Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what estimate he has made of the number of pensioners who have had reductions in the size of pension payouts as a result of clawback clauses in their pension scheme.

Information on the number of pensioners who have had a reduction to the size of pension pay-outs is not collated centrally and could only be provided at a disproportionate cost.

This private arrangement is a feature of what are sometimes called integrated pension schemes. These schemes were designed to avoid additional contributions from sponsors and members by taking account of some or all of the State Pension when calculating the amount of occupational pension payable. The arrangement is set out in scheme rules which would have been available to members when they joined the scheme.

Such arrangements are not a Department for Work and Pensions matter. There are no plans to legislate to compel schemes to withdraw an integration arrangement. Any retrospective change would impose significant additional unplanned costs. Pension scheme rules on the calculation of benefits are many and varied, and must remain a matter for employers and scheme trustees to decide.

The Department has not issued any guidance on the effect of integrated pension schemes. However, there is an information note for Trustees, which is available on The Pensions Regulator website:

http://www.thepensionsregulator.gov.uk/docs/changes-state-pension-age-dwp-june-2016.pdf