An amendment to the Pension Schemes Bill — tabled by Liberal Democrat peer Sharon Bowles, Conservative peers Deborah Stedman-Scott and Thérèse Coffey, and independent peer Ros Altmann — won a vote in the upper chamber Thursday by 217 to 113. It removes the provision on the asset allocation condition in the legislation.
The defeat is a blow to Pensions Minister Torsten Bell, who only last week tried to reassure industry and peers by telling POLITICO that he would table “clarifications” to the bill outlining that the power would only align to Mansion House Accord signatories and targets. It means ministers will now be required to reconsider the proposed law.
“This power must be removed,” said Stedman-Scott. “It is a massive overstep from the government, and despite the assurances of the minister, no one is yet convinced that this can remain.”
The amendment removing the threat of a mandate will now go back to the House of Commons, where Bell will need to decide whether to include new changes to reinstate the power.
Altmann got another victory in the report stage debate on Thursday by winning a vote on her amendment to extend the time limit defining an unused pension pot as “dormant” from 12 months to two years.
Under government plans, all “dormant” small pots worth under £1,000 will be consolidated into larger schemes.