§ Mr. TynanTo ask the Secretary of State for Work and Pensions when he expects the Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2003 to be laid before Parliament; and what steps he has taken to ensure that the interim regime adopted under Update 1—Calculation and payment of cash equivalent transfer values, issued by the Occupational Pensions Regulatory Authority, is as brief as possible. [102444]
§ Mr. McCartneyAmendments to pensions regulations must be issued in draft for consultation. The draft Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2003 were issued for consultation on 28 January and responses required by 28 March. We will endeavour to bring these changes into effect as soon as possible after responses have been considered and any necessary redrafting in the light of them completed.
§ Mr. TynanTo ask the Secretary of State for Work and Pensions what steps he has taken since the publication of "Update 1—Calculation and payment of cash equivalent transfer values" by the Occupational Pensions Regulatory Authority to(a) ensure that pension scheme members' rights under the (i) Pension Schemes Act 1993 and (ii) Pensions Act 1995 are protected, (b) monitor the numbers and circumstances of scheme members whose position may be adversely affected by the OPRA guidance and (c) ensure that the consultation being carried out in respect of the draft Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2003 is not prejudiced by OPRA's interim guidance pending the proposed introduction of the regulations; and if he will make a statement. [102472]
§ Mr. McCartneyThe aim of both update 1 and the amendments to the regulations is to maintain fairness between those who transfer out of schemes and those who remain. Reports in the press imply that the measures would lock individuals into their pension schemes. That is not true.
The Occupational Pensions Regulatory Authority (OPRA) will not be preventing members from transferring out of pension schemes, nor are they endorsing such an approach. OPRA have made it clear that it is up to trustees to decide whether to delay quotes of transfer values. In doing so trustees will want to take into account the funding position of the scheme and the effect of transfers on members who remain in the scheme. The measures are short term and will only apply until the amended regulations come into force.
There is no central record of members who apply for a transfer value and it is therefore not possible to monitor those who may be affected by OPRA's guidance. It is important that the calculation of transfer values is fair to all, to those who leave and those who stay. If a scheme is underfunded and an unreduced transfer value is taken, it affects all members who remain in the scheme. On the whole, it is likely that more members will benefit from OPRA's measures than be adversely affected.
The timing and process of the consultation on the regulations is not affected by OPRA's interim guidance; how respondents reply to the consultation is of course a matter for them.