Clause 123 - Funding of defined benefit schemes

Pension Schemes Bill [Lords] – in the House of Commons at 9:03 pm on 16th November 2020.

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Amendment proposed: 1, page 117, line 34, at end insert—

‘(2) In exercising any powers to make regulations, or otherwise to prescribe any matter or principle, under Part 3 of the Pensions Act 2004 (scheme funding) as amended by Schedule 10, the Secretary of State must ensure that—

(a) schemes that are expected to remain open to new members, either indefinitely or for a significant period of time, are treated differently from schemes that are not;

(b) scheme liquidity is balanced with scheme maturity;

(c) there is a correlation between appropriate investment risk and scheme maturity;

(d) affordability of contributions to employers is maintained;

(e) affordability of contributions to members is maintained;

(f) the closure of schemes that are expected to remain open to new members, either indefinitely or for a significant period of time, is not accelerated; and

(g) trustees retain sufficient discretion to be able to comply with their duty to act in the best interests of their beneficiaries.”—(Wendy Chamberlain.)

This amendment seeks to ensure that open and active schemes which are receiving regular, significant cash contributions and closed schemes are treated differently, in accordance with their differing liquidity profile.

Question put, That the amendment be made.

Division number 170 Pension Schemes Bill [Lords] — Clause 123 - Funding of defined benefit schemes

Aye: 256 MPs

No: 355 MPs

Ayes: A-Z by last name

Tellers

Nos: A-Z by last name

Tellers

The House divided: Ayes 257, Noes 356.

Question accordingly negatived.

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