Pensions Green Paper - Issues For Employers

The Government has published its eagerly-awaited green paper on Security and Sustainability in Defined Benefit Pension Schemes, setting out its view of the current state of defined benefit (DB) pension schemes, and issues it wishes to discuss with providers of such schemes, including employers.

Key points

1. The green paper starts from the premise that there is no crisis in defined benefit pensions - contrary to the views of some in politics and the media.
2. It states that most members can expect to receive their benefits in full, and that few employers are going to be driven into insolvency by their pension schemes. It recognises that there are some who are struggling.
3. There is little to suggest that radical change in law or regulation is on the way. The focus is on ensuring that the balance of risk between employer, member and the Pension Protection Fund (PPF) is adequate, and that the pensions industry operates with maximum efficiency.