The Pension Schemes Act: what to expect

With an aging population, low interest and savings rates, as well as millions of pounds lost to scammers each year, pensions are a pressing issue. Riccardo Bruno and Anne-Marie Winton report on imminent legislation to introduce a new form of pension scheme, boost the powers of the Pensions Regulator and enhance various protections.

Riccardo Bruno is an associate and Anne-Marie Winton a partner, at Arc Pensions Law. Contact them on riccardo.bruno@arcpensionslaw.com and annemarie.winton@arcpensionslaw.com.

The Pension Schemes Bill is due to come into force in early 2021. The Bill made its way through the House of Lords, then House of Commons in 2020 with all parliamentary support.  The new Act will establish a different form of pension scheme, aim to improve protections for pension savings (not least by the introduction of £1 million fines and potential imprisonment for seven years for wrongdoing) as well as help people plan for their retirement, as summarised below. The changes in the law are also designed to equip the Pensions Regulator with the tools needed to address the new compliance and enforcement challenges relating to workplace pension schemes that have arisen over time since its creation in April 2005.