Overview

• The bill would let employers remove ‘surplus’ cash from defined benefit schemes, reducing the financial cushion for members
• A Department for Work and Pensions impact assessment warns that surplus withdrawals heighten the risk of pension schemes failing to meet obligations
• The Pension Security Alliance and other critics warn that millions of members could face underfunded retirement incomes if surpluses are stripped
• Legislation mandates the merger of workplace pensions into ‘megafunds’ with at least £25 billion in assets to exploit economies of scale and boost investment
• Government ministers argue the reforms will simplify pensions and unlock capital for economic growth despite ongoing member security concerns