Officials warn that the reform of the specific pensions will stimulate the limited investment in the United Kingdom

Stay in view of the free updates

Simply subscribe to Retirement pensions Myft Digest – it is delivered directly to your inbox.

Only 5 percent of an estimated £ 160 billion will be extracted from excess assets held in specified pension plans despite the change in the rules to make surpluses easier, as the government predicted.

The Ministry of Labor and pensions are estimated in assessing the effect that “about 8.4 billion pounds” from the surplus after the tax will be returned from the plans to workers and companies that exceed 10 years as a result of new rules presented in Pension bill this week.

Estimates come after Prime Minister Sir Kerr Starmer said in January that the changes will help Open a wave of investment “To increase wages, pay growth, or open more money to the members of the pension scheme.”

He said that three quarters of the DB plans for companies were in a surplus, with a value combined about 160 billion pounds.

“8.4 billion pounds is low and disappointing,” said Steve Hoder, LCP.

“He completely undermines the part of the pension policy that was supposed to be the most attractive and immediately.”

The proposed rules make it easy for the well -funded plans to work with the care of employers to restore some assets that exceed what is required for plans to meet their pension obligations.

DB plans are funded by employers and their employees and paid fixed pensions for their members depending on the period in which they worked in the company and the amount of payment.

The levels of the plan’s financing have improved significantly in recent years because the higher government bond returns have increased the expected revenues on assets, thus reducing the current accounting value of future opponents.

Currently, the DB Plan’s surpluses can only be reached as plans were approved by 2016 to retain power, under a law passed by the Labor Party government in 2004. Some plans had a great deficit and did not pass these decisions.

Under the current rules, the surplus can only be accessed if the level required for customers to sell the pension plan for the insurance company, known as the acquisition. The rules stipulated in the invoice will reduce this threshold to one of the “low dependency”, making an estimated £ 160 billion of surplus assets in all plans compared to 68 billion pounds on the basis of the current acquisition.

The rules cannot be in place until the end of 2027, according to the government.

“(The government) can be more aggressive … if it reached it in 2026, it may have a larger difference,” said Joe Dabrovsky, deputy director of politics in the group of commercial pensions and pensions.

Experts said that the estimates in which only a small percentage of the amount in the surplus will reflect the fact that many pensioners and the company’s financing managers will continue to choose to sell pension assets and their obligations to the insurance company to remove risks from the company’s budgets and administrative ease.

“There is a fact that you are still in a place where most trustees are on the way to obtaining insurance companies,” said Gareth Hente, head of retirement pensions in the UK in PWC.

A government spokesman said its proposals “will open the money to increase the economy, remove barriers that prevent growth and ensure the ability of workers to take advantage of the opportunity provided by these assets.”