Select Committee · Work and Pensions Committee

Defined benefit pension schemes

Status: Closed Opened: 16 Mar 2023 Closed: 5 May 2024 9 recommendations 14 conclusions 1 report

Defined benefit (DB) pension schemes promise to pay pension benefits based on salary and length of service. There are over 5,100 UK private sector DB schemes, with around £1.4 trillion in assets. DB schemes are in decline in the private sector. The number of private sector employees still accruing new DB benefits reduced from 3.5 … Show more

Clear

Reports

1 report
Title HC No. Published Items Response
Third Report - Defined benefit pension schemes HC 144 26 Mar 2024 23 Responded

Recommendations & Conclusions

2 items
10 Conclusion Third Report - Defined benefit pension … Deferred

Explore ways to meet pension scheme members’ expectations for benefit enhancement

Improvements in scheme funding have given new prominence to the question of how to treat any surplus in the best interests of scheme beneficiaries. For example, there may be discretion after benefits have been secured on buy-out to enhance benefits before returning any remaining surplus to the employer. There may … Read more

Government response AI summary
The government acknowledges concerns about member interests regarding surplus treatment and discretionary increases, noting existing TPR guidance for trustees. It commits to running a public consultation later this year to explore further changes in the area of trustee capability and governance.
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Department for Work and Pensions
13 Conclusion Third Report - Defined benefit pension … Deferred

Set a date for mandatory accreditation of professional pension trustees

Despite strong support from TPR and trustee bodies for accreditation as a way to improve governance standards, they can only encourage it. DWP should set a date by which it intends to make accreditation mandatory for professional trustees.

Government response AI summary
The government did not set a date for mandatory accreditation, instead stating that voluntary accreditation is prevalent and it intends to consult on the framework of accreditation and governance later this year.
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Department for Work and Pensions

Oral evidence sessions

6 sessions
Date Witnesses
10 Jan 2024 Bim Afolami · HM Treasury, Fiona Frobisher · The Pensions Regulator, Katie Farrington · Department for Work and Pensions, Laura Webster · HM Treasury, Neil Couling · Department for Work and Pensions, Paul Maynard · Department for Work and Pensions, Peter Schofield · Department for Work and Pensions View ↗
29 Nov 2023 Louise Davey · The Pensions Regulator, Nausicaa Delfas · Financial Ombudsmen Service, Neil Bull · The Pensions Regulator View ↗
8 Nov 2023 Barry Kenneth · Pension Protection Fund, Neil Walsh · Prospect, Oliver Morley · Money and Pensions Service, Richard Nicholl · Pensions Action Group, Roger Sainsbury · Deprived Pensioners Association, Sara Protheroe · Pension Protection Fund, Terry Monk · Pensions Action Group View ↗
18 Oct 2023 David Carson · Hewlett Packard Pension Association (HPPA), Harus Rai · Capital Cranfield, Janice Turner · Association of Member Nominated Trustees, Leonard Bowman · Hymans Robertson, Nick Coleman · BP Pensioner Group, Robert Smith · Royal Ordnance Pensioners Association, Steve Hitchiner · Society of Pension Professionals View ↗
6 Sep 2023 Adam Saron, Brian Denyer · Abrdn, Luke Webster · The Pension Superfund, Serkan Bektas · Insight Investment, Simon True · Clara-Pensions Limited, Tracy Blackwell · Pension Insurance Corporation plc, Yvonne Braun · ABI View ↗
21 Jun 2023 Dr Con Keating · Brighton Rock Group, Joe Dabrowski · Pension and Lifetime Savings Association, Leah Evans · Institute and Faculty of Actuaries, Mr Derek Benstead · First Actuarial LLP, Mr John Ralfe, Mr Martin Hunter · Railpen, Professor Iain Clacher · University of Leeds, Sir Steve Webb · Lane, Clark & Peacock View ↗

Who gave evidence

39 witnesses
WitnessOrganisationSessions
Adam Saron 1
Barry Kenneth · Chief Investment Officer Pension Protection Fund 1
Bim Afolami · Economic Secretary to the Treasury HM Treasury 1
Brian Denyer · Senior Solutions Director – Pensions Abrdn 1
David Carson · Member of Steering Committee Hewlett Packard Pension Association (HPPA) 1
Dr Con Keating Brighton Rock Group 1
Fiona Frobisher · Head of Policy The Pensions Regulator 1
Harus Rai · Managing Director Capital Cranfield 1
Janice Turner · Founding co-chair Association of Member Nominated Trustees 1
Joe Dabrowski · Deputy Director Pension and Lifetime Savings Association 1
Katie Farrington · Director General, Disability, Health and Pensions Department for Work and Pensions 1
Laura Webster · Director of Personal Tax, Welfare and Pensions HM Treasury 1
Leah Evans · Chair of Pensions Board Institute and Faculty of Actuaries 1
Leonard Bowman · Partner and Head of Corporate DB Endgame Strategy Hymans Robertson 1
Louise Davey · Interim Director of Regulatory Policy, Analysis a… The Pensions Regulator 1
Luke Webster · CEO The Pension Superfund 1
Mr Derek Benstead · Senior Consultant First Actuarial LLP 1
Mr John Ralfe 1
Mr Martin Hunter · Head of Integrated Funding Railpen 1
Nausicaa Delfas · Interim Chief Executive and Chief Ombudsman Financial Ombudsmen Service 1
Neil Bull · Head of Investment The Pensions Regulator 1
Neil Couling · Director General Change and Resilience, and Unive… Department for Work and Pensions 1
Neil Walsh · Pensions Officer Prospect 1
Nick Coleman · Member BP Pensioner Group 1
Oliver Morley · Chief Executive Officer Money and Pensions Service 1
Paul Maynard · Minister for Pensions Department for Work and Pensions 1
Peter Schofield · Permanent Secretary Department for Work and Pensions 1
Professor Iain Clacher · Professor of Pensions & Finance and Director, Cen… University of Leeds 1
Richard Nicholl · member of the Executive Committee Pensions Action Group 1
Robert Smith · Member of Council Royal Ordnance Pensioners Association 1
Roger Sainsbury · Founder Deprived Pensioners Association 1
Sara Protheroe · Chief Customer Officer Pension Protection Fund 1
Serkan Bektas · Head of Client Solutions Group Insight Investment 1
Simon True · CEO Clara-Pensions Limited 1
Sir Steve Webb · Partner Lane, Clark & Peacock 1
Steve Hitchiner · President Society of Pension Professionals 1
Terry Monk · Member of the Executive Committee Pensions Action Group 1
Tracy Blackwell · CEO Pension Insurance Corporation plc 1
Yvonne Braun · Director of Policy, Long-Term Savings, Health and… ABI 1

Correspondence

15 letters
DateDirectionTitle
4 Dec 2024 Statement from the Office of National Statistics (ONS), the Pensions Regulator …
13 Mar 2024 Correspondence with The Pensions Regulator relating to the impact on Defined be…
6 Mar 2024 Correspondence with the Minister for Pensions relating to Defined Benefit pensi…
7 Feb 2024 Correspondence from TPR relating to Defined Benefit pension schemes with Liabil…
31 Jan 2024 Correspondence with Economic Secretary to the Treasury relating to Defined bene…
24 Jan 2024 Correspondence with the Economic Secretary to the Treasury relating to Defined …
10 Jan 2024 Correspondence with the Minister for Pensions relating to meeting with the Pens…
10 Jan 2024 Correspondence with the Office for National Statistics relating to Defined bene…
10 Jan 2024 Correspondence with the Minister for Pensions relating to Proposed Scheme Fundi…
13 Dec 2023 Correspondence with the Pension Protection Fund relating to Defined benefit pen…
29 Nov 2023 Correspondence with Pension Protection Fund relating to Defined benefit pension…
8 Nov 2023 Correspondence from Clara-Pensions relating to defined benefit pension schemes
8 Nov 2023 Correspondence with the Pension Protection Fund relating to Pension Protection …
25 Oct 2023 Correspondence with the Pension Protection Fund relating to defined benefit pen…
18 Oct 2023 Correspondence with the Prudential Regulation Authority relating to Defined ben…