New powers for watchdog on pensions

PENSION savers’ money will get stronger protections under Government plans to hand a regulator tough new powers.

The measures in the Pension Schemes Bill follow concerns that some people’s savings could be at risk from master trusts.

The Bill will require master trusts to meet stricter rules.

In May, the Commons Work and Pensions Committee expressed concern over “potentially unstable’’ master trusts, which provide occupational schemes for multiple employers.

The committee said if one of these trusts collapsed, faith in automatic enrolment into workplace pensions could be hit.

Around 10 million people are eventually expected to be newly saving into a pension or saving more, due to the landmark scheme to automatically place people into workplace pensions.

The Pensions Regulator initially encouraged employers to enter such schemes as they were considered to be best placed to meet the standards needed.