Pensions - Articles - NAPF comments on Pensions Bill second reading

 The National Association of Pension Funds (NAPF) has commented on the Second Reading of the Pensions Bill which was debated in Parliament yesterday (Mon).

 Darren Philp, Director of Policy, NAPF, said:

 “We welcome the Pensions Bill passing its second Parliamentary hurdle last night. We are delighted that this landmark Bill is on course to tackle key areas relating to our State Pension and will create a simpler, fairer system that encourages retirement saving.”

 However, the NAPF voiced concerns about plans for the automatic transfer of small pension pots.

 Mr Philp said:

 “We are disappointed that the Government is pushing ahead with legislation on small pots. We agree it should be easier for people to combine pension pots and we recognise the increase in pots that will arise from automatic enrolment. However, the current proposals could result in members’ pots being transferred from good pensions into bad ones. They are also likely to result in considerable costs for pension schemes and employers.

 “The Government needs to revisit this issue as the Bill progresses through Parliament to try to find a suitable solution.”

 The Bill will now progress to the Commons Committee stage, where the NAPF will give oral evidence on the detail of the Bill.