DWP White Paper: What Next For DB Pension Schemes?

Following on from last year's Green Paper ("Security and Sustainability in Defined Benefit Pension Schemes"), the Government has now published its White Paper entitled "Protecting Defined Benefit Pension Schemes" which sets out its proposals for the future of the UK's defined benefit (DB) pension system.

The White Paper recognises that the regulatory system does not need a radical redesign (a conclusion with which we agree) but it does seek to strengthen it in various ways. This was inevitable following high-profile cases where pensioners' interests were potentially at risk. As the White Paper acknowledges, however, most employers do try to do the right thing by their pension schemes. The aim of the Government's proposals is therefore to maintain confidence in the system by better protecting members' benefits and deterring that small number of employers who may be tempted to act in disregard of, or even recklessly in relation to, their DB pension scheme obligations.