Defined Contribution Pension Schemes

Steve Webb Excerpts

Tuesday 24th May 2011 Written Statements

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

I am pleased to be able to publish today new guidance to help those involved in offering a default investment option for people who are automatically enrolled into defined contribution pension schemes.

The pensions landscape is changing. Automatic enrolment into workplace pensions will see millions of individuals newly saving for their retirements. Many of these people will not choose to make an active investment choice. It is likely that, from 2012, automatic enrolment into default options will be the norm. Therefore, it is important that suitable default options are available.

The guidance sets out the Government’s expectations on how default options should be designed, governed, communicated and reviewed. It is intended to provide useful information that will support good decision making and help protect members’ interests.

I would like to thank all those groups who have been engaged on this issue and responded to our consultations.

The guidance will be placed in the Library, and be made available later today on the Department’s website.

http://www.dwp.gov.uk/policy/pensions-reform/workplace-pension-reforms/guidance