A new pension law has come into force

Local independent financial adviser, Becky Hammonds of Willow Financial Solutions in Blyth Bridge, Stoke-on-Trent, considers the positive impact of a new pension law.

After a year of debate, the Pension Schemes Bill becomes law. Designed to make pensions safer, better and greener, the new Act is a historic landmark achievement for the rights of savers.

Alongside requiring firms to publish how “green” their pensions are, it gives the Pensions Regulator extra powers to issue massive civil penalties, alongside new criminal offences. Bosses who run pension schemes into the ground or plunder pots to line their pockets will face fines of up to £1 million and up to seven years in jail.

The new Act will also change requirements around pension scheme funding to improve financial sustainability.

The Act places a new emphasis on schemes to consider the climate change impact of investments and to publish information on how this has been achieved. These changes aim to significantly improve pensions’ financial sustainability.

Pensions dashboards, where people can see all their retirement savings in one place, will be created. They will unite billions in lost, unclaimed pots.

Trustees will be able to “red flag” a transfer request to stop hard-earned savings being moved to suspect schemes without expert guidance.

This is a significant milestone and will allow the Pensions Regulator to act against bosses who run schemes into the ground or plunder pots.

For pensions and investment advice contact Becky Hammonds on 07969 269677 or email becky@willowfs.co.uk visit: www.willowfs.co.uk