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Pensions Bill

Let me see whether I can deal with the residual matters that I did not cover when I moved the amendment. The noble Baroness, Lady Noakes, raised some issues about circumstances in which a longer opt-out period might be appropriate. An interesting issue is the extent to which jobholders seeing a wages or salary slip with the deduction is an important component of this. I do not say that it is not, but let me reiterate that the Bill does not place a limit on the opt-out period in any way, nor does it stipulate that it must be the same for all jobholders. The point that the noble Baroness has raised ought to be taken into consideration in our deliberations on that. I hope that that deals with that point. The noble Lord, Lord Skelmersdale, asked about refunds and who would get their money back. I thought that it was clear that the employer’s contribution would go back to the employer and the employee’s contribution would go back to the employee, subject to whether the employee has had a tax deduction in the first instance, in which case we go back to how that relief is to be generated. It would likely follow—again, this is still the subject of detailed consideration—that the contribution coming back would have to be taxed. If you deduct it from what is taxed in the first instance and it comes back, that would somehow need to be put into reverse. However, the principle is clear. The employer’s contribution comes back to the employer and the employee’s contribution comes back to the employee. The noble Lord asked whether the funding would go into some sort of escrow. Again, that depends a little on the timing and mechanics of the opt-out. This is still under consideration. Whether we opt out at a point in time when the payment has been made into the scheme or while it is still in transit into the scheme is a detail that we need to work through as we develop this policy, but I would hang on to the point that the employer’s contribution goes back to the employer and the employee’s to the employee. I hope that that has addressed the issue.