DWP consultation - Reshaping workplace pensions for future generations – An NAPF response
The NAPF has long argued for a more principles-based and less prescriptive regulatory regime for occupational pensions. One that encourages employers to offer good quality, sustainable workplace pensions that can better balance the risks of pensions saving between scheme members and their employers. The current regulatory landscape actively discourages employers from offering hybrid solutions as once an element of ‘defined benefit’ (DB) is introduced into the scheme employers have to comply with the full weight of DB regulations.
Defined Ambition offers a once in a generation opportunity to overhaul the tax and legislative system for occupational pension schemes and develop a legislative framework that allows a variety of models to develop in the future as our pensions landscape continues to evolve.
However, the timing of any DA legislation will be critical, if employers contracting in their DB pensions between now and 2016 are going to be able to take advantage of this new framework. In this response the NAPF calls on the Government to legislate for the new DA framework at the earliest possible opportunity and to set out a clear timetable for employers so they have clarity about how they may be able to apply the new framework.