The governments planned reforms to create new Defined Ambition pension schemes passed their first major debate in the House of Commons last night.
The Pensions Schemes Bill, which was introduced first to Parliament on June 26, sets outs a new legislative framework for private pensions. After passing its second reading yesterday without a division, the legislation will go to committee stage to be examined in detail.
If passed, the bill will enable the development of new Defined Ambition and collective pension schemes offerings, which are intended to allow greater risk sharing between employers, individuals and third parties.
Pension minister Steve Webb said: 'Defined benefit pension schemes have been in decline since the 1960s but I'm not prepared to accept the idea that having some certainty about your future pension income should be consigned to history.
'We may live in an increasingly uncertain world, but pensions shouldn't be part of that uncertainty. People deserve to know the sort of income they can expect in retirement and this legislation will make that a reality for more people.'