Session 2010 - 12
Internet Publications
Other Bills before Parliament


 
 

3489

 

House of Commons

 
 

Notices of Amendments

 

given up to and including

 

Friday 14 October 2011

 

New Amendments handed in are marked thus Parliamentary Star

 

Consideration of Bill


 

Pensions Bill [Lords], As Amended


 

New Clauses

 

Qualifying schemes: administration charges

 

Secretary Iain Duncan Smith

 

NC2

 

To move the following Clause:—

 

‘(1)    

Section 16 of the 2008 Act (qualifying schemes) is amended as follows.

 

(2)    

In subsection (3) for paragraph (a) substitute—

 

“(a)    

administration charges due from J while J is an active member

 

exceed a prescribed amount,

 

(aa)    

administration charges due from former active members while J

 

is an active member exceed a prescribed amount,

 

(ab)    

while J is an active member, the scheme contains provision under

 

which administration charges that will be due from J when J is

 

no longer an active member will exceed a prescribed amount, or

 

will do so in particular circumstances,”.

 

(3)    

After that subsection insert—

 

“(4)    

For the purposes of subsection (3) administration charges are due from a

 

person to the extent that—

 

(a)    

any payments made to the scheme by, or on behalf or in respect

 

of, the person,

 

(b)    

any income or capital gain arising from the investment of such

 

payments, or

 

(c)    

the value of the person’s rights under the scheme,

 

    

may be used to defray the administrative expenses of the scheme, to pay

 

commission or in any other way that does not result in the provision of

 

pension benefits for or in respect of members.


 
 

Notices of Amendments: 14 October 2011                  

3490

 

Pensions Bill-[Lords], continued

 
 

(5)    

In subsection (3)(aa) “former active member” means a person who at

 

some time after the automatic enrolment date was both a jobholder and

 

an active member but is no longer an active member.”’.

 


 

Definition of money purchase benefits

 

Secretary Iain Duncan Smith

 

NC3

 

To move the following Clause:—

 

‘(1)    

In section 181 of the Pension Schemes Act 1993 (interpretation), in the definition

 

of “money purchase benefits” in subsection (1), for “which are not average salary

 

benefits” substitute “which fall within section 181B”.

 

(2)    

After section 181A of that Act insert—

 

“181B

Money purchase benefits: supplementary

 

(1)    

This section applies for the purposes of the definition of “money

 

purchase benefits” in section 181(1).

 

(2)    

A benefit other than a pension in payment falls within this section if its

 

rate or amount is calculated solely by reference to assets which (because

 

of the nature of the calculation) must necessarily suffice for the purposes

 

of its provision to or in respect of the member.

 

(3)    

A benefit which is a pension in payment falls within this section if—

 

(a)    

its provision to or in respect of the member is secured by an

 

annuity contract or insurance policy made or taken out with an

 

insurer, and

 

(b)    

at all times before coming into payment the pension was a benefit

 

falling within this section by virtue of subsection (2).

 

(4)    

For the purposes of subsection (2) it is immaterial if the calculation of the

 

rate or amount of the benefit includes deductions for administrative

 

expenses or commission.

 

(5)    

In this section references to a pension do not include income withdrawal

 

or dependants’ income withdrawal (within the meaning of paragraphs 7

 

and 21 of Schedule 28 to the Finance Act 2004).”

 

(3)    

In section 99 of the Pensions Act 2008 (interpretation) in the definition of “money

 

purchase benefits” for “which are not average salary benefits” substitute “which

 

fall within section 99A”.

 

(4)    

After that section insert—

 

“99A  

Money purchase benefits: supplementary

 

(1)    

This section applies for the purposes of the definition of “money

 

purchase benefits” in section 99.

 

(2)    

A benefit other than a pension in payment falls within this section if its

 

rate or amount is calculated solely by reference to assets which (because

 

of the nature of the calculation) must necessarily suffice for the purposes

 

of its provision to or in respect of the member.


 
 

Notices of Amendments: 14 October 2011                  

3491

 

Pensions Bill-[Lords], continued

 
 

(3)    

A benefit which is a pension in payment falls within this section if—

 

(a)    

its provision to or in respect of the member is secured by an

 

annuity contract or insurance policy made or taken out with an

 

insurer, and

 

(b)    

at all times before coming into payment the pension was a benefit

 

falling within this section by virtue of subsection (2).

 

(4)    

For the purposes of subsection (2) it is immaterial if the calculation of the

 

rate or amount of the benefit includes deductions for administrative

 

expenses or commission.

 

(5)    

In this section references to a pension do not include income withdrawal

 

or dependants’ income withdrawal (within the meaning of paragraphs 7

 

and 21 of Schedule 28 to the Finance Act 2004).”

 

(5)    

In paragraph 1(2) of Schedule 10A to the Building Societies Act 1986

 

(disclosures about directors etc), in the definition of “money purchase benefits”,

 

for “which are not average salary benefits” substitute “which fall within

 

paragraph 1A”.

 

(6)    

In that Schedule, after paragraph 1 insert—

 

“1A(1)  

This paragraph applies for the purposes of the definition of “money

 

purchase benefits” in paragraph 1(2).

 

      (2)  

A benefit other than a pension in payment falls within this paragraph

 

if its rate or amount is calculated solely by reference to assets which

 

(because of the nature of the calculation) must necessarily suffice for

 

the purposes of its provision to or in respect of the director.

 

      (3)  

A benefit which is a pension in payment falls within this paragraph

 

if—

 

(a)    

its provision to or in respect of the director is secured by an

 

annuity contract or insurance policy made or taken out with an

 

insurer, and

 

(b)    

at all times before coming into payment the pension was a

 

benefit falling within this paragraph by virtue of sub-

 

paragraph (2).

 

      (4)  

For the purposes of sub-paragraph (2) it is immaterial if the calculation

 

of the rate or amount of the benefit includes deductions for

 

administrative expenses or commission.

 

      (5)  

In this paragraph references to a pension do not include income

 

withdrawal or dependants’ income withdrawal (within the meaning of

 

paragraphs 7 and 21 of Schedule 28 to the Finance Act 2004).”

 

(7)    

The amendments made by subsections (1) and (2) are to be regarded as having

 

come into force on 1 January 1997.

 

(8)    

The amendments made by subsections (3) and (4) are to be regarded as having

 

come into force at the same time as section 99 of the Pensions Act 2008.’

 



 
 

Notices of Amendments: 14 October 2011                  

3492

 

Pensions Bill-[Lords], continued

 
 

Transitional

 

Secretary Iain Duncan Smith

 

NC4

 

To move the following Clause:—

 

‘(1)    

The Secretary of State may by regulations make transitional provision in relation

 

to the coming into force of the amendments in section [Definition of money

 

purchase benefits].

 

(2)    

That provision includes in particular—

 

(a)    

provision disapplying the amendments in section [Definition of money

 

purchase benefits] in relation to an occupational or personal pension

 

scheme which is wound up before the coming into force of that section;

 

(b)    

provision disapplying the amendments in section [Definition of money

 

purchase benefits] to any extent, or as regards any period, in respect of

 

an occupational or personal pension scheme in relation to which those

 

amendments would otherwise have applied on the coming into force of

 

that section;

 

(c)    

provision modifying the application of an enactment in respect of an

 

occupational or personal pension scheme in relation to which the

 

amendments in section [Definition of money purchase benefits] apply on

 

the coming into force of that section;

 

(d)    

provision requiring trustees or managers of an occupational pension

 

scheme in relation to which the amendments in section [Definition of

 

money purchase benefits] apply on the coming into force of that section

 

to obtain an actuarial valuation of a description specified in the

 

regulations.

 

(3)    

In subsection (2) “occupational pension scheme” and “personal pension scheme”

 

have the meanings given by section 1 of the Pension Schemes Act 1993.’

 


 

Consequential and supplementary

 

Secretary Iain Duncan Smith

 

NC5

 

To move the following Clause:—

 

‘(1)    

The Secretary of State may by regulations make consequential or supplementary

 

provision in relation to the amendments made by section [Definition of money

 

purchase benefits].

 

(2)    

In section 307 of the Pensions Act 2004 (modification of Act) in subsection (2)

 

after paragraph (b) insert—

 

“(ba)    

Part 3 (scheme funding),”.’

 



 
 

Notices of Amendments: 14 October 2011                  

3493

 

Pensions Bill-[Lords], continued

 
 

Power to make further provision

 

Secretary Iain Duncan Smith

 

NC6

 

To move the following Clause:—

 

‘(1)    

The Secretary of State may by regulations amend for any purpose the definition

 

of “money purchase benefit” in the Pension Schemes Act 1993, the Pensions Act

 

2008 or Schedule 10A to the Building Societies Act 1986.

 

(2)    

Regulations under subsection (1) may in particular amend the provisions inserted

 

by section [Definition of money purchase benefits] above).

 

(3)    

Regulations under this section may include transitional, consequential or

 

supplementary provision.’

 


 

Regulations

 

Secretary Iain Duncan Smith

 

NC7

 

To move the following Clause:—

 

‘(1)    

Regulations under this Part may—

 

(a)    

make different provision for different cases (including different

 

provision for pension schemes of different descriptions);

 

(b)    

provide for a person to exercise a discretion in dealing with any matter;

 

(c)    

amend Acts (as well as other enactments);

 

(d)    

have retrospective effect.

 

(2)    

Regulations under this Part must be made by statutory instrument.

 

(3)    

A statutory instrument containing regulations under this Part which amend an Act

 

may not be made unless a draft of the instrument has been laid before, and

 

approved by resolution of, each House of Parliament.

 

(4)    

A statutory instrument containing any other regulations under this Part is subject

 

to annulment in pursuance of a resolution of either House of Parliament.’

 



 
 

Notices of Amendments: 14 October 2011                  

3494

 

Pensions Bill-[Lords], continued

 
 

Obligation to inform scheme members about provider and product options

 

Harriett Baldwin

 

Dame Anne Begg

 

Andrea Leadsom

 

Claire Perry

 

Neil Parish

 

Brandon Lewis

 

Total signatories: 13

 

Oliver Heald

 

Glenda Jackson

 

Debbie Abrahams

 

Karen Bradley

 

Stephen Lloyd

 

Andrew Bingham

 

NC1

 

To move the following Clause:—

 

‘Providers of Qualifying Schemes under section 16 of the Pensions Act 2008

 

(c.30) must, when informing members of their own range of annuity and similar

 

products, explain clearly that alternative and more suitable options from other

 

providers may be available.’.

 


 

Uprating of the state pensions

 

Hywel Williams

 

NC8

 

To move the following Clause:—

 

‘Section 150 of the Social Security Administration Act 1992 is amended as

 

follows—

 

After subsection (2)(a), insert—

 

“(aa)    

that the general level of prices assessed by the Secretary of State

 

shall include both the Retail Prices Index and the Consumer

 

Prices Index, and the higher of the two indices must be used to

 

calculate the annual uprating of the state pensions; and”.’.

 



 
 

Notices of Amendments: 14 October 2011                  

3495

 

Pensions Bill-[Lords], continued

 
 

Duty to establish a review into transfers into the National Employment Savings Trust

 

(NEST)

 

Mr Liam Byrne

 

Gregg McClymont

 

NC9

 

Parliamentary Star    

To move the following Clause:—

 

‘Within two years of the passing of this Act the Secretary of State shall establish

 

a review into allowing transfers into the National Employment Savings Trust

 

(NEST).’.

 


 

Duty to review any order on contribution limits in the National Employment Savings Trust

 

Mr Liam Byrne

 

Gregg McClymont

 

NC10

 

Parliamentary Star    

To move the following Clause:—

 

‘In section 70 of the 2008 Act (Contribution Limits) at the end of subsection (1)

 

insert—

 

(1A)    

Any order under this section shall be reviewed by the Secretary of State within

 

two years of the Pension Scheme being opened to members.’.

 


 

Rachel Reeves

 

Mr Liam Byrne

 

Gregg McClymont

 

1

 

Page  1,  line  6  [Clause  1],  leave out ‘December 1953’ and insert ‘April 1955’.

 

Rachel Reeves

 

Mr Liam Byrne

 

Gregg McClymont

 

2

 

Page  1,  line  7  [Clause  1],  leave out subsection (3) and insert—

 

‘(3)    

In sub-paragraph (4) leave out “6 April 1959” and insert “6 April 1955”.’.

 

Rachel Reeves

 

Mr Liam Byrne

 

Gregg McClymont

 

3

 

Page  1,  line  8  [Clause  1],  leave out subsection (4).

 



 
contents continue
 

© Parliamentary copyright
Revised 17 October 2011