Member

This concern flows naturally into Clauses 50 and 51, which together allow schemes to facilitate transfers to default pension benefit solutions offered by other schemes where this is expected to deliver a better outcome for members. While such transfers may be necessary where schemes lack the scale or expertise to offer appropriate solutions themselves, they raise further questions about capacity and concentration among receiving schemes. How will the Government assess whether the market can absorb these transfers without creating new risks or distortions? What safeguards will be in place to ensure that member consent is meaningful and informed, rather than just nominal? The Government have indicated that schemes of last resort may be introduced if the market fails to deliver adequate solutions. That is a significant power, and it would be helpful to understand how readiness and capacity will be judged before such measures are taken, and how members’ interests will be protected throughout that process.