The Pension Schemes Act 2021 received royal assent on 11 February 2021 and introduces a framework of new measures, with the detail to be set out in future regulations. Part 1 of the Act introduces the concept of collective defined contribution schemes (CDCs), where contributions are pooled and invested with the aim of returning greater benefits to members compared to individual DC schemes – likely to be of particular interest to many employers and pension schemes in the UK. Part 2 makes equivalent provision for CDCs in Northern Ireland.
Part 3 broadens the powers of the Pensions Regulator to intervene to protect the interests of pension scheme members, particularly in defined benefit schemes. The Act also introduces three new criminal offences along with a new financial penalty (of up to £1m) for failure to provide information to the Regulator and in relation to the new offences.
Part 4 introduces pensions dashboards which will bring together an individual’s savings from multiple pensions, including the state pension, in one single place online.
Part 5 includes measures designed to help trustees of defined benefit schemes improve their funding and investment decision making, alongside strengthened scheme funding enforcement powers for the Regulator.
Other than various regulation-making powers which came into force on 11 February 2021, the Act will be brought into force more widely by future regulations.
The Pension Schemes Act 2021 received royal assent on 11 February 2021 and introduces a framework of new measures, with the detail to be set out in future regulations. Part 1 of the Act introduces the concept of collective defined contribution schemes (CDCs), where contributions are pooled and invested with the aim of returning greater benefits to members compared to individual DC schemes – likely to be of particular interest to many employers and pension schemes in the UK. Part 2 makes equivalent provision for CDCs in Northern Ireland.
Part 3 broadens the powers of the Pensions Regulator to intervene to protect the interests of pension scheme members, particularly in defined benefit schemes. The Act also introduces three new criminal offences along with a new financial penalty (of up to £1m) for failure to provide information to the Regulator and in relation to the new offences.
Part 4 introduces pensions dashboards which will bring together an individual’s savings from multiple pensions, including the state pension, in one single place online.
Part 5 includes measures designed to help trustees of defined benefit schemes improve their funding and investment decision making, alongside strengthened scheme funding enforcement powers for the Regulator.
Other than various regulation-making powers which came into force on 11 February 2021, the Act will be brought into force more widely by future regulations.
