Members of the Lords, including a member of the Pension Quality Mark Board for the National Association of Pension Funds and the president of the Pensions Policy Institute, discussed the key principles and purpose of the Pension Schemes Bill and the Taxation of Pensions Bill (Money Bill), on Tuesday 16 December.
Peers spoke about the key features of both bills, including changes to allow people to access their pensions with more flexibility and new rules around the taxation of pensions at death. They also outlined plans in the Pension Schemes Bill to provide people with access to free, impartial guidance so the range of options available to them at retirement is clear.
Members expressed some concern about the speed at which the reforms are being introduced, and encouraged the government to undertake a review within two years of the reforms coming into force. They also warned that the new flexibility in the pensions market could lead to people being exploited, and proposed that safeguards should be put in place.
Committee stage, line by line examination of the Pension Schemes Bill continues on 7 January.
Royal Assent of the Taxation of Pensions Bill is expected on 17 December.
Pension Schemes Bill summary
A bill affecting pension schemes, including:
- arrangements that offer people different levels of certainty in retirement or that involve different ways of sharing or pooling risk
- ways to give people greater flexibility in accessing benefits and to help them make informed decisions about what to do with benefits.
Taxation of Pensions Bill (Money Bill) summary
A bill covering the taxation of pensions.