In this week's Second Reading debate in the House of Commons, the Government flagged a number of amendments it already plans to make to the Pensions Bill introduced into Parliament last month.

Secretary of State Andrew Smith announced he would "table Government amendments that will provide security for a more mobile work force. We will help people to build up rights in short-stay jobs by enabling them, for the first time, to take the pension that they have built up with them to another scheme."

Mr Smith added: "I must tell the House that, in several areas, we shall need to table amendments. The time factors that have made that necessary stem at least in part from the late publication by the European Union of the occupational pension directive; from the need, which the House will understand, to co-ordinate some of the provisions with the tax simplification measures to be included in the Finance Bill; and from the complexity of the underlying legislation that the Bill replaces or amends."

"I assure the House that it remains our intention to introduce, as Government amendments, measures such as the immediate vesting for short-term workers and the ending of the requirement to offer additional voluntary contributions. Subject to ongoing work, we shall also introduce easements in section 67 of the 1995 Act to allow the rationalisation of accrued rights."

"I can also tell the House today that we will table an amendment to require employers to undertake consultation when they make major changes to pension schemes. I can assure the House that it will be more than a rubber-stamping exercise - it will involve recognised trade unions or approved workplace information and consultation arrangements."

On the urgent matter of proposals to amend the priority order on winding up, Conservative front-bench spokesman on pensions David Willetts noted that the Government had tabled draft regulations on 22 October 2003, but Parliament had still not been told when they would be implemented. Mr Smith responded by admitting that after consultation the proposed solution, which gave greater priority to those who had been in schemes for longer, "was not possible because such information does not exist for a significant proportion of schemes. We will introduce an amended priority order shortly that will give a higher priority to older members, and that is the truth."

Finally, Mr Smith was also challenged by Mr Willetts about the Government's intentions to ameliorate "the so-called cliff-edge effect for people who retire and go from full-time employment to no employment." Mr Smith replied that "on the issue of the ability to work part-time and draw down a pension, the bulk of the legislative change required will be for the Finance Bill. It is a tax legislation issue and I envisage that it will be covered by other measures that we will introduce to bring pensions legislation in line with the provisions in the forthcoming Finance Bill."