New rules that will give more flexibility over how occupational defined benefit
pension schemes are managed, according to the government.
The government said this will remove blockages that are inhibiting its growth
agenda.
Approximately 75% of schemes are currently in surplus, worth £160 billion, but
restrictions have meant that businesses have struggled to invest them.
Where trustees agree to share a portion of scheme surplus with a sponsoring
employer, the employer may choose to invest these funds in their core business,
for example to purchase equipment or supplies, and/or provide additional
benefits to members of the pension scheme.
Prime Minister, Keir Starmer said:
'The number one mission of my government is to secure growth, drive higher
living standards for everyone, and get more money into people's
pockets.
'To achieve the change our country needs requires nothing short of rewiring
the economy. It needs creative reform, the removal of hurdles, and
unrelenting focus.
'Whether it's how public services are run, regulation or pension rules, my
government will not accept the status quo. Today's changes will unlock
billions of investment, pushing forward in delivering my Plan for
Change.'
Internet link: GOV.UK