The Pensions Bill is the final legislative stage in the implementation of its comprehensive and inter-related package of reform to the UK ’s pension system.
This Bill provides further details about the government’s personal accounts scheme that it plans to introduce in 2012 as well as some deregulatory measures affecting occupational pension schemes.
Containing 111 Clauses and 8 Schedules, the Bill (together with explanatory notes and an impact assessment), can be accessed here.
Personal Accounts
The main provisions in the Pensions Bill relating to personal accounts cover are as follows:-
(a) Automatic enrolment into a qualifying workplace pension scheme from 2012,
(b) The introduction of the new personal accounts scheme designed for those employers who currently do not run a pension scheme,
(c) Executive powers for the Personal Accounts Delivery Authority (PADA), allowing PADA to design this scheme “at arm’s length from Government”; and
(d) A role for the Pension Regulator as the compliance body for these reforms, ensuring employers meet their new obligations.
Deregulation of Private Pensions
In addition, the Bill contains some deregulatory measures relating to occupational pension schemes, particularly a reduction in the annual cap on the revaluation of deferred pensions from 5% to 2.5% for future accruals from when this change is introduced. This is a change for which EEF had lobbied.
The government also published its response to the recent consultation on the deregulatory review of private pensions on 5 December 2007. A copy of the response can be accessed here.
Future Timetable
It is anticipated that the Pensions Bill will probably have its Second Reading in the House of Commons on 7 January 2008 and then go into detailed Committee stage discussions for about six weeks soon afterwards.
The government is planning to use the recently introduced Parliamentary procedure to have both written evidence submitted to the Bill Committee and for a number of witnesses to be invited to give oral evidence. EEF will be submitting written evidence and we anticipate that we will also be invited to give oral evidence.
A copy of the press release that we issued on the Pensions Bill is attached as an Appendix.