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Pensions Bill

Notwithstanding what the Minister said I should like to speak briefly to Amendment No. 60 in this group in the name of my noble friend Lord Oakeshott and myself and Amendment No. 78 in the name of the noble Baroness, Lady Greengross. As the Minister said, the amendment continues the debate about the quality criteria for workplace pension schemes, both money purchase schemes and personal pension schemes. In particular, it is important that workplace pension schemes should be low-cost, have no transfer penalties and have an appropriate choice of funds, including a good default option. The amendment would ensure that total employee and employer contributions in workplace pension schemes, net of all costs and fees, will be at least equal to the level of default contributions in personal accounts. It is worth noting that the Pensions Commission’s second report recommended that auto-enrolment into an employer DC scheme—I think that the Minister alluded to this—should be permitted if, "““the employer's contribution is at least the same level or greater than the minimum compulsory match in ... Personal Accounts, or if the combined employer and employee contribution exceeds the combined level in the scheme, taking into account the level of charges””." This amendment is supported by, among other groups, Which? and the Equality and Human Rights Commission. I look forward to further comments from the Minister.