§ 25. Mr. SwayneTo ask the Secretary of State for Work and Pensions what steps he is taking to assist employers administering final salary pension schemes. [63411]
§ Mr. McCartneyThe Pickering Review of pensions regulation is looking at ways of simplifying the regulatory regime for pensions, in order to lessen the administrative burden on employers providing occupational pension schemes, including final salary schemes. This review is due to report in the next few weeks and we intend to respond to it in the Autumn. In addition, the Inland Revenue are undertaking a review of pensions taxation which is due to report later this year.
§ 29. Hugh RobertsonTo ask the Secretary of State for Work and Pensions if he will make a statement on final salary pension schemes. [63416]
§ Mr. McCartneyFinal salary schemes have provided good pension provision for many individuals. They have been in decline since the 1960s and recently there has been an increase in the number of final salary schemes closing to new members. The reasons for this are complex, in particular that people are living longer which increases scheme liabilities, and that investment returns have been lower than in the past.
What is required is a regime that allows sustainable pension provision. It is Government's role to ensure that the right framework is in place. That is why we commissioned the review of pensions regulation by Alan Pickering that is due to report in the summer.