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Pensions Dashboards (Prohibition of Indemnification) Bill - Sitting 1

26 October 2022

Proposing MP
Virendra Sharma Lab
Ealing, Southall
Type
Public Bill Committee

At a Glance

Issue Summary

The statement discusses a Bill aimed at preventing rogue trustees or managers of pension schemes from using scheme assets to reimburse themselves for civil penalties incurred under pensions dashboard regulations. The statement discusses the Pensions Dashboards (Prohibition of Indemnification) Bill which aims to prevent pension scheme trustees or managers from being reimbursed for financial penalties imposed under the Pensions Dashboards Regulations using the assets of the pension scheme. The statement discusses the Pensions Dashboards (Prohibition of Indemnification) Bill, focusing on protecting pensions savers by prohibiting trustees and managers from being reimbursed out of scheme assets for penalties related to non-compliance with dashboard regulations. The statement is about supporting the Pensions Dashboards (Prohibition of Indemnification) Bill which aims to protect pension savers.

Action Requested

Mary Robinson, the sponsor of the Bill, explains its purpose and seeks support for it, emphasizing its role in safeguarding pension savers' interests. She also provides context on the development of pensions dashboards and highlights recent progress made towards their implementation.

Key Facts

  • The Pensions Dashboards Regulations 2022 were laid before Parliament recently.
  • Financial penalties can be up to £5,000 for an individual or £50,000 in other cases under the regulations.
  • Clause 1 of the Bill adds section 238G of the Pensions Act 2004 to prohibit payments from pension scheme assets for trustee or manager penalties.
  • The Bill amends section 256(1)(b) of the Pensions Act 2004.
  • It ensures it is a criminal offence to reimburse oneself from the assets of a pension scheme for penalties under the Pensions Dashboards Regulations.
  • The provisions apply in England, Wales, Scotland and Northern Ireland.
  • Auto-enrolment in workplace pensions has increased participation from 10.7 million to 20 million employees, a 86% increase over 10 years.
  • British people saved nearly £115 billion into workplace pensions and pension pots last year, a 40% increase since auto-enrolment began.
  • The pensions dashboard is expected to be available in the middle of 2024 for public access.
  • Clause 1 amends section 256 of the Pensions Act 2004 and article 233 of the Pensions (Northern Ireland) Order 2005.
  • The Bill will cater for up to 52 million people.
  • The former Minister for Pensions is acknowledged for his significant contributions over five years.
  • Clause 1 and Clause 2 of the Bill have been ordered to stand part of the Bill.
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