The UK’s Pension Schemes Bill became law today upon receiving Royal Assent, with the government describing the event as confirming “the biggest shake-up of UK pensions for decades”.

Introduced in the House of Lords in January 2020, the bill completed its passage through parliament last month after the government gave reassurances in relation to proposed funding rules.

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Guy Opperman, minister for pensions, said the Royal Asset made for “a historic day for UK pensions”.

“This Act makes our pensions safer, better and greener, as we look to build back better from the pandemic. Its passage will reassure savers that they can, and will, have a retirement they deserve.”

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Now an Act, the legislation provides for change in multiple respects, including by boosting the powers of The Pensions Regulator (TPR) through new criminal and civil sanctions and providing for the creation of collective defined contribution (CDC) schemes.

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It also introduces a framework for pension dashboards and provisions for pension fund climate change-related reporting and governance requirements. It also intends to combat the risk of pension scams.

“The most significant piece of pensions legislation in over a decade finally hit the statute books today,” said Claire Carey, partner at law firm Sackers.

“Much of the detail in the Act will be bulked out in regulations, and we await the all-important implementation dates.”

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