NAPF supports proposals on deregulation of workplace pensions

In its response to the Government’s recent deregulation consultation, The National Association of Pension Funds (NAPF) welcomed the Government’s measures as a means of supporting good workplace pensions to the benefit of both scheme sponsors and their members.

Specifically, the NAPF supports:-

the proposal to reduce the cap for revaluation of deferred rights from 5% to 2.5% for future accruals only, which brings it into line with the ceiling for indexing pensions in payment;

the introduction of a limited statutory override to help schemes bring their rules in line with the latest changes in legislation;

the commitment to review the impact of pension legislation on normal corporate activity such as restructuring (s.75 – employer debt rule);

the proposal progressively to introduce principles-based regulation as part of an ongoing deregulatory review.

NAPF Chief Executive Joanne Segars, said: “Our members tell us that deregulation is the key to sustaining good workplace pensions. The Government’s package sends a clear signal that it supports good provision and that it is keen to reduce the regulatory burden.

“This is a welcome first step. The Government’s rolling deregulatory review must deliver further changes in lightening the load for pension scheme sponsors.

“Defined benefit schemes are an important part of retirement provision in the UK. The deregulatory proposals will help to sustain workplace pensions so that workers can continue to build up valuable pensions not just now but also in the future.”