A new Pensions Act could be created to simplify the legal framework around occupational pension sche...
A new Pensions Act could be created to simplify the legal framework around occupational pension schemes which focuses on the objectives any policy aim of each piece of legislation rather than the process needed to achieve it.
There is a great deal of emphasis on "joined-up thinking" as Pickering's four key principles of any new legislation suggest the detail be taken out of legislation and a broad principle be presented instead where possible to simplify understanding.
Along with plans for a New Kind of Regulator (NKR), Pickering suggests schemes be required to adhere to a small number of codes of practice - which the new regulator will be able to offer advice on - some of which will be created by the NKR, some sanctioned by the government while other codes of conduct could be created by professional bodies to establish "good, but not necessarily best, practice guidelines".
And all trust-based schemes should be required to have one-third of their trustees nominated by pension scheme members, Pickering concludes, except where it is a centralized or industry-wide scheme.
This would end current opt-outs for occupational arrangements, however schemes will be allowed to decide for themselves how this should be done.
All elements of any new legislation need to be created with regard to others, as well as take into account any existing pensions legislation, says the document.
Many of the proposals are also designed to strip out the regulatory differences between occupational and individual pensions, but plans are put together by politicians in such haste, says Pickering that the UK government should implement a Pensions Board - similar to the Irish model - to test the need for changes to legislation.
Data quality is key
Granted leave to appeal the judgement