Oral Answers to Questions

Andrew Bridgen Excerpts

Monday 5th November 2012 Commons Chamber

[Steve Webb]

This is indeed an important issue. I can assure the hon. Gentleman that the Pensions Regulator has engaged during the last 12 months, and continues to engage, with more than 1,100 schemes that are linked to overseas employers. Between April 2010 and August 2012, it has exercised its powers on at least 10 occasions in relation to such schemes.

[Andrew Bridgen (North West Leicestershire) (Con)]

The Minister is aware of a case in my constituency in which the BMI pension fund was placed in a pension protection fund by Lufthansa. In this case, Lufthansa voluntarily paid over £84 million in compensation to the fundholders. However, under current HMRC rules the money is being treated as income, and the lifetime and annual allowance rules are being applied to the compensation. Does my hon. Friend agree that the position is unfair and should be reviewed by HMRC?

[Steve Webb]

I am grateful to my hon. Friend for raising that case. I have corresponded with Treasury colleagues about the issue, and, subject to their consent, I shall be happy to share with him the reply that I have just received.