To ask the Secretary of State for Work and Pensions if he will take steps to help those with pensions which are worth significantly less than they anticipated when purchasing those pensions.
It is important that promises made to pension scheme members are met. For defined benefit pensions—where the scheme sponsor promises a specified, usually salary-related, pension—we have a protection regime in place. This includes requirements on how schemes are funded and provision for member compensation.
For defined contribution pensions, there is not a promise to the member on the amount of pension benefit they will receive as this will depend on factors such as the contribution level and investment performance.
However, even when there is no promise, it is crucially important that members are given meaningful, clear and transparent information about their pension schemes by scheme managers and trustees. In recognition of this we have revised the disclosure regulations with effect from