HL Deb 12 July 1995 vol 565 cc1714-6

123 Clause 56, page 35, line 27, at beginning insert 'Subject to subsection (4B)'

124 Page 36, line 3, at end insert: `(4A) References in subsection (4) and sections 57 to 59 to the terms referred to in subsection (2), or the effect of any of those terms, include—

  1. (a) a term which confers on the trustees or managers of an occupational pension scheme, or any other person, a discretion which, in a case within any of paragraphs (a) to (c) of subsection (3)—
    1. (i) may be exercised so as to affect the way in which persons become members of the scheme, or members of the scheme are treated, and
    2. (ii) may (apart from the equal treatment rule) be so exercised in a way less favourable to the woman than to the man, and
  2. (b) the effect of any exercise of such a discretion; and references to the terms on which members of the scheme are treated are to be read accordingly.

(4B) In the case of a term within subsection (4A) (a) the effect of an equal treatment rule is that the term shall be treated as so modified as not to permit the discretion to be exercised in a way less favourable to the woman than to the man.'.

125 Clause 57, page 36, line 6, at end insert 'and the reference in section 56(4A) to the way in which members of a scheme are treated includes the way they are treated as it has effect for the benefit of dependants of members.'.

126 Clause 60, page 37, leave out lines 33 to 41 and insert `subsections (1A) and (2) (exclusion for terms related to death or retirement) there is substituted— (1B) An equality clause shall not operate in relation to terms relating to a person's membership of, or rights under, an occupational pension scheme, being terms in relation to which, by reason only of any provision made by or under sections 56 to 58 of the Pensions Act 1995 (equal treatment), an equal treatment rule would not operate if the terms were included in the scheme. (1C) In subsection (1B), "occupational pension scheme" has the same meaning as in the Pension Schemes Act 1993 and "equal treatment rule" has the meaning given by section 56 of the Pensions Act 1995".'

127 Page 38, leave out lines 3 to 17 and insert: '() for subsection (4) there is substituted?— (4) Subsections (1) (b) and (2) do not render it unlawful for a person to discriminate against a woman in relation to her membership of, or rights under, an occupational pension scheme in such a way that, were any term of the scheme to provide for discrimination in that way, then, by reason only of any provision made by or under sections 56 to 58 of the Pensions Act 1995 (equal treatment), an equal treatment rule would not operate in relation to that term. (4A) In subsection (4), "occupational pension scheme" has the same meaning as in the Pension Schemes Act 1993 and "equal treatment rule" has the meaning given by section 56 of the Pensions Act 1995".'

Lord Mackay of Ardbrecknish

My Lords, I beg to move that the House do agree with the Commons in their Amendments Nos. 123 to 127. At the same time I wish to speak also to Amendments Nos. 278, 316, 320, 321, 324 to 326, 374 and 376 to 380. This group of amendments deals with the extremely complex area of equal treatment. Amendments Nos. 123 to 125 will ensure that the principle of treating men and women equally in their access to and membership of occupational pension schemes is complied with even when scheme rules contain an element of discretion. Any discretion permitted to trustees in trust deeds will have to be exercised in accordance with the equal treatment rule.

Amendments Nos. 126 and 127 ensure that UK legislation on sex equality in employment is brought into line with EU law. They reflect the fact that decisions of the European Court of Justice since 1990 have permitted derogations in limited circumstances from the principle of equal treatment in the field of occupational pensions. Employment law will now reflect exactly what pension law requires. The amendments are structured so that future changes in the relevant pensions legislation will apply equally in the employment provisions.

Amendment No. 278 changes the commencement date of the equal treatment provisions in the Bill. Instead of coming into force immediately on enactment, we have decided that it would be better to bring them into force by commencement order. This is to ensure that the powers under which the present equal access regulations are made and related provisions remain in force until the regulations under the new powers in the Bill can be made, laid before the House and brought into force. We intend that the relevant provisions should be brought into force by commencement order instead of on the day the Bill is enacted. This will ensure continuity of the relevant legislation and not lead to the possibility of there being, so to speak, a hole in the system.

Moved, That the House do agree with the Commons in their Amendments Nos. 123 to 127.—(Lord Mackay of Ardbrecknish.)

Baroness Hollis of Heigham

My Lords, perhaps the Minister can give us some guidance in terms of Amendment No. 278. When does he think the commencement date order might be?

Lord Mackay of Ardbrecknish

My Lords, I am not sure when we intend to do it. However, I can give the noble Baroness a categoric assurance, in the usual words Ministers use, that it will be "As soon as we possibly can".

On Question, Motion agreed to.