In its response, the SPP explains that it supports the Government’s objective of reducing pension fragmentation and unnecessary administration through automatic consolidation. However, it highlights several areas where changes are needed to ensure the reforms work in savers’ interests.
Tags: Consolidation, DC, DC Pensions, pension, Pensions, Small Pot Consolidation, Small Pots,
The SPP's "What’s Next for UK Pensions?" thought leadership paper sets out an ambitious but practical blueprint for the future of UK pensions, offering recommendations to help inform the next phase of Government reform and support the development of a simpler, fairer and more sustainable system
Tags: adequacy, CDC, DB, DC, Decumulation, Guided Retirement, investment, Investments, legislation, pension, Pensions, pensions commission, PPF, retirement, Savings, Scale,
The Society of Pension Professionals (SPP) has backed the Government’s proposed 3.25% fixed rate for Guaranteed Minimum Pension (GMP) revaluation from April 2027, while calling for an end to repeated consultations on what it describes as a routine, formulaic exercise.
The SPP response explains how the final rules must protect savers and pension schemes from unexpected tax charges and unnecessary administrative complexity.
Tags: NMPA, pension, Pension Age, Pensions,
The Society of Pension Professionals (SPP) paper on rethinking pensions policy for the self-employed.
Tags: adequacy, pension, Pensions, Self-Employed, sole traders,
This SPP paper “Pensions in a Digital World: Embedding Inclusion”, makes a compelling case for the pensions industry to ensure that digital transformation works for every saver, not just those who are digitally confident.
The SPP welcomes proposals from the Pension Protection Fund (PPF) to update the assumptions used for valuations under sections 143 and 179 of the Pensions Act 2004.
However, we have highlighted concerns about the wider implications of changes to the section 179 framework, particularly the introduction of post-retirement increases on eligible pre-1997 PPF compensation. These changes could significantly increase section 179 liabilities and, in turn, lead to substantially higher levies for commercial consolidators, without any corresponding increase in underlying financial risk or reduction in member security.
The SPP has confirmed it supports the Value for Money (VfM) framework proposals and its phased implementation, welcoming measures to ease the initial burden on schemes and providers.
However, the SPP is calling for greater clarity on the framework’s scope, particularly for AVCs, hybrid schemes, single employer trusts and future coverage of non-workplace, decumulation and collective defined contribution (CDC) arrangements.
Tags: Investments, Pensions, Savings, value for money, VfM,
The SPP concludes that contingent assets should not be regarded as second-best substitutes for cash. Properly structured, they can allow trustees and sponsors to share risk more intelligently, combining member protection with sponsor flexibility and commercially sustainable outcomes.
Tags: Accounting, Contingent Assets, covenant, DB Pensions, Funding Code, pension, Pensions, Tax,