Key Facts

• The Public Bill Committee will meet at specified times on Tuesday 3 November and Thursday 5 November.
• The proceedings will cover clauses from 1 to 99, schedules from 1 to 10, new clauses, and new schedules.
• Written evidence received by the Committee will be reported to the House.
• Pensions policy works on a cross-party basis.
• Automatic enrolment was introduced by Labour, brought forward under the coalition government, and expanded under the Conservative government.
• The Pension Protection Fund was a success of Blair’s Labour Administration.
• The Bill has 98% cross-party agreement.
• CDC schemes would become an alternative for organisations like Royal Mail.
• There are around 141,500 Royal Mail employees involved in this process.
• Modelling shows that the Royal Mail CDC scheme would have provided better outcomes during the pandemic compared to traditional DC schemes.
• The Royal Mail CWU agreement is highlighted as a ground-breaking achievement.
• CDC schemes are expected to provide at least 30% higher income in retirement compared to individual savings followed by annuity purchase.
• Clause 47 of the Bill grants powers for multi-employer CDC schemes and master trusts.
• The Pension Schemes Bill allows for pioneering CDCs introduced by Royal Mail and the CWU.
• Simplified pension statements and pensions dashboards are being implemented to improve communication.
• Fluctuation risks will be transparently communicated at various points in a member's pension journey.
• Extensive engagement with members by Royal Mail and CWU is highlighted as an example for future CDC schemes.
• Graham Stringer is discussing Government amendment 6.
• Amendment 25 aims to require pension schemes to send information on trustee board diversity to TPR.
• The proposal includes considerations for age, gender, and ethnicity.
• Government amendment 6 removes the provision for specific fairness requirements in clauses 27(3).
• The Communication Workers Union and Royal Mail support the government's approach to regulating fairness.
• Regulations under clause 18 will require CDC schemes to ensure no difference in treatment between different member cohorts or age groups.
• The regulations under clause 18 require schemes to ensure no difference in treatment between different cohorts or age groups when calculating benefits.
• Companies must seek permission from the regulator to go down the CDC route and undergo a supervisory regime.
• The Pensions Regulator launched an assessment of trustee board diversity across all pension schemes in February this year.
• An industry working group will be set up to bring together available material and experience on improving scheme board diversity.
• The amendment tabled by Lord Sharkey seeks to require trustees to assess whether a scheme is operating fairly for all members.
• Baroness Stedman-Scott stated that the Government would consider how such reporting might work in practice and consult on any approach if necessary.
• Amendment 25 aims to require pension schemes to send information on trustee board diversity to the Pensions Regulator.
• 68% of FTSE 100 company directors are male, with only 7.4% from black, Asian or minority ethnic backgrounds.
• Only 2.5% of pension scheme trustees are under 30 years old, while 50% of chairs are over 60.
• The gender pensions gap is nearly 40%, almost twice the size of the gender pay gap.
• Amendment 6 relates to clause 27, which aims to ensure intergenerational fairness in CDC pension schemes.
• Amendment 25 seeks to require trustees to report back on the characteristics of their membership to enhance diversity.
• The Minister has concerns about defining fairness legally and prefers nebulous future regulations over clear principles.
• Clauses 52 to 102 replicate measures outlined in clauses 1 to 51 and apply them specifically to Northern Ireland.
• CDC schemes are considered appropriate for Northern Ireland's pension system.
• Several clauses and schedules (53-57, 58-95, 96-99, 100-102) will be put forward for a single vote.
• The Pension Schemes Bill includes clauses addressing CDC schemes.
• Regulatory powers are agreed upon broadly but will be debated specifically in clause 107.
• Enhanced powers will be given to the regulator on an ongoing basis.
• BHS had a £43 million surplus when bought by Sir Philip Green in 2000.
• By 2015, BHS pension schemes were short of assets by almost £350 million compared to liabilities.
• Carillion left a pension liability of around £2.6 billion affecting 27,000 members.
• The Pensions Regulator took over four months after receiving the recovery plan for BHS before taking action.
• Amendments 19 and 20 aim to protect professional advisers from criminal liability.
• The Institute and Faculty of Actuaries has serious misgivings about clause 107's potential impact.
• Examples include government entities terminating contracts, employers giving pay increases, or banks refusing loans.
• The Pensions Management Institute expressed alarm about clause 107.
• Letters from the Joint Industry Forum dated 11 December last year and 9 September this year have suggested possible changes.
• The Minister has engaged with various organizations regarding these concerns.
• Neil Gray is not wholly satisfied with the Minister’s explanation.
• Two amendments aim to narrow and focus the intention of the clause and ensure protection for people legitimately carrying out duties related to pension schemes.
• The Committee voted on the amendments: Ayes 2, Noes 10.