UK Parliament / Open data

Pension Schemes Bill [HL]

My Lords, we are inching towards the solution that I was after. I think I heard my noble friend say that she did not rule out legislation in due course, once the necessary skills had been acquired.

I would like to pick up one or two points. At one point, I think my noble friend said it might not be cost effective to have advice for smaller amounts. The amount that I envisaged was exactly the same amount that is already required to get independent financial advice for a defined-benefit scheme, so if it is cost effective for a defined-benefit scheme beneficiary to get advice for an amount over £30,000 then I would argue that it is the same for someone with collective contributions.

I heard what my noble friend said about safeguarding the interests of other scheme members but that is not actually the point I was making. I understand that the trustees will want to look at the impact on other scheme members if a large number withdraw, but that is not quite the same as making sure that those who withdraw have had access to the right advice. I think she also drew a distinction between benefits that are safeguarded because they are defined benefits and benefits under this scheme, which are not safeguarded. Legally she is of course perfectly correct, but in effect one hopes that there will not be that much difference between the level of benefits that you get from the scheme that we are discussing and the level that you get from a DB scheme.

I look forward to the regulations that my noble friend referred to. I was reassured by what my noble friends Lord Eccles and Lady Altmann said about the role of trustees. At the moment, under Clause 25(2), all they can do is hold things up for three weeks. However, if trustees take the advice of my noble friend Lord Eccles and take steps to ensure that people have taken the necessary advice before they transfer out, that is the way to go. As I said, I am grateful to my noble friend for her response. We are moving in the right direction and I beg leave to withdraw the amendment.

About this proceeding contribution

Reference

802 c34GC 

Session

2019-21

Chamber / Committee

House of Lords Grand Committee
Back to top