House of Commons Amendments

Session 2013 - 14
Internet Publications
Other Bills before Parliament

39

House of Commons

Tuesday 9 July 2013

Public Bill Committee

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Pensions Bill

Note

The Amendments have been arranged in accordance with the Order of the

Committee [25 June].

Gregg McClymont

17

Clause  29,  page  15,  line  18,  leave out ‘of which the person is an active member.’.

Gregg McClymont

9

Clause  29,  page  15,  line  18,  at end insert ‘and which meets the quality

requirements set out by the Secretary of State in regulations.’.

Gregg McClymont

10

Clause  29,  page  15,  line  21,  at end insert ‘and to set out quality requirements in

relation to such accounts.’.

Greg McClymont

20

Schedule  16,  page  85,  line  17,  leave out paragraph 1(4)(e).

Gregg McClymont

11

Schedule  16,  page  88,  line  34,  leave out ‘may’ and insert ‘shall’.

Public Bill Committee: 9 July 2013
40

Pensions Bill, continued

Gregg McClymont

12

Schedule  16,  page  88,  line  38,  at end insert—

‘(c)
other aspects relating to the quality and good standing of the scheme.’.

Gregg McClymont

13

Schedule  16,  page  90,  line  20,  at end insert—

‘(3A)
The regulations must provide for quality req uirements in relation to governance,

administration and other relevant matters relating to the quality and good standing

of the merged account.’.

Gregg McClymont

14

Clause  34,  page  18,  line  16,  at end insert—

‘(5)
Regulations under this section shall be made only for the purposes of resolving

inconsistencies or making technical adjustments or both, and may not be made to

achieve substantive changes in policy. In particular, they shall not be made to

exempt entire classes of business or businesses, such as small and medium-sized

businesses, from automatic enrolment.

(6)
Regulations under this section shall be laid before and approved by resolution of

both Houses of Parliament.’.

Gregg McClymont

18

Clause  35,  page  18,  line  42,  at end insert—

‘(3A)
In this section “administration charges” shall be defined in regulations by the

Secretary of State after public consultation and taking advice from the Financial

Conduct Authority and the Pensions Regulator to ensure that the definition takes

into consideration the Financial Conduct Authority’s definition of “ongoing

charges”, and shall include annual management charges, legal fees,

administrative fees, audit fees, marketing fees, directors’ fees, regulatory fees and

other expenses.

(3B)
Such charges, together with any transaction charges incurred by the funds in

which qualifying schemes are invested, shall be declared to the Pensions

Regulator, which shall maintain a public register thereof. The Secretary of State

shall define “transaction costs” in regulations after public consultation and taking

advice from the Financial Conduct Authority and the Pensions Regulator. The

Secretary of State shall by regulation set the standards by which pension schemes

must declare charges and transaction costs for the purposes of the register and for

declaration to their members and their members’ employers. The standard shall

be reviewed every three years. In addition, the Secretary of State shall have power

to make regulations ordering other disclosure arrangements on charges.

(3C)
Regulations under this section shall be laid down and approved by resolution of

both Houses of Parliament.’.

Public Bill Committee: 9 July 2013
41

Pensions Bill, continued

Greg McClymont

19

Clause  35,  page  18,  line  42,  at end insert—

‘(3A)
For the purposes of section 16, the definition of qualifying schemes shall include

schemes in relation to which at the date of Royal Assent there are “deferred

members” meaning members that have accrued rights in the scheme, but whose

contributions are no longer being paid into by them or on their behalf, and who

have not yet begun to draw pension benefits from the scheme.’.

Steve Webb

4

Clause  36,  page  19,  line  21,  at end insert—

‘(i)
’.

Steve Webb

5

Clause  36,  page  19,  line  22,  leave out from ‘scheme’ to ‘are’ in line 23 and insert

‘and

(ii)
all the benefits accruing in respect of his or her

membership’.

Gregg McClymont

15

Clause  45,  page  23,  line  36,  after ‘section 3’, insert ‘17(5)’.

New Clauses

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.’.

Public Bill Committee: 9 July 2013
42

Pensions Bill, continued

Review in relation to women born on or after 6 April 1951

Gregg McClymont

NC1

To move the following Clause:—

‘The Government shall conduct a review to determine whether all women born

on or after 6 April 1951 should be included within the scope of the new state

pension arrangements established by this Act. Such a review shall be conducted

within six months of Royal Assent of this Act and a report thereof laid before

Parliament.’.

Review of phasing the transition of a 35-year full pension requirement via an interim

requirement of 30 years

Gregg McClymont

NC2

To move the following Clause:—

‘The Government shall conduct a review to determine the costs and benefits of

phasing the transition to a 35-year full pension requirement via an interim

requirement of 30 years. Such a review shall be conducted within six months of

Royal Assent of this Act and a report thereof laid before Parliament.’.

Review on gradual transition from certain benefit arrangements based on age.

Gregg McClymont

NC3

To move the following Clause:—

‘(1)
In relation to women without a national insurance contribution record who relied

on a husband’s national insurance contributions and would under existing

arrangements have accrued a benefit based on such spousal contributions, the

Government shall conduct a review to determine the costs and benefits of

permitting women within 15 years of state pension age as at 6 April 2016 to retain

their accrued rights. Such a review shall be conducted within six months of Royal

Assent of this Act and a report thereof laid before Parliament.

(2)
The review shall also consider whether similar provision should be made in

relation to sections 9 and 10 of this Act.’.

Public Bill Committee: 9 July 2013
43

Pensions Bill, continued

National Employment Savings Trust transfers

Gregg McClymont

NC4

To move the following Clause:—

‘(1)
In relation to NEST, the Government must by 31 December 2013 notify the

European Commission that it wishes to lift the ban on transfers and the

contribution cap.

(2)
The Secretary of State must make a statement to Parliament within 14 days of the

Government notifying the European Commission in accordance with subsection

(1).’.

Fiduciary duty of independent trustees

Gregg McClymont

NC5

To move the following Clause:—

‘Any scheme which is a qualifying scheme and which is not already overseen by

independent trustees shall be required from a date to be appointed by the

Secretary of State to appoint a board of independent trustees, the powers and

duties of which shall be set out in regulations to be laid before and approved by

resolutions of both Houses of Parliament. The board of independent trustees shall

have fiduciary duty towards members of the scheme overseen by them, which

duty shall take precedence over any duty to the shareholders in, or other owners

of, the operators of the scheme. In relation to any matters of member interest,

decisions of the board of independent trustees shall be binding on the board of

directors or other analogous management board of any undertaking operating a

pension scheme.’.

Promotion of good value in scheme size

Gregg McClymont

NC6

To move the following Clause:—

‘The fiduciary duty of pension scheme trustees in qualifying schemes shall

include a duty to consider whether the scheme has sufficient scale to deliver good

value for members. Where trustees take the view that the scheme has insufficient

scale, they must consider whether merger with another scheme would be in the

members’ interests. The Pensions Regulator shall have power to direct merger of

pensions schemes where it would be in the interests of the members of each of the

relevant schemes for merger to take place. The Pensions Regulator shall exercise

this power in accordance with a methodology on which it has publicly consulted

and which has been agreed with the Secretary of State. It shall keep this

Public Bill Committee: 9 July 2013
44

Pensions Bill, continued

methodology under regular review and revise it when necessary, subject to

further consultation and agreement from the Secretary of State.’.

Decumulation

Gregg McClymont

NC7

To move the following Clause:—

‘Any qualifying money purchase scheme must direct its savers to an independent

annuity brokerage service or offer such brokerage services itself. Pension

schemes shall ensure that any brokerage service selected or provided meets best

practice in terms of providing members with an assisted path through the annuity

process, ensuring access to most annuity providers, and minimising costs. The

standards meeting best practice on decumulation shall be defined by the Pensions

Regulator after public consultation, reviewed every three years, and updated, if

required, subsequent to such reviews.’.

Equal provision of survivor benefits for same-sex couples

Caroline Lucas

NC8

To move the following Clause:—

‘(1)
Paragraph 18 to Schedule 9 of the Equality Act 2010 (work: exceptions) is

amended as follows.

(2)
Omit sub-paragraph (1).’.

Review of section 29 provisions and regulations

Gregg McClymont

NC10

To move the following Clause:—

‘The Secretary of State must review the effect of section 29 and any regulations

made under it within three years of Royal Assent.’.

Public Bill Committee: 9 July 2013
45

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



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