House of Commons Public Bill Committee Proceedings

Session 2010 - 12
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Other Bills before Parliament

9

House of Commons

Tuesday 12 July 2011

Public Bill Committee Proceedings

Pensions Bill [Lords]

[FIFTH AND SIXTH Sittings]

Steve Webb

Agreed to  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

Agreed to  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).

(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

Agreed to  3

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

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

Steve Webb

Agreed to  4

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

Public Bill Committee Proceedings: 12 July 2011
10

Pensions Bill [Lords] continued

(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

Agreed to  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)”.’.

Clause, as amended, Agreed to.

Rachel Reeves

Negatived on division  28

Clause  5,  page  4,  line  30,  leave out ‘£7,475’ and insert ‘the primary threshold for

national insurance purposes.’.

Steve Webb

Agreed to  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).”’.

Teresa Pearce

Not called  37

Clause  5,  page  5,  line  19,  at end add—

‘(7C)
The Secretary of State must report to both Houses of Parliament within one year

of the commencement of the Universal Credit as set out in the Welfare Reform

Act 2011 the trends relating to part-time work that may have emerged.’.

Public Bill Committee Proceedings: 12 July 2011
11

Pensions Bill [Lords] continued

Clause, as amended, Agreed to.

Teresa Pearce

Withdrawn  36

Clause  6,  page  6,  line  14,  at end insert—

‘(5A)
An employer may only give an employee one notice under this section.’.

Rachel Reeves

Negatived on division  29

Clause  6,  page  6,  line  15,  leave out ‘three’ and insert ‘one’.

Rachel Reeves

Not called  30

Clause  6,  page  6,  line  16,  at end insert ‘, except in the case of notices given under

subsections (1) and (3), it cannot be longer than three months from the day on which the

worker begins to be employed by E.’.

Steve Webb

Agreed to  7

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

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

Rachel Reeves

Not selected  35

Page  5,  line  20,  leave out Clause 6.

Clause, as amended, Agreed to.

Clause 7 Agreed to.

Steve Webb

Agreed to  8

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

Rachel Reeves

Negatived on division  31

Clause  8,  page  7,  line  24,  at beginning insert ‘Subject to subsections (2A),’.

Rachel Reeves

Not called  32

Clause  8,  page  7,  line  24,  at beginning insert ‘Subject to subsections (2B),’.

Rachel Reeves

Not called  33

Clause  8,  page  7,  line  27,  at end insert—

Public Bill Committee Proceedings: 12 July 2011
12

Pensions Bill [Lords] continued

‘(2A)
An order made under subsection (2) must not increase the amount in section

3(1)(c) by more than—

(a)
the general level of earnings; or

(b)
in percentage terms by more than the percentage increase in the lower

earnings limit for national insurance purposes.’.

Rachel Reeves

Not called  34

Clause  8,  page  7,  line  27,  at end insert—

‘(2B)
An order made under subsection (2) must be accompanied by a full impact

assessment, specifying—

(a)
which factors have been taken into account, why they were considered

relevant and the extent to which those factors have been taken into

account;

(b)
where factors listed in subsection (4) were not considered relevant, and

why;

(c)
the impact of the number of individuals benefiting from automatic

enrolment.’.

Clause, as amended, Agreed to.

Clause 9 Agreed to.

Steve Webb

Agreed to  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”.

Clause, as amended, Agreed to.

Clauses 11 to 14 Agreed to.

New Clauses relating to Part 2

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

Steve Webb

Added  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—

Public Bill Committee Proceedings: 12 July 2011
13

Pensions Bill [Lords] continued

“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.”’.

Certification for non-UK schemes

Steve Webb

Added  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—

Public Bill Committee Proceedings: 12 July 2011
14

Pensions Bill [Lords] continued

“(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.”’.

Power to exempt certain cross-border employment from enrolment duty

Steve Webb

Added  NC4

To move the following Clause:—

‘In Part 7 of the Pensions Act 2004 (cross-border activities within European

Union) after section 292 insert—

“292A
  Exemption from enrolment duty under Part 1 of Pensions Act 2008

Regulations may provide for section 2(1), 3(2), 5(2), 7(3), 9(2) or 54 of

the Pensions Act 2008 (employer’s obligations regarding membership of

a qualifying scheme) not to apply in relation to a person’s employment

of—

(a)
an individual in relation to whom the person is a European

employer, or

(b)
someone whom the person reasonably believes to be such an

individual.”’.

[Adjourned until Thursday 14 July at 9.00 am



© Parliamentary copyright	Revised 13 July 2011