Defined benefit pension schemes

Work and Pensions Committee Closed Inquiry
Opened: 16 Mar 2023 Closed: 5 May 2024 Parliament page
Defined benefit (DB) pension schemes promise to pay pension benefits based on salary and length of service. There are over 5,100 UK private sector DB schemes, with around £1.4 trillion in assets. DB schemes are in decline in the private sector. The number of private sector employees still accruing new … Read more
9 Recommendations
14 Conclusions
1 Report
6 Oral sessions
15 Letters
6 Events
Activity timeline 29 events
30 Apr
2025
Report published
4 Dec
2024
Correspondence
26 Mar
2024
Report published
13 Mar
2024
Correspondence
6 Mar
2024
Correspondence
7 Feb
2024
Correspondence
31 Jan
2024
Correspondence
24 Jan
2024
Correspondence
10 Jan
2024
Oral evidence
10 Jan
2024
Correspondence
10 Jan
2024
Correspondence
10 Jan
2024
Correspondence
Oral evidence sessions 6 sessions
10 Jan 2024
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Work and Pensions Committee
Bim Afolami · HM Treasury Fiona Frobisher · The Pensions Regulator Katie Farrington · Department for Work and Pensions Laura Webster · HM Treasury Neil Couling · Department for Work and Pensions Paul Maynard · Department for Work and Pensions Peter Schofield · Department for Work and Pensions
29 Nov 2023
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Work and Pensions Committee
Louise Davey · The Pensions Regulator Nausicaa Delfas · Financial Ombudsmen Service Neil Bull · The Pensions Regulator
8 Nov 2023
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Work and Pensions Committee
Barry Kenneth · Pension Protection Fund Neil Walsh · Prospect Oliver Morley · Money and Pensions Service Richard Nicholl · Pensions Action Group Roger Sainsbury · Deprived Pensioners Association Sara Protheroe · Pension Protection Fund Terry Monk · Pensions Action Group
18 Oct 2023
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Work and Pensions Committee
David Carson · Hewlett Packard Pension Association (HPPA) Harus Rai · Capital Cranfield Janice Turner · Association of Member Nominated Trustees Leonard Bowman · Hymans Robertson Nick Coleman · BP Pensioner Group Robert Smith · Royal Ordnance Pensioners Association Steve Hitchiner · Society of Pension Professionals
6 Sep 2023
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Work and Pensions Committee
Adam Saron Brian Denyer · Abrdn Luke Webster · The Pension Superfund Serkan Bektas · Insight Investment Simon True · Clara-Pensions Limited Tracy Blackwell · Pension Insurance Corporation plc Yvonne Braun · ABI
21 Jun 2023
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Work and Pensions Committee
Dr Con Keating · Brighton Rock Group Joe Dabrowski · Pension and Lifetime Savings Association Leah Evans · Institute and Faculty of Actuaries Mr Derek Benstead · First Actuarial LLP Mr John Ralfe Mr Martin Hunter · Railpen Professor Iain Clacher · University of Leeds Sir Steve Webb · Lane, Clark & Peacock
Title HC No. Published Items Response
Third Report - Defined benefit pension schemes HC 144 26 Mar 2024 23 Responded
Recommendations & Conclusions
4 results
Clear
5 Conclusion Rejected
Third Report - Defined benefit pen…
Replace TPR's PPF protection objective with protecting future and past pension service benefits.
TPR’s approach to scheme funding has been driven by its objective to protect the PPF. We agree with those who told us that the objective now looks redundant, given the PPF has £12 billion in reserves. Two decades of regulatory … Read more
Government Response
The government rejects the recommendation to change TPR's objective, stating it does not believe the PPF objective is a key factor in employer decision-making and that an independent review did not recommend this change. It will formally respond to the 'Options for Defined Benefit Schemes' consultation in the Spring.
Department for Work and Pensions
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8 Conclusion Rejected
Third Report - Defined benefit pen…
Consider funding regime changes to increase trustee confidence in taking appropriate investment risk.
We remain to be convinced that the PPF underpin would be an effective incentive to trustees to consider increasing their investment risk. DWP and TPR should consider whether there are changes to the funding regime that could give trustees confidence … Read more
Government Response
The government states that trustees already have significant flexibility for investment risk within the current regime and is not persuaded that merely allowing more risk would be sufficient. It highlights the 'Options for Defined Benefit schemes' consultation, exploring changing incentives, and commits to respond later this year.
Department for Work and Pensions
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22 Recommendation Rejected
Third Report - Defined benefit pen…
Legislate urgently to provide indexation on FAS compensation for pre-1997 rights, funded by taxpayer
Financial Assistance Scheme (FAS) members are likely to have more of their service before 1997, so are particularly likely to be affected by non-indexation of pre-1997 benefits. Any improvements for PPF members should also apply to FAS members. Given the … Read more
Government Response
The government states it is considering how to address the lack of pre-1997 indexation for FAS members. However, it explicitly rejects awarding interest on arrears due to no legal basis and rejects removing the FAS compensation cap due to significant cost implications for the Exchequer.
Department for Work and Pensions
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23 Recommendation Rejected
Third Report - Defined benefit pen…
Ensure adequate independent redress mechanism for AEAT pension scheme members' complaints
We support the recommendation of the Public Accounts Committee that the Government should “ensure that members’ complaints about the AEAT pension case can be independently reviewed, for example by a relevant ombudsman.” We agree with the Pensions Minister that it … Read more
Government Response
The government rejects the recommendation, stating that the AEAT case has been extensively investigated over the last ten years by various bodies, and there are no plans to offer specific redress to AEAT members.
Department for Work and Pensions
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Government Response AI assessment · 23 of 9 classified
Accepted 8
Acknowledged 9
Deferred 2
Rejected 4
Total 9 recs + 14 conclusions
Correspondence 15 letters
4 Dec 2024 Statement from the Office of National Statistics (ONS), the Pensions Regulator (TPR) and the Pension Protection Fund (PPF) on valuing the assets in Defined Benefit (DB) pension schemes
Parliament page
13 Mar 2024 Correspondence with The Pensions Regulator relating to the impact on Defined benefit pension schemes after the LDI episode
Parliament page
6 Mar 2024 Correspondence with the Minister for Pensions relating to Defined Benefit pension schemes
Parliament page
7 Feb 2024 Correspondence from TPR relating to Defined Benefit pension schemes with Liability Driven Investments
Parliament page
31 Jan 2024 Correspondence with Economic Secretary to the Treasury relating to Defined benefit pensions
Parliament page
24 Jan 2024 Correspondence with the Economic Secretary to the Treasury relating to Defined benefit pension schemes - evidence session follow-up
Parliament page
10 Jan 2024 Correspondence with the Minister for Pensions relating to meeting with the Pensions Action Group
Parliament page
10 Jan 2024 Correspondence with the Office for National Statistics relating to Defined benefit pension schemes
Parliament page
10 Jan 2024 Correspondence with the Minister for Pensions relating to Proposed Scheme Funding Regime — Open Defined benefit pension schemes
Parliament page
13 Dec 2023 Correspondence with the Pension Protection Fund relating to Defined benefit pension schemes
Parliament page
29 Nov 2023 Correspondence with Pension Protection Fund relating to Defined benefit pension schemes
Parliament page
8 Nov 2023 Correspondence from Clara-Pensions relating to defined benefit pension schemes
Parliament page
8 Nov 2023 Correspondence with the Pension Protection Fund relating to Pension Protection Fund compensation levels
Parliament page
25 Oct 2023 Correspondence with the Pension Protection Fund relating to defined benefit pension scheme inquiry and updated data
Parliament page
18 Oct 2023 Correspondence with the Prudential Regulation Authority relating to Defined benefit pension scheme consolidation
Parliament page