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Pensions Bill

moved Amendment No. 113QA: 113QA: After Clause 74, insert the following new Clause— ““Executive members (1) Schedule 6 to the Pensions Act 2007 (c. 22) is amended as follows. (2) For the italic cross-heading immediately before paragraph 6, substitute ““Executive members and employees””. (3) For paragraph 6(6) (chief executive and other executive members to be employees) substitute— ““(6) The chief executive is to be an employee of the Authority. (6A) The Authority may appoint any other executive members as employees.”” (4) In paragraph 7 (terms and conditions of executive members)— (a) in sub-paragraphs (1) and (2), before ““employed by the Authority”” insert ““, if appointed as employees under paragraph 6(6A), are to be””; (b) in sub-paragraph (3)(a), omit ““employees who are””.”” The noble Lord said: I shall speak also to government Amendment No. 139C. These amendments seek to give the authority greater flexibility in the appointment of its executive members. The authority will be establishing an occupational pension scheme, which could be one of the largest pension savings schemes in the world. This is a task of considerable complexity. The authority needs to be in a position to recruit the best people—strong leaders with expertise and specialist skills in a variety of areas. Recruitment is a matter for the authority and we are seeking this adjustment at the request of the chief executive, who has indicated that it would be beneficial for the authority to have greater flexibility to attract and engage the right candidates for executive posts. We have previously made it clear, in the Government’s response to the consultation on the personal accounts White Paper, that, "““it will be for the chair and the chief executive to make sure that they engage the right people at the right time””." In reviewing its plans, the authority has also had an opportunity to focus on future resource requirements, including the specialist skills and experience needed to deliver the scheme over a very short timescale. Amendments Nos. 113QA and 139C, which makes a small consequential change to Schedule 9, will remove the requirements for executive members to be employees of the authority. This is to enable the authority to broaden the field of potential candidates to include high-calibre individuals who could be deterred by the requirement to give up a long-term employment for a relatively short-term appointment. This could encourage, for example, individuals to apply for appointment on loan or secondment from other organisations. In closing, let me be clear. The amendments do not alter the requirement that any recruitment process must be open and fair. In managing its affairs, the authority will continue to observe best practice guidance set out in Making and Managing Public Appointments and the Office of the Commissioner for Public Appointments code of practice. I beg to move.