Clause 26 - Power to give a direction where freezing

Pensions Bill – in a Public Bill Committee at 10:15 am on 11th March 2004.

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Amendment made: No. 27, in

clause 26, page 16, line 15, leave out paragraph (a).—[Mr. Pond.]

Question proposed, That the clause, as amended, stand part of the Bill.

Photo of Steve Webb Steve Webb Shadow Secretary of State for Work and Pensions

A little steer from the Under-Secretary might be helpful.

Photo of Mr Chris Pond Mr Chris Pond Parliamentary Under-Secretary, Department for Work and Pensions

The clause introduces the regulator's powers to give directions when no winding-up order

has been made, but the freezing order has ceased to have effect. That will happen when the period for which it was made expires, or when the regulator revokes the order using its powers under clause 75. When a freezing order is lifted, the regulator can direct what benefits, if any, accrued to the members during the freezing period, make accruals subject to the member making contributions, and direct the employer, too, to contribute to cover the cost of those benefits—a matter that the hon. Gentleman raised a few moments ago. The clause gives the regulator the power to make those adjustments, and the regulator will be in an excellent position to know and understand the scheme, having monitored it closely during the freezing period.

Question put and agreed to.

Clause 26, as amended, ordered to stand part of the Bill.