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Volume 474: debated on Monday 31 March 2008

To ask the Secretary of State for Work and Pensions whether he plans to reduce the burden of regulation on small defined benefit schemes where all the fund’s assets are held by an insurance company. (197349)

In May 2006, the Government announced a rolling deregulatory review with the aim of making the private pensions regulatory framework simpler and less burdensome. The current Pensions Bill includes, for example, measures to reduce the statutory cap which applies to the revaluation of deferred pension rights from 5 per cent. to 2.5 per cent. for all defined benefit rights which build up after the change is introduced. That change could potentially provide significant savings for all defined benefit pension schemes. We are taking forward other changes to ease the burden on all defined benefit schemes in secondary legislation and/or guidance, and would welcome further specific proposals for change.