§ 2. Sir B. Rhys Williamsasked the Secretary of State for Social Services what estimate he has made of the annual cost to employers in the private sector of granting preservation of pension rights to employees changing jobs before retiring age; and what estimate he has made of the additional cost of granting transferability.
§ Mr. EnnalsFor the private sector, the annual cost of giving effect to the pension preservation requirements of Clause 109 of the National Superannuation and Social Insurance Bill is estimated at upwards of £10 million ultimately. Had it been practicable to require transferability the additional annual cost in the private sector might have been of the order of £25 million assuming that employees continued to have the option of withdrawing their contributions on leaving.
§ Sir B. Rhys WilliamsIs it still Government policy to introduce transferability of pension rights?
§ Mr. EnnalsIt is the Government's policy to promote and encourage increasingly the transferability of pension rights but, as the hon. Gentleman knows, as a result of a great deal of study and discussions of this subject we reached the conclusion that to require it by legislation would mean imposing a large number of restrictions upon occupational pension schemes, the sort of restrictions which we would not be prepared to impose at this stage.
§ Mr. DeanIs the hon. Gentleman aware that steps to encourage preservation or transferability would be supported from this side of the House?
§ Mr. EnnalsI greatly welcome that. As the hon. Gentleman knows, there has been a good deal of pressure in the Standing Committee that we should go as far as we can in promoting transferability, and also in making as much progress as we can on preservation.