Pensions Bill

Part of the debate – in the House of Lords at 3:30 pm on 24 July 2007.

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Photo of Lord McKenzie of Luton Lord McKenzie of Luton Parliamentary Under-Secretary, Department for Work and Pensions, Parliamentary Under-Secretary (Department for Work and Pensions) (also in the Department for Communities and Local Government) 3:30, 24 July 2007

My Lords, the noble Lord is right in identifying part of what the Young report said, but the point about the RIF proposals is that they would work only for people who have significant pension pots because the investment risk—the longevity risk—is with the fund, which needs to be a certain size to sustain it and to afford the sort of advice that it needs to deal with the asset management issues that flow from that. In a sense, that is consistent with the Young review.

The noble Lord pressed me, as did the noble Lord, Lord Oakeshott, about what had happened to the promise in 2004. I regret that I do not have a specific answer on that, but I will write to both noble Lords on the matter.

I am conscious that this issue will recur in your Lordships' House and elsewhere from time to time, but I urge the House to support the proposition that I have advanced.