Clause 1

Part of Pensions Bill – in a Public Bill Committee at 10:30 am on 22nd January 2008.

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Photo of Mike O'Brien Mike O'Brien Minister of State (Pension Reform), Department for Work and Pensions 10:30 am, 22nd January 2008

May I, too, welcome you, Sir Nicholas, back to the Chair and to our deliberative sessions? I also found the evidence sessions very helpful and wish to extend my thanks to those who gave evidence to us. In terms of the amendment before us, the reason the age of 75 is in this particular clause is that 75 is the age at which annuitisation needs to take place, according to the tax rules. If we were to change this, we would have to look at the tax rules and that is something we would not want to do in this Bill, but in a Finance Bill.

Essentially, 75 is when pension tax relief ends, and pensioners are required at that stage to secure a  pension income with savings from defined contribution schemes. So that is the reason why this Bill does particular things: it is not meant to make a significant change in tax laws.