Pension Schemes Bill — Clause 123 — Funding of Defined Benefit Schemes — 16 Nov 2020 at 21:03

The majority of MPs voted not to place a set of requirements on ministers making regulations and taking certain other actions in relation to pensions, including instructing them to ensure the closure of certain schemes is not accelerated and to maintain affordability for both employees and employers.

MPs were considering the Pension Schemes Bill^[1].

The amendment rejected in this vote was:

• Amendment 1, page 117, line 34, at end insert—
• ‘(2) In exercising any powers to make regulations, or otherwise to prescribe any matter or principle, under Part 3 of the Pensions Act 2004 (scheme funding) as amended by Schedule 10, the Secretary of State must ensure that—
• (a) schemes that are expected to remain open to new members, either indefinitely or for a significant period of time, are treated differently from schemes that are not;
• (b) scheme liquidity is balanced with scheme maturity;
• (c) there is a correlation between appropriate investment risk and scheme maturity;
• (d) affordability of contributions to employers is maintained;
• (e) affordability of contributions to members is maintained;
• (f) the closure of schemes that are expected to remain open to new members, either indefinitely or for a significant period of time, is not accelerated; and
• (g) trustees retain sufficient discretion to be able to comply with their duty to act in the best interests of their beneficiaries.”

The rejected amendment was accompanied by the following explanatory statement from its proposer:

• This amendment seeks to ensure that open and active schemes which are receiving regular, significant cash contributions and closed schemes are treated differently, in accordance with their differing liquidity profile.

The motion rejected in this vote was:

• That the amendment be made.

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• [1] Parliament's webpage on the Pension Schemes Bill, Parliament.uk

Debate in Parliament |