The National Association of Pension Funds (NAPF) has commented on the Second Reading of the Pensions Bill which was debated in Parliament yesterday (Mon).
Darren Philp, Director of Policy, NAPF, said:
“We welcome the Pensions Bill passing its second Parliamentary hurdle last night. We are delighted that this landmark Bill is on course to tackle key areas relating to our State Pension and will create a simpler, fairer system that encourages retirement saving.”
However, the NAPF voiced concerns about plans for the automatic transfer of small pension pots.
Mr Philp said:
“We are disappointed that the Government is pushing ahead with legislation on small pots. We agree it should be easier for people to combine pension pots and we recognise the increase in pots that will arise from automatic enrolment. However, the current proposals could result in members’ pots being transferred from good pensions into bad ones. They are also likely to result in considerable costs for pension schemes and employers.
“The Government needs to revisit this issue as the Bill progresses through Parliament to try to find a suitable solution.”
The Bill will now progress to the Commons Committee stage, where the NAPF will give oral evidence on the detail of the Bill.
Notes to editors:
1. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 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]
Aimee Savage Richards, Press Officer (interim), 020 7601 1718 or 07825 171 446, [email protected]