§ Lord Oakeshott of Seagrove Bayasked Her Majesty's Government:
Whether they will set out the terms of reference of the commission under Mr Adair Turner announced in the Pensions Green Paper; and [HL893]
Whether there will be an independent appointments process for members of the Turner Commission on Pensions to ensure that they are genuinely independent; and whether they will be appointed in accordance with the Nolan principles; and [HL894]
Whether they intend the Turner commission to include representatives of all three main political parties; and [HL895]
How often and when they expect the Turner commission to report; and how long members will serve in the first instance. [HL896]
§ Baroness Hollis of HeighamThe Green PaperSimplicity, security and choice: working and saving for retirement (Cm 5677) sets out a number of proposals that are designed to make the voluntary system of pensions provision in the UK work effectively. It is important that progress is closely and independently monitored so that we can be sure that employers and individuals are rising to the challenge. We will need good information so that we can assess if sufficient progress is being made and whether the Government need to take action. That is why an independent commission has been established.
The terms of reference for the commission, as set out in the Green Paper, are:
- To keep under review the regime for UK private pensions and long-term savings, taking into account the proposals in the Green Paper, assessing the information needed to monitor progress and looking in particular at current and projected trends in:
- the level of occupational pension provision:
- trends in employer and employee contributions;
- trends in coverage of occupational pensions;
- the level of personal pension savings, including:
- take up of stakeholder and personal pensions:
- contributions to stakeholder and personal pensions; and the level of other saving;
- financial assets, for example Individual Savings Accounts, housing, businesses, savings, and other assets of partners.
On the basis of this assessment of how effectively the current voluntarist approach is developing over time, to make recommendations to my right honourable friend the Secretary of State for Work and Pensions on whether there is a case for moving beyond the current voluntarist approach.
Adair Turner has been appointed as chair of the commission. The other two members are Jeannie Drake and Professor John Hills.
78WAAdair Turner is currently vice-chairman of Merrill Lynch Holdings Ltd, a director of United Business Media plc and chair of the Low Pay Commission. Jeannie Drake is the deputy general secretary for the Communications Workers Union and is also a commissioner of the Equal Opportunities Commission. Professor John Hills is director of the Economic and Social Research Council Research Centre for Social Exclusion at the London School of Economics.
The commission is being established as an ad-hoc advisory group and a formal appointments process is therefore not necessary. However, the members of the commission have the high calibre expertise and breadth of experience which are vital to its independent role.
We are in the process of finalising arrangements in consultation with the members of the commission and will announce further details, including the timescale on which the commission will report, in due course.