Defined Contribution Pensions: Investment and Consolidation

Consultation opened on 05 February 2019. Closing date 01 April 2019.

Summary

A consultation on proposals to encourage defined contribution pension schemes to consider a wider range of investments.

Consultation description

The author for this consultation is the Department for Work and Pensions. As such, all consultation information and related documents can be found on the GOV.uk website

The Department for Work and Pensions has published the consultation paper Investment Innovation and Future Consolidation: A Consultation on the Consideration of Illiquid Assets and the Development of Scale in Occupational Defined Contribution schemes.  The paper seeks views on proposals to encourage defined contribution schemes to consider a wider range of investments.

The consultation paper sets out proposals to encourage defined contribution schemes to consider investing more widely, in areas such as start-up companies, housing and green energy.  The proposals include;

  • requiring large schemes to report their policy on these types of investment
  • requiring smaller schemes to assess, every three years, whether they should consolidate into a larger scheme
  • changing how schemes calculate charges

This consultation is aimed at:

  • pension scheme trustees and managers
  • pension scheme members and beneficiaries
  • pension scheme service providers, other industry bodies and professionals
  • civil society organisations
  • any other interested parties

In general, Northern Ireland’s pensions policy and legislation operate in line with Great Britain, and there is, in effect, a single pensions system across the UK. It is anticipated therefore that any changes will be introduced here, subject to the necessary Ministerial, Executive and Assembly approvals.

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