Defined-benefit Pension Schemes 2023-06-19
2023-06-19
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The question arises from the need to assess whether the current funding levels for defined-benefit pension schemes are sufficient.
What recent assessment has been made of the adequacy of funding for defined-benefit pension schemes?
The Pension Protection Fund publishes data on the funding of defined-benefit pension schemes. Average funding of the schemes was 113.1% in 2022 versus 104.3% in 2010—a significant improvement.
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Assessment & feedback
The answer did not address whether this level of funding is adequate or sufficient, only provided data on improvements over time.
Response accuracy
Q2
Partial Answer
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Context
The MP raises concerns about the impact on current workers due to a focus on increasing pension funding over the past two decades.
Does the Minister accept that we have spent 20 years—probably quite rightly—working out how we get more money into pension schemes to pay for the promise, and that now we need to work out what we do with the money in there that is in excess of what we need? Does she accept that in those 20 years we have seen pension funding increase probably at the expense of current workers, who get a much lower pension? Is there anything we can do to use the surplus to support the pension incomes in retirement of those current workers who will get a far less generous pension?
As I would expect from a member of the Work and Pensions Committee and the head of the all-party parliamentary group on pensions, my hon. Friend makes an interesting point. In my time as pensions Minister I have tried to reduce the gap between DB and defined contribution pensions. I would be interested to talk to him about any further suggestions.
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Assessment & feedback
The answer did not provide a clear stance on whether the surplus is detrimental or how it could support current workers, only offered to discuss potential solutions.
Response accuracy
Q3
Partial Answer
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Context
There have been repeated delays in launching the pensions dashboard, with the latest connection deadline set for October 2026. This delay is a cause of concern regarding transparency and accessibility.
Clear, accessible pension schemes information was a priority for former Chancellor George Osborne in 2016, but the pensions dashboard programme has consistently missed its deadlines to go live. This month the Minister announced a further delay, with a new connection deadline of October 2026. Could she please explain this consistent failure to meet delivery dates?
We are absolutely committed to the pensions dashboard programme. October 2026 is the final deadline for connection, not the point that it is necessarily available to the public. The dashboard availability point could come earlier than that, and I hope that it will.
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Assessment & feedback
The answer did not provide a clear reason for the delays or specify when the programme would be available to the public beyond stating an intention for early availability.
Response accuracy