Session 2014 - 15
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Notices of Amendments:                               

139

 

, continued

 
 

“Scale of pension schemes

 

(1)    

The fiduciary duty of pension scheme trustees shall include a duty to consider

 

whether the scheme has sufficient scale to deliver good value for members.

 

(2)    

Where trustees take the view that the scheme has insufficient scale, they must

 

consider whether merger with another scheme would be in the members’

 

interests.

 

(3)    

The Pensions Regulator shall have power to direct merger of pensions schemes

 

where it would be in the interests of the members of each of the relevant schemes

 

for merger to take place.

 

(4)    

The Pensions Regulator shall exercise this power in accordance with a

 

methodology on which it has publicly consulted and which has been agreed with

 

the Secretary of State.

 

(5)    

The methodology set out in subsection (4) shall be kept under regular review and

 

revised when necessary, subject to further consultation and agreement from the

 

Secretary of State.”.

 

Gregg McClymont

 

NC14

 

To move the following Clause—

 

“Fiduciary duty of trustees

 

(1)    

The Secretary of State may by regulations—

 

(a)    

require any pension scheme, which is not already overseen by

 

independent trustees, to appoint a board of independent trustees; and

 

(b)    

set out the powers and dutues of a board appointed under subsection

 

(1)(a).

 

(2)    

Regulations under this section—

 

(a)    

shall be made by statutory instrument, and

 

(b)    

may not be made unless a draft has been laid before and approved by

 

resolution of each House of Parliament.

 

(3)    

The board of independent trustees shall have a fiduciary duty towards members

 

of the scheme overseen by them.

 

(4)    

The fiduciary duty set out in subsection (3) shall take precedence over any duty

 

to—

 

(a)    

the shareholders in, or

 

(b)    

other owners of,

 

    

the operators of the scheme.

 

(5)    

In relation to any matters of member interest, decisions of the board of

 

independent trustees shall be binding on the board of directors or other analagous

 

bodies.”.

 

Gregg McClymont

 

nc15

 

To move the following Clause—

 

“Decumulation

 

(1)    

A qualifying money purchase scheme may not sell annuities directly to anyone

 

who has saved with the scheme unless this is the recommendation of an

 

independent annuity broker. A relevant scheme may provide an independent

 

brokerage service itself. A self-provided annuity brokerage service will be

 

considered independent for the purposes of this Act if the provision of its services

 

is subject to the direction of independent trustees.


 
 

Notices of Amendments:                               

140

 

, continued

 
 

(2)    

Pension schemes shall ensure that any brokerage service selected or provided

 

meets best practice in terms of providing members with—

 

(a)    

an assisted path through the annuity process;

 

(b)    

ensuring access to most annuity providers; and

 

(c)    

minimising costs.

 

(3)    

The standards meeting best practice for annuity brokerage services shall be

 

defined by the Pensions Regulator after public consultation.

 

(4)    

The standards set out in subsection (3) shall be reviewed every three years and, if

 

required, updated.”.

 


 
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Revised 24 October 2014