Commons Sense

House of Commons · Ministers' Questions

Defined-benefit Pension Schemes

Monday 19 June 2023 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • The Pension Protection Fund publishes data on the funding of defined-benefit pension schemes, showing an average funding of 113.1% in 2022.
  • The Minister acknowledged the need to address the excess funds in pension schemes beyond what is required.
  • The Minister stated that the final deadline for the pensions dashboard programme to connect is October 2026, though it may be available to the public earlier.

Topics (select to filter)

Questions & Answers

Q1 Nigel Mills Con
Benefits & Welfare
Context

The question arises from the need to assess whether the current funding levels for defined-benefit pension schemes are sufficient.

Question

What recent assessment has been made of the adequacy of funding for defined-benefit pension schemes?

Answer from Laura Trott

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.

Partly answered

Not addressed: The answer did not address whether this level of funding is adequate or sufficient, only provided data on improvements over time.

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q2 Nigel Mills Con
Benefits & Welfare
Context

The MP raises concerns about the impact on current workers due to a focus on increasing pension funding over the past two decades.

Question

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?

Answer from Laura Trott

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.

Partly answered

Not addressed: 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.

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q3 Nick Smith Lab Blaenau Gwent and Rhymney
Benefits & Welfare
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.

Question

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?

Answer from Laura Trott

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.

Partly answered

Not addressed: 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.

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)