Green Paper
OMI highlighted the recent Department for Work & Pensions (DWP) Green Paper on the ‘Security and sustainability in defined benefit pension schemes’ as a resource that may help reassure some scheme members that the regulator is reviewing this area of activity to ensure the longevity of DB schemes and the protection of its scheme members.
Conversely, the paper may also raise some concerns given one option to maintain affordability is for ‘schemes to reduce liabilities, perhaps by reducing benefits, or restructuring exercises’.
Denton said: “Following the election in the UK, with the Conservatives now operating a minority government, pension issues are likely to have slipped down the agenda.
“There is a risk the response to the Green Paper could be pushed out, but the area of defined benefit pension funding and transfer suitability remains a crucial issue and it is important this remains on track,” he added.
