House of Commons Amendments

Session 2010 - 12
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Other Bills before Parliament

1

House of Commons

Notices of Amendments

given on

Tuesday 28 June 2010

Public Bill Committee

Pensions Bill [Lords]

Steve Webb

To move, That the Bill be considered in the following order, namely, 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.

Steve Webb

1

Clause  4,  page  4,  line  9,  leave out ‘within the prescribed period’ and insert ‘with

effect from—

(a)
the day after the cessation referred to in paragraph (a) or (b) of

subsection (1), or

(b)
a day within the prescribed period (if a period is prescribed)’.

Steve Webb

2

Clause  4,  page  4,  line  11,  leave out ‘for subsection (4)’ and insert ‘after subsection

(1) insert—

“(1A)
This section also applies to a jobholder who—

(a)
is aged at least 22,

(b)
has not reached pensionable age, and

(c)
is not an active member of a qualifying scheme because there has

been a period beginning at any time after the jobholder’s

automatic enrolment date during which the requirements of

section 1(1)(a) or (c) were not met (so that the person was not a

jobholder for that period).

Notices of Amendments: 28 June 2010
2

Pensions Bill-[Lords], continued

(1B)
This section also applies to a jobholder who has ceased to be an active

member of a qualifying scheme because of something other than an

action or omission by the jobholder.”

( )
For subsection (4) of that section’.

Steve Webb

3

Clause  4,  page  4,  line  19,  at end insert—

‘( )
In subsection (8) of that section omit “, after the automatic enrolment date,”’.

Steve Webb

4

Clause  4,  page  4,  leave out line 21 and insert ‘(4)—

(a)
in paragraph (a) omit “at any time after the jobholder’s automatic

enrolment date,”;

(b)
in that paragraph omit “or a qualifying scheme of which the jobholder is

an active member ceases to be such a scheme”;

(c)
in paragraph (b) omit “or the employer”;

(d)
in paragraph (c) for “time” substitute “event”.’.

Steve Webb

5

Clause  4,  page  4,  line  22,  leave out from ‘(inducements)’ to end of line 23 and

insert—

‘(a)
in subsection (1)(a) for “within the period prescribed under section 2(3)”

substitute “with effect from—

(i)
the day after the membership is given up, or

(ii)
a day within the prescribed period (if a period is

prescribed)”;

(b)
in subsection (1)(b) for “within the period prescribed under section 2(3)”

substitute “with effect from—

(i)
the day on which the jobholder became an active

member of the scheme to which the notice

relates, or

(ii)
a day within the prescribed period (if a period is

prescribed)”.’.

Steve Webb

6

Clause  5,  page  4,  line  39,  leave out from beginning to end of line 14 on page 5 and

insert—

‘“(1)
This section applies to a jobholder—

(a)
who is aged at least 22,

(b)
who has not reached pensionable age, and

(c)
to whom earnings of more than £7,475 are payable by the

employer in the relevant pay reference period (see section 15).”’.

Steve Webb

7

Clause  6,  page  6,  line  32,  at end insert—

‘( )
In section 5 of the 2008 Act (automatic re-enrolment) omit subsection (5).’.

Notices of Amendments: 28 June 2010
3

Pensions Bill-[Lords], continued

Steve Webb

8

Clause  8,  page  7,  line  22,  leave out ‘5(1)(a)’ and insert ‘5(1)(c)’.

Steve Webb

9

Clause  10,  page  8,  line  25,  leave out subsection (2) and insert—

‘(2)
For the heading substitute “Certification that quality requirement or

alternative requirement is satisfied”.

Test scheme standard for schemes that produce sum of money for provision of benefits

Steve Webb

NC1

To move the following Clause:—

‘(1)
In section 22 of the 2008 Act (test scheme standard) after subsection (7) insert—

“(8)
In the case of a scheme under which a sum of money is made available

for the provision of benefits to a relevant member, references in this

section to pensions are to be read as references to such sums.”

(2)
For section 23 of the 2008 Act substitute—

“23
Test scheme

(1)
A test scheme is an occupational pension scheme which satisfies—

(a)
the requirement in subsection (2),

(b)
the requirement in subsection (4) or requirements prescribed

under subsection (6) (as appropriate), and

(c)
any further requirements that are prescribed.

(2)
The scheme must either—

(a)
provide for a member to be entitled to a pension commencing at

the appropriate age and continuing for life, or

(b)
provide for a sum of money to be made available for the

provision of benefits to a member commencing at the

appropriate age and continuing for life.

(3)
The appropriate age is 65 or any higher age prescribed.

(4)
In the case of a scheme that provides entitlement to a pension as

mentioned in subsection (2)(a), the annual rate of the pension at the

appropriate age must be—

(a)
1/120th of average qualifying earnings in the last three tax years

preceding the end of pensionable service,


    multiplied by

(b)
the number of years of pensionable service, up to a maximum of

40.

(5)
Section 13(1) (qualifying earnings) applies for the purposes of subsection

(4) as if the reference to a pay reference period were a reference to a tax

year.

(6)
In the case of a scheme that provides for a sum of money to be made

available as mentioned in subsection (2)(b), regulations must prescribe

requirements relating to that sum.”’.

Notices of Amendments: 28 June 2010
4

Pensions Bill-[Lords], continued

Certification for non-UK schemes

Steve Webb

NC2

To move the following Clause:—

‘(1)
Section 28 of the 2008 Act is amended as follows.

(2)
After subsection (3) insert—

“(3A)
This section also applies to—

(a)
a money purchase scheme that is an occupational pension

scheme within section 18(b);

(b)
a personal pension scheme of a prescribed description for which

provision is made under section 27;

(c)
a hybrid scheme that is an occupational pension scheme within

section 18(b), to the extent prescribed.”

(3)
In subsection (4) at the end insert—

“(d)
for a scheme within subsection (3A), means a prescribed

requirement.”

(4)
In paragraphs (e) and (f) of subsection (6) for “section 26 agreements” substitute

“contribution agreements”.

(5)
In subsection (8)—

(a)
for ““section 26 agreements” means the agreement” substitute

““contribution agreements” means—

(a)
the agreement”;

(b)
at the end insert “, or

(b)
any agreement of the same or a similar kind that is

required, in the case of a scheme within subsection

(3A)(b), by regulations under section 27.”’.

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—

Notices of Amendments: 28 June 2010
5

Pensions Bill-[Lords], continued

‘( )
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.’.

Steve Webb

15

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



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