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Pensions Bill

It is a good question which I hope to be able to answer. The overriding function of the trustee corporation will be to run the personal accounts scheme in the best interests of the scheme members. The power to establish the scheme is in Clause 58, which sets out that it will be established by order. The order will be the equivalent of a normal occupational pension scheme’s trust deed and will set out most of the trustee’s functions or give a power for the functions to be set out in the scheme rules. The scheme order will be in secondary legislation and subject to both public consultation and parliamentary scrutiny However, although the order will contain most of the trustee corporation’s functions, it cannot contain them all. For instance, the corporation will, in line with other occupational pension schemes, have to abide by existing pensions and tax legislation—for example, in relation to tax registration and accounting, paying scheme benefits and, importantly, to oversight by the Pensions Regulator. Furthermore, the trustee corporation is being set up as an NDPB, so, beside the general functions given to it in Schedule 1, it also has duties in relation to a public body that are contained in other legislation. I asked what those other functions might be. Other functions not listed in the order could relate to its being an NDPB, so it will have to fulfil duties of all public bodies; for example, complying with the Freedom of Information Act and fulfilling gender equality issues. Carrying out those duties will not be at odds with its duty to run the scheme; they are simply the duties that all NDPBs have to carry out in addition to their main duties and functions. The amendment would remove Clause 66(1)(b). However, I understand that it is a probing amendment, so I shall not comment further on it. I do not believe that the noble Baroness meant to impose those restrictions. If the amendment were to be pressed, it would also cast doubt on the extent to which the trustee’s functions could arise other than from the Bill. As I have explained, it is important that its functions can include those arising from other pensions and tax legislation, although in all cases they will, and must, remain only such functions as relate to the scheme. I hope that that has put the matter in context.