§
Lords amendment: No. 65, in page 41, line 26 after "year" insert
which may be applied towards the payment of such of the pensions, increases and expenses payable under or incurred in connection with the scheme as correspond to the obligations.
§ Mr. Kenneth ClarkeI beg to move, That this House doth agree with the Lords in the said amendment.
This is a drafting and technical amendment to pick up an inadvertent error. The amendment is to the advantage of pension funds, particularly the NFC 1978 pension fund. The amendment secures that not only the historic income, to use the jargon of the Bill, of a British Rail or National Freight Corporation scheme is taken into account in determining the Minister's payments in respect of the historic liabilities.
A scheme may also have non-historic liabilities, assets and income. The amendment secures that the non-historic income is left out of account because, as is obviously proper, it stands to be used to meet the non-historic liabilities. The National Freight Corporation fund in particular has some continuing income being paid by people in service at the moment for their own pensions obligations. It would not be right for the Government to get the benefit of that to reduce their obligation towards historic pension obligations.
§ Question put and agreed to.