Pensions Bill

Page 21, line 37, at end insert—

“(2)   In this section—

(a)   “charges”; and

(b)   “transaction costs”,

shall be defined in regulations by the Secretary of State.

(3)   Before making regulations under subsection (2), the Secretary of State must
undertake a public consultation, which must include the views of—

(a)   the Financial Conduct Authority; and

(b)   the Pensions Regulator.

(4)   With reference to subsection (2)(a), any public consultation must consider
the different elements which comprise charges and not just the annual
management charge.

(5)   Such charges, together with any transaction costs incurred by the funds in
which qualifying schemes are invested, shall be declared on an annual
basis to the Pensions Regulator, which shall maintain a public register
thereof.

(6)   The Secretary of State shall by regulations set the standards by which
pension schemes must declare charges and transaction costs for the
purposes of the register and for declaration to their members and their
members’ employers.

(7)   The standards set out in regulations under subsection (6) shall be reviewed
every three years.

(8)   The Secretary of State shall have power to make regulations ordering other
disclosure arrangements on administration charges.

(9)   Regulations under this section may not be made unless a draft has been laid
before and approved by resolution of both Houses of Parliament.”.

Page 95, line 29, leave out “(whenever passed or made)” and insert “whether
passed or made in this session or a previous session”

Insert the following new Clause—

“Decumulation

(1)   Any qualifying money purchase scheme must direct its savers to an
independent annuity brokerage service or offer such a brokerage service
itself.

(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;

(c)   minimising costs; and

(d)   ensuring that information and support is available on alternative
at-retirement products.

(3)   The standards meeting best practice on decumulation 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.”

Insert the following new Clause—

“Promotion of good value in scheme size

(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.”

Insert the following new Clause—

“Fiduciary duty of independent 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 duties of a board appointed under
paragraph (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.”

Insert the following new Clause—

“National Employment Savings Trust transfers

(1)   In relation to NEST, the Government must by 30 August 2014 notify the
European Commission that it wishes to lift the ban on transfers and the
contribution cap.

(2)   The Secretary of State must make a statement to Parliament within 14 days
of the Government notifying the European Commission in accordance with
subsection (1).”

Page 24, line 32, after “3,” insert “17(5),”

Page 24, line 32, leave out “or 29” and insert “, 29 or 42”