New pensions act ‘will offer added protections’

The government is describing the receipt of royal assent for a new pensions bill this week as a “landmark moment”.

According to a government announcement, the bill, which now becomes an act, “will bolster protections for savers and further the government’s green agenda by supporting progress towards net zero”.

It said: “The act will strengthen protections for pension savers by extending the powers of the pensions regulator, introducing the power to issue civil penalties of up to £1 million, alongside three new criminal offences.

“A tough new sentence has been created – with a maximum penalty of seven years in prison – for bosses who run pension schemes into the ground, or plunder pots to line their own pockets.

“The introduction of pensions dashboards will hail a digital revolution for savers, creating one single platform to more easily access and review pension pots.”

It concluded: “The act also legislates for the creation of a new style of pension scheme – Collective Defined Contributions (CDCs). Developed in cooperation with trade unions, CDCs have the potential to increase returns for millions, whilst being more sustainable for both workers and employers.”

https://www.gov.uk/government/news/landmark-moment-for-uk-pensions-as-bill-receives-royal-assent