Three cheers for the Pension Schemes Act 2015

Nottingham Forest v Yeovil 180507

As I understand it, those involved in getting the Pension Schemes Act 2015 had a little party last night. They deserved a drink on the nation.

So Jo Clease and Ronan O’Connor and Charlotte Clarke and everyone else in getting this excellent piece of legislation over the line – cheers.

well done

And so say all of us.

And in that Act are the clauses that allow for a new type of pension scheme which will allow everyday people who do not want to buy an annuity with guarantees and do not want to manage their retirement savings to be taken care of.

The name of that type or scheme is CDC or Collective Defined Contribution (for long).

And on Monday of next week I will be able to say thanks to the DWP myself as I will be attending a meeting with like-minded people like Hilary Salt and David Pitt-Watson and Derek Benstead and Con Keating and Kevin Wesbroom and many others.

The point of this meeting is to understand how we can turn good legislation into something that really makes a difference

  • A pension which provides insurance against old age through the pooling of risk within it
  • A pension scheme that shares risk but is open about the risks people take as members
  • A pension scheme that does not over or under promise and manages expectations
  • A pension that is properly invested and managed by people dedicated to good member outcomes
  • A pension without the ruinously expensive guarantees that sink Defined Benefit Schemes, Insurance Companies -even Banks
  • A pension that is fair to all members with fair shares established by detailed law and skilled actuaries
  • A pension with property rights so people can walk away if they want or need to
  • A pension that is signposted by employers at retirement without the risks of advice, guidance or participation
  • A pension that belongs to the people within it and not to the people running it.

This kind of pension should be targeted at people who are retiring today. It should not be a replacement for Workplace DC plans (which are working well as savings vehicles). It should not be targeted at the remaining DB plans which are being managed well.

With such schemes we can restore confidence in pensions and silence the scoffers who try to silence these kind of pensions

Well done to all who have worked so hard to get so far, well done in particular to David Pitt-Watson and Hari Mann who persevered with the RCA project “towards tomorrow’s investor” against strong head-winds.

CDC must and will succeed and it will do so because it is the right way, not for the markets or for advisers but for the people of Britain who otherwise are in for years more of pension anarchy and retirement misery.







About henry tapper

Founder of the Pension PlayPen,, partner of Stella, father of Olly . I am the Pension Plowman
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