A raft of changes to pensions to be made by the Government were confirmed in the Queen’s Speech today.

A new Pensions Bill has been outlined, covering issues such as capping early exit fees and protections for people in master trusts.

Below are the full details, as listed in the official Treasury papers.

It stated that the purpose of the Bill is to:

Further reform Britain’s private pensions system by:

•  Providing essential protections for people in Master Trusts - multi-employer pension schemes often provided by external organisations.
•  Removing barriers for consumers who want to access their pension savings flexibly.
•  Restructuring the delivery of financial guidance to consumers.

The main benefits of the Bill would be:

•  Providing better protections for members in Master Trust pension schemes – including millions of automatically enrolled savers.
•  Capping early exit charges to ensure that excessive charges do not prevent occupational scheme members from taking advantage of pension freedoms.
•  Providing more targeted support for consumers by restructuring the delivery of public financial guidance through the creation of two new bodies and directing more funding to the front line.
•  This helps deliver the manifesto pledge to give the freedom to invest and spend your pension however you like.


The main elements of the Bill are: 


Master Trusts

•  Master Trusts would have to demonstrate that schemes meet strict new criteria before entering the market and taking money from employers or members.
•  Creating greater powers for the Pensions Regulator to authorise and supervise these schemes and take action when necessary


Cap on early exit charges

•  Capping early exit fees charged by trust-based occupational pension schemes.
•  Creating a system that enables consumers to access pension freedoms without unreasonable barriers.

Restructuring financial guidance

•  A new pensions guidance body would be created, bring together the Pensions Advisory Service, Pension Wise and the pensions services offered by the Money Advice Service, providing access to a straightforward private pensions guidance service for customers.
•  A new money guidance body would replace the Money Advice Service and be charged with identifying gaps in the financial guidance market to make sure consumers can access high quality debt and money guidance

Devolution: 
Master Trusts, exit charges, pensions guidance body

• There are no devolved administration interests in respect of Scotland or Wales. Northern Ireland makes its own legislation in relation to pensions.

Money guidance body

The new guidance bodies will operate UK wide, and financial services is a reserved matter. However, devolved administration issues may arise due to links with financial education (devolved). These are not likely to be contentious and we are in discussion with the devolved administrations.