Pension Schemes Bill

Key Points

• Introduces a formal Value for Money framework with publicly accessible, standardised data for pension schemes.
• Tightens asset allocation rules for master trusts and group personal pensions, defines qualifying assets, and adds exemptions for some innovative schemes; includes long‑term timing and repeal considerations.
• Creates a new authorisation regime for “superfunds” with capital buffers and ongoing regulator oversight.
• Adds governance and member-voice reforms (including reviews of how members’ views are used in decision‑making) and reporting on market consolidation and retirement incomes, plus climate-risk and data‑accuracy requirements.
• Explores a pathway to move the AWE Pension Scheme into a new public scheme with member protections; includes GMP equalisation provisions and potential Pension Protection Fund payouts; broad reviews of public service pensions and retirement guidance.
• Includes measures on consolidation of dormant pots, universal pension advice, and cross‑UK regulatory extent; addresses implications of court decisions affecting salary‑related pensions.

Progress

The bill is currently in the Lords, in the stage “Consideration of Commons amendments and / or reasons” after a lengthy exchange of amendments between the Lords and the Commons. The discussions focus on asset allocation rules, governance, transparency, and moves toward public schemes, with ongoing negotiations to resolve differences.