HC Deb 15 November 1983 vol 48 cc709-10
5. Mr. Viggers

asked the Secretary of State for Social Services what further steps he now proposes to encourage those responsible for pension schemes to improve the equity of benefits between participants in their schemes.

12. Sir Peter Mills

asked the Secretary of State for Social Services what measures he is proposing to ease the problems for early leavers in occupational pension schemes.

Mr. Fowler

Following the report of the Occupational Pensions Board on the problems of the early leaver from pension schemes, I consulted closely all major interests and in September held a one-day conference on this subject. I hope to be able to make a statement shortly.

Mr. Viggers

I congratulate my right hon. Friend on identifying the problems in this area and on the initiatives that he took to promote discussion. Does he agree that the early leaver is only part of the issue and that we should seek to provide portability of pensions, which would carry many substantial benefits?

Mr. Fowler

I agree with what my hon. Friend says. Action on early leavers does not in any way preclude action being taken on personal portable pensions. There is a great attraction in principle in personal portable pensions, and I shall have something further to say about that.

Sir Peter Mills

Does my right hon. Friend agree that this problem has a severe effect on employees and does not help flexibility of employment or the economy? I know that he has made progress, but will he redouble his efforts to further this cause which is so important to employees?

Mr. Fowler

I have no doubt that many staff feel strongly about this problem. Voluntary action has not been sufficient, and I believe that the Government have a duty to remedy this injustice.

Sir Hugh Rossi

When can we expect a Government response to the Select Committee report on equality of retirement age for men and women, as it will have an effect on the future of occupational pensions?

Mr. Fowler

It will plainly have some effect. I am not sure that it arises from this question, but there w ill be a response shortly.

Mr. Meacher

Does the Secretary of State recognise that the only proper answer to the problem of the early leaver is full indexation of a frozen pension, which should not be at the expense of cutting other members' benefits? If that cannot be done, does it not illustrate that private occupational pension schemes, as opposed to the state scheme, suffer from the overwhelming defect that they cannot cope properly during a period of inflation?

Mr. Fowler

I shall shortly be making a statement on this matter. If the hon. Gentleman felt so strongly about this subject, I am surprised that he did not do something about it when he was a Minister at the DHSS.