New Clause 7 - Regulation of pension superfunds

Pension Schemes Bill [Lords] – in a Public Bill Committee at 3:00 pm on 5th November 2020.

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“(1) The Secretary of State shall publish a statement on proposals for primary legislation in relation to a duty on the Pensions Regulator to regulate pension superfunds.

(2) For the purposes of this section, a pension superfund is a defined benefit pension scheme that allows for the severance of an employer’s liability towards a defined benefit scheme and one of the following conditions applies—

(a) the scheme employer is replaced by a special purpose vehicle (SPV) employer, or

(b) the liability of the employer to fund the scheme’s liabilities is replaced by an employer backed with a capital injection to a capital buffer.

(3) The statement under subsection (1) shall be laid before Parliament before the end of a period of six months from the day on which this Act receives Royal Assent.”—

This new clause would require the Secretary of State to publish within six months of Royal Assent proposals for primary legislation to place a duty on the Pensions Regulator to regulate pension superfunds.

Brought up, and read the First time.

Question put, That the clause be read a Second time.

Division number 12 Pension Schemes Bill [Lords] — New Clause 7 - Regulation of pension superfunds

Aye: 6 MPs

No: 9 MPs

Ayes: A-Z by last name

Nos: A-Z by last name

The Committee divided: Ayes 6, Noes 9.

Question accordingly negatived.

Question proposed, That the Chair do report the Bill, as amended, to the House.

Photo of Guy Opperman Guy Opperman The Parliamentary Under-Secretary of State for Work and Pensions

I rise briefly, Mr Robertson, to thank you and your fellow Chair; thank the Clerks, who have worked with all colleagues to a massive degree, which is extraordinarily difficult in times of covid; and thank the Hansard team. I would normally thank the Doorkeepers, but they have not had to listen to us—lucky them. I particularly want to thank colleagues who have proceeded to pass a 132-clause, 200-page Bill in under a day and a half.

Photo of Karen Buck Karen Buck Labour, Westminster North

With proper parliamentary scrutiny.

Photo of Guy Opperman Guy Opperman The Parliamentary Under-Secretary of State for Work and Pensions

With proper parliamentary scrutiny where it particularly mattered, while working on a cross-party basis on other things. I also thank my team at the Department for Work and Pensions, who have put in Herculean efforts to produce this Bill, and it would not be inappropriate to thank the Whips for keeping us in due order throughout this wonderful process.

Photo of Laurence Robertson Laurence Robertson Conservative, Tewkesbury

I give my thanks to everybody for their good humour and co-operation, and to the Clerks for their help.

Question put and agreed to.

Bill, as amended, accordingly to be reported.

Committee rose.

Written evidence reported to the House

PSB20 Carys Boughton, Gareth Ludkin, John Hardy & (on behalf of Divest Parliament) Joel Moreland (Principal Consultant, Social and Environmental Finance), Mark Campanale (Founder & Executive Director, Carbon Tracker Initiative), and Robert Noyes (Divest / Invest Campaigner & Researcher, Platform)

PSB21 Caroline Pearson, Pensions Manager, L&Q

PSB22 Aimee Chadha

PSB23 Steve Delo, PAN Trustees

PSB24 Pensions Policy Institute

PSB25 Dr Kathryn Waite, Associate Professor in Digital Marketing, Edinburgh Business School, Heriot Watt University, Edinburgh, and Professor Tina Harrison, Professor of Financial Services Marketing and Consumption, University of Edinburgh Business School, University of Edinburgh

PSB26 Willis Towers Watson