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Defined Ambition Pensions

Volume 583: debated on Thursday 26 June 2014

I am pleased to confirm that the Government have published their response to the consultation “Reshaping workplace pensions for future generations”. Later today, we shall publish independent research on defined ambition—or shared risk—pensions, commissioned by DWP, and we intend to introduce the Pension Schemes Bill 2014.

The Bill provides for a new legislative framework for defined ambition pensions that enable employers and their workers to share risks, providing more certainty for savers and controlling costs for employers.

The Bill will also encourage “collective schemes”, which are popular in many countries around the world as the pooled risks can make pension outcomes more stable.

The time is right for a new regulatory framework for future private pension provision; we know that consumers value greater certainty in pensions and over a quarter of employers are interested in offering a pension involving risk sharing.

I shall place a copy of the delegated powers memorandum and impact assessment in the Libraries of both Houses along with a list of the relevant older papers.

Copies of the impact assessment and the delegated powers memorandum will be available in the Vote Office and Printed Paper Office and on the website later today.