Blog
A deep-dive into a variety of pension topics to help you understand and learn more about your pension and the Scheme.
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14/11/2022
Editorial
<div><p>The Trustee of the Railways Pension Scheme has raised concerns with the Department for Work and Pensions (DWP)’s draft occupational pension schemes regulations 2023, and has issued a comprehensive response. This is to the DWP’s recent consultation on a new set of funding and investment regulations for defined benefit (DB) pension schemes. <br></p></div><br><div>The Trustee welcomes and shares the DWP’s supportive comments about the need to make these regulations work for open DB schemes. However, there are a number of areas where it believes the current draft of these regulations will not achieve this
objective. The Trustee’s response highlights several key concerns, including higher costs, systemic risks to the economy, and difficulties supporting the Government’s growth agenda – views shared by many other industry participants.<br></div><div><br>Almost 10 million people across the country remain reliant on DB schemes, with around 65% of these savers in schemes that have some form of benefit accrual, and around 23% in schemes that remain open to new members (according to the latest data from the
Pension Protection Fund).<br></div><div><br>In contrast, the majority of the UK is now reliant on DC pensions, with research from the Pensions Policy Institute suggesting that over 90% of these DC savers are facing an inadequate retirement. This is a major societal problem for the next generation
of retirees and beyond, and makes it ever more important that people with access to well-run DB pensions are not forced to follow this path. <br></div><div><br>The Trustee recognises that the Railways Pension Scheme and the other schemes it supports have characteristics that are not typical in the universe of UK DB schemes. However, these schemes are important, not simply to members, but also to employers and
the wider UK railway industry. The Trustee believes that it is essential that pension regulations allow members to continue to build up affordable and sustainable DB pensions, and that it remains able to pay these benefits over the long-term.<br></div><div><br><a target="_blank" href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/default-document-library/rptcl---response-to-consultation-on-draft-funding-and-investment-regulations-2023.pdf?sfvrsn=f0794a04_7">Read the Trustee’s full response to the consultation.</a> <br><br></div><div><br></div>
<div><p>The Trustee of the Railways Pension Scheme has raised concerns with the Department for Work and Pensions (DWP)’s draft occupational pension schemes regulations 2023, and has issued a comprehensive response. This is to the DWP’s recent consultation on a new set of funding and investment regulations for defined benefit (DB) pension schemes. <br></p></div><br><div>The Trustee welcomes and shares the DWP’s supportive comments about the need to make these regulations work for open DB schemes. However, there are a number of areas where it believes the current draft of these regulations will not achieve this
objective. The Trustee’s response highlights several key concerns, including higher costs, systemic risks to the economy, and difficulties supporting the Government’s growth agenda – views shared by many other industry participants.<br></div><div><br>Almost 10 million people across the country remain reliant on DB schemes, with around 65% of these savers in schemes that have some form of benefit accrual, and around 23% in schemes that remain open to new members (according to the latest data from the
Pension Protection Fund).<br></div><div><br>In contrast, the majority of the UK is now reliant on DC pensions, with research from the Pensions Policy Institute suggesting that over 90% of these DC savers are facing an inadequate retirement. This is a major societal problem for the next generation
of retirees and beyond, and makes it ever more important that people with access to well-run DB pensions are not forced to follow this path. <br></div><div><br>The Trustee recognises that the Railways Pension Scheme and the other schemes it supports have characteristics that are not typical in the universe of UK DB schemes. However, these schemes are important, not simply to members, but also to employers and
the wider UK railway industry. The Trustee believes that it is essential that pension regulations allow members to continue to build up affordable and sustainable DB pensions, and that it remains able to pay these benefits over the long-term.<br></div><div><br><a target="_blank" href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/default-document-library/rptcl---response-to-consultation-on-draft-funding-and-investment-regulations-2023.pdf?sfvrsn=f0794a04_7">Read the Trustee’s full response to the consultation.</a> <br><br></div><div><br></div>
Blog
The Trustee responds to DWP consultation
Read the Trustee's response to the DWP when it comes to DB schemes.
The Trustee of the Railways Pension Scheme has raised concerns with the Department for Work and Pensions (DWP)’s draft occupational pension schemes regulations 2023, and has issued a comprehensive response. This is to the DWP’s recent consultation on a new set of funding and investment regulations for defined benefit (DB) pension schemes.
The Trustee welcomes and shares the DWP’s supportive comments about the need to make these regulations work for open DB schemes. However, there are a number of areas where it believes the current draft of these regulations will not achieve this
objective. The Trustee’s response highlights several key concerns, including higher costs, systemic risks to the economy, and difficulties supporting the Government’s growth agenda – views shared by many other industry participants.
Almost 10 million people across the country remain reliant on DB schemes, with around 65% of these savers in schemes that have some form of benefit accrual, and around 23% in schemes that remain open to new members (according to the latest data from the Pension Protection Fund).
In contrast, the majority of the UK is now reliant on DC pensions, with research from the Pensions Policy Institute suggesting that over 90% of these DC savers are facing an inadequate retirement. This is a major societal problem for the next generation of retirees and beyond, and makes it ever more important that people with access to well-run DB pensions are not forced to follow this path.
The Trustee recognises that the Railways Pension Scheme and the other schemes it supports have characteristics that are not typical in the universe of UK DB schemes. However, these schemes are important, not simply to members, but also to employers and the wider UK railway industry. The Trustee believes that it is essential that pension regulations allow members to continue to build up affordable and sustainable DB pensions, and that it remains able to pay these benefits over the long-term.
