Session 2010 - 12
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Public Bill Committee: 12 July 2011                     

59

 

Pensions Bill-[Lords], continued

 
 

“(2A)    

The Secretary of State shall make regulations to enable transfers of

 

qualifying pension schemes into and out of the National Employment

 

Savings Trust.”.’.

 


 

Information about pensions

 

Teresa Pearce

 

NC8

 

To move the following Clause:—

 

‘The Secretary of State shall create a single place where all relevant information

 

of pensions is available for employers and employees.’.

 


 

Contribution limits

 

Teresa Pearce

 

NC9

 

To move the following Clause:—

 

‘(1)    

The Pensions Act 2008 is amended as follows.

 

(2)    

omit section 70 (Contribution Limits).’.

 


 

UK personal pension schemes: additional protection

 

Teresa Pearce

 

NC10

 

To move the following Clause:—

 

‘(1)    

The Pensions Act 2008 is amended as follows.

 

(2)    

In section 26(4)(b), at end insert “, ensuring they are protected to the same level

 

as stakeholder terms and conditions.”’.

 


 

Triennial Report

 

Rachel Reeves

 

NC11

 

Parliamentary Star    

To move the following Clause:—


 
 

Public Bill Committee: 12 July 2011                     

60

 

Pensions Bill-[Lords], continued

 
 

‘(1)    

The Secretary of State must publish a triennial report about the impact of CPI on

 

accrued benefits and pensions.

 

(2)    

The report required under subsection (1) must, in particular, include an

 

assessment of the impact of the measure on—

 

(a)    

scheme members;

 

(b)    

employers;

 

(c)    

tax-payers; and

 

(d)    

pension protection fund levy-payers.’.

 


 

Steve Webb

 

38

 

Clause  15,  page  10,  line  24,  at end insert—

 

‘( )    

Schedule 3 to the 1993 Act (which sets out methods for revaluing accrued

 

benefits for the purposes of section 84 of the 1993 Act) is amended as follows.

 

( )    

After paragraph 1(4) insert—

 

  “(5)  

The sub-paragraphs above are subject to sub-paragraph (6).

 

      (6)  

If paragraph 2A applies to the pension or other benefit, the final salary

 

method is to apply the requirement of the rules of the scheme

 

mentioned in paragraph 2A(1).”

 

( )    

After paragraph 2 insert—

 

“2A(1)  

This paragraph applies to the pension or other benefit if the rules of the

 

scheme under which it is payable contain a requirement that the

 

accrued benefit be revalued by adding to the accrued benefit an

 

amount of at least the relevant amount.

 

      (2)  

“The accrued benefit” has the same meaning as in paragraph 1.

 

      (3)  

“The relevant amount” means the amount which, ignoring paragraph

 

1(5) and (6), would be the additional amount specified in paragraph

 

1(1A), (1B), (1C) or (1D) (as the case may be) were the appropriate

 

higher revaluation percentage and the appropriate lower revaluation

 

percentage to be determined on the following basis.

 

      (4)  

The higher revaluation percentage and the lower revaluation

 

percentage for the revaluation period mentioned in paragraph 2(7) are

 

to be taken to be the percentages which would have been specified in

 

the Secretary of State’s order—

 

(a)    

had the following been substituted for paragraph 2(3)(a)—

 

“(a)    

the percentage increase in the retail prices index

 

for the reference period in relation to the

 

revaluation period (“the inflation percentage”),

 

and”,

 

(b)    

had, in paragraph 2(3A)(a), the words “the percentage which

 

appears to the Secretary of State to be” been omitted,

 

(c)    

had paragraph 2(4) been omitted,

 

(d)    

had, in paragraph 2(5), the words “sub-paragraph (3)(a)” been

 

substituted for “that sub-paragraph”,

 

(e)    

had, in paragraph (b) of the definitions of “the higher

 

maximum rate” and “the lower maximum rate” in paragraph


 
 

Public Bill Committee: 12 July 2011                     

61

 

Pensions Bill-[Lords], continued

 
 

2(6), the words “retail prices index” been substituted for

 

“general level of prices”, and

 

(f)    

had the following been inserted after paragraph 2(6)—

 

“(6A)  

In this paragraph “retail prices index” means—

 

(a)    

the general index of retail prices (for all items)

 

published by the Statistics Board (or any

 

predecessor), or

 

(b)    

where that index is not published for a month, any

 

substituted index or figures published by the Board

 

(or any predecessor).””’.

 

Steve Webb

 

39

 

Clause  15,  page  10,  line  27,  leave out ‘subsection (4) substitute—’ and insert

 

‘subsections (3) and (4) substitute—

 

“(3)    

Subsection (2) does not apply to the annual rate of a pension under an

 

occupational pension scheme, or to a part of that rate, if under the rules

 

of the scheme the rate or part is for the time being being increased at

 

intervals of not more than twelve months by at least the relevant

 

percentage.’.

 

Steve Webb

 

40

 

Clause  15,  page  10,  line  33,  leave out from beginning to end of line 36 on page 11

 

and insert—

 

‘(4ZA)    

Subsection (2) does not apply to the annual rate of a pension under an

 

occupational pension scheme, or to a part of that rate, if subsection (4ZB)

 

applies to the rate or part.

 

(4ZB)    

Subject to subsection (4ZD), this subsection applies to the rate or part if,

 

under the rules of the scheme, the rate or part is for the time being being

 

increased, and since the relevant time has always been increased, at

 

intervals of not more than twelve months by at least—

 

(a)    

the percentage increase in the retail prices index for the reference

 

period, being a period determined, in relation to each periodic

 

increase, under the rules, or

 

(b)    

if lower, the default percentage for that period.

 

(4ZC)    

In subsection (4ZB) “the relevant time” means—

 

(a)    

the beginning of 2011 or, if later, the time when the pension

 

became a pension in payment, or

 

(b)    

if the pension was transferred to the scheme from another

 

occupational pension scheme as a pension in payment after the

 

beginning of 2011, the time of the transfer.

 

(4ZD)    

If the pension was transferred to the scheme as mentioned in subsection

 

(4ZC)(b), subsection (4ZB) does not apply to the rate or part unless,

 

immediately before the transfer, subsection (4ZB) (read with this

 

subsection if relevant) applied to the rate or part by reference to the

 

scheme from which the pension was transferred (or would have applied

 

had subsection (4ZB) been in force immediately before the transfer).’.


 
 

Public Bill Committee: 12 July 2011                     

62

 

Pensions Bill-[Lords], continued

 
 

Steve Webb

 

41

 

Clause  15,  page  11,  line  39,  leave out ‘(4)’ and insert ‘(3)’.

 

Steve Webb

 

42

 

Clause  15,  page  11,  line  42,  leave out ‘to (4ZD)’ and insert ‘and (4ZB)’.

 

Steve Webb

 

43

 

Clause  15,  page  11,  line  46,  leave out ‘to (4ZD)’ and insert ‘and (4ZB)’.

 


 

Steve Webb

 

10

 

Clause  17,  page  13,  line  23,  after ‘period’, insert ‘on or after that day’.

 

Steve Webb

 

11

 

Clause  17,  page  13,  line  41,  after ‘(3)(b)’, insert ‘includes a promise that’.

 

Steve Webb

 

12

 

Clause  17,  page  13,  line  42,  leave out ‘includes a promise that’.

 

Steve Webb

 

13

 

Clause  17,  page  13,  line  44,  leave out from beginning to end of line 4 on page 14

 

and insert—

 

‘(b)    

the rate or amount of a benefit will represent a particular proportion of the

 

available sum.’.

 

Steve Webb

 

14

 

Clause  17,  page  14,  line  4,  at end insert—

 

‘( )    

But a pension is not prevented from being a cash balance benefit merely because

 

under the scheme there is a promise that—

 

(a)    

the rate or amount of a benefit payable in respect of a deceased member

 

will be a particular proportion of the rate or amount of a benefit which

 

was (or would have been) payable to the member;

 

(b)    

the amount of a lump sum payable to a member, or in respect of a

 

deceased member, will represent a particular proportion of the available

 

sum.’.

 



 
 

Public Bill Committee: 12 July 2011                     

63

 

Pensions Bill-[Lords], continued

 
 

New cLAUSE RELATING TO PART 3

 

Occupational pensions schemes (investment)

 

Cathy Jamieson

 

Sheila Gilmore

 

NC12

 

Parliamentary Star    

To move the following Clause:—

 

‘(1)    

The Occupational Pension Schemes (Investment) Regulations 2005 are amended

 

as follows—

 

(a)    

after regulation 4(2) insert—

 

“(2A)    

The powers of investment, or the discretion, must be exercised in

 

the way considered, in good faith, most likely to promote the

 

interests of the scheme for the benefit of its members and

 

beneficiaries as a whole, having regard (amongst other matters)

 

to—

 

(a)    

the likely consequences of any decision in the long term;

 

(b)    

the impact of the scheme’s investment activities on the

 

stability of the financial system and on the economy;

 

(c)    

environmental, social and governance considerations,

 

inlcuding the environmental and social impact of the

 

scheme’s investment activities;

 

(d)    

the desirability of the scheme maintaining a reputation

 

for high standards of commercial conduct;

 

(e)    

the desirablility of ascertaining and of taking into

 

account the views, including the ethical views, of

 

members and beneficiaries in relation to the scheme’s

 

investment policy; and

 

(f)    

the need to act fairly as between the members and

 

beneficiaries, including as between present and future

 

members and beneficiaries.”,

 

(b)    

in regulation (4)11, insert—

 

““benefit” means—

 

(a)    

financial benefit; and

 

(b)    

any non-financial benefit which the trustee considers

 

can be conferred on members and beneficiaries without

 

any material prejudice to their financial benefit.”’.

 


 

Remaining new Clause

 

Allied Steel and Wire

 

Hywel Williams

 

NC5

 

To move the following Clause:—


 
 

Public Bill Committee: 12 July 2011                     

64

 

Pensions Bill-[Lords], continued

 
 

‘(1)    

The Secretary of State shall commission a review of measures enabled to help

 

former employees of Allied Steel and Wire.

 

(2)    

The review should be written by an independent board of experts with the aim of

 

ensuring the best treatment of former employees of Allied Steel and Wire and will

 

make recommendations for future support for former employees.

 

(3)    

This review should be conducted and report back within six months of Royal

 

Assent.’.

 


 

Steve Webb

 

15

 

Clause  30,  page  19,  line  20,  leave out subsection (2).

 

 

Order of the House [20 JUNE 2011]

 

That the following provisions shall apply to the Pensions Bill [Lords]—

 

Committal

 

1.    

The Bill shall be committed to a Public Bill Committee.

 

Proceedings in Public Bill Committee

 

2.    

Proceedings in the Public Bill Committee shall (so far as not previously

 

concluded) be brought to a conclusion on Tuesday 19 July 2011.

 

3.    

The Public Bill Committee shall have leave to sit twice on the first day on

 

which it meets.

 

Consideration and Third Reading

 

4.    

Proceedings on consideration shall (so far as not previously concluded) be

 

brought to a conclusion one hour before the moment of interruption on the

 

day on which those proceedings are commenced.

 

5.    

Proceedings on Third Reading shall (so far as not previously concluded) be

 

brought to a conclusion at the moment of interruption on that day.

 

6.    

Standing Order No. 83B (Programming committees) shall not apply to

 

proceedings on consideration and Third Reading.

 

Other proceedings

 

7.    

Any other proceedings on the Bill (including any proceedings on

 

consideration of any message from the Lords) may be programmed.

 

 

Order of the Committee [5 July 2011]

 

That—

 

(1)  

the Committee shall (in addition to its first meeting at 10.30 am on Tuesday

 

5 July) meet—

 

(a)  

at 4.00 pm on Tuesday 5 July;

 

(b)  

at 9.00 am and 1.00 pm on Thursday 7 July;

 

(c)  

at 10.30 am and 4.00 pm on Tuesday 12 July;

 

(d)  

at 9.00 am and 1.00 pm on Thursday 14 July;


 
 

Public Bill Committee: 12 July 2011                     

65

 

Pensions Bill-[Lords], continued

 
 

(e)  

at 10.30 am and 4.00 pm on Tuesday 19 July;

 

(2)  

the proceedings shall be taken in the following order: Clause 1; Schedule 1;

 

Clause 2; Schedule 2; Clause 3; Schedule 3; new Clauses relating to Part 1;

 

new Schedules relating to Part 1; Clauses 4 to 14; new Clauses relating to Part

 

2; new Schedules relating to Part 2; Clauses 15 to 18; Schedule 4; Clauses 19

 

to 24; new Clauses relating to Part 3; new Schedules relating to Part 3; Clause

 

25; Schedule 5; new Clauses relating to Part 4; new Schedules relating to Part

 

4; Clauses 26 and 27; remaining new Clauses; remaining new Schedules;

 

Clauses 28 to 30; remaining proceedings on the Bill;

 

(3)  

the proceedings shall (so far as not previously concluded) be brought to a

 

conclusion at 7.00 pm on Tuesday 19 July.

 


 
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Revised 12 July 2011