Pensions Bill — Clause 24 — Prevent Amendment of Pension Schemes for Former Nationalised Industries Following State Pension Changes — 29 Oct 2013 at 18:00

The majority of MPs voted not to prevent a number of pension schemes relating to previously nationalised industries being amended following the introduction of the single state pension and consequent abolition of the option to opt out of the additional (second) state pension.

MPs were considering the Pensions Bill^[1]. The amendment rejected in this vote was:

• Amendment 37, page 11, line 40, at end insert—
• ‘(c) a scheme in respect of any of its terms which relate to persons protected under the terms of—
• (i) the Electricity (Protected Persons) (England and Wales) Pension Regulations 1990;
• (ii) the Electricity (Protected Persons) (Scotland) Pension Regulations 1990;
• (iii) the Electricity (Protected Persons) (Northern Ireland) Pension Regulations 1992;
• (iv) the Railway Pensions (Protection and Designation of Schemes) Order 1984;
• (v) the London Transport Pensions Arrangements Order 2000;
• (vi) the Coal Industry (Protected Persons) Pensions Regulations 1994; or
• (vii) the nuclear industry employees protected by Schedule 8 of the Energy Act 2004.

This would have taken effect on Clause 24^[2] of the Bill, which provided for the abolition of the provision which allowed employers to contract their employees out of the additional pension on the condition that they would provide an occupational pension meeting certain statutory requirements

Clause 24 contained a provision to allow an employer to amend an occupational pension scheme in relation to some or all of its members to take account of increases in the employer’s national insurance contributions as a conseuence of the abolition of the option to contract out of the additional state pension.

Clause 24 contained an exemption preventing the amendment of a public service pension scheme or other schemes specified in regulations. The amendment rejected in this vote sought to add additional pension schemes (those related to former nationalised industries) to those which may not be amended.

• [1] Parliament's webpage on the Pensions Bill (now an Act)
• [2] Clause 24 of the Bill as at the time of the vote

Debate in Parliament | Source |