The pensions industry is waiting on the result of the general election that may significantly affect the direction of pensions policy in the immediate future.

Most of the major parties have made manifesto promises on the ongoing tax issues affecting public sector pension schemes, the triple lock and how to address the issues raised by 1950s women affected by state pension age changes.

If the party sticks to its manifesto pledges, a Conservative majority would result in the retention of the triple lock and the reinstation of the Pension Schemes Bill, which was pushed back after the General Election was called.

Although the Conservatives promised to “hold a review” to address the tax issues affecting public sector pensions, it did not pledge to scrap the tapered annual allowance and make no promises to 1950s women affected by state pension age changes.

Altus head of retirement strategy, Jon Dean, commented: “Conservatives have put in place a sticking plaster solution on the NHS Pension Scheme for the 2019/20 tax year but they may face a legal challenge from other public sector employees affected e.g. the judiciary, on the grounds of discriminatory practice.”

If Labour win the election, the retention of the triple lock and a review of the annual allowance system can also be expected, although it also fell short of promising to scrap the taper.

However, Labour has not promised a full reinstation of the Pension Schemes Bill, just the collective DC legislation section.

Furthermore, it has promised to design a system to compensate 1950s women affected by state pension age changes.

The Liberal Democrats’ manifesto also promised a retention of the triple lock, while it promised to “listen and act” on the tax issues facing the public sector, to ensure that 1950s women were properly compensated and to review pension rules for the self-employed.

Dean added: “Another interesting gambit from Conservatives, Liberal Democrats, SNP and Green Party has been in pension investments.

“All parties want to have more control over where pension savings are invested, with Conservatives targeting scientific research and the other parties wanting to see investment in climate-friendly projects, firms and sectors.”

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