Key Facts

• The Secretary of State must notify pension scheme members or survivors five years before they become eligible for benefits.
• Annual notifications will continue until a member has received impartial guidance or opted out.
• New clause 2 establishes a Pensions Advisory Commission.
• New clause 3 allows employers to require contributions into pension accounts.
• New clause 4 permits deferred debt arrangements for closed schemes.
• New clause 6 mandates the Secretary of State to publish proposals for regulating pension superfunds within six months of Royal Assent.
• Amendments ensure pensions dashboards do not include transactional facilities and provide guidance for vulnerable users.
• New clause 1 aims to fix the low uptake of Pension Wise, with only one in 33 eligible individuals currently using it.
• The latest 'Stronger Nudge' policy is expected to increase take-up from one in 33 to one in nine.
• Monthly data on Pension Wise usage stopped being published in January 2019 and is now only available annually.
• Nine out of ten users report high satisfaction with Pension Wise.
• The Money and Pensions Service reports that 72% of people change their mind about pensions after using Pension Wise.
• Eight out of nine savers are left without adequate guidance under the current policy.
• Age UK and other organisations argue for auto-enrolment into Pension Wise.
• Approximately 40,000 savers have been scammed since pension freedoms were introduced.
• The Transparency Task Force reports cases where victims avoid telling their partners about scams out of shame.
• The Police Foundation report recommends principles for law enforcement, including a specialist fraud victim support service.
• Amendments to the Bill aim to delay pension transfer applications if they raise red flags and give trustees grounds to refuse transfers believed to be part of scams.
• Research by YouGov found that 78% of people agree that pension companies should step in to stop suspected scams.
• The take-up rate for Pension Wise guidance is currently very low despite its effectiveness.
• Last time we had a pensions Bill amendments called for default guidance.
• The Financial Conduct Authority (FCA) took considerable time to start work on increasing take-up.
• Studies showed that using a nudge with an extra reminder could increase take-up to about 14%.
• The Financial Conduct Authority (FCA) achieved an 11% take-up rate from a starting point of 3%, which Mills considers insufficient.
• Mills advocates for both Pension Wise guidance and midlife MOTs to help individuals make informed decisions about their pensions.
• Mills proposes requiring trustees to delay pension transfers if they suspect a scam, potentially until the individual has taken Pension Wise guidance.
• Nigel Mills argues that individual pension schemes should not be mandated to achieve net zero carbon status.
• Jonathan Reynolds clarifies that the amendment does not enforce net zero mandates but ensures investment strategies are consistent with national objectives.
• Guy Opperman endorses clause 124 for its focus on climate risk and governance in occupational pension schemes.
• The amendments aim to provide safeguards for plumbers' pension scheme members.
• A constituent faces personal liability due to trustees' failure to notify them of section 75 implications.
• New clauses would protect individuals like the constituent from being pursued by trustees after retiring.
• Baroness Bowles tabled an amendment in the Lords regarding open defined-benefit schemes, which was removed by the Government.
• Parts of the consultation document do not seem to recognise the varying risk profiles of pension schemes based on their maturity level.
• Railway pensions and large charities like Oxfam, Age UK, Cancer Research, the National Trust, and the Royal National Lifeboat Institution rely on DB schemes.
• Open schemes are predicted to end up with deficits between £120 billion to £160 billion if treated in the same way as closed schemes.
• WASPI campaign women want their pension scheme addressed.
• Pensions are devolved but operate on a UK-wide basis.
• Northern Ireland Assembly approved legislative consent motion on the Bill as introduced on June 1st.
• More than 10 million people have been automatically enrolled into workplace pensions through inertia.
• At least £19.4bn is held in pots that consumers have lost track of.
• A pension dashboard is necessary to help find and make decisions about pension pots.
• The Department for Work and Pensions estimates that 50 million pension pots will be lost or dormant by 2050.
• 60% of 25 to 34-year-olds prefer viewing their pensions through mobile banking apps, while only 11% of those aged 65-plus do so.
• Northern Ireland has the lowest proportion of people feeling confident and savvy consumers compared to other regions in the UK.
• New clause 1 aims to ensure people have access to correct advice on pension planning.
• 72% of people who use Pension Wise change their decision after receiving advice.
• There is an existing FCA regime that sends out guidance two months before someone's 50th birthday.
• Some companies like Shell and BP are working on renewable energy solutions.
• Supports new clause 1 for stronger consumer protections.
• Supports amendments 2-5 and new clause 6 for regulating superfunds.
• Commends Minister's work on pensions dashboards but disagrees with overturning previous amendments.
• The Bill aims to make pensions safer, better, and greener.
• Amendments 2 to 5 address scams affecting pensioners.
• Amendment 16 is considered inappropriate for the legislation.
• Pension dashboards will provide transparency and easy tracking of pensions akin to current accounts.
• Section 75 of the Pensions Act 1995 has unintended consequences for multi-employer pension schemes.
• Since 2005, employers who leave a scheme are required to pay section 75 debt calculated on a buy-out basis.
• The amendment seeks to address the issue faced by about 30 individuals with significant liabilities.
• New clause 5 permits employers with closed pension schemes to apply for a deferred debt arrangement if they meet other tests.
• New clause 4 allows waiving a debt below 0.5% of fund value, enabling an employer to exit the scheme more easily.
• The current system is described as equitable but inflexible towards employers struggling with small debts.
• Amendments tabled by hon. Friends support climate change.
• New clause 1 and amendment 14 aim to improve guidance and consumer protections in pensions schemes.
• The Allied Steel and Wire pensioners and Roadchef employees have been affected by scandals over many years.
• A financial assistance scheme was set up by the Labour Government in the early 2000s, followed by the establishment of the Pension Protection Fund.
• Under the protection scheme, pension income based on service prior to 1997 is not eligible for inflation increases.
• The pension income of 140,000 workers who built their pensions pre-1997 has not been protected from rising consumer prices.
• Many financial assistance scheme members receive only 90% of their restricted pension.
• The Roadchef scandal involves 4,000 low-paid workers and £10 million in taxes taken illegally transferred from funds.
• The Bill aims to make pensions safer, better, and greener.
• Amendments 16 to 24 focus on green investments in pension schemes.
• The MP is concerned about additional red tape for small businesses.
• The ESG regulations came into force eight weeks ago.
• Clause 124 of the Bill addresses matters related to environmental risk.
• Specific action on tackling climate risk was published in August.
• Less than half of the 25 largest pension providers discussed climate risk at board level.
• Aviva has been instrumental in supporting the amendment.
• Pension funds have trillions of pounds invested in assets under management.
• The speaker introduced a private Member's Bill in January 2018 on multi-employer pension schemes.
• New clauses 4 and 5 aim to provide relief to employers facing section 75 debts.
• Some 30 retired unincorporated ex-employers face an average debt of £500,000 each, with the highest being £1.2 million.
• The amendments would allow for de minimis discretion by trustees and managers and permit deferred debt arrangements even if triggered before scheme closure.
• The Bill includes measures such as pension dashboards, collective defined contribution schemes and new powers for the Pensions Regulator.
• Amendments require trustees and managers to take into account climate targets in their governance and disclosure of risks.
• A publicly owned pensions dashboard free at the point of use has been guaranteed by amendments.
• New clause 1 proposes opt-out appointments with Pension Wise five years before retirement.
• Amendment 8 relates to dashboards which collate information about pensions.
• Amendment 7 deals with defined-benefit schemes that remain open to new members requiring different investment approaches.
• New clauses 4 and 5 address the plumbers' pension scheme with a section 75 debt of £7.5 million.
• New clause 1 aims to provide mandatory pension guidance through scheduled appointments.
• Members would receive a letter from DWP five years prior to their retirement age.
• The DWP would send an annual follow-up letter until the guidance appointment is confirmed or opt-out is chosen.
• New clauses 4 and 5 aim to protect plumbers' pensions.
• New clause 2 would establish an independent advisory commission for pensions policy.
• At least 30 colleagues have constituents impacted by the issue addressed in new clauses 4 and 5.
• The Minister's statement was considered unsatisfactory in addressing de-risking concerns.
• Amendment 7 is proposed by the MP to improve treatment of vulnerable pensioners.
• Amendments 9 and 10 aim to clarify guidance, advice, and information for individuals facing financial hardships or disabilities.
• Labour party introduced new clause 6 to ask for proper regulation of pensions superfunds.
• Clause 123 was removed, dealing with funding requirements of open and closed defined-benefit schemes.
• Amendments aim to prevent hasty decision making on pension dashboards until safeguards are in place.
• Amendment 16 would allow regulators to mandate occupational schemes to develop clear investment strategies aligned with net-zero emissions targets.
• UK pension funds represent trillions of pounds, steering more towards climate goals is supported by multiple organizations.
• The Pension Schemes Bill is described as landmark legislation impacting millions of people.
• Clause 123 addresses open DB schemes and funding and investment strategies.
• Secondary legislation will ensure immature open schemes can take appropriate investment risks if supported.
• The Pensions Regulator must regulate according to Parliament's legislation.
• The MP opposes amendment 1 proposed by the House of Lords.
• The Pensions Regulator comments on the potential for abuse in open schemes if they are given special treatment.
• Clause 125 ensures transfers will not go ahead if conditions set out in regulations are not met, including due diligence and red flags.
• The first dashboard will have a 'find and view' capability only; future transactions may be considered but require user testing.
• Consumer protections and regulatory oversight should prevent risks from commercial dashboards rather than a blanket ban.
• Clause 118 enables the creation of both regulations and FCA rules, including signposting to MaPS guidance.
• Labour's climate change clause proposal is criticized for directing investment, breaching fiduciary duties, and leading to divestment.
• The PLSA endorses Government proposals and opposes Labour’s amendment.
• A letter from the independent Association of Pension Lawyers massively opposes the Opposition amendment.
• New clause 1 aims to enhance pensions guidance before individuals start receiving benefits or transferring rights.
• Section 19 of the Financial Guidance and Claims Act 2018 requires trustees to ensure beneficiaries receive appropriate pensions guidance or opt out.
• The Work and Pensions Committee requested stronger nudge proposals to improve pension guidance.
• Amendment enables discretion for trustees not to pursue employer debt below a de minimis threshold.
• Proposed regulations ensure different treatment between open and closed pension schemes.
• An amendment aims to mandate occupational pension schemes to develop strategies aligning with the Paris Agreement goal.
• The Bill introduces new collective defined-contribution schemes.
• A pensions dashboard will be established as part of the legislation.
• Timms references a Work and Pensions Committee report from 2015 that stated a pensions dashboard was long overdue.