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Pensions Bill

I shall not repeat the opening remark of my speaking notes, which says that automatic enrolment is at the heart of this package of reform. I can deal very swiftly with the point that has been raised about what ““pensionable age”” means. The definition is given in Clause 86: "““‘pensionable age’ has the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995””." I know that that is familiar to the noble Lord. It links the state pension age and makes the proposed amendment unnecessary. It also picks up on the point made by my noble friend, because the definition includes the equalisation of women’s state pension age when it increases from 60 to 65 between 2010 and 2020. It covers the subsequent increases introduced by the Pensions Act 2007—for both men and women—from 65 to 68 between 2024 and 2046. It locks into that definition. A number of other points were raised about pensionable age. The noble Lord asked whether a scheme could allow a person to draw a pension if they were below state pension age. Yes, it could, but that scheme must allow auto-enrolment to the age of 65. It would not prevent someone drawing a pension and retiring when they were below state pension age as long as it had the facility for someone to be auto-enrolled, should they so wish, up to the age of 65. The noble Lord also asked whether, when someone is already drawing a pension from a scheme, there would be a requirement to auto-enrol. To avoid the auto-enrolment requirement, a person would have to be an active member of a qualifying scheme. If they were not, the auto-enrolment procedures would apply. It might be that the decision would be to opt out, but it applies only if someone is not an active member of a qualifying scheme. I hope that that deals with the point. The fundamental point about the definition of pensionable age is that it locks into the state pension age as it is today and as it will progress under the reforms that are already provided for in legislation.