Defined-benefit Pension Schemes 2023-12-18
2023-12-18
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Response quality
Questions & Answers
Q1
Partial Answer
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Context
The question arises from concerns about the administration of pension schemes, specifically regarding recent discussions with the Pensions Regulator.
Whether he has had recent discussions with the Pensions Regulator on the adequacy of the administration of defined-benefit pension schemes.
I am fortunate in having already been able to meet representatives of the Pensions Regulator twice since my appointment to discuss the full gamut of their responsibilities.
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Assessment & feedback
Did Not Specify If Discussions Covered Adequacy
Response accuracy
Q2
Partial Answer
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Context
Members of the BP defined-benefit pension scheme have experienced a significant decrease in their pensions' value, despite the pension fund having a £5 billion surplus. This raises concerns about the adequacy of the management and rules governing such schemes.
Members of the BP pension scheme, a defined-benefit scheme, have seen the value of their pensions fall by 11% in real terms as a consequence of their senior management's refusal to upgrade them in line with the cost of living, although the pension fund itself has a £5 billion surplus. Does the Minister agree that if the rules allow companies such as BP to deal from the bottom of the deck when it comes to their own pensioners, these are rules that need to be changed?
That is certainly something I need to look into. When people raise the issue of specific pension schemes, I am always conscious of just how many thousands of scheme members are potentially watching, so I do not wish to speak off the cuff and raise hopes that I may not be able to fulfil. However, I shall be happy to meet the right hon Gentleman to discuss the circumstances in greater detail and see what can be done.
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Assessment & feedback
Will Look Into It
Wants To Meet To Discuss Further
Response accuracy