Work And Pensions Committee Publishes Report On DB Schemes

The Work and Pensions Committee has concluded in its long-awaited report that DB schemes remain of critical importance to both savers and the UK economy, despite a steady decline in scheme numbers over recent years.

Published on March 26, 2024, the report calls for a fresh approach and recommends:

• General improvements in DB funding levels justify a change of approach in funding regulation and the treatment of surpluses.
• The PPF should be given more flexibility to reduce its levy to zero.
• The Regulator's statutory objective to protect the PPF should be replaced with a new objective to protect future and past service benefits.
• It recognises that the DWP and the Regulator need to invest in driving high standards of governance across pension schemes. It recommends that accreditation should be made mandatory for professional trustees. Ways to ensure lay trustees have the time and resources to become accredited should also be explored and it should be ensured