Written Evidence to be reported to the House.
Pensions Bill
3:30 pm
Mr. O'Brien: I think you have the wrong feeling. We are very interested in those ideas. The question is not whether we are interested in them, but whether they are fully developed enough to form part of the Bill. I share the views of the Pensions Commission—of both Jeannie Drake and Adair Turner. Adair said that he thought the ideas very promising. We need to explore the detail of them, but Jeannie added the caveat, which was well worth making, that although they are interesting, there are already shared risk opportunities out there for various pensions schemes. Before we start to legislate, let us look at some of the issues in relation to them, identify the better schemes and identify some of the legal changes that need to be made. The advice I have received is that the ACA are a bit optimistic in saying that all this requires is a few amendments. Actually, this may well be quite a significant venture into rewriting some of the pension legislation. If we must do that, then it is best that we do it properly, investigate these issues and see whether there are particular things we need to do and the best way of doing them.
I would want not only to have some analysis done of this, but also to have a period of consultation and discussion about exactly how it would be done. I do not think you are right in saying that we are unenthusiastic. We think this is a valuable idea which needs to be explored further. We would want to explore it further with the various stakeholders in the pensions industry, identify what needs to be done and see whether there is an opportunity for legislation some time in the future. I cannot give a definite view about when that would be, but I heard Ian Farr’s suggestion that it ought to be relatively soon. I cannot give a guarantee.