Part 6 – Private pensions
40.This Part contains a number of measures related to private pension legislation, including:
a power to provide for a system of automatic transfers of a person’s accrued rights to benefits under a pension scheme, to another scheme of which that person is an active member;
a provision for regulations to be made banning the practice of providing incentives which encourage individuals to transfer a cash equivalent value of their accrued rights from a salary-related occupational scheme to an alternative arrangement;
the removal of the existing power to make refunds of contributions (“short service refunds”) to members of money purchase occupational pension schemes who terminate their membership before two years have elapsed since they joined the scheme;
a provision for regulations to be made to restrict charges in and impose governance and administration requirements on schemes specified in regulations;
a provision for regulations and Financial Conduct Authority rules to be made requiring the disclosure and publication of information relating to transaction costs for money purchase pension schemes;
amendments to the PA 2008 relating to automatic enrolment, including a power to specify certain groups that employers will not be required to enrol or re-enrol;
amendments to the PSA 1993 regarding the payment of a limited amount of unpaid pension contributions from the National Insurance Fund where an employer becomes insolvent so that all those who may become members of a pension scheme as a result of the workplace pension reforms are entitled to this protection;
a power to require pension levies to be paid in respect of past periods;
various technical amendments to the PA 1995 and the PA 2004 designed to improve operational processes for the Pensions Regulator;
an amendment to companies legislation to make it clear that the body preparing guidance in relation to pensions illustrations may benefit from the exemption from liability for damages;
a new objective for the Pensions Regulator to minimise any adverse impact on the sustainable growth of an employer when exercising its functions under Part 3 of the PA 2004; and
an increase to the Pension Protection Fund compensation cap to reflect long service.