U.K. pension scheme reforms promise funds consolidation for trustees

The U.K. government has signaled new rules for pension trustees and funds consolidation to boost investment, but questions remain on employee financial literacy.

Chancellor of the Exchequer, Rachel Reeves, is planning imminent changes to trustee duties as part of the Pensions Schemes Bill, which forms part of the government’s “big bang of reforms to unlock growth,” she recently announced.

The changes include new duties for trustees of occupational defined contribution (DC) schemes, as well as provisions to make it easier for employees with multiple pension pots to consolidate them, and the introduction of compulsory “value for money” tests for providers. These could come into force early next year.