HC Deb 14 July 1987 vol 119 cc1050-1

Question proposed, That the clause stand part of the Bill.

Sir Brandon Rhys Williams

Unfortunately, it was brought to my notice only this morning that there could be a most unfortunate interpretation of subsection (2)(b), which reads: in an office or employment to which section 36 below applies. This is a technical area and I may be misinformed, but it appears that paragraph (b) adds a restriction in that members of an occupational pension scheme may not arrange for minimum contributions arising under the Social Security Act 1986 to be paid to a personal pension scheme. If that is correct, it will effectively prevent a member of an occupational pension scheme which is not contracted out from using a personal pension scheme to opt out of SERPS.

My right hon. Friend the Minister knows that I am not particularly well disposed towards SERPS and I think that it ought to be wound up, but while it continues every employee should be entitled to opt out of it if he or she so wishes. It seems completely contrary to Government policy to prevent employees from opting out. If my interpretation of paragraph (b) is correct, will my right hon. Friend give an assurance that it will be amended so that it does not have that unfortunate implication?

I recognise that I am trespassing on a very technical area and raising a point which I was not able to cover in an amendment because it was brought to my notice only today. Nevertheless, it is a serious point and I trust that my right hon. Friend will consider it.

Mr. Norman Lamont

I am advised that my hon. Friend may have a point. I undertake to look at it and to report back to the House on Report.

Question put and agreed to.

Clause 30 ordered to stand part of the Bill.

Clause 31 ordered to stand part of the Bill.

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