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Pensions Bill

I shall do my best. On the first question, that is done on a collective basis for defined benefit schemes, not on an individual basis. For money purchase schemes and defined contributions schemes, it has to be on an individual basis. We need to be clear that we are not asking for existing schemes to replicate the earnings band. What matters is that the amount that goes into the scheme at least equals what would go into the scheme if the 8 per cent of the band on the definition of earnings that is adopted were applied. We are not asking for that to be adopted in every scheme, simply that the contribution that goes into the scheme under the existing scheme’s rules produces at least that outcome. If there is a way of doing that on some other basis that protects each individual, the answer may be yes, but we do not see that there is a way. In relation to manipulation of earnings, I entirely accept that most employers would act honourably in this and seek to do the right thing. Indeed, they would see the benefit of good quality pension provision. However, to rely on the compliance regime to avoid avoidance in this area would be quite difficult because one can envisage circumstances where an employer might quite legitimately restructure the pay structure and have a range of choices. One way of doing it might have the benefit of reduced contributions under these arrangements. There might be a perfectly possible commercial—