§ Mr. Tom Benyonasked the Secretary of State for Social Services when the report of the Occupational Pensions Board entitled "Improved Protection for the Occupational Pension Rights and Expectations of Early Leavers", will be published.
§ Mr. JenkinThe board's report has been published today (Cmnd. 8271). I welcome the report and118W acknowledge the constructive recommendations that it contains. These recommendations have substantial implications for employers and for the occupational pension schemes which they have established. Among other things, a majority of the board have recommended that final salary pension schemes should be required to increase preserved benefits in line with movements in earnings up to a ceiling of 5 per cent. a year, calculated over the whole period of preservation, while urging that schemes should make such further improvements above this level as their resources permit. A minority of the board considered that if there had to be a limit on a statutory requirement it should not be less than 8½ per cent. a year. The Government recognise the difficulties that would have to be faced if these proposed requirements were to be introduced and conclude that everyone concerned with occupational pensions should have an opportunity to study the detail of the report. We shall be very glad to receive any representations on it, and we shall also be considering alternative approaches whereby the interests of early leavers might be better protected.
As soon as practicable, I propose to implement the board's recommendation that a guaranteed minimum pension provided by a contracted out pension scheme may be revalued at a fixed rate after being accepted by the contracted out pension scheme of a new employer. This will remove a possible bar to certain types of transfers taking place.