Pensions Bill

moved Amendment No. 96: 96: Schedule 6, page 59, line 26, leave out sub-paragraph (2) The noble Baroness said: I shall also speak to Amendments Nos. 97, 101 and 102. The amendments relate to the pay and pensions of non-executive members of the authority. Amendment No. 96 would delete paragraph 4(2), which allows the chairmanand non-executive members to receive pensions, allowances and gratuities. The Minister will be aware that non-executives in the private sector do not receive pension benefits. I am aware that these provisions are often written into statute for public sector non-executive appointments. Will the Minister therefore say what the normal public sector practiceis for the accrual of pension benefits for the non-executive chairman and non-executive director? Will he also say what the Government intend to do for appointments to the delivery authority? The Minister will be aware that the cost of meeting a pension is likely to add 20 or 30 per cent to the salary cost for senior appointments, whether on defined benefit or defined contribution terms; so it is important that Parliament understands what is being permitted under the Bill. The Government are already recruiting for the new appointments, as the Minister has already reminded us this afternoon, so are the new appointees to be offered pensions and, if so, on what terms? Paragraph 4(2) also contains wording—namely, ““allowances”” and ““gratuities””—that appears tocome from the Victorian parliamentary draftsman’s handbook. I think I know what allowances might be, but I always thought that gratuities were what I paid my hairdresser and taxi driver. Will the Minister explain what, in this modern day, gratuities are intended to mean in relation to appointments to the public sector? Amendment No. 97 would delete paragraph 4(4), which says in effect that a non-executive with pension arrangements who becomes an employee or executive director can carry on being treated as a non-executive in his pension scheme. As I have never heard of the distinction of being a non-executive in a pension scheme, I have also proposed this deletion as a probing amendment. What is the significance of keeping non-executive status in a pension scheme? Amendment No. 101 would delete paragraph 7(4). This is the mirror of the previous proposed provision. Here, an executive would become a non-executive, but his service as a non-executive could be treated as that of an employee. I also propose this deletion as a probing amendment. Lastly, paragraph 8(3) says that if an employee becomes an executive or non-executive member, he can carry on being treated as an employee. As I am mystified by pensionable executives and pensionable non-executives, I have proposed deleting the reference to non-executives also as a probing amendment. I hope that the Minister can explain this arcane world of rewards for non-executives under the Bill. I beg to move.