HC Deb 21 January 1999 vol 323 cc543-4W
20. Ms Stuart

To ask the Secretary of State for Trade and Industry what progress he has made in his discussions with the Social Security Department in relation to S226 personal pensions being available to trustees in bankruptcy. [65210]

Dr. Howells

Following those discussions the Government issued a Green Paper, "A new contract for welfare: Partnership in Pensions", which proposes that all tax-approved private pension rights should be treated equally on bankruptcy. A subsequent Consultation Paper, "Strengthening the Pensions Framework", set out that proposal in more detail.

We propose that in the future all tax-approved private pension rights should remain with bankrupts and not be available to the trustee in bankruptcy for the benefit of creditors. This will include tax-approved Section 226 Personal Pensions. But as a safeguard against abuse the trustee in bankruptcy will be able to apply for a court to recover any excessive contributions made to the pension scheme.