Pensions Bill

My Lords, I thank the Minister for tabling this amendment. I was much encouraged in Committee when he said that he viewed my amendments ““with some warmth””, but of course when we got down to the small print in his detailed response he revealed a difference of view about who should call the shots on actuarial valuation. That difference remains today. The amendments that I spoke to in Committee made it clear that it should be the Government Actuary who determines actuarial equivalence. That is, after all, what actuaries spend all those years learning to do. The Government’s amendments leave the discretion in determining actuarial equivalence with the Secretary of State. I cannot ever recall a Secretary of State having an actuarial qualification and so being qualified to opine on actuarial equivalence. The truth is that the Government like to pick and choose actuarial assumptions, as we have seen, whether it was DWP Ministers or Treasury Ministers working behind the scenes. When it came to contracted-out rebates, they ignored the Government Actuary’s advice on the basis of something that they called ““sustainable affordability””. I accept that the Government have improved on the clause that they introduced initially, as they must now involve the Government Actuary and explain to Parliament if they do not follow his advice. Moreover, the regulations will be subject to the affirmative procedure. On that basis, I have decided not to seek further amendments and to accept my half a loaf. On Question, amendment agreed to.