APPENDIX 4: PENSIONS BILL — GOVERNMENT
AMENDMENTS
Supplementary memorandum by the Department for
Work and Pensions
1. I am writing to you regarding further Government
amendments I tabled yesterday which contain regulation making
powers which may be of interest to the Committee. A supplementary
delegated powers memorandum is attached at annex A and the amendments
are at annex B.
2. The Committee may remember that following
consultation earlier this year, the Government tabled an amendment
to the Pensions Bill on 25 June to ensure that the Pensions Regulator's
anti-avoidance powers remain adequate and appropriate to address
risks highlighted by changes in the pensions market. The intention
was to give effect to these changes through secondary legislation
- this approach was set out in its consultation document, with
a further opportunity for consultation on that detailed secondary
legislation. This amendment was cleared by the Committee in their
report of 10 July.
3. During the course of the Lords Committee debate
of the Pensions Bill I made a number of commitments to refine
the legislation, to ensure it deals with new risks posed by market
developments that both sides of the House and stakeholders recognised,
without disproportionately impacting on business, and to allay
the concern that deals previously cleared by the Regulator could
be at risk from these changes. The Government has therefore undertaken
further work with key stakeholders over the summer to improve
the legislation and to ensure its application is appropriately
circumscribed. The amendments tabled yesterday are intended to
strike the right balance between protecting scheme members under
pensions legislation and ensuring that legitimate interests of
employers and investors are not unduly inhibited.
4. With these amendments the Government has set
out the overall legislative framework on the face of the Bill
but giving the Secretary of State, in some circumstances, the
power to amend certain of the provisions in secondary legislation.
In light of the Regulator's operation of the legislation, we want
to ensure that these provisions continue to deliver the intended
policy, that they keep pace with market changes; and do not introduce
burdens on business. In those cases where the regulation making
powers allow amendments to the primary legislation, these powers
have been proposed in order to avoid making the amendments via
primary legislation on each such occasion.
5. The attached supplementary memorandum identifies
the delegated powers conferred in the new Government amendments
I am tabling. It explains the purpose of the powers; the reasons
for using delegated legislation; whether the powers are subject
to Parliamentary scrutiny; which procedures apply; and the justification
of these procedures.
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