XPS responds to Work and Pensions Committee inquiry into defined benefit pensions

XPS responds to Work and Pensions Committee inquiry into defined benefit pensions

26 Apr 2023

Paul Cuff, Co-Chief Executive Officer at XPS Pensions Group, said: “This inquiry is timely in the context of a defined benefit pensions market in which many schemes are now very well-funded. We believe the £1.5trn of UK DB pension assets could be used as a force for good to tackle some of the leading issues the UK is facing – including low growth, a tight labour market, and the ever-widening pensions divide between members with DB and DC plans.

“We are calling for some changes to the current regime which could help ease cost pressures on employers, encourage people to stay in the workforce longer, encourage investment in the UK economy, and boost DC savings for the next generation. These include using surpluses in DB schemes to boost DC contribution rates and improving the level of benefits covered by the PPF, all within a system that continues to protect the security of DB pensions.”