Pensions Bill

My Lords, I would like to thank the noble Lord, Lord Skelmersdale, for tabling this amendment. We share his concern that employees should be given appropriate information about their employer’s contribution to their pensions. However, I believe that the current arrangements meet these objectives. The Employment Rights Act 1996 entitles employees to receive a written pay statement showing their gross and net pay and itemising all deductions. The purpose of these provisions is to protect employees by ensuring that they know what deductions have been made from their pay and why. They can complain to an employment tribunal if they do not receive a statement, or if all the necessary information has not been given. The tribunal can order the employer to pay compensation if it finds that unnotified deductions have been made. The provisions therefore ensure that employees' pension contributions are shown on their pay statements. Employees have to be told when they join, or are considering joining, an occupational pension scheme how the employer’s contributions are determined and how the member’s contributions are calculated. In addition, members of defined contribution schemes—where the amount of money paid in is intrinsically related to the size of the pension they will get out—have to be told, on an annual basis, the amount of contributions credited to them in the previous year. Members of defined benefit schemes which are subject to the statutory funding requirements can request information on the schedule of contributions that the employer has agreed to pay. We feel that this level of information is satisfactory. We must be mindful of the burden on employers of having to re-cast their pay statements unless there is compelling evidence that harm would result from the absence of such a requirement. This may slightly disappoint the noble Lord, but I hope that he accepts the extent to which the basic issue he is pursuing is genuinely covered and feels able to withdraw the amendment.