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The Pension Schemes Bill at a glance

19th August 2020

The Pension Schemes Bill currently awaiting a third reading in the House of Lords will significantly change the legal and regulatory framework governing defined benefit pension schemes, most specifically by making a wide range of pensions related actions a criminal offence.

It remains doubtful whether Parliament will have time to progress the Bill before the Autumn but to keep you up to date, here is a very quick ‘at a glance’ summary of the key points:

With a Collective Money Purchase Scheme – or as they’re also known, the Collective Defined Contribution  or CDC scheme – both the employer and employee contribute to a shared fund from which the employee would draw their income from following their retirement.

The reason the government is keen to introduce this type of scheme is that unlike a defined benefit scheme pension, CDC schemes only offer a ‘target income’ that can be adjusted if a scheme is over- or under-funded.

It is envisaged there will be a number of PDS platforms as the Money and Pensions Service will also be obliged to provide information about the entitlements members of occupational and personal pension schemes should expect and trustees will also be expected to make additional information available relating to their schemes via PDS.

As auditors to a large number of pension schemes, if we can help you in any way of you have any questions regarding your audit, please call Robert Radford on 0116 282 7000 or email him at robert@rowleys.biz.  

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