Pensions Reform – 2010 onwards

The Government is undertaking a landmark reform of the UK pensions system designed to deliver increased financial security for an ageing population. In 2005 the independent Pensions Commission published the report "A New Pension Settlement for the Twenty-First Century", containing a series of recommendations for long term reform. Following an extensive programme of national consultation aimed at building a genuine broad based consensus, the Government’s first White Paper was published in May 2006 Security in Retirement: towards a new pensions system. The first phase of the reforms was completed with the Pensions Act 2007 becoming law in July 2007. Measures in this Act were largely focussed on reforming the state pensions system.

A second White Paper, Personal Accounts: a new way to save, published in December 2006, contained further proposals, with an emphasis on encouraging private saving. These measures were legislated for in the Pensions Act 2008, which became law in November 2008.

• Security in Retirement: towards a new pensions system
• Personal Accounts: a new way to save

The Pensions Act 2007

In July 2007 The Pensions Act legislated for the reforms to the State Pension system set out in the first of these White Papers. Measures in the Act will, over the coming years, make the state system more generous, fairer to women and carers, and more widely available. The Act also created the Personal Accounts Delivery Authority to advise on the introduction of a new, simple, low cost pensions savings vehicle.

• read about the Pensions Act 2007

The Pensions Act 2008

In November 2008 the Pensions Act 2008 introduced measures aimed at encouraging greater private saving. Most of the measures in the Act will come into effect from 2012. Key measures include a duty on employers to automatically enrol all eligible workers into a good quality workplace pension scheme (provided they are not already in such a scheme) and provide a minimum contribution. It also allows for the establishment of a new scheme (currently known as personal accounts) a simple, low-cost pensions savings vehicle aimed at those currently without access to a workplace pension scheme. In addition the Act will broaden the remit of the Personal Accounts Delivery Authority giving it powers to enable it to establish the infrastructure for the personal account scheme.

• read about the Pensions Act 2008
• Personal Accounts Delivery Authority

The Enabling Retirement Savings Programme

The Enabling Retirement Savings Programme is responsible for delivering the workplace pension reforms in the Pensions Act 2008. It is made up of the three bodies jointly responsible for delivering the reforms: DWP, the Pensions Regulator, and the Personal Accounts Delivery Authority.

• read more about the Enabling Retirement Savings Programme

Deregulatory Review

The Government response (311KB) to the findings of the independent Deregulatory Review was published on 22 October 2007. The response set out proposals for change and sought views. The consultation period ended on 15 November. The response to the consultation (91KB) was published on 5 December 2007.

• read more about the Deregulatory Review.

A Consultation on risk sharing (2MB) was published on 5 June 2008.