The Pension Schemes Act will, Government says, bolster protections for savers. Minister for Pensions, Guy Opperman, said: “This Act makes our pensions safer, better and greener, as we look to build back better from the pandemic. The Act will strengthen protections for pension savers by extending the powers of the Pensions Regulator, introducing the power to issue civil penalties of up to £1 million, alongside three new criminal offences.”
A tough new sentence has been created – with a maximum penalty of seven years in prison – for bosses who run pension schemes into the ground, or plunder pots to line their own pockets.
The introduction of pensions dashboards will create one single platform for savers to more easily access and review pension pots, as they will be able to see how much they can expect each month in retirement.
The Act also legislates for the creation of a new style of pension scheme – Collective Defined Contributions (CDCs).