Private Pensions

Steve Webb Excerpts

Thursday 3rd April 2014 Written Statements

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

I intend to lay the Pensions Act 2011 (Transitional and Consequential Provisions) Regulations 2014 before Parliament in due course to come into effect in July 2014. These regulations make a range of provisions for benefits that were treated as money purchase, but that do not fall within the clarified definition in section 29 of the Pensions Act 2011. At the same time the Government’s response to the public consultation on the regulations will be published. The consultation received wide-ranging and detailed responses and we have taken the time to consider them fully.

Following the consultation I have assessed the implications of the retrospective application of the legislation very carefully. I can now confirm that in most cases transitional protection will be provided in respect of events occurring between 1 January 1997—the date from which section 29 of the Pensions Act 2011 is effective—and the date these regulations come into force in July 2014. This means that schemes will not need to revisit past decisions in almost all cases, but will ensure that in the future members are protected if their schemes are unable to pay benefits that have been promised.

Full information about other changes made to these regulations in response to the consultation will be included in our formal response when it is published.