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Pensions Bill

My notes cover Amendment No. 138. I believe it has simply been omitted from the Marshalled List. I will speak to Amendment No. 138 and see what happens. We have come straightforwardly to the Delegated Powers and Regulatory Reform Committee, which recommended that the powers covered by our amendments should be subject to affirmative procedure on first exercise. We accept its recommendations. Amendments Nos. 137, 138 and 139 will make the powers subject to affirmative procedures. These amendments also address the Delegated Powers and Regulatory Reform Committee’s recommendation on the powers of Clause 15 and Clause 85. It will be helpful if I explain briefly what each of these powers does. The power in Clause 15(2)(c), which relates to average salary schemes, is there to safeguard members’ private pension savings. It is a precautionary reserve power that could be used if there are schemes that do not revalue appropriately the earnings on which benefits are calculated, meaning that benefits do not, therefore, maintain their value in retirement. Amendment No. 51 would remove the power to disqualify such average salary schemes. I emphasise that we believe the number of schemes operating in this way to be negligible. The power is a precautionary measure to prevent members saving in schemes where the value of their benefits may be eroded over time. It is our intention to consult our stakeholders before the power is exercised. Turning to Clause 85, the majority of the workforce is already within the scope of the Bill. However, Clause 85 provides the Government with the flexibility to extend the scope of employer duty to individuals who do not fall within the ““worker”” definition. It will also enable to Government to bring a new group within its scope, should one be created that does not automatically fall within the core definitions in this Bill. We recognise that, as drafted, the powers of Clause 52(2)(c) and Clause 84 are wide-ranging and that it is appropriate that they be subject to parliamentary scrutiny and exercised by the affirmative procedure. Finally, for the same reason, these amendments also make the new power in Clause 16(1)(c), which allows for additional criteria to be prescribed for automatic enrolment schemes, subject to the affirmative procedure. I reassure the Committee that the Government will share their plans for the process and notices to be regulated under Chapters 1 and 2 of the Bill. We aim to share these plans in the autumn before going on to publish draft regulations in spring 2009, which will then be followed by a technical consultation in the usual way. I am pleased that the noble Lord, Lord Skelmersdale, will not be pressing Amendments Nos. 22, 36 and 52. However, I hope that the noble Lord is reassured by our intention of modifying the Bill to meet these recommendations. I reiterate that we will be addressing all the Delegated Powers and Regulatory Reform Committee’s recommendations, and amendments have been—or will be—tabled to that effect. I therefore urge the noble Lord to withdraw his amendment and beg to move government Amendments Nos. 137, 138 and 139. I am sorry; I will speak to them, and move them in their place.