§ 51. Mr. HarrisTo ask the Secretary of State for Social Security what measures are being introduced to increase the protection for members of occupational pension schemes.
§ 52. Mr. CarringtonTo ask the Secretary of State for Social Security what measures are being introduced to increase the protection for members of occupational pension schemes.
§ Mrs. Gillian ShephardTo improve benefit security for members of occupational pension schemes, we have brought forward four legislative proposals. First, we are strengthening the protection for early leavers that 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 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 is also to apply to future pensions and to pensions in payment. Thirdly, again on wind-up, any deficiency in a scheme's assets to meet 523W scheme liabilities, including these new liabilities, is to become a debt on the employer. Fourthly, we are introducing a new ceiling on self-investment which will allow pension schemes to hold no more than 5 per cent. of their assets in the employer's business. This will not apply to small self-administered pension schemes where directors control the investment of their own pension savings.
To improve the range of help and advice available to individual pension scheme members, we are introducing a pensions ombudsman and 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. There will also be amendments to the disclosure regulations to improve information available to scheme members.