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Pensions Bill

I can imagine that there might be a number of ways. For example, the employer might have trade union representation, which might indicate trends in how the firm recruits. There may be other ways that I cannot think of off the cuff, but in a sense it does not matter; the prohibition is there, and if people breach it there is a right to remedies. The noble Lord previously asked how we could ensure that the introduction of the prohibition will not stifle genuine negotiations about pension arrangements above the qualifying minimum, or that it will not prevent positive communication about pension saving from the employers during the recruitment process. Under ordinary employment law, employers and employees are currently free to negotiate and agree remuneration packages and to offer choices between different benefits, rates of pay and pension scheme membership. We do not want to interfere with any right the employer and worker may have to negotiate the type of qualifying pension arrangement that will be offered. The right to negotiate the type of qualifying pension arrangement also includes the right to change from one qualifying pension arrangement to another, with or without an inducement, even where the new pension arrangement is less advantageous to the member than the old one, provided it is still a qualifying one. Clearly, we do not want to prevent employers communicating the positive benefits of the qualifying scheme that they provide to their workers, and nothing in this measure would stop that.