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Pensions Bill

The Bill will allow the authority’s remit to be extended to enable it to undertake the detailed implementation work necessary to establish the personal accounts scheme, in particular to take forward work on the specification, design, procurement and build of the personal accounts infrastructure. In carrying out this work, the authority will have operational independence and autonomy. It may enter agreements and, with the Secretary of State’s consent, be permitted to borrow money to cover the costs that it will incur in carrying out its functions. In light of this, the measures in this clause are designed to promote good governance, reflecting practice in corporate governance and providing reassurance to Parliament that the authority is managing its affairs appropriately. Clause 74 supplements Part 2—““Proceedings etc.””—of Schedule 6 to the Pensions Act 2007 and requires the authority to establish a non-executive committee. It also allows the committee to regulate its own procedures and sets out its functions. The committee will consist solely of the non-executive members of the authority, including the chairman. It will be responsible for reviewing the internal financial controls and for appointing and deciding on the remuneration of executive members. If the committee wishes, it may establish sub-committees—for example, to provide advice or assistance on matters relating to its functions. Any such sub-committee could include persons who are not employees of the authority. This will enable the non-executives to secure any additional expertise or specialist skills that they might require. To provide transparency, the committee will be required to prepare a report on the discharge of its functions. That will be included in the authority’s annual report.