Economic Activity of Public Bodies (Overseas Matters) Bill

Lord Sentamu Excerpts

Committee stage
Tuesday 14th May 2024 Lords Chamber

[Lord Sentamu (CB)]

I want to ask a simple question. At the moment, all pensions are in many ways looked at by the Pensions Regulator. Does that regulator distinguish between the local authority pension scheme and the pension scheme for me—for the Church of England —when, as you say, if there is not enough money within that pension fund, the members have to put it in? Is there a difference? Does the Pensions Regulator ever say, “Well, this is a local authority and I am going to look at them differently because the Government may put in money and I think your analysis is the right one?” If the regulator does not, why are we making a difference here?

[Lord Davies of Brixton (Lab)]

I thank the noble and right reverend Lord for his question. This comes up under group 5, where I have a lot to say about the role of the Pensions Regulator, but that comes under the issue of enforcement. Here I am just talking about the principle of how we should think about local government pension schemes. Whatever the legal niceties, my view is that they should be treated exactly like every other pension scheme.

My amendment at this stage is simply to ask: if we do not have Clause 12, does that mean that the same rules will apply to all pension schemes, including the Local Government Pension Scheme, or do I have to move a more difficult, technical amendment on Report in order to achieve that objective?

We have to remember that all pension scheme trustees are subject to the fiduciary responsibilities. In the remaining 30 seconds of my time, I think it is worth highlighting what the pensions officer of the Local Government Association said in evidence to the Public Bill Committee in the House of Commons. He said the association’s prime concern was the impact of these provisions—the way they will interfere with its fiduciary duties. He also mentioned the additional administrative costs that would be involved and having to deal with the inevitable legal challenges. So the LGA has those practical concerns. My belief is that we should just treat all schemes the same and that the trustees should be left to get on with their job of looking after their members’ money.