---

Pensions Bill

moved Amendment No. 92: 92: Clause 34, page 16, line 12, leave out paragraph (c) The noble Lord said: This is a probing amendment to seek a clearer understanding of how the repayment of contributions will operate. As I understand it, it is possible for a repayment to go in one of at least three ways. The first and simplest is that within the prescribed period—presumably a grace period for employers who generally misunderstood their duties—both the employer and the jobholder pay in the contributions that they have missed. Another possibility is that the jobholder might decide that he will opt out of repaying missed contributions, although the employer is still liable for his portion. The complication comes in when the employer does not repay the contributions within the prescribed period. As I understand from subsection (2)(c), he then becomes liable for the entire shortfall, both the employer’s contribution and the jobholder’s. Is it the case, then, that if the jobholder were not to pay back his missed contributions, the employer’s liability is that much higher? It would be helpful if the Minister could explain. I beg to move.