I beg to move, That this House doth agree with the Lords in the said amendment.
The Government introduced this amendment so as to make more precise the intended scope of Section 47 of the Pensions Act. At present, this section would enable an employer to recover part of the cost of paying a State scheme premium from any refund of occupational scheme contributions an employee may receive.
Normally the contributions equivalent premium would be the only type of State scheme premium on which the question of refund of employees' occupational scheme contributions would arise. It is recognised, however, that in some cases such refunds can arise in connection with other types of State scheme premium. It had been suggested that, under the terms of the section, the employer would have a similar right of recovery when he paid premiums such as a limited revaluation premium or an accrued rights premium. This was never intended, and in fact would result in some very anomalous situations.
The intention of this amendment is thus to make it clear that the employer's right of recovery under Section 47 of the Act relates solely to contributions equivalent premiums.