Research calls for simplification of DB pensions

Trustees Agenda posted on 19 November, 2018

A new study published by the Association of Consulting Actuaries (ACA) and Royal London has called for legislation to simplify DB pension schemes. Their paper suggests the creation of a 'pension pound', into which all the complexity of an individual's pension rights could be converted. These pension pounds would then be converted back into a standardised set of DB pension rights which would be common across all schemes. Their research argues that this would cut scheme costs and make it easier for people to transfer pension from one arrangement to another.