The government has called for action soon to provide a pension boost

A legal expert has called on Chancellor Rachel Reeves to bring forward a number of important pensions policies. Clive Pugh, a partner at Burges Salmon, warned that the new head of the Treasury has “a very complex portfolio” to manage, including numerous previous government policies.

He commented: “Many of our customers have a long wish list where early commitment from the new Pensions Minister would be welcome. For defined benefit (DB) schemes, the most immediate prompt will be to view the Pensions Regulator’s new DB funding. code (to accompany regulations coming into force for schemes with valuation dates from 22 September 2024, but there are a number of other ongoing legal issues).

Another key issue he pointed to is the pensions dashboard policy, with the single sign-on deadline currently set for 31 October 2026. Another question is the extension of auto-enrolment, as the legislation has been “enacted but is not yet in place ” for it to be extended. all workers aged 18 and over. The policy currently applies to workers aged 22 and over.

Mr Pugh listed other government projects that need to go ahead, including “smoothing out wrinkles in the abolition of the lifetime allowance (regulations delayed by the election), the outcome of the Virgin Media appeal (and any DWP engagement on this issue), notifiable events (will will the new regime ever see the light of day? ) and, for defined contribution schemes, the promised consultation on the new value for money requirements”.

The legal expert highlighted Labour’s manifesto promise to overhaul the pensions landscape, suggesting changes to pensions could be on the horizon. He said: “We can therefore expect to see both market consolidation and productive finance remain high on the agenda, as they have been under the Conservative Party’s Mansion House reforms. We would like to see the new Government’s review of the pensions ecosystem, which will encompass both private and public sector arrangements, fully engage with industry stakeholders who will have valuable insights and perspectives to offer both on pension challenges as well as possible future solutions.”

Michael Hayles, another partner at Burges Salmon, suggested the new Labor government may want to move away from the Mansion House reforms. He said: “With significant reforms to employment law promised, we may see the new Labor government look again at workplace pension rights, may increase auto-enrolment contribution rates or extend obligations to try to address concerns on longer term regarding the adequacy of pensions”.

However, he also noted several uncertainties related to pension policy. He said: “With a wave of public service outsourcing promised, will we see more wholesale changes to existing civil service pension arrangements?”

“Climate change is likely to be a key area of ​​focus, with Labour’s manifesto pledging to make Britain the ‘green financial capital of the world’ and calling on pension funds and other financial institutions to ‘develop and implement plans of credible transitions to align”. with the 1.5C objective of the Paris Agreement’, but what will this requirement look like and how will it be implemented”.