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Postal Services Bill [HL]

My Lords, I can give my noble friend the assurance that he seeks and we do not need to change the wording of the Bill. This group of amendments is focused on the protections that members of the RMPP are afforded in Part 2 of the Bill. Amendment 47, proposed by my noble friend, covers the topic of member protection and how it applies to any changes made by the Secretary of State to the ongoing RMPP under Clause 18. The creation of the new public service scheme and the creation of a new section in the RMPP will both require consequential amendments to the RMPP. The power to make these changes is set out in Clause 18. This power is necessary to ensure that the overarching requirement of protecting scheme members against adverse treatment can be fully met. However, the power to make amendments to the RMPP is subject to a number of important restrictions. First, the Secretary of State can make an order under Clause 18 to make appropriate amendments to the RMPP only if it is in connection with an order to create a new public service scheme, to transfer rights to the new scheme under Clause 16, or to divide the RMPP into sections under Clause 17. In addition, any such order under Clause 18 to amend the RMPP is also subject to the member-protection test set out in Clause 19(2). This requires that when exercising the power in Clause 18, the Secretary of State must ensure that the "relevant pensions provision" in respect of each person is in all material respects at least as good immediately after the exercise of the power as it was immediately before. The word "material" is used because the RMPP is set up under trust while the new scheme will be a statutory arrangement and we expect that this may require some differences in the way in which benefits are determined or provided. However, the intention is that the value of members’ benefits will be no different. The definition of "relevant pensions provision" is set out in subsection (3). The definition is deliberately wide to capture the payment of both pensions and other benefits to which members are entitled. This would include a member’s right to continue to accrue future benefits on the current basis and any contingent rights, including any rights to receive benefits in the event of redundancy or ill-health. I agree with my noble friend on the importance of having those facilities. The Secretary of State cannot use the power in Clause 18 to change the way in which future benefits accrue in the RMPP or to remove a member’s right to receive particular benefits in the event of ill-health. Amendment 49 also deals with the definition in subsection (3) of the "relevant pensions provision". Again, I can assure my noble friend that the contingent rights in his proposed amendment are already covered in the existing wording set out in the Bill. In summary, therefore, I would like to provide assurance that any amendment made by the Secretary of State to the RMPP is subject to robust restrictions designed to protect members. Any amendments need to be appropriate in connection with an order made under Clauses 16 or 17 and also need to comply with the significant member protection set out in the Bill. Therefore, I ask my noble friend to withdraw his amendment.