The Pension Schemes Bill (PSB) has completed the third reading in the House of Lords and is set to return to the House of Commons for amendment consideration on 15 April.

The third reading is designed to give peers a chance to ‘tidy up’ the bill to ensure it is effective and workable by making small changes.

While making its journey through the Lords, peers proposed a wide range of amendments covering all aspects of the bill.

The bill will return to the Commons on 15 April, where the amendments will be discussed and voted on before the bill can reach Royal Assent and become law.

The marshalled list of amendments for the bill runs to more than 30 pages, while the most recently published PSB, as amended, runs to over 170 pages.

Members of the House of Lords concluded the third and final day of the report stage on 23 March, with amendments added during the report stage relating to the impact of consolidation, climate risks, master trust scale requirements, surplus distribution, fiduciary duty, and value for money, among others.

Peers in the House of Lords also voted to remove the government’s controversial amendment that would allow it to direct the investments of pension schemes that signed the Mansion House Accord if they do not meet their commitments.

However, the government has previously indicated that it had no intention to remove the measures from the bill.

“This is a fundamentally important bill, and I am pleased that we have agreed several amendments to address some of the concerns that together we have identified,” said House of Lords member, Baroness Deborah Stedman-Scott.

“The government now have an obligation to return with clear answers to the concerns we have raised, including in particular: the Local Government Pension Scheme and whether it is truly fit for purpose for its members; whether the proposed consolidation timetable is workable in practice for ordinary working people; whether the scale requirements risk undermining innovative and high-performing schemes; and the scope, rationale and implications of the mandation power - there was a resounding view that it should be removed entirely.

“This bill contains a number of significant flaws and shortcomings. Your Lordships’ House has offered the government a clear opportunity to make necessary and timely improvements.

“I very much hope that we will continue to work together with the minister and her colleagues in the department to take that opportunity.”

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