Overview

This bill prevents pension scheme trustees and managers from being indemnified against penalties for breaking rules related to the new pensions dashboards system. This means that if they violate regulations concerning the dashboards, they cannot be reimbursed for any resulting fines.

Description

The Pensions Dashboards (Prohibition of Indemnification) Bill amends existing legislation to explicitly prohibit indemnification for penalties under the pensions dashboards regulations. Specifically:

• It alters section 256 of the Pensions Act 2004 and Article 233 of the Pensions (Northern Ireland) Order 2005.
• These amendments add references to new regulations (sections 238G and 215G respectively) related to pensions dashboards to the existing clauses that prohibit indemnification for penalties.
• The changes ensure that trustees and managers cannot be compensated for any penalties they incur as a result of non-compliance with the pensions dashboards regulations.

The bill applies to England, Wales, Scotland, and Northern Ireland. The commencement dates for sections 1(1) and 1(2) are determined by the Secretary of State and the Department for Communities in Northern Ireland, respectively.

Government Spending

The bill is not expected to have a direct impact on UK government spending. It focuses on preventing indemnification for penalties, not on government expenditure itself. No figures are provided in the bill text.

Groups Affected

• Pension scheme trustees and managers: This bill directly affects them by removing the possibility of indemnification for penalties related to pensions dashboards. They will bear the full financial responsibility for any non-compliance.
• Pension scheme members: Indirectly affected, as the bill aims to ensure greater compliance with pensions dashboards regulations, potentially leading to a more efficient and reliable system for accessing pension information.
• Government regulators: The bill strengthens their ability to enforce regulations regarding pensions dashboards, as penalties will be directly borne by those responsible for violations.

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