Pension trade body the Pensions and Lifetime Savings Association (PLSA) is to focus on expanding the scope and level of automatic enrolment as its top strategic policy objective in 2023.
The organisation is celebrating its 100th anniversary this year.
John Chilman, chair of the PLSA Policy Board, said: “As the PLSA celebrates its 100th birthday, the PLSA Policy Board will continue to champion a policy framework that means people will have an adequate income in retirement and aim to ensure the regulatory and operating environment is appropriate for our members.”
The PLSA has been consistently calling on the government to improve pension adequacy for millions of savers through targeted policy interventions – especially for under-pensioned groups – for several years.
In particular, the organisation highlighted its 2022 consultation, Five Steps to Better Pensions: Time for a New Consensus, which outlined a number of reforms to help more savers achieve a better retirement income and prevent pensioner poverty.
Suggested reforms included:
- National objectives: The creation of clear national objectives for the UK pension system –combined with regular formal monitoring of whether it is on track to achieve these goals.
- State pension: Reform of the state pension so everyone achieves the minimum retirement living standard, to prevent pensioner poverty.
- AE reform: Reform of AE so more people are included, such as younger people, multiple job holders and gig economy workers, and at a higher level so people on median earnings are likely to achieve the Pensions Commission’s Target Replacement Rates.
- Under pensioned groups: Additional policy interventions to help under pensioned groups, including women, gig economy workers, self-employed people, and others.
- Industry initiatives to achieve better pensions: actions to help people engage with pensions, receive higher contributions, or get better pension outcomes.
Later this year the PLSA will publish its response to its Five Steps consultation along with additional evidence of the need for reform.
In addition to the strategic priority of pension adequacy, the PLSA outlined six additional regulatory policy areas of focus, including helping the industry prepare for pension dashboards, responding to the proposals around the Defined Benefit (DB) Funding Code, and supporting responsible investment and stewardship efforts.
Mr Chilman, said: “All of our members – whether they are a DB or DC fund, a LGPS fund, or a master trust – are passionate about ensuring the UK pension savings system gives people the best possible chance of saving what they need to enjoy the retirement they want.”
The PLSA’s policy priorities are reviewed annually by the PLSA Policy Board, which has responsibility for setting the policy agenda and ensuring the PLSA is tackling the issues that matter most to its members.
