Workplace Pension Reform

Steve Webb Excerpts

Monday 30th April 2012 Written Statements

[The Minister of State, Department for Work and Pensions (Steve Webb)]

Later today the Government will publish the consultation document “Automatic enrolment: Career Average schemes as Qualifying Schemes”. This addresses an issue that could prevent some good quality pension schemes from being used as qualifying schemes under the reforms.

The Government’s policy on career average pension schemes is to allow them to be used as qualifying schemes and for the purposes of automatic enrolment so long as they provide for the benefits to be revalued at, or above, a prescribed minimum rate.

The consultation proposes amendments to those regulations to give more flexibility for schemes over how they provide for revaluation while still ensuring that members’ interests are fully protected. The period of formal consultation will begin today and last for six weeks, ending on 11 June.

I hope that those people and organisations with an interest in this subject will take the time to offer their views and advice.

Draft regulations will be published alongside the consultation document.

A copy of the consultation document and draft regulations will be placed in the Library of the House and will be available later today on the Department’s website: http://www.dwp.gov.uk/consultations/2012/.