Third Report - Defined benefit pension schemes
Select Committee
Work and Pensions Committee
HC 144
26 March 2024
Recommendations
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Conclusions (2) Observations and findings — click to expand
10
Conclusion
Deferred
Improvements in scheme funding have given new prominence to the question of how to treat any surplus in the best interests of scheme beneficiaries. For example, there may be discretion after benefits have been secured on buy-out to enhance benefits before returning any remaining surplus to the employer. There may …
Government Response Summary
The government acknowledges concerns about member interests regarding surplus treatment and discretionary increases, noting existing TPR guidance for trustees. It commits to running a public consultation later this year to explore further changes in the area of trustee capability and governance.
13
Conclusion
Deferred
Para 108
Despite strong support from TPR and trustee bodies for accreditation as a way to improve governance standards, they can only encourage it. DWP should set a date by which it intends to make accreditation mandatory for professional trustees.
Government Response Summary
The government did not set a date for mandatory accreditation, instead stating that voluntary accreditation is prevalent and it intends to consult on the framework of accreditation and governance later this year.