:
“The Pension Schemes Bill is an ambitious and significant step in facilitating change to the UK pensions system. We remain supportive of the Government’s efforts to improve outcomes for pensions savers and stimulate more growth in the UK economy. The Bill has many positive aspects, including rules that allow surplus funds in defined benefit (DB) schemes to be used to help members, employers, and the economy. It is positive that the Government recognises that trustees are best placed to make decisions on surplus. Stakeholders will need time to review the bill in detail, though we look forward to working with government and the Pensions Regulator to ensure that the requirements are clear, practical and scheme specific, but ensure members’ benefits are protected and avoid unintended consequences.
“We are also pleased to see progress through the Bill on numerous other issues. These include consolidating small defined contribution (DC) pots, introducing DC decumulation requirements and helping DC schemes to deliver value for money, as well as legislation to support the creation of superfunds.
“The IFoA believes that the foremost purpose of DC pension schemes is and will always be to provide good outcomes for members in retirement. With regards to provisions in the bill on pension scheme investment, the needs of pension savers should be the driving factor in investment decisions. This means government must balance the need for sufficient investment in growth assets with the associated risks and costs.
“Consolidation can help access economies of scale and improve governance but does not come without risk. Compulsory investment in certain sectors (such as unlisted UK assets) may expose schemes and members to higher investment risk, costs, reduced liquidity, and lower diversification.”
~ENDS~
Hannah Patmore, Communications Manager, IFoA
Tel: 07519106714
Email: hannah.patmore@actuaries.org.uk
The Institute and Faculty of Actuaries (IFoA) is a royal chartered, not-for-profit, professional body.
Research undertaken by the IFoA is not commercial. As a learned society, research helps us to fulfil our royal charter requirements to further actuarial science and serve the public interest.
Actuaries provide commercial, financial and prudential advice on the management of a business’s assets and liabilities, especially where long term management and planning are critical to the success of any business venture. They also advise individuals, and advise on social and public interest issues.
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