The DWP has announced the results of its Red Tape Challenge for private pensions – looking at how the regulatory burden might be eased. The outcome is:
- simplification, consolidation and future-proofing of disclosure requirements (consultation on this was issued in February 2013);
- new statutory objective for the Regulator to support scheme funding arrangements that are compatible with sustainable growth for the sponsoring employer (this has already been announced and is included in the Pensions Bill);
- continuing examination of whether to make indexation for future accruals discretionary (this is part of the defined ambition exercise);
- further work to consider how the current processes relating to employer debt that cause difficulties for charities and others participating in multi-employer schemes could be improved;
- amendments to the regulations setting out the treatment of pension rights on bankruptcy to ensure compliance with EU treaty obligations; and
- minor improvements to regulations relating to the PPF, FAS and the Regulator.
Many in the industry had hoped for a wholesale review of some complex areas including scheme amendments, employer debt, revaluation, taxation and automatic enrolment. They may well be disappointed with the outcome. Even in the area of disclosure, where there is at least consultation on simplification and consolidation, there will not be a wholesale consolidation of current requirements .
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