§ Mr. NealeTo ask the Secretary of State for Social Security when he expects to publish a response to the Occupational Pensions Board report on protecting pensions.
§ Mr. NewtonI am grateful to the Occupational Pensions Board for its report. As a result I will be bringing forward legislation at the earliest opportunity to strengthen the benefit security of members of occupational pension schemes and to provide for help for individuals in dealing with pension schemes. These measures reflect both the recommendations of the Occupational Pensions Board and the comments which have been made by right hon. and hon. Members, interested organisations and the public.
To improve benefit security, I propose four measures. First, we will strengthen the protection for early leavers from occupational pension schemes, which we introduced in 1985, by requiring schemes to revalue all future early leavers' preserved pension rights. Pension rights which go beyond the guaranteed minimum pension will have to be revalued in line with prices, up to a maximum of 5 per cent. a year. Secondly, where a pension scheme winds up, the same revaluation requirement will also apply to future pensions and to pensions in payment. Thirdly, again on wind up, any deficiency in a scheme's assets to meet scheme liabilities, including these new liabilities, will become a debt on the employer. Fourthly, we shall introduce a new ceiling on self-investment for pension 530W schemes which will allow them to hold no more than 5 per cent. of their assets in the employer's business; schemes will of course be given time to meet this requirement.
I also intend to initiate a number of further steps to improve the range of help and advice available to individual pension scheme members. To provide an alternative to the High Court as a means of resolving scheme members' grievances, I propose that there shall be a pensions ombudsman. I propose, too, improved tracing services—based on a register of pension schemes—to help individuals discover which company is responsible for pension rights acquired in previous employment, and I wish to see the activities of the Occupational Pension Advisory Service extended and funded more securely. There will also be amendments to the disclosure regulations to improve information available to scheme members.
I shall be implementing other OPB recommendations which include better protection and increased choice for members involved in bulk transfers between pensions schemes.
I shall be seeking the co-operation of the industry in implementing these initiatives. Discussions with the relevant organisations will be set in hand immediately.