In a truly astonishing move the UK Pensions Regulator has issued the following statement on Rachel Reeves’ plans to transfer so-called Scheme surpluses into the coffers of the Treasury. People are struggling to live on DB pensions now, Lord knows what meagre sums will be paid out once the accrued cash has been asset-stripped.
How could any government economist know exactly how much pension someone would need to retire on in 15,25 or 35 years’ time? Or what taxation rules might apply to lump sum payments in the future, which may be tax-free now, but are classed as capital gains in a decade or more?
Here’s the word;
The Pensions Regulator (TPR) has expressed its support for proposals from Government regarding the use of surpluses in defined benefit (DB) pension schemes to support economic growth and improve saver outcomes.
Nausicaa Delfas, Chief Executive of The Pensions Regulator, said:
“Many defined benefit pension schemes are better funded than at any point in recent history – with around 80% of schemes fully funded.
“Our first priority must be to ensure pension scheme members have the best chance of receiving their promised benefits. Where schemes are fully funded and there are protections in place for members, we support efforts to help trustees and employers consider how to safely release surplus if it can improve member benefits or unlock investment in the wider economy.”
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