26 March 2025
Sacker & Partners LLP (Sackers), the UK’s leading specialist law firm for pensions and retirement savings, today have provided their response on the Spring Statement.
Lucy Dunbar, Partner at Sackers commented: “In today’s Spring Statement, the Chancellor Rachel Reeves focused on Government priorities designed to cut spending and boost growth. Whilst unlocking DB surpluses and other workplace pensions reforms are seen as key components in achieving the latter, today’s speech was missing any pensions specifics; only including a nod to increasing investment via reforms to the pensions system.”
Once implemented, proposals to introduce a statutory power to deal with surplus should help to address existing complexities, such as restrictions in scheme rules on paying surplus to employers or tax rules preventing one-off member payments. Levelling the playing field in this way should provide DB trustees and employers with more choice, including making the prospect of running on a maturing scheme more viable.
Details of the Government’s surplus policy will be included in the DWP’s response to its DB options consultation which is expected to be published in the spring. With a new Pension Schemes Bill also on the cards, it is quite possible that the two will make their appearance in tandem.”
– ENDS –
