Other people who work for private firms get a payout according to how the pension protection fund works.
The hon. Member for Edinburgh East, who is not in her place, talked about annuities. She seemed to think that requiring people to go to an annuity broker was the answer to the problems and I think she missed the point. We want to see a much wider range of options for people when they want to turn their pension pot into a pension income. Rather than putting into primary legislation a single model for a single product, we must ensure that people have choices so that they can choose an annuity, consider draw-down products or consider deferring and so that they can try to ensure that they get the best value for money. I certainly accept that the annuity market is not working as well as it should.
This debate has gone on for the best part of four hours and the recurrent theme has been that when the coalition Government took power in 2010, there was a huge amount of unfinished business on automatic enrolment. What happened with small pots, charge caps, decumulation and governance had not been dealt with. The Opposition have spent the past however many
hours asking how we could possibly not have acted on all the issues they failed to address in 13 years, but we are addressing them. We have taken effective action and tomorrow we will take a further step when, for the first time, we consider capping the charges on automatic enrolment pension schemes. This Parliament will be seen to implement vital pension reform in the state and private sectors and to be doing the job properly and I commend our amendments to the House.
Question put and agreed to.
Clause read a Second time.
Amendment proposed to new clause 1: (a), at end add—
‘(2) In this section—
(a) “charges”; and
(b) “transaction costs”
shall be defined in regulations by the Secretary of State.
(3) Before making regulations under subsection (2), the Secretary of State must undertake a public consultation, which must include the views of—
(a) the Financial Conduct Authority; and
(b) the Pensions Regulator.
(4) With reference to paragraph (2)(a), any public consultation must consider the different elements which comprise charges and not just the annual management charge.
(5) Such charges, together with any transaction costs incurred by the funds in which qualifying schemes are invested, shall be declared on an annual basis to the Pensions Regulator, which shall maintain a public register thereof.
(6) The Secretary of State shall by regulations set the standards by which pension schemes must declare charges and transaction costs for the purposes of the register and for declaration to their members and their members’ employers.
(7) The standards set out in regulations under subsection (6) shall be reviewed every three years.
(8) The Secretary of State shall have power to make regulations ordering other disclosure arrangements on administration charges.
(9) Regulations under this section may not be made unless a draft has been laid before and approved by resolution of both Houses of Parliament.’.—(Gregg McClymont.)
Question put, That the amendment be made.
The House proceeded to a Division.