Occupational Pensions

Department for Work and Pensions written question – answered on 15th September 2017.

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Photo of Steve McCabe Steve McCabe Labour, Birmingham, Selly Oak

To ask the Secretary of State for Work and Pensions, if he will change current regulations so that employers are required to issue annual automatic pension statements.

Photo of Guy Opperman Guy Opperman The Parliamentary Under-Secretary of State for Work and Pensions

Trustees and providers of defined contribution (DC) pension schemes are required to issue annual statements to members which must include the current value of the pension pot, the amount contributed in the previous year and a projected estimate of what pension income the pot may buy at retirement. We have no plans to require employers to issue such statements.

Employers who sponsor defined benefit (DB) pension schemes are not required to issue annual pension statements, although some sponsors do. However if a statement is requested by a member sponsors of DB schemes are required to issue one within two months.

As defined benefit (DB) pensions normally promise a specific income in relation to salary and length of service, there are minimal annual fluctuations in entitlement. Placing a legal requirement on DB schemes to issue annual statements, particularly where the estimated pension remains unchanged, would place a disproportionate cost burden on defined benefit schemes. We have no plans to require schemes to issue such statements.

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