§ Ms AthertonTo ask the Secretary of State for Social Security what plans he has to improve the representation of pensioners on the trustee boards of pension schemes. [99999]
§ Mr. RookerWe believe that member trustees add value to pension schemes, and want to increase their coverage.
Our priority is to ensure that schemes have member-nominated trustees, and that members have a fair say in determining the arrangements for appointing them.
The consultation document, "Strengthening the Pensions Framework", which was issued in December 1998, made a number of proposals on member-nominated trustees, including a proposal that large mature schemes should be required to reserve a place on the trustee board for a pensioner member. Responses showed widespread support for the principle of member trustees, but concern about the practical implications of some of the proposals, including that for a reserved place for a pensioner member in large mature schemes.
In the light of the concerns, we set up a working group with the pensions industry and other representative bodies to review the proposals. A further consultation document with revised proposals was issued on 7 October 1999.
The changes we are proposing do not require schemes to have a pensioner trustee, but will ensure that pensioners are given a fair say in the procedures.
Responses to the revised proposals were mostly very encouraging, and we plan to legislate in the forthcoming child support, pensions and social security Bill.