188体育

• Options include making surplus extraction easier and designing a public sector consolidator

The DWP today set out plans to ensure the 拢1.4 trillion held by pension schemes delivers for savers and the economy.聽

Plans include making surplus extraction easier for well-funded Defined Benefit (DB) schemes, alongside a public sector consolidator operated by the Pension Protection Fund.聽

The consultation 鈥� which runs from today (Friday 23 February) until Friday 19 April 鈥� seeks views on how the money held in DB schemes can be best unlocked in the interest of savers and for sustainable investment in the wider economy.

Minister for Pensions, Paul Maynard said:聽

We are in a welcome position with DB pension schemes enjoying high levels of funding, and we want to make this money work harder for savers and the wider economy. I welcome industry views on our plans to reform the pensions market.

Over the last decade most DB schemes have become better funded, with the average scheme having a funding level of 113% in 2022, compared to 104% in 2010. This has led to an aggregate surplus of 拢200 billion.

By supporting these schemes to invest surplus in UK productive finance assets, it is believed the schemes can help boost the UK鈥檚 leading position as a leading financial centre, creating wealth to help fund public services.

Additionally, with around 5,000 schemes operating in the UK, consolidation of the market could also further the productive finance agenda 鈥� providing greater opportunity to strengthen the economy through increased investment.

Consolidation could also continue to strengthen security for savers through economies of scale and improved governance 鈥� ensuring better outcomes for savers remain at the heart of the proposals.

Further Information

• Link to the 鈥極ptions for Defined Benefit Schemes鈥� consultation:聽Options for Defined Benefit schemes - 188体育 (www.gov.uk)
• This consultation builds on 鈥�Options for defined benefit schemes: a call for evidence鈥� published in July 2023.