Commons Sense

House of Commons · Bill Debate

Occupational Pension Schemes (GMP Equalisation) Bill - Second Reading

26 November 2021 · 12 other contributors

Opened by Margaret Ferrier SNP Rhin Conservative

Benefits & Welfare

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Margaret Ferrier raised concerns about occupational pension schemes (gmp equalisation) bill - second reading in the House of Commons. Other MPs contributed to the debate.

Key points

  • The Bill aims to correct gender biases in occupational pension schemes regarding guaranteed minimum pensions.
  • The amendment allows pension schemes to convert GMPs into other scheme benefits to ensure no loss of pension income due to sex.
  • The Bill aligns with the 1990 directive and the 2018 High Court judgment, addressing legal uncertainties and providing clarity.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Margaret Ferrier SNP Rhin Conservative

The Bill aims to correct a fundamental issue in occupational pension schemes where men and women receive different levels of guaranteed minimum pensions due to historical gender biases. The amendment will allow pension schemes to convert GMPs into other scheme benefits, ensuring that no one loses out on pension income because of their sex. This is crucial as it aligns with the 1990 directive by successive UK Governments and the High Court judgment in 2018 confirming the need for equalisation. The Bill addresses legal uncertainties and provides clarity to pension schemes so they can proceed with necessary corrections without exposing themselves to legal risks.

Other contributors (12)
  • Tom Randall Gedling Labour

    Supports the introduction of changes by the Bill, considering it overdue and essential for correcting long-standing issues in pension schemes related to gender biases.

  • John Lamont Berwickshire, Roxburgh and Selkirk Conservative

    Congratulates Margaret Ferrier on her initiative and highlights the positive example of collaboration between Westminster and Stormont Parliaments in addressing devolved issues related to pension schemes.

  • Natalie Elphicke Con Dover

    Supports the Bill, highlighting its importance for securing better protection for pension rights and ensuring that conversions from one scheme to another do not lead to discrimination. Raises concerns about a constituent's experience with a minimum pension floor conversion issue and urges the Government to look again at the definition of guaranteed minimum pensions.

  • Suzanne Webb Con Sutton and Cheam

    Briefly thanks Margaret Ferrier for her work on the Bill and welcomes it, noting that experts and industry leaders support the legislation to clarify and streamline primary legislation on GMP conversion.

  • Sally-Ann Hart SNP Delyn

    Welcomes the Bill as a commendable effort towards ensuring equal treatment of men and women in pension schemes, addressing historical oversights caused by state earnings-related pension scheme and Pension Schemes Act 1993. Emphasises the importance of securing full benefits for equality across the board.

  • Richard Holden Con Basildon and Billericay

    Mr Holden supported the bill, praising its importance in addressing pension disparities. He emphasised the need for further reforms such as extending auto-enrolment to 18-21 year olds and lowering the earnings threshold for auto-enrolment eligibility.

  • Tom Randall

    Mr Randall congratulated the hon. Member for Rutherglen and Hamilton West on introducing a complex but necessary bill to clarify GMP conversion rules, addressing issues such as survivor benefits and employer consent requirements.

  • Jonathan Reynolds Lab Co-op Stalybridge and Hyde

    Mr Reynolds supported the Bill in principle, highlighting its importance in streamlining GMP conversion to equalise pension benefits. He noted industry support for the bill's provisions.

  • Guy Opperman Con Hexham

    The Government will support the Bill, acknowledging its significance and addressing technical issues related to GMPs. He emphasises the importance of automatic enrolment in workplace pensions, highlighting improvements made under different Governments and the progress towards equalisation of pension benefits.

  • Sally-Ann Hart Lab Hastings and Rye

    Intervened to ask if pensioners are better off now compared to 10 or 15 years ago, indicating support for the Bill's aims.

  • Richard Holden Con Basildon and Billericay

    Asked about a timetable for implementing measures to ensure younger people start saving earlier in their careers, showing support while seeking clarity on timing.

  • Margaret Ferrier SNP Rutherglen

    The hon. Member for Rutherglen stressed that correcting the gender inequality in pension schemes is important and should help schemes to use guaranteed minimum pension conversion legislation to provide equality for affected pension scheme members, bringing clarity to the industry.

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