Pensions Bill

The Bill introduces an effective and proportionate compliance regime which is vital to the success of our reforms. The amendments strengthen the regime in several key areas, and respond to concerns raised earlier in the Bill's passage. Lords amendment No. 95 would enable the regulator to require employers to pay interest on unpaid contributions, which would help to ensure that members did not lose out because of contributions not made on time. In Committee in the House of Commons, concerns were expressed about a small minority of employers who might be tempted to try to induce their workers to opt out of scheme membership. Those concerns were shared by several stakeholders, such as the TUC, the Equality and Human Rights Commission and Age Concern. Lords amendment No. 135 would prohibit such behaviour, while Lords amendment No. 132 allows the pensions ombudsman to investigate complaints relating to a jobholder opting out of a pension scheme. We have also closed two possible loopholes in the proposed criminal offence of wilful failure to comply. Lords amendments Nos. 112 and 113 introduce a criminal offence for individuals who may be responsible for such failure to comply within bodies corporate, unincorporated associations and partnerships. Lords amendments Nos. 105 and 108 make clear that the effect of a notice issued by the regulator—for example, a compliance notice—will be suspended until any review of or appeal against the notice is completed. Lords amendment No. 201 gives the regulator greater flexibility to delegate the functions associated with the compliance regime, so that it can fulfil its new role in the most efficient and cost-effective way. The remaining Lords amendments were introduced for technical reasons, or to clarify drafting. For instance, Lords amendments Nos. 69 to 75 and 80 would ensure that the regulator could exercise his powers in relation to a job holder's previous employers. The Bill sets out an effective regulatory regime to underpin the reforms. The Lords amendments have strengthened and improved that regime, ensuring the best possible level of protection and fair treatment for both workers and employers, and I commend them to the House.