House of Commons Amendments

Session 2013 - 14
Internet Publications
Other Bills before Parliament

Public Bill Committee: 4 July 2013
32

Pensions Bill, continued

New Schedule

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.

      (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

Public Bill Committee: 4 July 2013
33

Pensions Bill, continued

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”.’.

Order of the House [17 June 2013]

That the following provisions shall apply to the Pensions Bill:

Committal

1.
The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

2.
Proceedings in the Public Bill Committee shall (so far as not previously

concluded) be brought to a conclusion on Thursday 11 July 2013.

3.
The Public Bill Committee shall have leave to sit twice on the first day on

which it meets.

Consideration and Third Reading

4.
Proceedings on Consideration shall (so far as not previously concluded) be

brought to a conclusion one hour before the moment of interruption on the

day on which those proceedings are commenced.

5.
Proceedings on Third Reading shall (so far as not previously concluded) be

brought to a conclusion at the moment of interruption on that day.

6.
Standing Order No. 83B (Programming committees) shall not apply to

proceedings on Consideration and Third Reading.

Other proceedings

7.
Any other proceedings on the Bill (including any proceedings on

consideration of Lords Amendments or on any further messages from the

Lords) may be programmed.

Public Bill Committee: 4 July 2013
34

Pensions Bill, continued

Order of the Committee [25 JUNE 2013]

That—

(1)
the Committee shall (in addition to its first meeting at 9.25 am on Tuesday 25

June) meet—

(a)
at 2.45 pm on Tuesday 25 June;

(b)
at 11.30 am and 2.00 pm on Thursday 27 June;

(c)
at 9.25 am and 2.00 pm on Tuesday 2 July;

(d)
at 11.30 am and 2.00 pm on Thursday 4 July;

(e)
at 9.25 am and 2.00 pm on Tuesday 9 July;

(f)
at 11.30 am and 2.00 pm on Thursday 11 July;

(2)
the Committee shall hear oral evidence in accordance with the following

Table:

      TABLE

Date
Time
Witness

Tuesday 25 June
Until no later
Age UK

than 10.15 am

Tuesday 25 June
Until no later
Trades Union Congress

than 11.00 am

Tuesday 25 June
Until no later
Cruse Bereavement Care;

than 11.25 am
Childhood Bereavement Network

Tuesday 25 June
Until no later
National Association of Pension

than 3.15 pm
Funds; Association of British

Insurers

Tuesday 25 June
Until no later
The Pensions Regulator

than 3.45 pm

Tuesday 25 June
Until no later
Dr Ros Altmann; Dr Hari Mann

than 4.45 pm

Thursday 27 June
Until no later
Pensions Policy Institute;

than 12.30 pm
Confederation of British Industry;

Which?

Thursday 27 June
Until no later
The 700,000 Group

than 1.00 pm

Thursday 27 June
Until no later
Union Pension Services Limited;

than 2.45 pm
Pensions Institute

Thursday 27 June
Until no later
Baroness Hollis of Heigham

than 3.15 pm

Thursday 27 June
Until no later
Department for Work and Pensions

than 4.00 pm

(3)
proceedings on consideration of the Bill in Committee shall be taken in the

following order: Clauses 1 to 5; Schedules 1 and 2; Clauses 6 and 7;

Schedules 3 and 4; Clauses 8 and 9; Schedule 5; Clauses 10 and 11; Schedule

6; Clause 12; Schedule 7; Clause 13; Schedule 8 and 9; Clause 14; Schedule

10; Clause 15; Schedule 11; Clauses 16 to 23; Schedule 12; Clause 24;

Public Bill Committee: 4 July 2013
35

Pensions Bill, continued

Schedules 13 and 14; Clauses 25 to 28; Schedule 15; Clause 29; Schedule 16;

Clauses 30 to 40; Schedule 17; Clauses 41 to 48; new Clauses; new

Schedules; remaining proceedings on the Bill;

(4)
the proceedings shall (so far as not previously concluded) be brought to a

conclusion at 5.00 pm on Thursday 11 July.



© Parliamentary copyright	Revised 4 July 2013