Morning, Thursday, 11th July 2019
THIS EVENT IS CPD CERTIFIED
It is timed to follow the planned introduction of the Pensions Bill, which is expected to include substantial measures on defined benefit (DB) pension consolidation, collective defined contribution (CDC) schemes and additional powers for the Pensions Regulator.
It also timed to follow the Government’s proposals for the legislative and regulatory regime for CDC, due to be set out in its response to the consultation on delivering collective defined contribution pension schemes.
Delegates will consider how CDC schemes can best work in practice, lessons learnt from the development of schemes so far - such as at Royal Mail - and options for widening out the principle to other organisations - as well as considering the likely effectiveness of proposed legislative and regulatory framework.
The agenda will discuss how best the Bill and government response to the consultation could address stakeholder concerns around the Government’s initial proposals for CDC schemes to not include provisions for decumulation-only products, providing appropriate powers of scrutiny and intervention if schemes become unstainable, and how scheme members can best be protected and made aware of the risks and advantages associated with new schemes.
The seminar also comes at a time of significant proposed reform for DB and Defined Contribution (DC) funds as the Government takes forward consultations on defined benefit pension scheme consolidation and defined contribution pensions and investments - which aim to establish the framework to allow consolidation of existing schemes into superfunds, as well as measures to encourage funds to invest more widely to improve returns for members.
In light of questions in consultation responses around the likely effectiveness of new superfund consolidation vehicles in addressing funds with significant shortfall, sessions will consider how policymakers and stakeholders can ensure that new funds aren’t only an alternative for well-funded existing funds, the appropriate regulatory regime for the new funds and the addressing the complexities of merging funds.
As the Government consults on its proposals which aim to encourage DC funds to diversify investment by requiring funds to report their investment policy and changes to how schemes calculate charges to encourage investment into illiquid assets, the agenda looks at what more is needed to help funds increase their returns for members and the risks posed by funds entering new asset classes and ensuring transparency.
Following the Government’s recent announcement that the Pensions Regulator will be granted new powers as part of the Pensions Bill to fine - with potentially the powers to imprison business leaders who are found to have wilful or grossly reckless behaviour in relation to a pensions scheme - delegates will discuss the likely effectiveness of the new powers to prevent future fund failures and what else is need to support effective governance of funds.