Public Service Pensions and Judicial Offices Bill [Lords] — House of Commons, 2022-02-22
Topic: Labor
Rosalie Winterton (Labour, Centre-left): With this it will be convenient to discuss the following: New clause 1—Guidance to public service pension scheme managers on investment decisions— "(1) The Public Service Pensions Act 2013 is amended in accordance with subsection (2) (2) In schedule 3, paragraph 12(a), at end insert ‘including guidance or directions on investment decisions which it is not proper for the scheme manager to make in light of UK foreign and defence policy’." This new clause would enable the Secretary of State to issue guidance to those authorities that administer public sector pension schemes, including the local government pension scheme, that they may not make investment decisions that conflict with the UK’s foreign and defence policy. New clause 2—Investment decisions in funded schemes— "(1) Section 3 of the Public Service Pensions Act 2013 is amended in accordance with subsection (2) (2) After sub-paragraph (3) insert— ‘(3A) Scheme regulations must require an authority’s investment strategy to ensure that investment decisions are consistent with the Glasgow Climate Pact 2021.’" This new clause would require public sector pensions schemes to ensure future investments are consistent with the climate science, ambitions and timeframes agreed at the COP26 UN Climate Summit. New clause 3—Investment decisions in funded schemes: fossil fuel assets— "(1) Section 3 of the Public Service Pensions Act 2013 is amended in accordance with subsection (2) (2) After sub-paragraph (3) insert— ‘(3A) Scheme regulations must require the fund to have removed all investment in fossil fuel assets by 2030.’" This new clause would require public sector pensions schemes to disinvest from fossil fuels by 2030, by removing fossil fuel assets from their investment portfolios, securities transactions and balance sheets. New clause 4—Review of the impact of this Act on fairness— "(1) The Chancellor of the Exchequer must commission a review of the impact of this Act on fairness to members in receipt of pensions to which this Part applies (2) The Chancellor of the Exchequer must prepare and publish a report on this review within six months of the passage of this Act and must lay a copy of the report before Parliament (3) The review under subsection (1) must include an assessment of the impact of the provisions of this Act on women (4) The review under subsection (1) must make recommendations as to whether further legislation should be brought forward by the Government to close the public service pensions gap between men and women." This new clause would require the Government to report on the impact of this Part on fairness, especially with regards to women. New clause 5—Guidance— "(1) Within six months of the passage of this Act the Chancellor of the Exchequer must lay before Parliament a copy of guidance to members of pension schemes affected by this Part (2) The purpose of the guidance under subsection (1) is to ensure members are able to make informed choices about their pensions (3) The Government must provide a free helpline or online service which members can use to receive further guidance about their pension (4) Within six months of the day on which the guidance is published the Government must lay before Parliament a report on its effectiveness in achieving the purpose in subsection (2)." This new clause would require the Government to publish guidance to members of pension schemes affected by this Part and allows for provision of a helpline or online service to offer further assistance. New clause 6—Impact on the recruitment of new holders of judicial offices— "(1) Within 12 months of the passage of this Act the Government must commission an evaluation of the impact of this Act on recruitment of new holders of judicial offices and on the diversity of the judiciary. (2) The Chancellor of the Exchequer must prepare and publish a report on this evaluation and must lay a copy of the report before Parliament." This new clause would require the Government to publish an annual update on progress on recruiting new members to the judiciary and increasing diversity. New clause 8—Compensation of losses incurred by closure of legacy schemes— "(1) The Chancellor of the Exchequer must review how a loss incurred by a member with remediable service who is transferred to the new scheme under section 80 and— (a) reaches the required number of years of pensionable service to retire with full benefits under the legacy scheme, and (b) is unable to access the full value of those benefits because they must continue to work to retire with full benefits under the new scheme could be compensated (2) The Chancellor of the Exchequer must prepare and publish a report on this review within two months of the passage of this Act and must lay a copy of the report before Parliament." This new clause would require the Government to review how losses arising from the "pension trap" could be compensated, and to report on the review within two months of the passage of the Act. New clause 9—Equality impact analysis of provisions of this Act— "(1) The Chancellor of the Exchequer must review the equality impact of the provisions of this Act in accordance with this section and lay a report of that review before the House of Commons within six months of the passage of this Act (2) A review under this section must consider the impact of those provisions on— (a) people with protected characteristics (within the meaning of the Equality Act 2010), and (b) the Government’s compliance with the public sector equality duty under section 149 of the Equality Act 2010 (3) A review under this section must include a separate analysis of each separate measure in the Act, and must also consider the cumulative impact of the Act as a whole." This new clause would require the Government to review the equality impact of the provisions of this Act, and to report on the review within six months of the passage of the Act. New clause 10—Report on losses incurred by closure of legacy schemes— "The Chancellor of the Exchequer must consult with the relevant trade unions and other bodies representing pension scheme members and report within 6 months of the passage of this Act on the options available for addressing in a non-discriminatory manner any loss incurred by a member with remediable service who is transferred to the new scheme under section 80 and— (a) reaches the required number of years of pensionable service to retire with full benefits under the legacy scheme, but (b) is unable to access the full value of those benefits because they must continue to work to retire with full benefits under the new scheme." This new clause would require the Government to consult with the trade unions and other bodies representing members of the pension schemes who are affected by the "pensions trap" and to report on the options available to address this issue without causing discrimination. Government amendments 1 to 17 Amendment 24, in clause 92, page 67, line 39, leave out paragraph (c) and insert— "(c) leave out paragraph (c)." This amendment removes from the calculation of the employer cost cap the effect of changes in the cost of connected schemes, including the cost of rectifying the unlawful discrimination. Amendment 22, page 67, line 39, leave out paragraphs (c) and (d) This amendment removes from the Bill the amendment to Section 12 of the Public Service Pensions Act 2013 that would allow Treasury directions to determine whether the cost control mechanism would operate. Amendment 23, page 70, line 27, leave out clause 93 Government amendments 18 to 21.