Clause 27 - Valuation process

Pension Schemes Bill – in a Public Bill Committee at 12:45 pm on 30th October 2014.

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Photo of Steve Webb Steve Webb The Minister of State, Department for Work and Pensions 12:45 pm, 30th October 2014

I beg to move amendment 47, in clause 27, page 12, line 5, leave out “The regulations” and insert “Regulations under subsection (1)”.

This amendment is related to amendment 48. The effect is unchanged.

Photo of Linda Riordan Linda Riordan Labour, Halifax

With this it will be convenient to discuss Government amendments 48 to 50.

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

I will run through what the amendments do by explaining clause 27. The clause is designed to provide members with confidence in the information they get from their scheme, and to do that we need a robust valuation system. Without the requirements in the clause we cannot be sure that valuation reports will be of a suitable standard.

Amendment 48 will ensure that we have a robust system for valuing the assets of schemes offering collective benefits, and it will give powers to require schemes to disregard any administrative expenses or other items specified in regulations to be paid out of the scheme when valuing assets for the purposes of a valuation report. Amendments 47, 49 and 50 contain further relatively minor changes. Some further amendments, a couple of which are minor, result from amendment 48 and clarify the way in which the requirements are intended to apply. I will not detain the Committee unduly, but I am happy to answer any questions on those amendments.

Amendment 47 agreed to.

Amendments made: 48, in clause 27, page 12, line 9, at end insert—

‘( ) Regulations may—

(a) make provision about the assets to be taken into account for the purposes of a valuation report;

(b) require the value attributed to the assets to be reduced by the amount of any liabilities in respect of administrative expenses or other specified matters.”

This amendment inserts a regulation-making power to make provision as to which assets should be taken into account for the purposes of a valuation report. This amendment also provides that the regulations may require the value of the assets to be reduced by the amount of any liabilities in respect of administrative expenses or other matters specified in regulations.

Amendment 49, in clause 27, page 12, line 10, leave out “The regulations” and insert “Regulations”.

This amendment is consequential on amendment 48. The effect is unchanged.

Amendment 50, in clause 27, page 12, line 11, leave out

“methods or assumptions determined in accordance with the regulations”

and insert

“specified requirements imposed by regulations under this section”.—(Steve Webb.)

This amendment takes account of amendment 48 and provides that regulations may require an actuary preparing a valuation report to certify that specified requirements imposed by regulations under clause 27 have been followed.

Clause 27, as amended, ordered to stand part of the Bill.

Ordered, That further consideration be now adjourned. —(Dr Thérèse Coffey.)

Adjourned till this day at Two o’clock.