HC Deb 26 May 1993 vol 225 cc637-8W
Mr. Jim Cunningham

To ask the Secretary of State for Social Security (1) what plans he has to strengthen the role of employees in the administration of occupational pension scheme funds;

(2) if he will bring forward proposals to prohibit employers from having a controlling decision on (a) how occupational pension funds are used, (b) what the pension levels should be and (c) the use of these funds to pay off company debts.

Miss Widdecombe

The rights and interests of scheme members, pensioners and employers in occupational pension scheme are among the issues being considered by the Pension Law Review Committee. The committee was established, in June last year under the chairmanship of Professor Goode QC, to review the whole framework of law and regulation within which occupational pension schemes operate. It would be premature for the Government to comment on possible changes before the committee reports at the end of September.

Mr. Jim Cunningham

To ask the Secretary of State for Social Security what proposals he has to improve the position of those whose occupational pension rights have been lessened by periods of unemployment; and what age group he estimates is most affected.

Miss Widdecombe

Members of occupational pension schemes who become unemployed are entitled to a preserved pension which is revalued in line with rises in prices of up to 5 per cent. a year until they reach the scheme's normal retirement age. On starting work again they can either leave their preserved pension where it is, or transfer their rights into their new employer's pension scheme or into a personal pension. Information on the ages of those involved is not available. We have no plans to change these provisions.

Mr. Jim Cunningham

To ask the Secretary of State for Social Security what proposals he has to improve the position of those whose occupational pensions are abated because they left early.

Miss Widdecombe

I refer the hon. Member to my reply to the hon. Member for Newcastle-upon-Tyne, Central (Mr. Cousins) on 9 November 1992 at column563.

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