---

Postal Services Bill [HL]

Amendments 56 and 57 are linked and they relate to the next group. Clause 17(3) would allow the Secretary of State to veto any discretionary decision made by a trustee of the Royal Mail pension plan. Discretionary decisions are decisions to amend the rules or increase benefits. They would include not only a power to grant an additional pension for reasons which might be viewed as suspect—for example, paying off a chief executive—but also decisions to grant an ill health pension on genuine medical grounds or to allow an immediate pension on the standard, more favourable terms already permitted by the Royal Mail pension plan that apply in the event of redundancy. It would include decisions made by a trustee, an employer or even a doctor. With the amendments, I accept that the Secretary of State’s consent should be obtained if the cost imposed on him to fund qualifying accrued liabilities is directly increased. Any other discretion should remain with the trustee and/or employers participating in the scheme in the same way as currently exists under the rules. If the Secretary of State is not paying for the exercise of the discretion, why should he have a veto power? I beg to move.