6th Report, 2008 (Session 3)

Legislative consent memorandum on the Pensions Bill - LCM (S3) 8.1

Remit and membership

Remit:

To consider and report on (a) the administration of criminal and civil justice, community safety, and other matters falling within the responsibility of the Cabinet Secretary for Justice and (b) the functions of the Lord Advocate, other than as head of the systems of criminal prosecution and investigation of deaths in Scotland.

Membership:

Bill Aitken (Convener)
Bill Butler (Deputy Convener)
Cathie Craigie
Nigel Don
Paul Martin
Stuart McMillan
Margaret Smith
John Wilson

Committee Clerking Team:

Douglas Wands
Anne Peat
Euan Donald
Christine Lambourne

Legislative consent memorandum on the Pensions Bill - LCM (S3) 8.1

The Committee reports to the Parliament as follows—

1. At its 6th Meeting, 2008 (Session 3) the Justice Committee considered a legislative consent memorandum on the Pensions Bill (LCM (S3) 8.1).

2. To inform its consideration, the Committee took evidence from Fergus Ewing MSP, Minister for Community Safety.

3. The Minister advised the Committee that the main proposals in the Bill relate to reserved matters.  Amendments relating to pension compensation sharing orders had been lodged by the UK Government including matters that are largely devolved concerning the orders or decisions a Court can make on divorce or dissolution of a marriage or civil partnership.  The amendments were tabled and agreed to by the UK Parliament on 21 February 2008.

4. The Pensions Act 2004 established the Pension Protection Fund (PPF).  The PPF pays compensation to members of eligible pension schemes where the employer becomes insolvent and the pension scheme is underfunded.  Where a couple divorce or dissolve their civil partnership, the court can make an order to share their assets, including making a pension sharing order.  PPF compensation however is not a pension and there is currently no mechanism for the court to make an order to share PPF compensation.

5. The policy intention behind the amendments made to the Bill is to ensure that Scottish couples can agree a financial settlement and, if relevant, share PPF compensation in the same way as they would have done if the pension scheme had not entered the PPF.  The amendments ensure that the relevant Scottish legislation is consistent with changes to pensions legislation across the UK.

6. After taking evidence from the Minister, the Committee agreed to note the memorandum.