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| Workers' pensions get more protection in new bill | Workers' pensions get more protection in new bill |
| (about 20 hours later) | |
| More than six million workers who pay into master trust pensions will see their money better protected, under a bill that has been published. | More than six million workers who pay into master trust pensions will see their money better protected, under a bill that has been published. |
| There had been concern that their savings might be at risk, should one of the pension schemes collapse. | There had been concern that their savings might be at risk, should one of the pension schemes collapse. |
| Master trust pensions will now need to meet higher standards of governance, while there will be new powers for the regulator. | Master trust pensions will now need to meet higher standards of governance, while there will be new powers for the regulator. |
| The bill will also enable a cap to be put on exit fees from pension pots. | The bill will also enable a cap to be put on exit fees from pension pots. |
| "We want to make sure that people saving into master trusts enjoy the same protection as everyone else, which is why we are levelling-up that protection, to give these savers more confidence in their pension schemes," said pensions minister Richard Harrington. | "We want to make sure that people saving into master trusts enjoy the same protection as everyone else, which is why we are levelling-up that protection, to give these savers more confidence in their pension schemes," said pensions minister Richard Harrington. |
| Master trust pensions are typically used by smaller employers, and include the government-backed NEST scheme, as well as Now: Pensions. | Master trust pensions are typically used by smaller employers, and include the government-backed NEST scheme, as well as Now: Pensions. |
| In February this year the BBC reported that up to a quarter of a million people who pay into master trust schemes might not have their savings protected. | In February this year the BBC reported that up to a quarter of a million people who pay into master trust schemes might not have their savings protected. |
| It also aired concerns about the qualifications of people who are allowed to set up master trust pensions. | It also aired concerns about the qualifications of people who are allowed to set up master trust pensions. |
| When the bill becomes law, operators of master trust schemes will have to show: | When the bill becomes law, operators of master trust schemes will have to show: |
| The chief executive of The Pensions Regulator (TPR), Lesley Titcomb, welcomed the publication of the bill. | The chief executive of The Pensions Regulator (TPR), Lesley Titcomb, welcomed the publication of the bill. |
| "We are very pleased that the Pension Scheme Bill will drive up standards and give us tough new supervisory powers to authorise and de-authorise master trusts according to strict criteria, ensuring members are better protected and ultimately receive the benefits they expect." | "We are very pleased that the Pension Scheme Bill will drive up standards and give us tough new supervisory powers to authorise and de-authorise master trusts according to strict criteria, ensuring members are better protected and ultimately receive the benefits they expect." |
| Exit fees | Exit fees |
| However, the chief executive of one of the biggest master trust schemes, Now: Pensions, said he was disappointed that the master trust assurance framework - a kitemark for such schemes - would not be made compulsory. | However, the chief executive of one of the biggest master trust schemes, Now: Pensions, said he was disappointed that the master trust assurance framework - a kitemark for such schemes - would not be made compulsory. |
| "The voluntary assurance framework was introduced as a quality standard to enable trustees of master trusts to demonstrate high standards of scheme governance and administration," said Morten Nilsson. | "The voluntary assurance framework was introduced as a quality standard to enable trustees of master trusts to demonstrate high standards of scheme governance and administration," said Morten Nilsson. |
| "Making it compulsory and building on this existing framework seemed logical." | "Making it compulsory and building on this existing framework seemed logical." |
| The bill will also enable regulators to introduce a cap on exit fees from pension pots, which in some cases had been as high as 10%. | The bill will also enable regulators to introduce a cap on exit fees from pension pots, which in some cases had been as high as 10%. |
| The Financial Conduct Authority (FCA) wants there to be no exit charges on private pensions from March next year. The government wants occupational pensions to have a similar cap. | The Financial Conduct Authority (FCA) wants there to be no exit charges on private pensions from March next year. The government wants occupational pensions to have a similar cap. |
| The Pensions and Lifetime Savings Association (PLSA) welcomed the bill, but said it would require detailed scrutiny to ensure it works as intended. | The Pensions and Lifetime Savings Association (PLSA) welcomed the bill, but said it would require detailed scrutiny to ensure it works as intended. |