Pensions Bill

moved Amendment No. 44: 44: Clause 14, page 17, line 8, at end insert— ““(4) A GMP conversion is deemed to have taken place after an adjustment occurs as specified in subsection (3).”” The noble Baroness said: This is another probing amendment to Clause 14. It adds a new subsection to new Section 24F of the 1993 Pensions Act, which deals with regulations in respect of transfers out. Under subsection (3) the trustees can, when a member seeks to transfer his rights out of a scheme, adjust a guaranteed cash equivalent as if the scheme had been converted. There is no problem with that. However, the Law Society of Scotland points out that the section does not say that that is to be treated as a conversion; indeed, the section seems to consign the member’s rights to some form of limbo. The amendment would make it clear that the procedure has the same legal consequences as if conversion had taken place. I beg to move.