§ 26. Sir B. Rhys Williamsasked the Secretary of State for Employment and Productivity what studies she is making of the problems of framing legislation to protect pension rights by procuring transferability in all cases of change of employment involving comparable schemes.
§ Mr. HattersleyThe proposed legislation will protect occupational pension rights by requiring the offer of a deferred pension on change of employment, but this will not preclude the offer of a transfer value as an alternative. We hope that this will encourage the negotiation of transfer arrangements between comparable schemes but do not think it is feasible to make such arrangements a statutory requirement.
§ Sir B. Rhys WilliamsDoes the hon. Gentleman recall the pledge in the Labour Party election manifesto to deal with the problems of transferability of occupational schemes? Does the hon. Gentleman appreciate that in this area there is no real problem? Why does he not act?
§ Mr. HattersleyMy right hon. Friend the Secretary of State for Social Services has fulfilled that pledge. We dealt with the problem by encouraging transferability where this is feasible, and where it is not by offering the country the prospect of a law which makes the preservation of pensions an obligation on all employers.