LONDON (Citywire) - An independent report for the government has called for a change in regulation to make it easier for employers to get back surplus funds in their own pension schemes.
Increasing numbers of pension schemes are expected to have surplus levels of funding following a period of rising bond yields and strong equity markets.
But current the requirement for trustees to ensure that surplus return is in the members’ interests encourages trustees to trap the surplus within the pension fund, the report said.
The Deregulatory Review of Private Pensions report by Chris Lewin and Ed Sweeney also proposed that schemes should have more power to change their rules to take advantage of changes to legislation.
Other proposals outlined in the report include shifting training requirements away from individual trustees towards measuring trustee expertise at board level and making the rules relating to member disclosure less detailed and prescriptive.
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