Clause 48 - Employer asset-backed contributions etc

Part of Finance Bill – in a Public Bill Committee at 3:00 pm on 14 June 2012.

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Photo of John Mann John Mann Labour, Bassetlaw 3:00, 14 June 2012

I have a brief question for the Minister, because last year the Government managed to mess things up totally on draw-down pensions. The change in  gilt values currently costs 300,000 pensioners 60% of their pension. The Government have not yet admitted that, nor have they addressed the technical details to do something about it. That is 300,000 pensioners, quite a few of whom do not know about it because the Government changed the frequency of the actuarial valuation to every three years. So pensioners discover the problem only in the three-year review. I do not know whether the Minister intends to introduce the technical changes needed to address that problem, but are there any theoretical nasties that might occur with this proposal as a result of changes in the economic environment?