Session 2013 - 14
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23

 

House of Commons

 
 

Notices of Amendments

 

given on

 

Tuesday 2 July 2013

 

For other Amendment(s) see the following page(s):

 

Pensions Bill Committee 15-22

 

Public Bill Committee


 

Pensions Bill

 

Pension Protection Fund: increased compensation cap for people with long service

 

Steve Webb

 

NC9

 

To move the following Clause:—

 

‘See Schedule [Pension Protection Fund: increased compensation cap for people

 

with long service] for amendments increasing the Pension Protection Fund

 

compensation cap for people with long pensionable service.’.

 

Steve Webb

 

NS1

 

To move the following Schedule:—

 

‘Pension Protection Fund: increased compensation cap for people with long

 

service

 

Part 1

 

The new compensation cap

 

1          

Schedule 7 to the Pensions Act 2004 (pension compensation provisions) is

 

amended as follows.

 

2          

In paragraph 26 (the compensation cap), for the definition of “the

 

compensation cap” in sub-paragraph (7) substitute—

 

““the compensation cap” has the meaning given by paragraph 26A;”.

 

3          

After paragraph 26 insert—

 

“26A (1)  

This paragraph gives the meaning of “the compensation cap” for the

 

purposes of paragraph 26.


 
 

Notices of Amendments: 2 July 2013                     

24

 

Pensions Bill, continued

 
 

      (2)  

The amount of the compensation cap for a person depends on the

 

person’s age and length of pensionable service at the time when the

 

person first becomes entitled to the relevant compensation.

 

      (3)  

“The compensation cap” for a person who has 20 or fewer years of

 

pensionable service at that time is the standard amount.

 

      (4)  

“The compensation cap” for a person who has more than 20 years

 

of pensionable service at that time is—

 

(a)    

the standard amount, plus

 

(b)    

for each additional year, an amount found by multiplying

 

the standard amount by 3%.

 

      (5)  

A person has an “additional year” for each whole year of

 

pensionable service that exceeds 20 years of pensionable service.

 

      (6)  

If the total amount calculated under sub-paragraph (4)(b) would

 

exceed the standard amount, it is to be treated as being equal to the

 

standard amount.

 

      (7)  

In sub-paragraphs (3) and (4) “the standard amount”—

 

(a)    

for a person who is 65 years old at the relevant time, means

 

 the amount specified by the Secretary of State by order,

 

and

 

(b)    

for a person of any other age at the relevant time, means the

 

amount specified under paragraph (a) as adjusted in

 

accordance with actuarial adjustment factors published by

 

the Board.

 

      (8)  

In any case where the Board is satisfied that, under the admissible

 

rules, a person is entitled to benefits that are not attributable to a

 

particular period of pensionable service, the Board may for the

 

purposes of this paragraph treat the person as having a length of

 

pensionable service to reflect those benefits (which is in addition to

 

any other pensionable service that the person has).

 

      (9)  

In any case where the Board is satisfied that it is not possible to

 

identify the length of some or all of a person’s pensionable service

 

under the admissible rules, the Board may, having regard to those

 

rules, determine its length for the purposes of this paragraph.

 

    (10)  

Other expressions used in this paragraph have the same meaning as

 

in paragraph 26.”

 

Part 2

 

Consequential amendments to do with the new compensation cap

 

4          

The Pensions Act 2004 is amended as follows.

 

5          

In section 316(2)(s), for “paragraph 26(7)” substitute “paragraph 26A(6)”.

 

6    (1)  

Schedule 7 is amended as follows.

 

      (2)  

In paragraph 26(9), after “this paragraph” insert “and paragraph 26A”.

 

      (3)  

In paragraph 27(2), for “sub-paragraph (7) of paragraph 26” substitute “sub-

 

paragraph (6) of paragraph 26A”.’.

 


 
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