§ Mr. FlightTo ask the Secretary of State for Work and Pensions what recent discussions he has had with business representatives concerning the provision of final salary pension schemes [92828]
§ Mr. McCartneyMy right hon Friend met with representatives of the Confederation of British Industry in September and November last year to discuss pensions.
As part of the consultation exercise on the pensions Green Paper Simplicity, Security and Choice, my right. hon Friend and ministerial colleagues will be attending a number of events to which employer organisations are being invited.
§ Mr. FlightTo ask the Secretary of State for Work and Pensions what assessment he has made of the effect of closing a final salary pension scheme upon a firm's financial risk. [92829]
§ Mr. McCartneyWhen employers close their defined benefit schemes, they are seeking to put a limit on the long term liabilities of the company. Given the nature of these liabilities, however, closure is unlikely to have an immediate or even necessarily a short term impact. This is because the existing liabilities will still have to be met for the continuing life of the scheme irrespective of whether new members are being accepted. The Green Paper 'Simplicity, security and choice: working and saving for retirement' (Cm5677) sets out the Government's view that, for this and other reasons, closing or winding up pension schemes are not in the interests of either employers or employees. The Green Paper, therefore, sets out a range of proposals to646W simplify the regulatory regime for pensions, which could save employers £150 to £200 million a year in administration, and thus make it easier for employers to continue to provide final salary schemes and other types of pension arrangements for their employees. We have launched a wide ranging consultation in which we are seeking views on this approach including its impact on employers.
§ Mr. HoyleTo ask the Secretary of State for Work and Pensions what measures he is taking to strengthen the rights of employees in relation to final salary pension schemes. [91942]
§ Mr. McCartneyI refer the hon. Member to my written answer of 13 January 2003,Official Report, volume 397, columns 361–62W.
§ Mr. WebbTo ask the Secretary of State for Work and Pensions what assessment he has made of the impact of proposals in the Pensions Green Paper on the rate of closure of final salary schemes. [93055]
§ Mr. McCartneyThe Green Paper 'Simplicity, security and choice: working and saving for retirement1 (Cm5677), published on 17 December 2002, sets out the Government's strategy to encourage and support employers providing and contributing to good quality pension schemes through provision of a regulatory framework. The Green Paper,, therefore, sets out a range of proposals to simplify the regulatory regime for pensions, which could save employers £150–£200 million a year in administration, and thus make it easier for employers to continue to provide final salary schemes and other types of pension arrangements for their employees. We have launched a wide ranging consultation in which we are seeking views on this approach including its impact on employers.