In light of the upcoming general election the Pensions and Lifetime Savings Association has highlighted the need for pension authorisation legislation to protect schemes from scams.

In its six-point pension manifesto, the PLSA suggested that the government should legalise an authorisation regime for pension schemes whereby an individual can only transfer to an authorised scheme. Under current law, scheme trustees are powerless to stop transfers, even if they have concerns about risks to the member.

In addition, the PLSA also commented on the need to make alterations to the triple lock policy. It noted that if maintained in its current state, it will add around one per cent of GDP to the cost of the state pension. Instead, the PLSA said “a simpler, fairer and more affordable uprating mechanism should be introduced linking to earnings growth, enabling the state pension to keep pace with working age incomes”. As a result, indexing in this way would allow the state pension to sustain its current value of around 30 per cent of average earnings.

Furthermore, the PLSA outlined in its manifesto the need for greater assistance at retirement in terms of advice for those unable to make a choice, increasing auto-enrolment contributions to at least 12 per cent of salary by 2030 and extending its exposure to 18-21 year olds, self-employed people and those in multiple jobs. As well as reforms on tax relief and incentives to encourage savers and legislation to enable defined benefit pension schemes to share services or to merge, delivering better returns and governance.

PLSA director of external affairs Graham Vidler, said: “The next Government needs to consolidate the growth of workplace pensions, increasing the reach of automatic enrolment and setting out a plan to raise contribution rates. It also needs to make it easier for schemes to make Defined Benefit pensions sustainable.

“Above all, it needs to build public confidence in the system, helping the industry fight scams and deliver the retirement choices savers want, while resisting the temptation for further raids on the pensions tax relief piggybank.”

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