The National Association of Pension Funds (NAPF) has called on the industry to help it identify and overhaul unnecessary legislation for the Government’s ‘Red Tape Challenge’.
The NAPF is keen to hear from its members about aspects of pensions legislation and regulation which may not be relevant or fit for purpose. The best examples can then be put to the Government, which has pledged to launch a pensions ‘spotlight’ later in the spring and review existing regulation to weed out any rules that are not needed.
Darren Philp, NAPF Policy Director, said:
“We have seen around 1,000 new pensions regulations since 1995. With pensions under pressure, this is a very good time to stop and question whether there is regulation which can be cut. Outdated regulation can be both an expensive burden and a block to innovation.
“It is important to protect people’s benefits, but we also need to encourage employers to support pension provision - it is a question of striking the right balance.
“The Government pledged to reinvigorate workplace pensions and the NAPF is keen to see more concrete action. We’re calling on our members and the pensions industry to think about which regulation is still relevant, necessary and fit for purpose.”
An NAPF survey last autumn found that 9 out of 10 respondents said that the time they were spending on dealing with regulation had increased significantly over the last three years. And one in five said costs had increased by more than 25% in that timeframe.
The survey revealed several areas where the pensions industry wanted simpler regulation, including: member communications, deficit recovery plans, Guaranteed Minimum Pensions and the indexation of pensions for future accrual.
The main focus of the Government’s Red Tape Challenge is domestic legislation and regulation. But it is also interested in hearing about International and European legislation that is transposed into UK law and regulation, tax administration, and burdens on workplace pensions created by other guidance and codes of practice.
The deadline for responses is Friday 16 March 2012. Responses can be emailed to [email protected]. More information can be found on the NAPF website at www.napf.co.uk/policyandresearch/CFE_Better_Regulation
Notes to editors:
The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,200 pension schemes with some 15 million members and assets of around £800 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]
Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]