The landmark Pension Schemes Bill, bolstering protections for
savers and furthering the Government’s progress towards net zero
greenhouse gas emissions, has cleared its first hurdle in the
House of Lords.
The Bill will be taken through the House of Commons later this
year.
A headline measure in the Bill is mandating pension schemes to
adopt and report against the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD).
This will ensure occupational pension schemes take climate change
into account as both a risk and an opportunity, and compel
trustees to disclose how they have done so to their members and
the public.
Recent government amendments to the Bill take this further,
adding a requirement for schemes to take the Government’s net
zero targets into account, as well as the Paris Agreement goals
of limiting the rise of average global temperatures, for the
purposes of managing their own climate risk.
Minister for Pensions and Financial Inclusion, said:
With this Bill, we’re pushing ahead with our innovative and
ambitious pensions agenda, one that delivers for the record
numbers of people saving for retirement.
This Government has already taken a leading global role in
tackling climate change and cutting emissions. The measures
introduced through this Bill will help towards protecting the
planet and contribute to long-term member outcomes.
The Pension Schemes Bill is a milestone in bringing pensions
into the digital age. I am looking forward to guiding it
through the House of Commons.
Through the introduction of pension dashboards and steps to
protect savers from scams by tightening the rules and guidance
required around transfers, the Bill will advance the Government’s
goal of ensuring that savers are provided with the necessary
support and information they need to make informed choices about
their financial futures.
It will strengthen protections for pension savers by extending
the Pensions Regulator’s sanctions regime, introducing the power
to issue civil penalties of up to £1 million and three new
criminal offences, including a new sentence of up to seven years
in prison for bosses who run pension schemes into the ground or
plunder them to line their own pockets.
These new measures will deter employers from making reckless
decisions with their defined benefit schemes and strengthen the
Regulator’s powers to take efficient and timely actions to
protect members’ pension pots.
The Bill will also legislate for the creation of a new style of
pension scheme. Collective Defined Contribution (CDC) schemes
have the potential to increase returns for millions, while being
more sustainable for workers and employers.
These details are:
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The Pension Schemes Bill was introduced into the House of
Lords on 7 January 2020
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It completed its passage through the House of Lords 15 July
2020 (Today) and will now be introduced into the House of
Commons
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We anticipate second reading to be scheduled in due course
