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Pensions Bill

moved AmendmentNo. 62: 62: Clause 16, page 20, leave out lines 26 to 33 and insert— ““““(3) The procedure— (a) must include provision requiring an application to which subsection (3A) applies to be made by the end of such reasonable period as is specified; (b) may include provision about the time limits for making such other applications for the resolution of pension disputes as are specified. (3A) This subsection applies to— (a) any application by a person with an interest in a scheme as mentioned in section 50A(1)(e), and (b) any application by a person with an interest in a scheme as mentioned in section 50A(1)(f) who is claiming to be such a person as is mentioned in section 50A(1)(e).”””” The noble Lord said: Although this is a minorand technical amendment to the clause on dispute resolution arrangements, it is a necessary change because, without it, the time limits for makingan application will not work as intended. The requirement for occupational pension schemes to have dispute resolution arrangements has been with us since 1997. From the start, there has always been a cut-off date for applications from people who no longer have an interest in the scheme. This is simply to protect schemes from complaints many years after the event, when there may be little prospect of a satisfactory investigation or resolution. Up to now, these time limits have always been prescribed in regulations but, in keeping with the wider policy on time limits, we want to replace the fixed six-month period currently in place with reference to a reasonable period. What constitutes a reasonable period is open to interpretation. The Pensions Regulator is required under Section 90(2)(a) of the Pensions Act 2004 to provide guidance in the formof a code of practice. In the dispute resolution arrangements, the requirement for an application to be made within a reasonable time is intended to apply in two situations: first, for applications where the person has ceased to be a person with an interest in the scheme; and, secondly, where a person is claiming to be a person with an interest in the scheme, but that interest is in the past. Unfortunately, the clause as drafted goes beyond what was intended in the second situation. In the case of an application from someone claiming to have an interest in the scheme, new subsection (3)(b) to Section 50B, as inserted byClause 16 as it stands, requires the arrangements to apply a time limit for every case, including those where the application is from a person claimingto have a current interest in the scheme. This amendment ensures that the requirement for a time limit for applications applies in those cases only where the claimed interest is in the past. Under the clause as it stands, it is difficult to establish when a reasonable period would start where the application is, for example, from someone claiming to be a current member. The amendment is necessary to ensure that the time limits work as intended. I am sorry if this sounds a little convoluted: in this case, the effect of the amendment is far simpler than the explanation. I beg to move.