Prohibition on increasing charges etc during triggering event period

Part of Pension Schemes Bill [Lords] – in a Public Bill Committee at 12:00 pm on 9 February 2017.

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Photo of Alex Cunningham Alex Cunningham Shadow Minister (Work and Pensions) (Pensions) 12:00, 9 February 2017

I wish to ask a couple of question on clause 34 as I again return to the theme of transparency. The Minister outlined the purpose of the clause, and we welcome the protection of members from administration charges beyond those set out in the implementation strategy during a triggering event period. The clause makes clear the responsibilities of both trusts transferring members out and those receiving them.

The Minister listened carefully to my previous contributions on costs. With regard to this clause, I would like a better understanding of what those administration costs actually cover. Do they cover investment transactions, for example? Assuming that they do, will the Minister confirm that subsections (1)(c) and (2)(a) afford members protection from additional transaction costs as a result of the transfer of their funds out of a master trust and into a new one?

I know that the devil will be in the detail, and I look forward to a comprehensive debate about this issue when the Minister produces the regulations, but I am sure that scheme members would welcome any clarification that he can give now. Given that we have discussed transparency at great length and the Minister has nailed his colours to the mast on that issue, I have no doubt that savers would very much welcome his assurance that he will always act in their best interests.