Debate contribution: Pension Schemes Bill: Legislative Consent Motion

Debate contribution by Mr Gordon Lyons on 27 January 2026.

MLA

Mr Gordon Lyons

Party at the time

Democratic Unionist Party

Date

27 January 2026

Type

Debate contribution (made as a minister)

Business

Executive Committee Business

Heading

Pension Schemes Bill: Legislative Consent Motion

Assembly identifier

Official Report component 5345057

Read the official Assembly record

Text

I beg to move

Thank you, Mr Deputy Speaker. Following the introduction of additional measures to the Pension Schemes Bill, I seek approval of a subsequent legislative consent motion (LCM) to include provision for two of those amendment measures. The timeline for progressing the Bill through Westminster presents several challenges for introducing corresponding measures through an Executive Bill. It would not be possible for an Executive Bill to be passed by the Assembly in time to align with the operational dates for certain provisions of the Westminster Bill. Given the fact that such a delay would result in the provisions not being in place in Northern Ireland at the same time as in the rest of the UK, I am bringing an LCM to extend two measures of the Westminster Bill to Northern Ireland, in addition to the five that have already been agreed on. The new provisions in the Bill concern pre-97 indexation and the funding of the board of the Pension Protection Fund. They were introduced subsequent to the Assembly vote on the LCM on 18 November 2025, and thus need to be agreed. I will give a brief overview of the two new provisions. Clause 109 relates to the pre-97 indexation of the Pension Protection Fund and the financial assistance scheme. It enables the payment of inflation increases, which is known as indexation, on pension benefits for compensation schemes accrued before April 1997. The measure will ensure that compensation from the Pension Protection Fund and the financial assistance scheme on pensions built up before 6 April 1997 is linked to CPI inflation up to a cap of 2·5% and that it applies prospectively for members whose schemes provided mandatory or statutory inflation increases on pre-1997 pensions. It is a positive measure and will boost the incomes of those affected. Subsections 4 and 5 of clause 116 of the Bill seek to amend the Pensions Act 2004 to implement changes to the Pension Protection Fund and fraud compensation levies. Legislative consent is required to allow for the administrative expenses of the Pension Protection Fund and the Fraud Compensation Fund to be met by the reserves within those funds. The Pension Protection Fund and the Fraud Compensation Fund are UK-wide schemes. Therefore, it is essential that provision is made for Northern Ireland to be included. If it is agreed that clauses 109 and 116(4) and 116(5) of the Bill should extend to here, it will allow those important provisions to be enacted at the same time across the UK and ensure that citizens of Northern Ireland benefit from their introduction at the same time as citizens in the rest of the UK. Whilst I seek to avoid using the LCM process, where possible, it is sensible to use it to secure, for Northern Ireland members, the pension scheme benefits afforded by those provisions by agreeing to an LCM in respect of the listed clauses. The intention is that a parity Bill will be brought before the Assembly for all relevant remaining clauses in the Westminster Bill. I am aware of the Assembly's role in considering legislation, and of the Committee's scrutiny role in particular. Whilst Standing Order 42A(9) does not invoke a requirement for the Committee to report on subsequent LCMs, details on the amendment measures have been provided to the Committee for Communities, and officials will provide an additional briefing to the Committee at its meeting on 29 January. The preference would have been to have conducted that briefing in advance of today's debate, but time constraints connected to the progress of the Westminster Bill have not afforded the opportunity for longer consideration. I therefore beg to move that the Assembly agrees the motion.

616 words. Text as published by the Northern Ireland Assembly.

Assessment

Not flagged

Jev’s structured answers

Assessed 21 October 2026 at 14:21 UTC by jev-1.13.0 (requested as typesafe/jev) under rubric 2026.10-r9, methodology 1.9.

Disagree with this assessment?

Classifications can be challenged. A person reads every challenge, and any change is recorded publicly above with its reason.

Challenge this classification