Queen's Speech: Govt announces Pensions Bill

Post by **RobertT** » 14 Oct 2019, 14:18

https://www.ftadviser.com/pensions/2019 ... ions-bill/" onclick="window.open(this.href);return false;

he Pensions Bill announced in the Queen’s Speech today (October 14) will see new rules for pension dashboards, collective defined contribution schemes and new powers for The Pensions Regulator.

Queen Elizabeth said: “To help people plan for the future, measures will be brought forward to provide simpler oversight of pension savings.

"To protect people savings for later life, new laws will provide greater powers to tackle irresponsible management of private pension schemes.”

The government does not have a majority in parliament so it is uncertain whether the bill will make it into law. There have also been calls for a General Election, which could change the makeup of government and influence the bill's future.

The document included rules for pension schemes to provide data to pension dashboards – which will ensure people throughout the UK have easy access to information about their pensions, who manages them and what they are worth.

The bill will include provisions for the regulators to ensure relevant schemes comply, according to a briefing document.

The government confirmed in December it will introduce multiple pension dashboards, with the first one being developed by the government's new guidance body, the Money and Pensions Service.

An industry delivery group, brought together by the guidance body, will set out a timetable for other fully operational dashboards, as well as setting standards and ensuring security across the portals.

The major part of the new bill, however, is expected to address CDC schemes, as the document provides a framework for the establishment, operation and regulation of this new type of pension fund.

These schemes differ from defined benefit pensions because they do not guarantee a certain income in retirement. Instead, CDC have a target amount they will pay out, based on a long-term, mixed risk investment plan.

These schemes also differ from traditional defined contribution plans in that they do not produce individual pension pots. Instead they invest the savings in a larger collective pot, which provides an income to individuals during their retirement.

Royal Mail is the first company which is looking to set up one of these plans, after reaching an agreement with the Communication Workers Union to set up a collective scheme for its employees, which was given approval by workers in April 2018.

The bill also sets out new powers for TPR, which were first announced in the defined benefit white paper.

Besides creating new legislation to introduce a criminal offence to punish those found to have committed willful or grossly reckless behaviour in relation to a pension scheme, the government is giving the watchdog powers to disqualify company directors, and introduce new punitive fines.

The new rules also include powers for TPR to obtain the right information about a scheme and its sponsoring employer in a timely manner, so the watchdog can ensure that it is able to gain redress for pension schemes and members when things go wrong.

Post by **RobertT** » 14 Oct 2019, 14:32

https://www.myroyalmail.com/news/2019/1 ... tep-closer" onclick="window.open(this.href);return false;

The Government has formally announced in the Queen’s Speech its intention to introduce a Collective Defined Contribution (CDC) pension into UK law.

This important milestone brings us one step closer to introducing a CDC pension, which is a key part of the pension scheme agreed between CWU and Royal Mail.

We have worked closely with our unions on this and will continue to do so.

The Bill will soon have its first reading in the House of Lords. The next step will involve the Pensions Minister tabling it in the House of Commons. If passed, the Bill will make CDC pensions available in the UK for the first time.

We will keep you updated on the passage of this important legislation.

In the meantime, take a look at myroyalmail.com/pensions for more information and frequently asked questions.

Post by **SpacePhoenix** » 14 Oct 2019, 19:47

RobertT wrote:https://www.myroyalmail.com/news/2019/1 ... tep-closer

The Government has formally announced in the Queen’s Speech its intention to introduce a Collective Defined Contribution (CDC) pension into UK law.

This important milestone brings us one step closer to introducing a CDC pension, which is a key part of the pension scheme agreed between CWU and Royal Mail.

We have worked closely with our unions on this and will continue to do so.

The Bill will soon have its first reading in the House of Lords. The next step will involve the Pensions Minister tabling it in the House of Commons. If passed, the Bill will make CDC pensions available in the UK for the first time.

We will keep you updated on the passage of this important legislation.

In the meantime, take a look at myroyalmail.com/pensions for more information and frequently asked questions.

The Queen's Speech still has to be voted on by parliament, they could potentially reject it. If they did reject it, i've no idea what would happen next

heapsy · Post by **heapsy** » 14 Oct 2019, 20:12

SpacePhoenix wrote:
RobertT wrote:https://www.myroyalmail.com/news/2019/1 ... tep-closer

The Government has formally announced in the Queen’s Speech its intention to introduce a Collective Defined Contribution (CDC) pension into UK law.

This important milestone brings us one step closer to introducing a CDC pension, which is a key part of the pension scheme agreed between CWU and Royal Mail.

We have worked closely with our unions on this and will continue to do so.

The Bill will soon have its first reading in the House of Lords. The next step will involve the Pensions Minister tabling it in the House of Commons. If passed, the Bill will make CDC pensions available in the UK for the first time.

We will keep you updated on the passage of this important legislation.

In the meantime, take a look at myroyalmail.com/pensions for more information and frequently asked questions.
The Queen's Speech still has to be voted on by parliament, they could potentially reject it. If they did reject it, i've no idea what would happen next

Even if CDC schemes are in the Queens speech, it doesn't mean they will happen. Unfortunately our union rep can't get this into his head and he thinks it's a done deal.

Janet Brum · Post by **Janet Brum** » 14 Oct 2019, 20:15

oyal Mail is the first company which is looking to set up one of these plans, after reaching an agreement with the Communication Workers Union to set up a collective scheme for its employees, which was given approval by workers in April 2018.

If the new CDC scheme is inferior to the old one, who`s stopping us and Cwu from doing what Rico does and drop it like he dropped the agreement signed in 2017?

heapsy · Post by **heapsy** » 14 Oct 2019, 20:46

Janet Brum wrote:
oyal Mail is the first company which is looking to set up one of these plans, after reaching an agreement with the Communication Workers Union to set up a collective scheme for its employees, which was given approval by workers in April 2018.
If the new CDC scheme is inferior to the old one, who`s stopping us and Cwu from doing what Rico does and drop it like he dropped the agreement signed in 2017?

I posted on this subject the other week. Sadly, I didn't make a note of the source, but an anonymous shareholder has expressed they are unhappy with the new pension arrangement. This is telling me that Rico has been told to kick it into touch. I'm betting we will end up with a DC scheme instead.

NWpostie · Post by **NWpostie** » 14 Oct 2019, 21:30

The worry is that the opposition...specifically Labour may well shoot it down just to score political points against the conservative government, Corbyn, Diane and MacDonnell don't care about the ordinary working people, they only care about how to get into No10 by whatever means possible, the CDC is likely to voted against for political expediency.

Post by **RobertT** » 15 Oct 2019, 04:54

Janet Brum wrote:If the new CDC scheme is inferior to the old one, who`s stopping us and Cwu from doing what Rico does and drop it like he dropped the agreement signed in 2017?

Because the alternative would be worse!
The CWU campaigned for a pension that provides an income for life rather than just a pot of money – that's what CDC promises, albeit the income isn't guaranteed.

Post by **RobertT** » 15 Oct 2019, 04:55

The Queens Speech is just the latest hurdle towards the introduction of CDC, and there's more hurdles to come.
As others have said, Parliament or Rico might kick it into touch, but personally I would rather be positive and I think it will happen.

Only time will tell.

NWpostie · Post by **NWpostie** » 15 Oct 2019, 09:54

So do I RobertT, I hope all the MPs are bigger than party politics and agree to this for the common good, given Corbyn's petulant behavior walking to the Lords refusing to engage with Boris, doesn't bode well.