Member

You are allowed to have more than one default arrangement; that is already allowed in the Bill. The clause simply sets out that each new default arrangement will need regulatory approval. Amendment 113 seeks to place a duty on the Secretary of State to ensure that pension schemes will not be inadvertently penalised by regulations in Clause 42. It is not clear how the Secretary of State will be able to fulfil that duty. The purpose of Clause 42 is to enable pension schemes to set up new default arrangements subject to regulatory approval. The intent is simply to ensure that these arrangements are set up to meet member needs. I hope we can agree that an approach that allows for different member needs, but not unbridled fragmentation, is appropriate.