Member

The other point raised by my noble friend Lord Davies was about integrated schemes. It was helpful of him to explain, broadly speaking, how they work. But, as we have discussed previously, integrated schemes do not have money to which people are entitled removed from them; it is more that benefit entitlement is calculated so that a scheme pays a higher pension before state pension age, which is then lowered—readjusted—when they start receiving their state pension. It is, in effect, a smoothing process. However, trustees are expected to provide relevant information to scheme members, including information about how integration will affect their pension. My noble friend is right to make that point.