HC Deb 09 March 1964 vol 691 cc7-9
12. Mr. Lubbock

asked the Minister of Labour, following the talks between the staff of the National Economic Development Council and the Departments concerned, regarding the transferability of pension rights, what steps are being taken to implement the recommendations of the Council.

37. Mr. Wade

asked the Minister of Labour, what has been the outcome of the discussions between his Department and the staff of the National Economic Development Council on the subject of implementing the recommendation of the Council regarding the transferability of pension rights.

Mr. Godber

I understand that following their discussions with Departments, the staff of N.E.D.C. will be reporting to the next meeting of the Council on 6th May.

Mr. Lubbock

Could the right hon. Gentleman say whether he is prepared to introduce legislation to implement this recommendation of the N.E.D.C.?

Mr. Godber

Yes, the recommendation was that consideration should be given to the point. Talks between the Council staff and the Government Departments have been going on and we must await the outcome.

Mr. Prentice

Is the right hon. Gentleman aware that if the Government accept the view that all pension rights should be transferable, we shall welcome their conversion to something which the Labour Party has been saying for the last seven years?

Mr. Godber

I note what the hon. Gentleman says, but I would remind him of the complications in this field. In particular, in a field where the provision of these additional pensions is voluntary, one has to look carefully at making compulsory the change-over of those pensions since one might discourage the provision of the pensions themselves.

Mr. Merlyn Rees

Does not the right hon. Gentleman think that the Government Departments should give a lead? Is he aware that if teachers leave the employment of local education authorities they lose their contributions straight away, plus half the tax rebate of recent years, even if they want to go into a pension scheme to protect themselves in the future?

Mr. Godber

Yes, this is one of the reasons why the matter is under review. I take note of what the hon. Gentleman has said.

Mr. Lubbock

Is the right hon. Gentleman aware that foreign countries have not had this difficulty and that transferability of pension rights is already established in some parts of Europe? Why have the Government taken so long to consider the matter?

Mr. Godber

There is a good deal of variation, and it is right, for the reasons that I gave a moment ago, that we should have a further look at it. It would be unfortunate if we produced an effect which none of us wished for by introducing an arrangement without proper consideration.