HC Deb 24 February 1994 vol 238 cc327-8W
Mr. Hinchliffe

To ask the Secretary of State for Transport whether it is his intention to use joint industry scheme assets after rail privatisation for purposes other than the payment of pensions.

Mr. Freeman

I have no intention of using scheme assets for any purpose. I intend that the new scheme should be used for paying pensions and other benefits for which the present scheme is designed. The present scheme would permit payment to the employer of an element of residual surplus on winding-up. The winding-up rules of the new scheme are still under discussion.

Mr. Hinchliffe

To ask the Secretary of State for Transport how the current preserved benefit arrangements of the British Rail pension scheme will be affected by the privatisation of British Rail and the introduction of the joint industry scheme.

Mr. Freeman

My officials are discussing with the trustees of the BR pension scheme simplification of the present arrangements which involve separate "preserved benefits" sections, but members with preserved benefits will not lose any protection as a result.

Mr. Hinchliffe

To ask the Secretary of State for Transport if the pension arrangements for employees following rail privatisation will include in the membership of trustee boards and local management committees employer/employee nominees on a 50:50 basis; and whether existing provisions for trade union nominees to represent members will be unchanged.

Mr. Freeman

The Government intend that equal employer/member representation should continue at all levels of the governance of the new scheme. The precise method of appointing the members' representatives is under discussion and I hope to put forward proposals for consultation shortly.

Mr. Hinchliffe

To ask the Secretary of State for Transport (1) if the existing British Rail pension scheme surplus and deficit requirements will be replicated in the post-privatisation joint industry scheme;

(2) if the British Rail pension scheme winding-up arrangements will be replicated in all sections of the joint industry scheme.

Mr. Freeman

My officials are presently discussing drafts of the trust deed and rules of the joint industry scheme with BR and the trustees. It will not always be possible to replicate the existing provisions exactly in the new scheme because its structure will be different. But the sections of the new scheme covering people to be protected under the Railways Act 1993 will have to satisfy the condition that they are "no less favourable" than the BR pension scheme.

Mr. Hinchliffe

To ask the Secretary of State for Transport if the arrangements for the collection of employee and employer pension contributions following rail privatisation will conform with the existing British Rail pension scheme rules in respect of remitting contributions to the trustees within seven days.

Mr. Freeman

Yes.