PLSA calls for Pensions Bill in King’s Speech

The Pensions and Lifetime Savings Association (PLSA) calls on the Government to announce a Pensions Bill at the State Opening of Parliament tomorrow.

Nigel Peaple, Director of Policy and Advocacy at the PLSA, said: “Given that everyone agrees pensions policy needs reform, and having already confirmed it will conduct an independent review of pensions, the Government should keep up the pace of change by announcing a Pensions Bill in The King’s Speech tomorrow.

“This Bill would enable the Government to quickly progress any recommendations arising from its pensions review and pick up important areas of policy reform already initiated by the previous Government. This includes necessary legislation to require schemes to provide more support to savers at retirement, to grant TPR wind-up powers required under the proposed value for money framework, and for the creation of the DB Superfunds regime.

“If the Government is serious about significantly improving the retirement incomes of today’s workers, a Pensions Bill should also set a timeline for gradually increasing minimum automatic enrolment contributions from the current level of 8% of a band of earnings to 12% of total earnings.

“We would also expect the pensions minister to shortly propose secondary legislation to expand the scope of automatic enrolment by introducing saving from the first pound of earnings and lowering the qualifying age to 18 instead of 22.

“The PLSA stands ready to provide expertise to the pensions review to help the Government achieve its ambitions for growth and improving retirement incomes for savers.”