New Clause 13 - Scale of pension schemes

Part of Pension Schemes Bill – in a Public Bill Committee at 3:15 pm on 4th November 2014.

Alert me about debates like this

Photo of Richard Graham Richard Graham Conservative, Gloucester 3:15 pm, 4th November 2014

The important thing—it is why this debate matters—is that the new clause the hon. Gentleman is trying to add to the Bill effectively requires pension scheme trustees, first, to take a view on whether the scheme has sufficient scale to deliver good value and,  secondly, to require the Pensions Regulator to direct the merger of pension schemes where that would be in the interests of the members. The point is that it is not easy to establish whether it would be in the interests of members to have a merger. It is not an easy thing for the Pensions Regulator to do, nor is it an easy thing for the pension scheme trustees in the first place to do. There is no proof of these things. Every single merger and acquisition in corporate history has started from the assumption that by merging two entities the combined entity would necessarily be better, and there is a mass of evidence to show that many mergers and acquisitions have ended in disaster.