Session 2010 - 12
Internet Publications
Other Bills before Parliament


 
 

3501

 

House of Commons

 
 

Tuesday 18 October 2011

 

Consideration of Bill

 

Pensions Bill [Lords], As Amended


 

Note

 

The Amendments have been arranged in accordance with the Pensions Bill

 

[Lords] (Programme) (No. 2) Motion to be proposed by Secretary Iain Duncan Smith

 


 

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).

 



 
 

Consideration of Bill: 18 October 2011                  

3502

 

Pensions Bill [Lords] continued

 
 

Rachel Reeves

 

Mr Liam Byrne

 

Gregg McClymont

 

4

 

Page  2  [Clause  1],  leave out lines 12 to 18 and insert—

 

‘6th April 1955 to 5th May 1955

6th May 2020

 
 

6th May 1955 to 5th June 1955

6th July 2020

 
 

6th June 1955 to 5th July 1955

6th September 2020

 
 

6th July 1955 to 5th August 1955

6th November 2020

 
 

6th August 1955 to 5th September

6th January 2021

 
 

1955

  
 

6th September 1955 to 5th October

6th March 2021

 
 

1955

  
 

6th October 1955 to 5th November

6th May 2021

 
 

1955

  
 

6th November 1955 to 5th

6th July 2021

 
 

December 1955

  
 

6th December 1955 to 5th

6th September 2021

 
 

January 1956

  
 

6th January 1956 to 5th

6th November 2021

 
 

February1956

  
 

6th February 1956 to 5th

6th January 2022

 
 

March 1956

  
 

6th March 1956 to 5th

6th March 2022.’

 
 

April 1956

  
 

Secretary Iain Duncan Smith

 

13

 

Page  2  [Clause  1],  leave out lines 14 to 18 and insert—

 

‘6th January 1954 to 5th February 1954

6th May 2019

 
 

6th February 1954 to 5th March 1954

6th July 2019

 
 

6th March 1954 to 5th April 1954

6th September 2019

 
 

6th April 1954 to 5th May 1954

6th November 2019

 
 

6th May 1954 to 5th June 1954

6th January 2020

 
 

6th June 1954 to 5th July 1954

6th March 2020

 
 

6th July 1954 to 5th August 1954

6th May 2020

 
 

6th August 1954 to 5th September

6th July 2020

 
 

1954

  
 

6th September 1954 to 5th October

6th September 2020”’.

 
 

1954

  

 
 

Consideration of Bill: 18 October 2011                  

3503

 

Pensions Bill [Lords] continued

 
 

Secretary Iain Duncan Smith

 

14

 

Page  2,  line  19  [Clause  1],  leave out ‘“1960” substitute “1954”’ and insert ‘“5th

 

April 1960” substitute “5th October 1954”’.

 

Rachel Reeves

 

Mr Liam Byrne

 

Gregg McClymont

 

5

 

Page  2,  line  19  [Clause  1],  leave out ‘1954’ and insert ‘1956’.

 


 

Rachel Reeves

 

Mr Liam Byrne

 

Gregg McClymont

 

6

 

Page  23,  line  20  [Schedule  1],  leave out from ‘(a)’ to end of line 22 and insert

 

‘delete “2024” and replace with “April 2020”.’.

 

Rachel Reeves

 

Mr Liam Byrne

 

Gregg McClymont

 

7

 

Page  23,  line  31  [Schedule  1],  leave out ‘6th December 2018’ and insert ‘6th April

 

2020’.

 


 

New Clauses relating to Part 2

 

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,”.


 
 

Consideration of Bill: 18 October 2011                  

3504

 

Pensions Bill [Lords] continued

 
 

(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.

 

(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.”’.

 


 

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

 

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.’.

 



 
 

Consideration of Bill: 18 October 2011                  

3505

 

Pensions Bill [Lords] continued

 
 

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

 

(NEST)

 

Mr Liam Byrne

 

Gregg McClymont

 

Stephen Timms

 

NC9

 

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

 

Stephen Timms

 

NC10

 

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.’.

 


 

Mr Liam Byrne

 

Gregg McClymont

 

Stephen Timms

 

18

 

Page  6,  line  37  [Clause  6],  leave out ‘three’ and insert ‘one’.

 


 

Mr Liam Byrne

 

Gregg McClymont

 

Stephen Timms

 

19

 

Page  8,  line  1  [Clause  8],  at beginning insert ‘Subject to subsection (2A),’.


 
 

Consideration of Bill: 18 October 2011                  

3506

 

Pensions Bill [Lords] continued

 
 

Mr Liam Byrne

 

Gregg McClymont

 

Stephen Timms

 

20

 

Page  8,  line  4  [Clause  8],  at end insert—

 

‘(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 earning; or

 

(b)    

in percentage terms by more than the percentage increase in the Lower

 

Earnings Limit for national insurance purposes.’.

 


 

Secretary Iain Duncan Smith

 

15

 

Page  11,  line  40  [Clause  14],  leave out ‘In section 30(5) of the 2008 Act’ and

 

insert—

 

‘( )    

Section 30 of the 2008 Act is amended as follows.

 

( )    

In subsection (5)’.

 

Secretary Iain Duncan Smith

 

16

 

Page  11,  line  41  [Clause  14],  at end insert—

 

‘( )    

In subsection (6)(b) omit “(in accordance with section 20(1))”.’.

 


 

New Clauses relating to the meaning of money purchase benefits

 

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—


 
 

Consideration of Bill: 18 October 2011                  

3507

 

Pensions Bill [Lords] continued

 
 

(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.

 

(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—


 
contents continue
 

© Parliamentary copyright
Revised 18 October 2011