Mineworkers' Pension Scheme
Business and Trade Committee
Closed
Inquiry
The BEIS Committee is holding a short inquiry into the Mineworkers' Pension Scheme, and in particular the Scheme’s surplus sharing arrangements. When British Coal was privatised in 1994, an agreement was made between the Government and the Trustees of the Mineworkers Pension Scheme (MPS) on future arrangements for pensions. The …
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6
Recommendations
12
Conclusions
1
Report
2
Oral sessions
13
Letters
2
Events
Activity timeline 17 events
8 Jul
2021
2021
5 Jul
2021
2021
26 May
2021
2021
13 May
2021
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29 Apr
2021
2021
Report published
29 Apr
2021
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29 Apr
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27 Apr
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27 Apr
2021
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27 Apr
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15 Apr
2021
2021
Oral evidence sessions 2 sessions
13 Apr 2021
View on parliament.uk
Oral evidence session
Rt Hon Anne-Marie Trevelyan · Department for Business, Energy and Industrial Strategy
Rt Hon Kwasi Kwarteng · Department for Business, Energy and Industrial Strategy
Sarah Munby · Department for Business, Energy and Industrial Strategy
23 Mar 2021
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Mineworkers' Pension Scheme
Allen Young · Mineworkers’ Pension Scheme
Chris Cheetham · Mineworkers’ Pension Scheme
Chris Kitchen · National Union of Mineworkers
Dan Whincup · Coal Pension Trustees Ltd
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Sixth Report - Mineworkers’ Pension Scheme | HC 1346 | 29 Apr 2021 | 18 | Responded |
Recommendations & Conclusions
8 results
1
Conclusion
Rejected
Sixth Report - Mineworkers’ Pensio…
The Scheme’s Trustees had little choice but to accept the Government’s proposal to divide future...
The Scheme’s Trustees had little choice but to accept the Government’s proposal to divide future surpluses on a 50:50 basis, as a condition of securing the Government’s guarantee during the negotiations in 1994.
Government Response
The government rejects the committee's conclusion, stating that the Trustees did have a choice regarding the 1994 proposal and could have declined the guarantee. It maintains that the 1994 arrangement was fair and beneficial to both Scheme members and taxpayers.
Department for Business and Trade
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2
Conclusion
Rejected
Sixth Report - Mineworkers’ Pensio…
The Government failed to conduct due diligence during the 1994 negotiations and undertook no empirical...
The Government failed to conduct due diligence during the 1994 negotiations and undertook no empirical analysis or evaluation to inform or support the 50:50 split it proposed. The Government was negligent not to take actuarial advice.
Government Response
The government rejects the conclusion, asserting that the Trustees had a choice in 1994 and that the agreed arrangement was fair and beneficial due to the government taking on all the risk.
Department for Business and Trade
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3
Conclusion
Rejected
Sixth Report - Mineworkers’ Pensio…
The 50:50 split was, and remains, arbitrary.
The 50:50 split was, and remains, arbitrary.
Government Response
The government rejected the conclusion, asserting that the Trustees had a choice in 1994 and reiterating its belief that the 50:50 arrangement was fair and beneficial to both scheme members and taxpayers.
Department for Business and Trade
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4
Conclusion
Rejected
Sixth Report - Mineworkers’ Pensio…
To date, the Government has received £4.4bn from the Mineworkers’ Pension Scheme.
To date, the Government has received £4.4bn from the Mineworkers’ Pension Scheme. This is already more than the 1994 expectations of what the Government would receive. The Government is also due to receive at least another £1.9bn, on top of …
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Government Response
The government rejected the implied criticism of the Mineworkers’ Pension Scheme arrangement, arguing that the 1994 agreement was fair, beneficial to members and taxpayers, and that trustees had a choice to decline the offer and its associated guarantee.
Department for Business and Trade
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7
Conclusion
Rejected
Sixth Report - Mineworkers’ Pensio…
We recognise that the Government’s guarantee is important, has contributed to the success of the...
We recognise that the Government’s guarantee is important, has contributed to the success of the Scheme, and has benefitted Scheme members. However, we are not convinced by the Government’s argument that its entitlement to 50% of surpluses is proportionate to …
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Government Response
The government explicitly rejects the committee's conclusion, stating it continues to believe the 1994 arrangement for sharing surpluses in the Mineworkers’ Pension Scheme is fair and beneficial because the government has taken on all the risk.
Department for Business and Trade
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14
Recommendation
Rejected
Sixth Report - Mineworkers’ Pensio…
Whilst we have called for the 50:50 split to be replaced with a more appropriate...
Whilst we have called for the 50:50 split to be replaced with a more appropriate arrangement moving forward, we believe pensioners should also receive a more immediate uplift. We recommend that the Government hands the £1.2bn it is due to …
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Government Response
The government rejected the recommendation to hand the £1.2bn Investment Reserve back to miners, but stated it is willing to explore with Trustees options for providing members with a lump sum payment within the existing framework.
Department for Business and Trade
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15
Conclusion
Rejected
Sixth Report - Mineworkers’ Pensio…
The Government’s guarantee has undoubtedly benefitted the Scheme’s members by providing vital security that the...
The Government’s guarantee has undoubtedly benefitted the Scheme’s members by providing vital security that the value of pensions will not decrease. However, the price of this guarantee is no longer fair. (Paragraph 64) Mineworkers’ Pension Scheme 25
Government Response
The government rejected the conclusion, stating it continues to believe the 1994 arrangement was fair and beneficial to both scheme members and taxpayers, with the government bearing all the risk.
Department for Business and Trade
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17
Recommendation
Rejected
Sixth Report - Mineworkers’ Pensio…
The Government must now accept its moral obligation to the Scheme members, and acknowledge that...
The Government must now accept its moral obligation to the Scheme members, and acknowledge that continuation of the surplus sharing arrangements in their current form robs beneficiaries of the financial security they have rightfully earned.
Government Response
The government rejects the recommendation, stating it does not accept that it has unduly benefited from the surplus sharing arrangements, which it views as successful and beneficial to all parties.
Department for Business and Trade
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Correspondence 13 letters
8 Jul 2021
To committee
Letter from a member of the public relating to the British Coal Superannuation Scheme
Parliament page
26 May 2021
To committee
Letter from the Minister to the Chair relating to the Committee’s report on the Mineworkers’ Pension Scheme
Parliament page
13 May 2021
To committee
Letter from the Chief Secretary to the Treasury to the Chair relating to the Mineworkers’ Pension Scheme
Parliament page
29 Apr 2021
To committee
Letter from the Chair to the Chancellor of the Exchequer relating to the Mineworkers’ Pension Scheme
Parliament page
29 Apr 2021
To committee
Letter from the Chair to the Minister for Business, Energy and Clean Growth relating to the Mineworkers’ Pension Scheme
Parliament page
27 Apr 2021
To committee
Letter from Jonathan Gullis MP on the Mineworkers’ Pension Scheme
Parliament page
27 Apr 2021
Selected emails received by the Business, Energy and Industrial Strategy Committee as part of the inquiry into the Mineworkers' Pension Scheme
Parliament page
27 Apr 2021
To committee
Letter from the Minister to the Chair on the Mineworkers’ Pension Scheme
Parliament page
15 Apr 2021
To committee
Letter from Aaron Bell MP to the Chair regarding the Mineworkers’ Pension Scheme
Parliament page
15 Apr 2021
To committee
Letter from The British Coal Staff Superannuation Scheme to the Chair regarding pensions to former staff of British Coal
Parliament page
15 Apr 2021
To committee
Letter from Lee Anderson MP to the Chair regarding the Mineworkers’ Pension Scheme
Parliament page
13 Apr 2021
To committee
Letter from the Trustees of the Mineworkers’ Pension Scheme in follow up to oral evidence given on 23 March
Parliament page
13 Apr 2021
To committee
Letter from Grahame Morris MP to the Chair regarding the Mineworkers’ Pension Scheme
Parliament page