Schedule 1
Pensions Bill
3:47 pm
Mike O'Brien (Minister of State (Pension Reform), Department for Work and Pensions; North Warwickshire, Labour)
The Government’s policy on member-nominated trustees applies to personal accounts in broadly the same way as other occupational pension schemes at this time. The schedule already makes clear that there is provision for section 242 of the Pensions Act 2004 to apply—for one third of the trustees to be member-nominated. On that basis, the amendment is probably not needed. Given that the scale of the personal accounts scheme means that the members’ panel will have the responsibility of nominating trustees to represent scheme members, it is going to be difficult to work out how they will do that, as we have discussed. Both hon. Gentlemen are right to say that all trustees will, by their nature, seek to represent the members of the trust and act in their best interests. That is their obligation. It is right that there should be member-nominated trustees, although there is a debate about the number of them. For example, the TUC has urged that they should make up 50 per cent., and that forms part of the discussion.
At the moment, we are looking at section 242 of the 2004 Act, so the proportion of trustees to be member-nominated would be one third. I hope that provides reassurance that the amendment is not needed. The provision that addresses the issues about which the hon. Gentleman is concerned is already in the Bill: two sub-paragraphs down from the provision to which the amendment refers.