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Pensions Bill

The last thing I want to do is offend the Committee in any way. Taking the simple position, we are doing what the wise Delegated Powers and Regulatory Reform Committee recommended, and that seemed to be a good thing. We agree with the summary of my noble friend Lady Hollis that using the affirmative procedure the first time works well. I can confirm that we have consulted the actuarial profession and scheme representatives. We see the whole issue of average salary benefit schemes as an entirely precautionary power. In 2006 some 2 million members in average salary schemes were revalued with the prices index. There are no statistical data for those that revalue in line with earnings, but we believe that is because the numbers are insignificant. Indeed, there are no statistical data on such schemes because we do not believe that there are any being run in that way. We will lay regulations only if it emerges that workers are at risk of seeing their savings being kept at below the reform minima. Therefore we have decided to go for the affirmative option.