Relevant public service pension schemes

Pension Schemes Bill [Lords] – in a Public Bill Committee at 10:00 am on 7th February 2017.

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

Photo of Richard Harrington Richard Harrington The Parliamentary Under-Secretary of State for Work and Pensions

Clause 2 defines a relevant public service pension scheme for the purpose of clause 1, which excludes relevant public service pension schemes from the definition of master trust. Clause 2 flows from clause 1.

The reasons that we require an authorisation regime in respect of master trusts include: the risks stemming from remoteness from the employer, which is one of the points I mentioned about the difference between an ordinary single employer trust and a master trust; potential for conflicts of interest; and the ease of set-up. The type of public service pension schemes that fall within that definition already have specific requirements and arrangements that mitigate those risks. For that reason, they are not included within the scope of the master trust authorisation regime.

Question put and agreed to.

Clause 2 accordingly ordered to stand part of the Bill.

Clause 3