§ Mr. WattsTo ask the Secretary of State for Work and Pensions if he will introduce proposals to require employees to pay into a joint insurance policy to underwrite employees pension schemes. [51372]
§ Mr. McCartneyWe have no plans to introduce proposals requiring employers to contribute to a joint insurance policy to underwrite employees pension schemes. Compulsory mutual insurance to support the pension fund of an insolvent company was among the options considered when we consulted on the future of the minimum funding requirement in September 2000, but it received little support. Such an arrangement could lead to schemes neglecting their obligations knowing that their liabilities would still be met in the event of insolvency. Many employers sponsoring well-funded schemes would object to subsidising firms which neglected their obligations.
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§ Mr. WattsTo ask the Secretary of State for Work and Pensions if he will take steps to remove company representatives from the management of pension funds. [51373]
§ Mr. McCartneyWe have no plans to remove company representatives from the management of pension funds.
Pension schemes are set up voluntarily by employers for the benefit of their workforce, and the financial commitment this involves means they have a legitimate interest in the running of the scheme. Where decisions made by trustees have a direct implication for the financial position of the employer, it is understandable and right that the employer wants to be part of that decision making process.