Clause 10 - Deferred choice to receive new scheme benefits

Public Service Pensions and Judicial Offices Bill [Lords] – in a Public Bill Committee am 12:00 pm ar 27 Ionawr 2022.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Question proposed, That the clause stand part of the Bill.

Photo of Virendra Sharma Virendra Sharma Llafur, Ealing, Southall

With this it will be convenient to discuss clauses 11 to 13 stand part.

Photo of Simon Clarke Simon Clarke The Chief Secretary to the Treasury

Clause 10 delivers the Government’s commitment to provide a deferred choice to receive legacy or new scheme benefits in relation to active and deferred members’ remediable service. Having had their remediable service returned to the legacy schemes by virtue of clause 2, once that provision comes into force, clause 10 requires scheme regulations to provide that an election to receive new scheme benefits may subsequently be made in relation to the remediable service of active and deferred members.

Clause 11 provides that scheme regulations must specify a deadline by which an election must be made. That deadline must be no earlier than one year before the day on which the member is reasonably expected to become entitled to a pension in accordance with an election. That is why this is referred to as a deferred choice.

Clause 12 replicates the power in clause 8, but is for active and deferred members, rather than pensioner or deceased members. The power is for scheme regulations to make provision about situations where a member or their beneficiary fails to communicate to the scheme whether they wish to receive legacy or new scheme benefits in relation to the remediable service.

Clause 13 provides that where a person has remediable service in an employment or office that is pensionable under more than one legacy scheme, an election under clause 10 applies in all of those schemes.

Question put and agreed to.

Clause 10 accordingly ordered to stand part of the Bill.

Clauses 11 to 13 ordered to stand part of the Bill.