Clause 1 - Amendment of the Income and Corporation Taxes Act 1988
Pension Annuities (Amendment) Bill
9:45 am
Ms Ruth Kelly (Economic Secretary, HM Treasury; Bolton West, Labour)
The hon. Gentleman makes some valid and interesting points. The hon. Lady pointed out the difficulties of Brethren employers as well as employees. Clearly, there are difficulties with the current system, under which funds must be invested in an annuity product. The Bill, and the Government's amendments to it, were not aimed at addressing that problem, and it is difficult to do so from within the confines of the Bill.
As I read the Income and Corporation Taxes Act 1988, the requirement to purchase an annuity at 65 would not just leave unaffected the issue of stakeholder pensions but would actually worsen matters for those involved. That is a genuine problem that must be resolved, but the amendment will not solve it.
However, I am not unsympathetic and unwilling to consider these points. In fact, I have heard representations from the Brethren. I shall consider the matter in light of the consultation, and I look forward to exploring the issues with them when the consultation period is concluded.