argyrotsipi/train-dataset huggingface dataset:
Pension Schemes Bill [HL] — House of Lords, 2020-06-30
Topic: Labor
Rosalind Altmann (Conservative, Centre-right): My Lords, I very much welcome the Government’s amendments to this Bill and congratulate my noble friend on her initial speech, in which she so clearly explained what the Government intend to do. I also congratulate her on the way in which she has engaged with Members across the House and, together with the Bill team, has listened to the concerns expressed at previous stages of this Bill. I particularly welcome the change from the originally proposed first-use-only affirmative procedure and the comments made by my noble friend on the importance of, for example, the cooling-off period before pension transfers occur I must admit that I also support Amendment 2 in the name of the noble Lord, Lord Sharkey. I share his concerns and would welcome an explanation, such as he has requested from my noble friend when she comes to respond, of why only this area—assessment of whether somebody is fit and proper to run a CDC scheme—should be left to the negative resolution procedure and be wholly at the discretion of the Secretary of State without what we would normally consider to be appropriate parliamentary scrutiny in this important area. The CDC framework is completely new for this country. I therefore think that colleagues across the House who have expressed the same concerns are right in suggesting that it is important that we have as much scrutiny as possible I have an amendment in this group—Amendment 13—regarding the accuracy of pensions data that needs to be submitted to a CDC scheme. I will not move it at this stage; I will come back to this subject during debate on a later group with my other amendments I welcome the current government proposals and hope that my noble friend will listen to some of the concerns expressed. I look forward to hearing contributions from other noble Lords and colleagues as we go forward in this debate.
Pension Schemes Bill [HL] — House of Lords, 2020-06-30
Topic: Government Operations
Janet Evelyn Fookes (Conservative, Centre-right): My Lords, I join other noble Lords who have already spoken in saying how pleased I am to see that my noble friend the Minister has listened to many of the recommendations made by the Delegated Powers Committee, which were warmly endorsed by the committee to which I belong, the Constitution Committee. We have had two powerful committees of one mind, so I am extremely pleased by this turn of events. Perhaps I may make one or two points because I know that the chairman of the Delegated Powers Committee, my noble friend Lord Blencathra, is to come in later in this debate, and I am sure that he will want to go into much more detail than I am minded to do The first-time-only procedure has happily now been abandoned in Clauses 11 to 17. It is not simply that the current Administration may well want subsequently to bring forward massive changes, but that they cannot know what use a future Administration might make of them. That is all the more reason to be careful about what powers are given to any Government I confess to some disappointment about the negative procedure being used where urgent changes need to be made. The Government seem to be suggesting that that is absolutely essential because otherwise delay would be difficult. Have they not heard of the "made affirmative" procedure, which allows a Government to put a regulation into action immediately, and then after 40 days Parliament has the opportunity to confirm it or possibly to reject it altogether? I hope that the Government, and the departments which support them, will no longer continue to use this weak argument in favour of the negative procedures. That said, I am pleased with the way things have gone and I offer my noble friend a bouquet—a modest bouquet—for what she has done.
Pension Schemes Bill [HL] — House of Lords, 2020-06-30
Topic: Labor
Michael Morris (Conservative, Centre-right): My Lords, it is entirely appropriate that I should first declare my interest. I am a trustee of the Parliamentary Contributory Pension Fund; I have been one for the best part of 20 years. I am also 83, and all I can say in reflection is that I was formerly the chairman of three financial companies, and I have been a pension trustee on two schemes prior to the one—the only remaining one—that I am on now. It is not my intention to comment too much on the Bill; rather, I see my role in the interests of the membership—I am a member and there certainly will be others in Parliament who are members—to keep a watching brief and, if appropriate, to make some comments to my noble friend on the Front Bench. I should also say to her that I was the Chairman of Ways and Means in another place and I too was not in favour of the negative procedure for really serious things. She has taken a very wise decision on Amendment 1; I am sure that it is the right one and should be applauded on all sides I will listen to my noble friend’s answer on Amendment 2 because, if it is right in the round, there would need to be a specific reason for its not being appropriate in leaving out subsection (8). Amendment 33 is in this group and has been commented on. I have given my age and I think that my gender is obvious, as is my ethnicity. It is appropriate that every set of trustees should have a range of people as regards age, experience, gender and so on, but in my judgment the key issue is commitment. We are very lucky on the Parliamentary Contributory Pension Fund because the members, almost to a man and a woman, turn up regularly to meetings, ask good questions and are good advisers, so that, at the last point, as a fund we were very much in positive territory. As I say, I am not going to make too many comments, so without further ado I once again congratulate my noble friend on the Front Bench.
Pension Schemes Bill [HL] — House of Lords, 2020-06-30
Topic: Labor
Anne McIntosh (Conservative, Centre-right): My Lords, it is a pleasure to follow the noble Lord, Lord Foulkes. I should say that I grew up near Barnard Castle and it was not notorious at that time I echo the tributes that have been paid to my noble friend the Minister. It plays to her strength, charm, innate graciousness and wisdom that she has listened to the concerns expressed at the earlier stages of the Bill. Therefore, I, too, pay tribute to her and thank her most warmly for the work that she and her team have done in this regard I also echo the comments about the remaining instruments that will be taken by the negative procedure, particularly where they have an impact and perhaps have to be taken urgently. It is always important to have proper parliamentary scrutiny of these instruments For a year—I think at the invitation of my noble friend Lord Blencathra or his successor—I was asked to look at, and shadow, the impact on women’s pensions. During that time, I learned how difficult it is for women to seek advice at the earliest possible stage. I take this opportunity to ask the Minister to reassure the House today that, not just on the face of the Bill but particularly in the regulations that we are empowering under it, trustees, board members and all those concerned, including financial advisers, will be asked to urge women —particularly younger women at the start of their careers—to take advice at the earliest possible opportunity. Never is that more appropriate than with CDC schemes, which are a new form of pension scheme. Echoing the thoughts of my noble friend Lord Holmes of Richmond, I suppose that pensions from defined benefit schemes were deemed to be a sort of deferred income. Now, the situation is completely different with defined contribution schemes and with a generation coming through, many of whom will have student loans to repay and difficulty in entering the workplace at this time.
Pension Schemes Bill [HL] — House of Lords, 2020-06-30
Topic: Labor
Rosalind Altmann (Conservative, Centre-right): My Lords, I have enormous sympathy with the aims of the two amendments in this group. Amendment 8, in the names of the noble Baronesses, Lady Drake, Lady Sherlock and Lady Bowles, was expertly moved by the noble Baroness, Lady Drake, and deals with situations where a pension scheme may not have enough money to meet its obligations and there is a risk that it will need to draw on the funds in the members’ pension pot rather than have money coming in from outside As I mentioned in debate on earlier stages of the Bill, I am particularly concerned about the situation where a scheme has had a triggering event or is winding up and may not have sufficient administrative budget to cope with, for example, a significant IT failure in which member records are lost or transposed from one to another so that it is an enormous job to unscramble each member’s entitlement. The costs of that work can be significant; if no reserves are in place to meet those costs and the employer is in financial difficulties, what will a CMP scheme be able to do to fund the costs of sorting out the records? It is true that the aims of the CMP scheme as set out in the Bill will be to have central estimated assumptions for guiding benefit adjustments to ensure that there is no difference of treatment between different members, but on the particular issue that I am referring to and that Amendment 8 refers to, the continuity strategy outlined in the Bill is supposed to have money to meet a triggering event, including its costs, but may not do so Therefore, as I understand it, the thrust of this amendment is to ensure that the Pensions Regulator requires a separate capital buffer, or that an insurance arrangement will cover the costs incurred in winding up, or that, in exceptional circumstances, the costs required to administer the scheme are met other than from members’ funds. When we set up this new regime, it is important that we make sure that we cater for eventualities that we do not expect to happen but which we know could in theory happen. Having seen with defined benefit schemes the devastating impact of scheme wind-up without sufficient resources and the amounts of money taken out of defined benefit schemes when an employer has failed or walked away from the scheme—those cases have reduced the amounts available for pensioners, in some cases to zero—there is a real need to look at some catastrophe insurance, disaster-type insurance or capital buffer of some kind to make sure that we have catered for that before it happens I think it would be wise for my noble friend to consider what else might be done over and above what is in the Bill. I also look forward to her answer to the specific question asked by noble Lords about what would happen in practice should a scheme require money that does not currently exist within the fund, other than in members’ entitlement pots, to cover the costs of wind-up. Of course CMP does not give each person an individual pot, but if the overall assets have to be raided to meet these costs, their pensions will be impacted.
Pension Schemes Bill [HL] — House of Lords, 2020-06-30
Topic: Labor
Michael Morris (Conservative, Centre-right): My Lords, as a trustee of the Parliamentary Contributory Pension Fund, I see it as my duty to take into account anything that may have an impact on the long-term financial performance of the fund and on Members’ pensions. I expect to communicate that to the membership in our annual report, or alternatively when requested I do not wish to comment on any of these amendments in detail, but I particularly warm to Amendment 75 from the Government, which seems entirely appropriate.
Pension Schemes Bill [HL] — House of Lords, 2020-06-30
Topic: Labor
Rosalind Altmann (Conservative, Centre-right): My Lords, I have added my name to these amendments in the names of my noble friends Lady Noakes and Lady Neville-Rolfe. I congratulate my noble friend Lady Noakes on the way she introduced this amendment There are valid concerns around the wording of the good intentions of this Bill to introduce criminal offences or financial penalties for avoiding employer debt or risking member-accrued benefits. But it is right to express some concerns that this should apply only if the person is either an employer or associated with the employer, so that professional advisers cannot be held criminally liable, nor banks just making loans in the ordinary course of business, nor even insurers for mistakes made in underfunding the pension scheme I welcome the long-overdue extension of the Pensions Regulator’s powers contained in this Bill, which can punish wilful or reckless behaviour and non-compliance with contribution notices and so on. I also welcome the intention to deter bad practice by scheme employers, and indeed scheme trustees from undermining their pension scheme. It is right to have a criminal offence, but, as currently written, the provisions under Clause 107 could criminalise anyone who deals with a pension scheme. I do not believe that is the intention, and it could leave parties reluctant to deal with a business because of its pension scheme, which could in turn jeopardise the ongoing solvency of the company. Therefore, I would welcome some reassurance from the Minister that this will not be the outcome of this legislation Some might say that advisers should surely share the responsibility were there to be attempts to avoid pension debt. I have some sympathy with this. So, once again, will my noble friend reassure us that this Bill will not see those acting in good faith being caught out by the actions of an employer, or even perhaps of complicit trustees who might act in ways that are detrimental to the scheme? I hope that this reassurance can be forthcoming.
Pension Schemes Bill [HL] — House of Lords, 2020-06-30
Topic: Law and Crime
Frederick Richard Penn Curzon (Conservative, Centre-right): My Lords, I am grateful to my noble friend Lady Noakes for tabling these amendments to Clause 107 and for the helpful conversations that we have had about them in recent days I start by saying that the Government understand the genuine concerns that have been raised during Committee and by my noble friend through these amendments. The first point that I would like to make —I think that it is necessary for me to make it—is that, in introducing the new criminal offences, the aim is to target individuals who intentionally or knowingly mishandle pension schemes or endanger workers’ pensions by behaviours such as chronic mismanagement of a business or avoiding pension liabilities. It is not the aim to frustrate legitimate business activities where they are conducted in good faith The key point is the one that I made in Committee: that it is an offence only if the person intended to harm the scheme or should have known that the conduct would have that effect and they have no reasonable excuse for their actions. The decision on whether a person does or does not have a reasonable excuse and ultimately did or did not commit an offence in a particular case is a matter for the courts. However, in coming to such a verdict, the courts will have paid due regard to all the circumstances in the individual case in question. That, of course, includes coming to a view on whether the person’s excuse for acting in that way was a reasonable one. The burden of proof on that question falls on the Pensions Regulator. In other words, the Pensions Regulator would need to prove that the actions of the individual were unreasonable The other dimension of the issue is that it is important that, where the elements of an offence are met, no matter who has committed it, the regulator should be able to respond appropriately. Any restriction of the persons potentially in scope would create a loophole for those people to act in such a way Having said all that, we are aware of the concerns raised by industry and by noble Lords. To address those concerns, I draw the House’s attention to the general prosecution policy which the regulator already publishes and which sets out the matters that it considers when using its prosecution powers My noble friend mentioned the regulator’s guidance. The regulator has stated that it will also issue further specific guidance explaining its approach to prosecuting the new offences under Part 3. Before it does so, the regulator will consult the industry on the contents of the guidance for the new offences, and it expects to publish this guidance prior to the commencement of these provisions.
Pension Schemes Bill [HL] — House of Lords, 2020-06-30
Topic: Labor
Sheila Masters (Conservative, Centre-right): My Lords, I first thank all noble Lords who have taken part in this short debate. I was pleased to get support from my noble friends Lady Neville-Rolfe, Lady Altmann and Lord Trenchard I am grateful for what my noble friend the Minister has said, in particular that Clause 107 is not aimed at legitimate business activities conducted in good faith. He went on to say that there were other activities which might harm the defined benefit scheme but that they would be caught only to the extent that there was not a reasonable excuse. We will come back to that being the heart of the problem because there is no real comfort about what is included in "reasonable excuse". We are invited to rely on future guidance on prosecution issued by the Pensions Regulator and guidance on how the regulator would approach the reasonable excuse I say to my noble friend that the pensions advisory industry has not always found guidance issued by the regulator helpful in guiding, as opposed to giving warnings about what the Pensions Regulator does not like. I do not think there is a lot of hope that that guidance will necessarily put an end to the uncertainty—and, at the end of the day, we are left with major uncertainty hanging over business until cases come before the courts and we see what the Pensions Regulator does in practice Having said that, as my noble friend knows, I never intended to divide the House and am grateful for what he has been able to say today. I will want to reflect on it further with those who have helpfully provided briefing on this. I know that some parts of the industry may want to stay in dialogue with the Government as the Bill goes forward. We will obviously have Third Reading in your Lordships’ House, but the Bill is a Lords starter and it will be taken in another place. So, while for today I will withdraw my amendment, and while I believe that we have made a lot of progress, we may not have made quite enough in making people comfortable that the range of transactions which could potentially be caught by this will not unintentionally fall within the ambit of Clause 107. With that, I beg leave to withdraw the amendment.
Pension Schemes Bill [HL] — House of Lords, 2020-06-30
Topic: Macroeconomics
Rosalind Altmann (Conservative, Centre-right): My Lords, I am grateful to the noble Lord, Lord Vaux, for moving these two important amendments. I have added my name to Amendment 50, which requires share buybacks to be notified to the regulator if a company is responsible for a pension scheme in deficit. The case for accepting this amendment seems quite overwhelming. The noble Lord has been extremely reasonable in only requiring notification of a buyback. Equity buybacks are sometimes used by companies to distribute to shareholders what is considered surplus cash where management believes that it has no better use for that money. That suggests that sometimes, management believes that the current share price is undervalued. Of course, the buyback improves reported earnings per share and flatters financial statements, but these measures are sometimes used as a yardstick to determine top executives’ pay or bonuses. Many receive a large element of their compensation in the form of stock options, and a buyback can offset the dilution of existing share values and any potential reduction in earnings per share that might otherwise come from their options. Therefore, buybacks could be considered a ploy to boost reported earnings per share or share price levels It should be remembered that although the buyback may increase earnings per share, it does not increase the fundamental value of the company. Even more worrying, sometimes, companies engage in buybacks funded by increased borrowing. One of the reasons given for taking on the increased debt to fund such a buyback is that it is more efficient, because the interest on the debt is tax-deductible, unlike with dividends. However, clearly, this will reduce the financial resilience of the company when the debt must be repaid or the gearing level rises, leaving less money available to fill a pension deficit A company’s financial difficulty results from lack of cash, not lack of profits, and for a company which sponsors a defined benefit pension scheme with a deficit, the buyback would allow shareholders to enjoy rewards at the expense of pensioners. Ultimately, if the cash has gone into buying shares, it is no longer available to fill the deficit. The buyback itself cannot be argued to generate future growth, because a company’s investing its cash in the business would be a reason to suggest that it will be better off as a result of that decision. However, where spare cash is simply given to shareholders to boost share prices and potentially boost management remuneration, this requires some oversight by the regulator.
Pension Schemes Bill [HL] — House of Lords, 2020-06-30
Topic: Labor
Lucy Neville-Rolfe (Conservative, Centre-right): The noble Lord, Lord Vaux, has adapted his amendments to meet some of the concerns that we all expressed in Committee, for which I thank him, but I am afraid that I am still not happy with the two amendments that he has tabled. For example, nearly all pension schemes are in deficit. Amendment 50 would allow the Pensions Regulator basically to stop all buybacks, which is a matter not for this Bill but for a governance Bill—following proper review and consultation—because buybacks can be justified in some circumstances and we have not had a chance to debate that. The coronavirus measures, with which a parallel was drawn, are unique and different—that has been made clear in parliamentary agreement to them—so it is better to leave the arrangements to ministerial discretion, as the noble Lord, Lord Vaux, suggested. We have to remember that, however good the regulator is, he or she introduces delay and uncertainty, so we need to make sure that the powers are used with care.