Draft Occupational and Personal Pension Schemes (Amendment Etc.) (EU Exit) Regulations 2018
Draft Occupational and Personal Pension Schemes (Amendment etc.) (Northern Ireland) (EU Exit) Regulations 2018
(Limited Text - Ministerial Extracts only)
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The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
I beg to move,
That the Committee has considered the draft Occupational and Personal Pension Schemes (Amendment etc.) (EU Exit) Regulations 2018.
The Chair
With this it will be convenient to consider the draft Occupational and Personal Pension Schemes (Amendment etc.) (Northern Ireland) (EU Exit) Regulations 2018.
Guy Opperman
It is a pleasure to serve under your chairmanship, Mr Robertson. These regulations make changes to domestic legislation that would otherwise no longer operate effectively once the UK withdraws from the European Union. Given that Parliament has voted against the withdrawal agreement, these regulations will help to ensure that we have a functioning statute book in the event that the UK exits the European Union without a deal. It is important to prepare for every eventuality, but I want to stress to the Committee that if we were to get a deal, these regulations would be scrapped, providing that all matters were agreed.
The UK is not reliant on any European institutions or agencies for essential functions in respect to private pensions, such as approvals, licences, decisions or rates. The Pensions Regulator’s powers are derived from UK law. This means that the UK does not need to create any legislation to replicate domestically any EU-level activities relating to occupational and personal pensions after the UK’s exit from the European Union. However, we must ensure that domestic legislation relating to occupational and personal pensions does not rely on any definitions, obligations or reciprocal arrangements that will no longer apply once the UK is no longer an EU or EEA member state.
UK domestic legislation contains various instances of reference to EU law and to the UK as a member state of the EU, which would no longer be the case once the UK exits the European Union. This includes where distinctions have been made between EU or EEA member states and overseas entities that will no longer apply, where the UK is referred to as an EU or EEA member state, or where the UK is obliged to share data with EU agencies or member states under reciprocal agreements that will no longer apply.
Northern Ireland’s occupational and personal pensions legislation broadly mirrors legislation in Great Britain. We are therefore making regulations that make analogous amendments to the corresponding Northern Ireland legislation. The Department of Communities in Northern Ireland has helped to develop and agree the text of the regulations, which I commend to the Committee.
Guy Opperman
I will answer hon. Gentleman’s question about the Work and Pensions Committee first: by all means, I will do so. I will undertake to write to explain not only the content of these particular regulations, but any other matters that arise. My understanding is that we are not taking forward any other specific pension-related EU Brexit no-deal situations, but I will get that confirmed in writing and send it to the Chair and the members of the Committee.
In relation to the point by the hon. Member for Birmingham, Erdington, the regulations ensure that pension schemes can continue to invest in regulated markets not only in the United Kingdom, but in the European economic area and overseas, on an ongoing basis. These regulations apply where an employer is using an EU base for its pension scheme, or has done so already. It is about the location of the scheme. We genuinely believe that fewer than 1,000 people will be affected by such a situation because, as he will be aware, the vast majority of schemes have a UK base. He raised specific points on passporting. I am sure my Treasury colleagues, who are taking responsibility for that, will be delighted to write to him and give a due assessment of the wider investment issues relating to passporting but, in the circumstances, I commend the regulations to the Committee.
Question put and agreed to.
Draft Occupational and Personal Pension Schemes (Amendment etc.) (Northern Ireland) Regulations 2018
Resolved,
That the Committee has considered the draft Occupational and Personal Pension Schemes (Amendment etc.) (Northern Ireland) (EU Exit) Regulations 2018.—(Guy Opperman.)