Pensions minister Steve Webb has announced changes to disclosure rules for company pensions as part of the government’s Red Tape Challenge programme. It claims the changes will save businesses £10m a year.

According to Webb its examination of regulations for private pensions found most worked well, but that the proposed changes would “ease the burden of regulations on employers”.

He said: “Our changes will save businesses millions of pounds, by streamlining and improving rules governing what, when and how pension schemes must communicate with their members.”

The government promises to simplifying disclosure of information rules, harmonise requirements across different schemes and extend the use of electronic communication, such as email and websites. It may also involve a move to a more “principles based” approach.

The final shape of the changes is likely to be determined by responses to the government’s consultation on disclosure rules that closed ealier this month. Among the changes it proposed were removing the requirement to offer additional voluntary contributions as part of basic scheme information, allowing provision of only basic information to new members (with more detailed information on request), and simplification of the regulations for defined benefit (DB) scheme statements.

The Ministerial Statement today also includes a number of other proposals including a new statutory objective for The Pensions Regulator to support scheme funding arrangements compatible with sustainable growth for the sponsoring employer and continued examination of whether to make indexation for future accruals discretionary as part of ongoing work to encourage more risk sharing through defined ambition pensions. In addition,
other proposals include further work to consider how to improve current processes relating to employer debt that causes difficulties for charities and others in multi-employer schemes

The statement also refers to proposals for technical changes to improve the automatic enrolment process for employers, pension and payroll providers.

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