First letter from the Department for Work and Pensions

1.  Further to my letter of 10 June, I am writing to you again about a further Government amendment I intend to table which contains regulation making powers which may be of interest to the Committee. A delegated powers memorandum is attached at annex A and the amendment itself is at annex B.

2.  I thought it might be helpful to briefly summarise this amendment:

• To insert a new clause after clause 52, setting out prohibitions on employers coercing or offering inducements to a worker to opt out of their pension scheme, including the power to set time limits for investigation.

3.  For information, I am also providing the Committee with copies of the Government amendments that meet the recommendations they made in their ninth report of the 2007 - 2008 session. These are attached at annex C (Not printed).

4.  I am copying this letter to the Secretariat of the Legislation Committee and the Lords Whips Office.

Department for Work and Pensions

June 2008

First supplementary memorandum

New clause after clause 52 - Inducements

Powers conferred on:     Secretary of State

Powers exercised by:     Regulations (Statutory Instrument)

Parliamentary procedure:   Negative resolution

5.  The new clause after clause 52 prohibits employers from trying to induce jobholders to opt out of, or cease, membership of a qualifying workplace pension scheme.

Purpose of power

6.  The purpose of this power is to give the Secretary of State an ability to prescribe, in secondary legislation, the period of time from the opt-out within which:

a)  a jobholder must make a complaint to the Pensions Regulator that the opt out, or cessation, was induced, or

b)  the Pensions Regulator must, independently of any complaint, start an investigation into a case of possible inducement.

Reason for delegation

7.  We believe there should be time limits within which these complaints should be brought or investigated in order to:

• try and provide all parties (i.e. workers, employers, pension schemes and the Pensions Regulator) with a reasonable degree of certainty;
• prevent the possibility of vexatious claims from some workers, and
• help ensure that compliance investigations into complaints about inducements are carried out at the earliest possible opportunity.

8.  There are, however, widely differing views, among stakeholders, on how long that period of time should be. We therefore wish to consult on this so as to ensure the views of all interested parties are considered before determining the issue in regulations. Should it appear over time that the period prescribed is not offering sufficient protection, or preventing the Regulator from being able to gather the relevant evidence, the regulation making power would also give the Secretary of State flexibility to make appropriate changes.

Second letter from the Department for Work and Pensions

1.  Further to my letter of 16 June, I am writing to you again about further Government amendments I intend to table which contain regulation making powers which may be of interest to the Committee. A delegated powers memorandum is attached at annex A and the amendments are at annex B.

2.  These amendments are required to ensure the measures in the Bill impact appropriately on seafarers and offshore workers.

3.  I am copying this letter to the Secretariat of the Legislation Committee and the Lords Whips Office.

Department for Work and Pensions

June 2008

Second supplementary memorandum

New clause after clause 84 - Persons working on vessels

Powers conferred on:     Secretary of State

Powers exercised by:     Regulations (statutory instrument)

Parliamentary procedure:   Negative resolution

4.  This new clause after clause 84 initially removes individuals who are employed or engaged in any capacity on board ships (any vessel used in navigation) from the definition of "worker" with a regulation making power to define the extent to which such individuals should be included in these reforms.

Purpose of power

5.  This power provides the Secretary of State with a power to set out in regulations the extent to which these reforms may apply to individuals employed or engaged in any capacity on board a ship whether or not that person is working or ordinarily works in Great Britain.

Reason for delegation

6.  The new clause initially removes "seafarers" employed or engaged in any capacity to ensure these reforms do not inadvertently rule any particular group of seafarers in or out prior to a detailed consultation.

7.  If we leave the Bill as it stands there is a danger that we could unintentionally trespass on international law and custom and adversely impact the UK shipping industry. Experience shows that these areas are complex and raise difficult issues of international and European Law, so that it is appropriate to allow a more detailed consideration of which seafarers to include.

New clause after clause 84 - Persons in offshore employment

Powers conferred on:     Secretary of State

Powers exercised by:     Orders in Council

Parliamentary procedure:   Negative resolution

8.  This new clause will determine and include relevant offshore workers within the scope of this reform by means of Orders in Council.

Purpose of power

9.  This power enables Her Majesty by Order in Council to set out the extent to which these provisions may apply to a person in offshore employment.

Reason for delegation

10.  There is an existing principle to define the extent of coverage for offshore workers within Orders in Council. Other examples exist in the Employment Rights Act 1996 and the National Minimum Wage Act 1998. This is a complex area which needs to be defined in accordance with existing international law, treaties and custom. Therefore, we need to fully consult on this area.