What about “members”? Aren’t pensions for pensioners? Yet for our defined benefit schemes, the Chapter is titled “Powers to Pay Surplus to Employers” in which the only reference to scheme members is that “members of the scheme need to be notified in relation to a payment before it is made.
MPs and Lords are being “quick marched” to pass a partial skeleton bill with changes across 12 policy areas.
Leaders of the Pre-97 Pension Justice Alliance met with the Minister and have
provided a significant body of evidence that disputes one of the central premises of the bill’s “Trustees will be in the driving seat in all decision making on surplus release and have a duty to act at all times in the interest of the scheme beneficiaries.”
Our evidence, spanning more than 20 years, across 13 well-known big businesses,
was dismissed by the Minister. Our evidence shows that the minister is “simply
incorrect” in the words of an ex-trustee of a £3.5 billion scheme.
In short, employers decide, and trustees administer. Employer representation
dominates and has control over the whole scheme management process including negotiating points and often includes the selection of member-nominated trustees.
Pensioners have little or no voice.
Despite the evidence we presented, the Minister maintains his plan will work but
provides no detail on how. That detail will not be available until after the bill is voted upon.
Given the sizeable Labour majority, it is likely that the bill will pass without the
information that shows how it will work for pensioners. Anyone can clearly see how it will benefit employers and the Treasury.
Members of the Commons and the House of Lords are being hard pressed to pass
incomplete legislation allowing surpluses to be paid to employers. Without the detail, this appears to be tantamount to opening the door to Maxwell mark 2.