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Postal Services Bill [HL]

My Lords, in responding to this amendment, I should like once again to address some of the concerns that have been raised in relation to consultation with members and protection for members’ accrued rights. I recognise that these are very important issues. In terms of protection for members’ accrued rights within the new public service scheme, noble Lords may recall the discussion in Committee of the relevant provisions in Clause 19(6). These provide that the new scheme can be amended only in a way that would or might adversely affect accrued rights if prescribed steps are taken to obtain the consent of members or, alternatively, if the scheme is amended "in the prescribed way". It is correct to say that the detail of Clause 19(6) does differ from some other public service pension schemes. However, I mentioned previously Section 3(1) of the Armed Forces (Pensions and Compensation) Act 2004 which adopted a similar approach to that proposed in this Bill. Given the requirement in Clause 19(6) for member consent in certain circumstances, it seems to me that the benefit of the amendment proposed is quite difficult to discern. Indeed, in effectively over-ruling the ability under Clause 19(6)(b) to make prescribed amendments without consent, subsection (9) of the amendment could adversely affect the ability to make changes in future that other trustees and employers can make in relation to other occupational pension schemes, such as the RMPP. In the past, these changes have included expanding the class of person who may receive death benefits to include same-sex partners and changes to ensure compliance with tax legislation. We cannot rule out the possibility that there could be an unforeseen need for comparable amendments to the new scheme in future. Moreover, there is a general point of principle that underpins the Government’s intended approach. The measures set out in Clause 19(6) are intended to operate in a similar way to the protection that members of the RMPP currently have under Section 67 of the Pensions Act 1995. Consistent with the Government’s overall approach to the establishment of the new scheme, the Government believe that for this Bill it is appropriate for these provisions to reflect as closely as possible the protection for members that currently applies under the RMPP, rather than introduce a slightly different model as would be the case if this amendment were adopted. In relation to the proposed new subsection (8), I recognise the strength of feeling on the issue of consultation and communication with members that was expressed in this House during our earlier debates. I previously set out the importance that the Government attach to consultation in relation to the key order-making powers under Part 2 of the Bill, including orders made establishing a new scheme under Clause 16. This is reflected in the specific requirement to consult the RMPP trustees set out under Clause 24 and, more broadly, in our practical programme of engagement with trustees, with Royal Mail and with representatives of both current employees and RMPP pensioners that is already well-established. That engagement is now focused on planning the programme of work that will be required to implement the measures set out in Part 2 of the Bill and on ensuring that members of the RMPP are kept informed of key developments as appropriate and that any concerns or questions raised can be addressed. Turning to subsection (8) of the proposed amendment, I would point out that the trustee body currently includes five member-nominated representatives, including one pensioner nominated trustee. To introduce a separate requirement for formal consultation with representatives of affected members would, in terms of the provisions set out in the Bill, duplicate the role of the trustees in discussing proposals for establishing the new scheme, while adding little in a practical sense to the process of engagement that is already underway. In relation to consultation on changes to the new public service scheme going forward, I should also explain that once established, unlike many other public service schemes, the new scheme will contain only past accrued rights and that those rights already have a strong degree of legal protection. This means that the scope of any changes will in future be limited, not least because questions regarding future benefit accruals will not arise. Nevertheless, I can confirm that the Government intend to explore appropriate consultative arrangements, analogous to those that already exist in other public service schemes, to provide a forum in which issues in relation to ongoing administration of the new scheme that are raised by members and their representatives can be resolved, and to ensure that communications with members concerning changes are effectively communicated. The scope of these consultative arrangements has yet to be determined but experience with other schemes suggests that they are flexible and effective in addressing a wide range of issues that may be of concern. I do hope that on the basis of these assurances, which are as strong as I can possibly give, and on the evidence of the consultative activity that is already underway, some of that emanating from the points that my noble friend has raised, he will feel able to withdraw the amendment.