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Postal Services Bill [HL]

My Lords, in responding to the points raised in my noble friend’s speech, I will begin by addressing some key definitions. My noble friend and I are not far apart in what he seeks to achieve through the amendment, but the Government believe that it is unnecessary. In the relevant legislation, "public service pension schemes" fall within the broader category of "occupational pension schemes". As a group, they benefit from certain exemptions from requirements in pensions legislation—my noble friend referred to this—that apply to occupational pension schemes in general, where those requirements relate to trust-based schemes operating on a funded basis. The relevant schemes are not, in general, designated as public service pension schemes in the legislation under which they are established. Rather, they qualify as public service pension schemes by virtue of the fact that they meet the requirements set out in the Pension Schemes Act 1993. The new scheme that the Government propose to establish under Clause 16 will share many of the features common to other public service pension schemes—indeed it, too, will satisfy the key requirements of the definition of public service schemes as set out in the 1993 Act. That is the sense in which I previously described it as a "public service pension scheme". Having established these key definitional points, I will explain why the Government consider that the amendment would not in practice deliver any beneficial effect over and above the Government’s existing proposals. Clause 16(4) has the effect that the scheme will be capable of being treated as an occupational pension scheme for the purposes of the relevant legislation. These purposes will be set out in secondary legislation, following consultation with the RMPP trustees. As I have just mentioned, it is this treatment as an occupational pension scheme that is the key in terms of the application to the scheme of wider requirements set out in pensions legislation. Designation as a public service pension scheme, as in the amendment, does not have the same effect. In the application of the exemptions I have described earlier, the effect of Clause 16(4) is that, once the new scheme is treated as an occupational pension scheme, it will benefit from the relevant exemptions that apply to similar public service pension schemes. The route to what my noble friend wishes to achieve is therefore through the operation of Clause 16(4). The amendment does not add substantively to the existing provisions in the Bill. I should add that, in accordance with the requirements set out under Clause 24, the Government will consult with the trustees of the RMPP on the details of the order made establishing the new public service scheme, which is expected to specify which of the requirements that would normally apply to an occupational pension scheme should apply to the new scheme. The mechanism proposed by the Government explicitly allows for this consultation with the trustees, rather than imposing the specific requirements in the primary legislation. I hope that there is a broad degree of consensus among Members of this House on the outcomes we seek. I hope that my noble friend is satisfied that I have been able to demonstrate why the Government’s approach already achieves that goal, perhaps in a way that is better suited to the circumstances of the scheme, and accordingly that he will feel able to withdraw the amendment. It may help if I say to my noble friend in relation to the general requirements under pensions legislation that apply to the new scheme as an occupational scheme, which of those we believe should apply. Obviously, this would have to flow from discussions with the trustees, but it is likely, for example, that it will include the provisions that apply to other public service pension schemes relating to matters such as disclosure of information to scheme members, dispute resolution and assignment of pensions. I hope that has given my noble friend a flavour of what is intended.