Letter written to Work and Pensions Committee on future of DB pensions
Pensions commission to explore societal opportunities needed
14 Nov 2023
"Now is the time to reflect on longer term policy strategy that would intergenerationally reconnect the UK’s immense store of pensions wealth, so it delivers pension promises, supports current workers and builds societal prosperity. There is a major societal opportunity here, which needs the right policy support and we suggest the establishment of a commission to look at these issues.
"New innovative retirement savings designs are crucial, but the regulatory environment is not yet geared up to offer these. The statutory objectives given to the Pensions Regulator (“TPR”) should be re-oriented to balance keeping past benefits secure with offering good quality pensions to current workers. Regulation should encourage (but not mandate) schemes to generate surpluses, because a surplus makes past benefits more secure, generates value for businesses to subsidise workers' pensions, and can empower investment in assets that generate social good."
Leonard Bowman gave oral evidence to the Committee on 18 October 2023. His opening statement and answers to the Committee's questions can be read here and watched here. His letter sent today can be read here. Hymans Robertson's written evidence to the Committee can be read here.