King’s Speech – Pension Scheme Bill
Pensions
Isio responds to the Pension Scheme Bill
Ed Wilson, Partner at Isio, commented:
“We welcome the incoming government’s recognition of the challenges faced by smaller Defined Benefit pension schemes in the UK and the role that commercial consolidators can provide in helping these schemes achieve secure outcomes for their members. Consolidation reduces the costs faced by the schemes and can improve member security.
“Consolidation is a competitive market, with a range of solutions that have been developed over the last decade. These include consolidators where the schemes are merged together and operational consolidators where pension schemes maintain their own identity while benefiting from economies of scale by acting together. It’s important to recognise that insurers offering buy-ins to buy-out are also consolidating vehicles.
“The bill, however, lacks measures to take forward options to remove practical and behavioural barriers to making productive use of DB surplus that the previous Government consulted on. If 40% of schemes run on for 10 years beyond the first time that insurance is affordable, then approximately £100 billion of value could be released, and the changes consulted on would have made this easier to achieve. In the absence of a clear pathway and timeframe for legislative change, many sponsors and employers may choose to move to insurance rather than waiting.”
Richard Birkin, Partner and Head of DC Pensions at Isio, commented:
“It’s pleasing to hear that the new Pensions Bill continues with the momentum we’ve built up in the DC pensions environment. Standardised scheme value tests and supporting members to track, understand and maximise value and output from small pots have both been on the agenda for some time, but I’m hopeful that the Bill will focus industry attention on these specific subjects, resulting in some much-needed action.
“Most pleasing though perhaps is the commentary around at-retirement decumulation, the hot topic in DC pensions. Specifically, the desire to place a duty on occupational schemes to offer a solution(s), and importantly a default solution(s), with members best interest at the heart of these developments. DC pots at retirement are getting bigger quickly, and innovation in both product and support in this area is well overdue”.
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Partner & Head of DB Consolidation

Partner & Birmingham Office Head