In answering this question, the term \u2018alternative investments\u2019 is assumed to refer to investments that the individual chooses themselves, either that are unconventional in that they carry more risk, or are not typical of investments offered by personal pension schemes.<\/p>
<\/p>
The Pension Schemes Bill 2019-20 has no provisions that restrict how members transferring from defined benefits pensions should invest their pension rights.<\/p>
<\/p>
Clause 124 of the Pension Schemes Bill contains provisions to amend the statutory right to transfer and thereby restricts the types of pension arrangements under which a member can compel trustees to approve a transfer request. Members can still use their statutory right to transfer to an authorised Master Trust or an FCA authorised pension arrangement.<\/p>
<\/p>
In accordance with the principles of freedom and choice, members with defined benefit pension rights have the right to transfer to a defined contribution scheme to self-invest. These self-invested personal pension schemes can offer the member a range of investment funds, including alternative investments.<\/p>
<\/p>
Members with a cash equivalent greater than £30,000 must seek financial advice before they transfer or convert their pension rights into flexible benefits, that can be used for alternative investments. FCA rules for pension transfer advisers require that the form of investment the member is considering on transfer is considered as part of their recommendation to the member to transfer or not. However, the member retains the right to follow or ignore the advice they receive. Where trustees\u2019 have concerns with the alternative investments in a members\u2019 choice of destination, they should make the member aware as part of their overall requirement to carry out due diligence in the member\u2019s interest.<\/p>
<\/strong><\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/4142", "label" : {"_value" : "Biography information for Guy Opperman"}
}
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, "answeringDeptShortName" : {"_value" : "Work and Pensions"}
, "answeringDeptSortName" : {"_value" : "Work and Pensions"}
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], "questionText" : "To ask the Secretary of State for Work and Pensions, whether there are provisions to transfer out of defined benefit pension schemes into alternative investments in Pension Schemes Bill.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/3928", "label" : {"_value" : "Biography information for Nick Smith"}
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, "tablingMemberConstituency" : {"_value" : "Blaenau Gwent"}
, "tablingMemberPrinted" : [{"_value" : "Nick Smith"}
], "uin" : "9644"}
, {"_about" : "http://data.parliament.uk/resources/1140545", "AnsweringBody" : [{"_value" : "Department for Work and Pensions"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1140545/answer", "answerText" : {"_value" : " The vast majority of employers are meeting their pension obligations under automatic enrolment, consistent with the legal framework established under the Pensions Act 2008. Where employers fail to comply with the law however, The Pensions Regulator (TPR) has a full range of powers to ensure employees get the pensions they are due.<\/p> TPR is aware of some employers that appear to have tried to avoid meeting their pension obligations by hiding behind a new name. TPR investigators are working to take action against offenders that try to use this tactic, and are carrying out short-notice inspections on employers that are suspected of breaching their automatic enrolment duties.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/4142", "label" : {"_value" : "Biography information for Guy Opperman"}
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, "answeringMemberConstituency" : {"_value" : "Hexham"}
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, "answeringDeptId" : {"_value" : "29"}
, "answeringDeptShortName" : {"_value" : "Work and Pensions"}
, "answeringDeptSortName" : {"_value" : "Work and Pensions"}
, "date" : {"_value" : "2019-07-19", "_datatype" : "dateTime"}
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, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
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], "questionText" : "To ask the Secretary of State for Work and Pensions, what plans his Department has to tackle the use of shape shifting practices by employers to avoid meeting pension obligations to employees; and if he will make a statement .", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/3928", "label" : {"_value" : "Biography information for Nick Smith"}
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, "tablingMemberConstituency" : {"_value" : "Blaenau Gwent"}
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, {"_about" : "http://data.parliament.uk/resources/1105288", "AnsweringBody" : [{"_value" : "Department for Work and Pensions"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1105288/answer", "answerText" : {"_value" : " The DWP are urging the two organisations to work much more closely together. The Pension\u2019s Regulator and the Financial Conduct Authority carry out their functions independently. The Pension\u2019s Regulator launched a joint protocol with Financial Conduct Authority in January 2019. The Protocol is intended to improve coordination between the Financial Conduct Authority, The Pension\u2019s Regulator and the Pensions Advisory Service to help pension scheme trustees to ensure their members are adequately and fully informed when considering transferring their defined benefit pensions.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/4142", "label" : {"_value" : "Biography information for Guy Opperman"}
}
, "answeringMemberConstituency" : {"_value" : "Hexham"}
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, "questionFirstAnswered" : [{"_value" : "2019-04-02T16:28:51.133Z", "_datatype" : "dateTime"}
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, "answeringDeptId" : {"_value" : "29"}
, "answeringDeptShortName" : {"_value" : "Work and Pensions"}
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, "date" : {"_value" : "2019-03-26", "_datatype" : "dateTime"}
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, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
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], "questionText" : "To ask the Secretary of State for Work and Pensions, what assessment she has made of the level of coordination between the Pensions Regulator and the Financial Conduct Authority in relation to defined benefit pension transfer advice.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/3928", "label" : {"_value" : "Biography information for Nick Smith"}
}
, "tablingMemberConstituency" : {"_value" : "Blaenau Gwent"}
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, {"_about" : "http://data.parliament.uk/resources/1002135", "AnsweringBody" : [{"_value" : "Department for Work and Pensions"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1002135/answer", "answerText" : {"_value" : " We have announced in the White Paper, Protecting Defined Benefit Pension Schemes, <\/em>that we intend to introduce a stand-alone interview power and enhanced inspection powers to enable the Pensions Regulator to conduct its investigations in a more efficient way.<\/p> <\/p> The Government\u2019s recent consultation on a stronger Pensions Regulator asked for views on proposals to strengthen the Pensions Regulator\u2019s powers, including specifically enhancing its anti-avoidance powers, which deal with moral hazard. We are considering the responses and hope to publish our conclusions shortly, with a view to taking forward any necessary legislation in due course.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/4142", "label" : {"_value" : "Biography information for Guy Opperman"}
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, "answeringMemberConstituency" : {"_value" : "Hexham"}
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, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
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], "questionText" : "To ask the Secretary of State for Work and Pensions, when she plans to bring forward legislative proposals to enhance the moral hazard powers of the Pensions Regulator.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/3928", "label" : {"_value" : "Biography information for Nick Smith"}
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], "answer" : {"_about" : "http://data.parliament.uk/resources/1002136/answer", "answerText" : {"_value" : " We have announced in the White Paper, Protecting Defined Benefit Pension Schemes, <\/em>that we intend to introduce a stand-alone interview power and enhanced inspection powers to enable the Pensions Regulator to conduct its investigations in a more efficient way.<\/p> <\/p> The Government\u2019s recent consultation on a stronger Pensions Regulator asked for views on proposals to strengthen the Pensions Regulator\u2019s powers, including specifically enhancing its anti-avoidance powers, which deal with moral hazard. We are considering the responses and hope to publish our conclusions shortly, with a view to taking forward any necessary legislation in due course.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/4142", "label" : {"_value" : "Biography information for Guy Opperman"}
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], "questionText" : "To ask the Secretary of State for Work and Pensions, if she will bring forward legislative proposals to enhance the (a) information-gathering and (b) anti-avoidance powers of the Pensions Regulator.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
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