Fintech meet up
07 Feb 2017 | 09:49 am | 1 min. read
International law firm Pinsent Masons responds to House of Commons Work and Pensions Select Committee and call for the reduction and simplification of pensions law
Failings of the pension system over the years have led to calls for more legislation and regulation, to prevent scandals being repeated. While rules might indeed be a good thing, too many might be bad for us. The vast number of rules has led to an over-complicated pensions system that leaves not only the public bemused by the whole subject, but also the professionals.
Despite the major increase in pensions rules over the last ten years, aimed at protecting the consumer and encouraging better retirement saving, there has been a significant drop in the membership of defined-benefit pension schemes, with many people on course for inadequate incomes in retirement.
Widespread discontent, general confusion and concern that the forthcoming Government Green Paper on defined benefit schemes will recommend yet more legislation has led to this review of the legislative and regulatory state of pensions in the UK.
Jointly prepared by international law firm Pinsent Masons, in collaboration with Pendragon, the publisher of Perspective, the electronic industry standard compendium of pensions regulation, and The Pensions Institute, the Cass Business School research body, the review has prompted a number of preliminary conclusions, including:
Carolyn Saunders, Head of Pensions and Long-Term Savings at Pinsent Masons, says:
"The present system is considered by most to be dysfunctional, leading to confusion, expense and a reduction in provision by employers. Whilst auto-enrolment is making some headway, for most of the population there is a reduction in the amount being set aside for retirement at a time when the population is aging and the savings ratios should be higher. Regulation may not be the sole reason for the decline, but it seems to be a major contributory factor.''
The diagnosis of excessive regulation has been accepted by government in areas other than pensions. For example, it has adopted: a Red Tape Challenge programme; and a OITO ('one in two out'; now 'one in three out') policy which requires departments putting forward new regulations to remove three existing ones. These, amongst others, are dedicated to rolling back excesses in rule-making. Yet this deregulatory policy has not been extended to pensions.
To download the full review on the state of pensions regulation in 2017, click here
Fintech meet up
International professional services firm Pinsent Masons has today announced the launch of the "Spark Board" to bring a new perspective to strategic decision-making at the firm.
International law firm Pinsent Masons has launched a virtual internship enabling students to gain valuable experience of working as a lawyer within its business.
Board member recognised as most innovative lawyer in Europe
For all media enquiries, including arranging an interview with one of our spokespeople, please contact the press office on