Clause 12 - Arrangements where transitional conditions cease to be satisfied

Pensions Bill [Lords ] – in a Public Bill Committee at 6:15 pm on 12 July 2011.

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

Photo of Steve Webb Steve Webb The Minister of State, Department for Work and Pensions

We go back to the good old section 30 of the Pensions Act 2008, which I am afraid needs amending. We apologise for having to do that again.

As we have just discussed, section 30 allows employers using defined benefits and hybrid schemes to delay automatic enrolment of relevant job holders. It provides that where certain conditions cease to be satisfied during the transitional period, the employer must ensure that the jobholder is enrolled into an alternative scheme. However, as drafted, the section allows employers to  use a DB, hybrid or money purchase scheme as the alternative scheme, but does not allow employers to use a workplace personal pension scheme. That was not the policy intention, and clause 12 will correct the error.

Question put and agreed to.

Clause 12 accordingly ordered to stand part of the Bill.