Member

I am talking here about the provisions under Section 259 of the Pensions Act 2004 and regulations made under the provisions of the Act—that in certain circumstances, the employer must consult with the recognised trade unions. That includes such things as increasing the retirement age or changing the accrual rate, but also ending or reducing the employer’s liability to make contributions. The decision by the trustees to make a payment to the employer is a decision by the employer. The employer obviously has to make a decision—they have to decide to receive that money—and I believe strongly that a good employer, before accepting that money from the pension scheme, would in any event consult the recognised trade unions. My amendment adds that decision by an employer to the list of issues upon which they have to consult the trade unions. It is straightforward; it is not suggesting anything new. That provision is already there; this would just extend the list of issues upon which consultations have to take place, to include this new development.