Clause 31 - Appointments by Regulator
Pensions Bill
11:00 am
Mr Kevin Brennan (Cardiff West, Labour)
As I am sure the Under-Secretary knows, workers and pension scheme members really become irate when independent trustees charge exorbitant sums of money for answering proper letters from workers who simply want to find out what has happened to their pension, and when those trustees take huge chunks of money out of pension schemes that are in wind-up. The spectacle of such exorbitant fees being accepted has caused great and understandable anger among workers whose pensions are at risk.
I have always felt that there is a problem in the market for independent trustees. Very few firms offer that service and there seems to be little competition and a great deal of collusion between those companies. We are told that a high degree of specialism and expertise is necessary.
In cases of such market failure, the argument for Government action and state intervention arises. I used the term ''nationalise'', which is not very popular these days, but there is a case to be made for the regulator having some of the relevant expertise in-house and being able to offer the service in question. I invite the Under-Secretary to make observations on whether that would be possible
within the scope of the Bill. Does he anticipate—as a regular occurrence—that, in cases where the wind-up was straightforward and did not require scarce outside expertise, the pensions regulator could directly solve the problem?
I understand that the hon. Member for Tatton and his colleagues have tabled amendments that are probing in their nature. However, I would observe that although the hon. Member for Northavon was correct when he said that there are occasions when the employer could be at fault, there are never occasions when the employee is at fault in those matters. We must remember that from time to time, because they are the ones who pay the price.