L

Lord Palmer of Childs Hill (LD)

Speaking in the House of Lords on 19 January 2026

Debate

Pension Schemes Bill

Contribution

My Lords, I will try to make this quick. Proposed new clause in Amendment 45 requires the Secretary of State to commission an independent review into the application and impact of state deduction mechanisms in occupational defined benefit pension schemes. It focuses on the clawback provisions, particularly in the Midland Bank staff pension scheme and associated legacy arrangements. Why is this review needed? State deduction provisions can reduce members’ pension entitlements, sometimes in ways that are complex or unclear. There are concerns about fairness and transparency and a disproportionate impact, particularly on lower paid staff and women. It ensures members, regulators and Parliament have clarity about the origin, rationale and effects of these provisions. The review will examine the history and rationale for state deduction in a Midland Bank staff pension scheme and assess clarity. It will be conducted by a person or body independent of HSBC and associated schemes. We will also try to ensure that it must consult affected scheme members, employee representatives, pension experts and stakeholder organisations. I beg to move.

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