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Postal Services Bill [HL]

I am grateful for the dinner break, which gave me a chance to sort out some of these papers. Amendment 50 proposes a guarantee, which would mean an obligation made by the state to underwrite the new public scheme if it is wound up. In the case of an ordinary private sector scheme that is wound up, members have a right to their pension benefits, which would be enforceable against the trustees and not the employer. The trustees have a right to make the employer pay whatever is needed to fund those benefits. This situation is similar. Under Clause 16(2), members’ accrued rights are transferred to a "new public scheme", which will be run by the Secretary of State or his delegates. It transfers the right to a pension to the scheme and not to the Government. Members’ rights are enforceable against the scheme and not the Secretary of State. The new public scheme might be funded or unfunded. Either way, nothing in the Bill says that it could not be wound up. This clause makes explicit what seems to be assumed. If the scheme is wound up, it will not be wound up in deficit. If a segment of the Royal Mail went bust or insolvent, what would be the position of other segments? Would they stand alone or would they be dependent on each other? What happens to the pensions of people in that segment? Is Amendment 55 mine as well? I think it is. Oh, no, it is not. I beg to move.