Member

22: After Clause 10, insert the following new Clause— “Report on fiduciary duty and discretionary indexation of pre-1997 benefits(1) The Secretary of State must, within 12 months of day on which this Act is passed, publish a report on whether the fiduciary duties of trustees of occupational pension schemes should be amended to permit discretionary indexation of pre-1997 accrued rights, where scheme funding allows.(2) The report must consider—(a) the impact of current fiduciary obligations on trustees’ ability to award discretionary increases to pre-1997 pension benefits;(b) the potential benefits of permitting such discretionary indexation for affected pensioners;(c) the funding conditions and thresholds under which discretionary indexation could be considered sustainable;(d) the appropriate level of regulatory oversight and guidance required to ensure that discretionary increases are granted in a fair, transparent, and financially responsible manner;(e) international approaches to indexation of legacy pension benefits;(f) the legal and actuarial implications of amending fiduciary duties in this context.(3) In preparing the report, the Secretary of State must consult—(a) the Pensions Regulator,(b) the Financial Conduct Authority,(c) representatives of pension scheme trustees, members, and sponsoring employers, and(d) such other experts or bodies as the Secretary of State considers appropriate.(4) The Secretary of State must lay a copy of the report before both Houses of Parliament.”Member's explanatory statement This new clause requires the Secretary of State to report on whether the fiduciary duties of trustees of occupational pension schemes should be amended to permit discretionary indexation of pre-1997 accrued rights, where scheme funding allows.