Pension Schemes Act and Code of Practice

Significant changes are coming to the UK pensions industry, following the passing of the Pension Schemes Act 2021.

The Act, which passed in February, includes new measures to:

• reduce the risk of members losing benefits to pension scams by restricting pension transfers. A consultation is now underway to decide if this should include letting trustees stop a transfer unless certain conditions are met.  
• introduce pensions dashboards, which will allow members to see all their pension savings on a single online platform. It is hoped these could be in place from 2023.
• implement effective governance and disclosure for pension schemes in relation to climate change; and
• introduce collective defined contribution (CDC) pension schemes, also known as collective money purchase schemes. 

The Act also includes changes to strengthen the powers of The Pension Regulator (TPR) with plans for a new Code of Practice.  This is designed to improve security of benefits within UK pension schemes.   

Further details in the Act and its supporting regulations are expected to be published in the coming months. We’ll keep you updated on anything that may affect your pension. 

Increasing the Normal Minimum Pension Age 

The Government has confirmed plans to increase the minimum age for accessing pension savings from 55 to 57. This is expected to come into force from 2028.  

A consultation was issued by the Treasury in February 2021, seeking views on the protection of an earlier age for those who had a right under the scheme rules on the date of the consultation (11 February 2021). 

For members of a registered pension scheme who do not have such a right, they will retain the current minimum age of 55 until April 2028, from which point it will increase to age 57. 

More information should be available soon and we will keep you informed.