§ Mr. HealdTo ask the Secretary of State for Work and Pensions what has been the(a) average annual and (b) total level of (i) erroneous payments and (ii) fraud connected with the New Deal to date; how much of this money has been recovered; and if he will make a statement. [88053]
§ Malcolm Wicks[holding answer 19 December 2002]Since the inception of the New Deals, all allegations of fraud have been followed up and fully investigated if the circumstances warranted it. Information on the level of erroneous payments is recorded by benefit, not by programme. Similarly, the level of fraud committed by participants in the New Deal is recorded by benefit, not by programme. However, in 1998 we established the Jobcentre Plus Contractor and Programme Investigation Unit, as part of the Counter Fraud Investigation Division. The unit's work includes the investigation of all allegations of fraud committed by contractors under the New Deal. The available information is in the table.
under the Pensions Act 1995 apply to that scheme. This includes the funding of the scheme as determined by the MFR, and the requirement to maintain a schedule of contributions. The Occupational Pensions Regulatory Authority (Opra) has the power to sanction scheme managers or trustees who fail to take reasonable steps to comply with these requirements.
Also, legislation provides that when a salary-related scheme winds up, or a sponsoring employer becomes insolvent, any deficiency in the pension fund becomes a debt on the employer. This provides a mechanism for the trustees to be able to take action to pursue the debt.
927WThe pensions Green Paper, Simplicity, Security and Choice: Working and Saving for Retirement', Cm 5677, published on 17 December, discusses two options (the full buy-out option and the partial buy-out option) for changes to the debt on the employer provisions that might result in more funds being put into a scheme when a solvent employer chooses to wind it up. This would strengthen protection for scheme members, however this needs to be balanced against the costs on employers.
§ Jane GriffithsTo ask the Secretary of State for Work and Pensions what guidance he gives on protection for members of occupational pension schemes operated by companies whose parent company is listed overseas. [103396]
§ Mr. McCartneyThe Occupational Pensions Regulatory Authority (Opra) produces guides to help pension scheme trustees understand some of the legal and technical issues involving pensions law. It also provides fact sheets for members of occupational pension schemes.
If a salary-related pension scheme is operating with tax approval, and is subject to the Minimum Funding Requirement (MFR), then a wide range of requirements under the Pensions Act 1995 apply to that scheme. This includes the funding of the scheme as determined by the MFR, the requirement to maintain a schedule of contributions and, when a salary-related scheme winds up, or a sponsoring employer becomes insolvent, any deficiency in the pension fund becomes a debt on the employer. That fact that the parent company of the principal employer sponsoring the pension scheme may be listed overseas is therefore not directly relevant.
The protection that people receive if their pension scheme is wound up is important, and we need to do more to protect the rights of scheme members. That is why we are consulting on proposals within the pensions Green Paper 'Simplicity, Security and Choice: Working and Saving for Retirement', published on 17 December, aimed at improving protection for scheme members on wind up. This includes proposals to share out scheme assets more fairly, introduce some form of insurance and strengthen protection for members whose solvent employer chooses to wind up its scheme.
We are consulting on our Green Paper, 'Simplicity, Security and Choice: Working and Saving for Retirement', Cm 5677 at the moment, and the consultation period runs until 28 March 2003.