Prospect Pension

The last session is on a subject close to trade unionists' hearts.

Talks about differences from the time of original commission (worse productivity growth, differences in migration, lower fertility). Particular emphasis on previous assumption that pensioners have no housing costs. And on implications that more means-testing might be needed for housing in future.

Talks about issues for Gen X, women, self-employed, (some) ethnic minorities.

Wants an outcome that gets wide support and can last a long time.

Look at areas where the current settlement isn't working. Take a long-term view. Consider: adequacy, fairness (inter and intra generational), sustainability.

Planning first interim report "in the Spring" (less sure than Suzi whether that will be a time universally recognised as spring). Final report in early 2027. "Tasked with finishing the job."

And now Prof Nick Pearce of The Pensions Commission. (Everyone who is anybody in pensions is here today ;)) Again, no hints about final conclusions from the speaker.

Independent review due to be submitted to the SoS in "the Spring" (actual spring, and not civil service spring).

- Majority of people leave paid work before SPA.
- Lots of reasons for people to leave paid work (including caring responsibilities).
- Ill-health a huge consideration, particularly for certain groups).
- Previous SPA increases have increased poverty.

Some key feedback:

- Life expectancy not increasing as fast as previously projected.
- Healthy life expectancy falling (around 20 years less than life expectancy).
- HLE varies greatly, mostly by socioeconomic factors (20% less in Blackpool than Wokingham).

70+ organisations and around 3,000 individuals contributed to the call for evidence that ran from August to October 2025. Visited devolved nations, had round tables with academics, stakeholders etc.

Also international experience of automatic adjustment measures.

Some comparison of the ToRs for the three independent reviews commissioned so far. Cridland's wide ranging, Baroness Neville-Rolfe focussed on metrics, current review asked to look at key factors in determining SPA (life expectancy, fairness between generations, sustainability).

Starts off saying that it's helpful for the UK to have a statutory process for reviewing SPA. Says that her review is closer in time to the last one because uncertainty underpinning the last one due to Covid has cleared up somewhat now.

Next up is Dr Suzi Morrissey, currently undertaking the independent review of State Pension Age. (Sadly, we won't be getting hints about its recommendation!)

Sadly missed important sessions about member voice and the gender pension gap due to a badly timed hospital appointment. TUC report on the former launched today and available from:

linkprotect.cudasvc.com/url?a=https%...

In answering question on WASPI the Minister calls the 2011 Act changes a mistake and says this government would never do anything at such short notice. (Would have loved a follow-up on that because there seems to be some relaxation of commitment to "at least 10 years notice" of SPA changes.)

Sadly, no time for a follow-up ;) (But I'm sure he would have a firm answer for that too.)

He did credit that government in general, but he obviously knows who was behind it ;)

Minister says it's garbage that government will ever mandate schemes to make specific investments.

Next set of questions about investment mandating, WASPI, LGPS governance.

On the gender pension gap - the minister congratulates past government (@stevewebb1.bsky.social) for closing the state pension gap, takes congratulations for what current government has done on the gender pension gap in the LGPS and emphasises that more needs to be done.

Questions about McCloud, FAS compensation and the gender pension gap.

The minister sets out the Pension Commission's task. Luckily we have a Pension Commissioner speaking at the conference later!

Bill requires schemes to provide default pensions. The minister emphasises its importance in its own terms and in terms of improving value / returns. Mentions multi-employer CDC schemes and bringing forward legislation for decumulation-only CDC.

He emphasises the importance of: scale, administration, returns, small pots solutions, the dashboard (which the Minister has seen! And which includes the state pension) and, crucially, the need for pensions to be pensions. "We're in the business of pensions."

The minister (@torstenbell.bsky.social) gives detailed economic background (and a drive-by shooting of Kemi Badenoch's seriousness) to put his pension comments in context. This slide summarises the Pension Scheme's Bill currently in the Lords.

Great to hear the @tuc.org.uk 's Kate Bell criticise the unacceptable administration of the civil service pension scheme and call for public service pension administration to be brought in house.

Top lineup of speakers at the TUC's Pension Conference today.

But most of the yield comes from employer NICs and most of that is... Indirectly passed on to employees in the form of, for example, lower pay. Is it plausible that the vast majority of people earning under £30,000 are unaffected by this? Of course not! This policy affects most (all?) of this group!