Research and analysis

Pension Schemes Bill IA: RPC Opinion (green-rated)

Regulatory Policy Committee opinion on DWP's Pensions Schemes Bill IA

• From: Regulatory Policy Committee
• Published: 6 June 2025

Documents

RPC Opinion: Pension Schemes Bill IA

PDF, 280 KB, 19 pages

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Details

The proposal aims to reshape the pension landscape into fewer, larger and better governed schemes to deliver improved returns, access wider asset classes, and support growth through increased investment in productive UK assets. The measures (in separate sub-IAs) include: a Value for Money framework, authorisation of Superfunds, consolidation of small pots, guided retirement, Megafunds and surplus extraction.

The IA provides a good level of analysis. It details direct impacts on businesses, using proportionate evidence and reasonable assumptions. It thoroughly assesses impacts on small businesses. The rationales are generally comprehensive.

While many options are assessed, there should be more justification for rejecting non-regulatory options. The cost-benefit analysis draws on various evidence sources, and provides useful sensitivity testing. The IA lacks detail in in the monitoring and evaluation section, which should have outlined success metrics, reporting requirements, and methodologies, across the policies.

Overall, the IA demonstrates a reasonable analytical approach.

Published 6 June 2025