PARLIAMENTARY WRITTEN QUESTION
Workplace Pensions (22 November 2023)

To ask the Secretary of State for Work and Pensions, if he will make an assessment of the potential merits of requiring (a) pension companies to hold a consultation when considering closing a defined benefit pension scheme and (b) independent assessment of the potential closure of such a scheme.

Asked by:
Alberto Costa (Conservative)

The legal requirements for employers on certain changes to occupational pension schemes are detailed in The Pensions Act of 2004. This states that larger employers with 50 or more workers are required to consult with affected members or their representatives about proposed significant changes to their pension scheme, including closure, before implementing the change.

These requirements ensure that scheme members are aware of the change and the impact on their future pension, and that they have an opportunity to comment. The Pensions Regulator provides information for employers on closing a pension scheme to new members or future accruals and winding up a scheme at their website including detailed regulatory guidance and can be found at https://www.thepensionsregulator.gov.uk/en/employers/managing-a-scheme/closing-your-scheme.

Answered by:
Paul Maynard (Conservative)
27 November 2023