Overview

This Pensions Bill makes several amendments to existing pension legislation, primarily the Pensions Act 2008 and the Pension Schemes Act 1993. The key changes relate to automatic enrolment, the definition of money purchase benefits, and adjustments to how accrued pension benefits are revalued.

Description

The bill modifies various aspects of pension schemes. Amendments clarify rules around automatic enrolment, extending coverage to individuals aged 22 and above who have not consistently met enrolment criteria. It adjusts the calculation of how pension benefits are increased to reflect the Retail Prices Index. The bill also revises the definition of "money purchase benefits," offering a more precise legal framework.

Automatic Enrolment

The bill clarifies the automatic enrolment process for workers aged 22 or older, including those who may have missed previous enrolment windows due to breaks in employment.

Benefit Revaluation

The bill amends the method of revaluing accrued pension benefits, aiming to ensure fairness and consistency by referencing the Retail Prices Index.

Money Purchase Benefits

The bill provides a more precise definition of "money purchase benefits" in existing legislation. This improves clarity and consistency across the different Acts.

Other Changes

The bill includes other amendments that deal with administrative charges in pension schemes, test scheme standards, and cross-border employment issues. These amendments aim to simplify processes and improve compliance.

Government Spending

The bill is not expected to have a significant direct impact on government spending, but indirect effects may arise due to changes in pension scheme administration and compliance.

Groups Affected

• Workers aged 22 and over: May benefit from clearer automatic enrolment rules and improved access to pension schemes.
• Pension scheme members: Could see changes to how their accrued benefits are revalued, potentially affecting their final pension amount.
• Pension scheme providers: Will need to adjust their practices to comply with the new rules and definitions.
• Employers: Will need to update their processes to comply with amendments to automatic enrolment and other regulations.
• Government agencies: Will need to implement the new legislation and potentially adjust related policies and guidance.

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