In our June update we reported that the DWP had published a “risk sharing” consultation to canvass opinion on how employers can continue to maintain good occupational pension provision through greater risk sharing with scheme members.
The DWP has now published its response in which it reinforces the need to be vigilant in striking the “balance between member protection and encouraging the employer provision of pensions.”
Some of the principal DWP responses are:
- not to remove mandatory indexation of pension benefits;
- not to regulate to make legal provision for conditional indexation. The Government is not convinced there is sufficient demand from employers to justify taking such measures; and
- to undertake further work on how collective defined contribution schemes might work in the UK, as this proposal had gained significant support in principle across a wide range of respondents.
View the response to the consultation.