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Postal Services Bill [HL]

Amendment 40 is grouped with a number of other amendments. I shall speak also to Amendments 63, 64, 65, 66, 67 and 68. It might take a while. Amendment 40 seeks to amend Clause 15. It proposes the insertion, after the word "service" in line 11 on page 8, of a new subsection (4), which would read: ""The amount of any benefit payable to a qualifying member of the RMPP shall be his relevant pensions provision defined in section 19(3)"." Clause 19(3) states: ""‘The relevant pensions provision’ means the provision for the payment of pensions or other benefits which is contained in the RMPP or in a new public scheme"." When I read this part of the Bill for the first time, it looked like a mechanism for splitting a member’s rights; that is, splitting past service rights from the salary link and converting them to contingent benefits, such as ill-health, retirement from service and a change from active to deferred status, prior to disposing of the salary link and contingent benefits altogether. Further reading of the clause suggests that this is not the case, and that it could be a mechanism for deciding what assets and liabilities the Secretary of State will take. It could also suggest that the benefits for future service, and the "add-on" salary link and contingent benefit rights, will be carried by the Royal Mail pension plan. The amendment that would create new subsection (4) makes the point that no benefits will be lost. I hope that the Secretary of State will clarify this. I turn to some other amendments in the group. Amendment 63 is the first of my amendments to Clause 19. It proposes an additional subsection (1A), to be inserted at line 44 on page 9, which would read: ""(1A) In exercising the power, the Secretary of State must ensure that—"""(a) in the case of the power to make an order under section 16, the relevant pensions provision in respect of each qualifying member of the RMPP is the same after the exercise of the power as it is immediately before the exercise of that power, and"""(b) in the case of the power to make an order under section 17 or 18, the subsisting rights provisions contained in sections 67 to 67I—" I have got that wrong— ""of the Pensions Act 1995 … are complied with"."""(1B) For the purpose of subsection (1A)—"""(a) the RMPP shall be deemed not to be a public service pension scheme,"""(b) references to subsisting rights shall be taken to be references to the relevant pensions provision,"""(c) references to the trustees shall be taken to include a reference to the Secretary of State"." It is all very straightforward. Amendments 64 and 65 seek to separate Section 16, 17 and 18 orders. Amendment 64 refers to line 1 on page 10 and proposes that subsection (2) be omitted. Amendment 65 refers to line 5 on the same page and proposes that subsection (3) be replaced by: ""( ) The relevant pensions provision means the provision for the payment of pensions or other benefits immediately before the exercise of the power—"""(a) as of right,"""(b) in the event of death,"""(c) in the event of early retirement on the grounds of ill-health or otherwise,"""(d) on the happening of a contingency, or"""(e) on the exercise of a discretion by the trustee of the RMPP, where the payment is made by the trustee of the RMPP or under a new public scheme or both."""( ) If the amount of a pension or other benefit is calculated by reference to a person’s remuneration at the date of leaving the RMPP (by reason of death, retirement or otherwise), his remuneration for the purpose of establishing relevant pensions provision shall be taken to be his remuneration at the date of leaving the RMPP (by reason of death, retirement or otherwise), and not his remuneration at the date of the exercise of the power to make an order"." The heading of Clause 19 is "Protection against adverse treatment". As drafted, it covers benefits paid by the Royal Mail pension plan and the new public scheme. The fact that all benefits are currently paid through the Royal Mail pension plan means at the outset that Royal Mail pension plan benefits are protected. The amendment seeks to spell that out by ensuring protection for contingent benefits—for example, benefits payable in the event of death in service, ill health or early retirement; or discretionary benefits—for example, the trustees’ right to grant a discretionary benefit that cannot be removed and which refers to the salary link. Amendment 66, in the names of the noble Lords, Lord Skelmersdale and Lord De Mauley, and in my name, would delete subsection (4), on line 8 of page 10. The clause permits the Secretary of State to opt out of any form of protection if it would contravene European law. Can he inform the House which European legislation he is referring to? This needs to be clarified. Is he referring to legislation dealing with discrimination? If he is, is he not satisfied that the Royal Mail pension plan is not already compliant? If the trustee of the RMPP is operating lawfully, then that should be sufficient. I do not believe that the Secretary of State needs to have an opt-out that allows him to second-guess the trustee. Amendment 67 would delete paragraphs (a) to (c) of subsection (5), which deals with the powers of the Secretary of State. The amendment is quite simple; it links paragraph (d) with the opening words of the subsection, which would read: ""Nothing in those subsections is to be read as affecting any power of any person to amend the RMPP or a new public scheme"." This is a consequential amendment. Amendment 68 would delete, at line 20 of page 10, subsections (6) and (7). Subsection (6) states: ""The power of the Secretary of State to amend a new public scheme may not be exercised in any manner which would or might adversely affect any provision of the scheme made in respect of qualifying accrued rights unless—""(a) the consent requirements are satisfied in respect of the exercise of the power in that manner, or""(b) the scheme is amended in the prescribed manner"." Subsection (7) states: ""The consent requirements are those prescribed for the purpose of obtaining the consent of members of the scheme to its amendment"." This is also a consequential amendment. I beg to move.