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Pensions Bill [HL]

My Lords, I thank my noble friends for this amendment, which would require us to make sure that guidance is issued to employers and jobholders explaining their rights during the waiting period under Clause 6, including their right to opt in. Let me try to describe what our plans are in this area and explain why putting it in the Bill could potentially be counterproductive. We aim to specify in regulations how quickly the employer must give a notice to the individual about the waiting period. We will also set out in regulations what information that notice must contain, and any other accompanying information the employer must provide. In particular, this will include information about the right to opt in during the waiting period. We recognise the need to provide certainty as quickly as possible, as my noble friend Lord German pointed out. We intend to put out the draft regulations after what we call a ““soft consultation”” period in April. We intend in this way to inform employers of the requirements around waiting periods as soon as possible. To use the waiting period provision, employers will have to provide information to individuals about their right to opt in. It is essential that employers understand the operation of the waiting period and their obligation to provide information to affected workers. That will be done through the Pensions Regulator, who is developing clear guidance for employers explaining their duties under the reforms and including information about the waiting period. The Pensions Regulator plans to publish the guidance in the current year. We agree that jobholders need to understand their right to opt in above the LEL, as the noble Baroness, Lady Hollis, pointed out. That is enshrined in Section 7 of the 2008 Act. The regulations under this Bill set out that employers should provide jobholders with information about this as well. The noble Baroness, Lady Drake—with her concern, I guess, about the war being lost for want of a nail—asked whether sufficient funds would be made available. I am confident that adequate funds will be available for this very important exercise. We therefore feel that there is no need to legislate in the Bill for provision of guidance and information on waiting periods, so I urge the noble Lord, Lord German, to withdraw his amendment.