---

Pensions Bill

If the EOC were to change its position, I am sure that the Government would reflect on that and on the reasons why. These are serious issues and we should have continuing focus on them. I know that the noble Baroness, Lady Howe, has a long association with the EOC, which accepted the case for different annuity rates for men and women being allowed to continue, partly for the reason that my noble friend has outlined. Under Article 5 of the directive, special provision is made to allow member states, when implementing the directive, to maintain the use of sex as a determining factor in the assessment of risk based on relevantand accurate actuarial and statistical data. At present, the Government intend to apply those provisionsto maintain the current position in the UK. A consultation document on the proposed implementation, which has to be completed by 21 December 2007, is being prepared. In conclusion, while we are sympathetic to the desire to improve the retirement income of women, we do not think that reducing men's retirement income by introducing a distortion in the insurance market which undercuts the principle of pricing for risk is the way to do it. Instead we have set out a number of proposals which will improve retirement outcomes for women. We believe that that is the better approach currently. I hope that the noble Baroness, although disappointed, will feel able to withdraw her amendment.