Session 2013 - 14
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1135

 

House of Commons

 
 

Notices of Amendments

 

given on

 

Thursday 24 October 2013

 

For other Amendment(s) see the following page(s) of Supplement to Votes:

 

591, 117-27 and 1129-30

 

Consideration of Bill


 

Pensions Bill, As Amended

 

State pension entitlement for women born between 6 April 1951 and 5 April 1953

 

Caroline Lucas

 

NC6

 

To move the following Clause:—

 

‘(1)    

Women born between 6 April 1951 and 5 April 1953 have the right to choose to

 

receive their state pension and associated benefits under the new state pension

 

system, set out in Part 1, from its introduction.

 

(2)    

The Government must ensure information about the full range of entitlements

 

under the old state pension rules and the new state pension is available to allow

 

women in subsection (1) to make a comparison of total weekly income.

 

(3)    

The responsibility for making a choice under subsection (1) lies fully with the

 

individual.’.

 

Railways pension scheme

 

John McDonnell

 

NC7

 

To move the following Clause:—

 

‘(1)    

The Railways Act 1993 is amended as follows.

 

(2)    

In Schedule 11 (Pensions), after paragraph 11 there is inserted—

 

“Employees insolvency

 

11A(1)  

This paragraph applies if an insolvency event occurs in relation to the

 

employer or former employer of a protected person.

 

      (2)  

Where this paragraph applies the Secretary of State shall become

 

liable to discharge any liabilities in respect of relevant pension rights,


 
 

Notices of Amendments: 24 October 2013                  

1136

 

Pensions Bill, continued

 
 

to the extent that they are not discharged by the trustees of a new

 

scheme in which the employer was a participating employer.

 

      (3)  

For the purposes of this paragraph—

 

(a)    

“insolvency event” has the meaning set out in section 121 of

 

the Pensions Act 2004;

 

(b)    

“relevant pension rights” means the relevant pension rights

 

referred to in paragraph 6(3) above.

 

11B      

The duty referred to in paragraph 11A also applies if an insolvency

 

event has occurred in relation to the employer or former employer of

 

a protected person on or after 1 October 1994.”.’.

 

John McDonnell

 

34

 

Schedule  14,  page  79,  line  5,  leave out paragraph 11.

 

John McDonnell

 

35

 

Clause  24,  page  11,  line  34,  leave out ‘An’ and insert ‘With the consent of the

 

trustees, an’.

 

John McDonnell

 

36

 

Clause  24,  page  12,  line  10,  at end insert—

 

‘“trustees or managers” has the meaning given in section 178 of the Pension

 

Schemes Act 1993 and regulations made thereunder.’.

 

Work-based schemes: power to restrict charges or impose requirements

 

Secretary Iain Duncan Smith

 

NC1

 

To move the following Clause:—

 

‘Schedule [Work-based schemes: power to restrict charges or impose

 

requirements] permits the Secretary of State to make regulations—

 

(a)    

restricting the charges that may be imposed on members of certain work-

 

based pension schemes;

 

(b)    

imposing requirements relating to administration or governance that

 

must be satisfied in relation to certain work-based pension schemes.’.

 

As an Amendment to Mr Iain Duncan Smith’s proposed New Clause (Work-based

 

schemes: power to restrict charges or impose requirements) (NC1):—

 

Gregg McClymont

 

(a)

 

Line  6,  at end add—

 

‘(2)    

In this section—

 

(a)    

“charges”; and

 

(b)    

“transaction costs”

 

    

shall be defined in regulations by the Secretary of State.


 
 

Notices of Amendments: 24 October 2013                  

1137

 

Pensions Bill, continued

 
 

(3)    

Before making regulations under subsection (2), the Secretary of State must

 

undertake a public consultation, which must include the views of—

 

(a)    

the Financial Conduct Authority; and

 

(b)    

the Pensions Regulator.

 

(4)    

With reference to paragraph (2)(a), any public consultation must consider the

 

different elements which comprise charges and not just the annual management

 

charge.

 

(5)    

Such charges, together with any transaction costs incurred by the funds in which

 

qualifying schemes are invested, shall be declared on an annual basis to the

 

Pensions Regulator, which shall maintain a public register thereof.

 

(6)    

The Secretary of State shall by regulations 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.

 

(7)    

The standards set out in regulations under subsection (6) shall be reviewed every

 

three years.

 

(8)    

The Secretary of State shall have power to make regulations ordering other

 

disclosure arrangements on administration charges.

 

(9)    

Regulations under this section may not be made unless a draft has been laid

 

before and approved by resolution of both Houses of Parliament.’.

 

John McDonnell

 

37

 

Clause  24,  page  11,  line  40,  at end insert—

 

‘(c)    

a scheme in respect of any of its terms which relate to persons protected

 

under the terms of—

 

(i)    

the Electricity (Protected Persons) (England and Wales) Pension

 

Regulations 1990;

 

(ii)    

the Electricity (Protected Persons) (Scotland) Pension

 

Regulations 1990;

 

(iii)    

the Electricity (Protected Persons) (Northern Ireland) Pension

 

Regulations 1992;

 

(iv)    

the Railway Pensions (Protection and Designation of Schemes)

 

Order 1984;

 

(v)    

the London Transport Pensions Arrangements Order 2000;

 

(vi)    

the Coal Industry (Protected Persons) Pensions Regulations

 

1994; or

 

(vii)    

the nuclear industry employees protected by Schedule 8 of the

 

Energy Act 2004.’.

 

John McDonnell

 

38

 

Clause  29,  page  15,  line  24,  leave out from ‘scheme’ to end of line.

 

John McDonnell

 

39

 

Schedule  16,  page  84,  line  37,  leave out from ‘of’ to ‘transfer’ in line 1 on page 85,

 

and insert ‘a transferable benefits scheme, the cash equivalent of the transferable

 

benefits—

 

‘(a)    

is transferred to a nominated’.


 
 

Notices of Amendments: 24 October 2013                  

1138

 

Pensions Bill, continued

 
 

John McDonnell

 

40

 

Schedule  16,  page  85,  line  3,  leave out ‘automatic transfer’ and insert ‘transferable

 

benefits’.

 

John McDonnell

 

41

 

Schedule  16,  page  85,  line  8,  leave out from ‘an’ to end of line 9, and insert ‘a

 

transferable benefits scheme, means a member of the scheme who is no longer having

 

contributions made to their benefits.’.

 

John McDonnell

 

42

 

Schedule  16,  page  85,  line  21,  leave out sub-paragraph (5) and insert—

 

    ‘(5)  

In this Schedule “nominated transfer scheme” means—

 

(a)    

a work-based pension scheme which is registered under Chapter 2 of

 

Part 4 of the Finance Act 2004 and is a money purchase scheme;

 

(b)    

a scheme in which the qualifying member is a member, or that has

 

been nominated by the member or the transferable benefits scheme for

 

the purposes of transferring pots;

 

(c)    

a pension scheme which meets quality standards as set out by the

 

Secretary of State;

 

(d)    

a pension scheme that meets any other requirements set out in

 

regulations.’.

 

John McDonnell

 

43

 

Schedule  16,  page  85,  line  38,  leave out from beginning to end of line 29 on page

 

87, and insert—

 

‘Transferable benefits scheme to transfer to nominated transfer scheme

 

2    (1)  

The regulations must require the trustees or managers of a transferable benefits

 

scheme to establish an agreement with a nominated transfer scheme to make

 

provision—

 

(a)    

for the transfer of qualifying members’ benefits to the nominated

 

transfer scheme; and

 

(b)    

describing how and when steps are to be taken in order to effect the

 

transfer.

 

      (2)  

The regulations may make provision for a protocol through which a

 

transferable benefits scheme may establish an agreement with a nominated

 

transfer scheme.

 

      (3)  

The regulations must ensure that where the duty to transfer qualifying

 

members’ benefits to a nominated transfer scheme, has arisen, the member

 

may opt out of the transfer or identify an alternative nominated transfer scheme

 

to which the members’ benefits will be transferred.’.

 

Greg McClymont

 

44

 

Schedule  16,  page  88,  line  25,  at end insert—


 
 

Notices of Amendments: 24 October 2013                  

1139

 

Pensions Bill, continued

 
 

‘Nominated transfer schemes: quality requirements and administration charges

 

10A(4)  

The regulations may impose requirements that must be satisfied by any

 

nominated transfer scheme.

 

      (5)  

The requirements may in particular relate to—

 

(a)    

the governance of the scheme;

 

(b)    

the administration of the scheme; and

 

(c)    

the certification of the scheme by the Regulator.

 

      (6)  

The regulations may make provision limiting or prohibiting any administration

 

charge that may otherwise be imposed on a member of an automatic transfer

 

scheme.

 

      (7)  

Regulations made because of sub-paragraph (3)—

 

(a)    

may make provision for the manner of, and criteria for, determining

 

whether an administration charge exceeds any limit or is prohibited;

 

and

 

(b)    

may provide for the determination to be made in accordance with

 

guidance issued from time to time by the Secretary of State.

 

      (8)  

The requirements that may be imposed, and the charges that may be limited or

 

prohibited, because of this paragraph need not relate to things done under the

 

regulations.’.

 

Greg McClymont

 

45

 

Schedule  16,  page  88,  leave out paragraphs 11 and 12.

 

Greg McClymont

 

46

 

Schedule  16,  page  89,  line  39,  leave out ‘an automatic’ and insert ‘a nominated’.

 

Greg McClymont

 

47

 

Schedule  16,  page  90,  line  1,  leave out ‘current’.

 

Greg McClymont

 

48

 

Schedule  16,  page  90,  line  2,  after ‘member’, insert ‘in a nominated transfer

 

scheme’.

 

Greg McClymont

 

49

 

Schedule  16,  page  90,  line  3,  leave out sub-paragraph (2).

 

Greg McClymont

 

50

 

Schedule  16,  page  91,  leave out line 11.

 

Greg McClymont

 

51

 

Schedule  16,  page  90,  line  21,  at end insert ‘“nominated transfer scheme” has the

 

meaning given by sub-paragraph 1(5);’.


 
 

Notices of Amendments: 24 October 2013                  

1140

 

Pensions Bill, continued

 
 

Greg McClymont

 

52

 

Schedule  16,  page  91,  leave out lines 36 and 37.

 

Greg McClymont

 

53

 

Clause  34,  page  18,  line  22,  at end insert—

 

‘(5)    

Regulations under this section shall not exempt entire classes of business or

 

businesses, such as small and medium-sized businesses, from automatic

 

enrolment.’.

 

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

 

Greg McClymont

 

NC8

 

To move the following Clause:—

 

‘(1)    

The Secretary of State 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.

 

(2)    

The Secretary of State must prepare and publish a report on the review within six

 

months of Royal Assent of this Act and must lay a copy of the report before

 

Parliament.’.

 

Fiduciary duty of imdependent trustees

 

Greg McClymont

 

NC9

 

To move the following Clause:—

 

‘(1)    

The Secretary of State may by regulations—

 

(a)    

require any pension scheme, which is not already overseen by

 

independent trustees, to appoint a board of independent trustees; and

 

(b)    

set out the powers and duties of a board appointed under paragraph (1)(a).

 

(2)    

Regulations under this section—

 

(a)    

shall be made by statutory instrument; and

 

(b)    

may not be made unless a draft has been laid before and approved by

 

resolution of each House of Parliament.

 

(3)    

The board of independent trustees shall have a fiduciary duty towards members

 

of the scheme overseen by them.

 

(4)    

The fiduciary duty set out in subsection (3) shall take precedence over any duty

 

to—

 

(a)    

the shareholders in, or

 

(b)    

other owners of,

 

    

the operators of the scheme.

 

(5)    

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 analagous

 

management board of any underaking operating a pension scheme.’.


 
 

Notices of Amendments: 24 October 2013                  

1141

 

Pensions Bill, continued

 
 

Promotion of good value in scheme size

 

Greg McClymont

 

NC10

 

To move the following Clause:—

 

‘(1)    

The fiduciary duty of pension scheme trustees shall include a duty to consider

 

whether the scheme has sufficient scale to deliver good value for members.

 

(2)    

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.

 

(3)    

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.

 

(4)    

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.

 

(5)    

The methodology set out in subsection (4) shall be kept under regular review and

 

revised when necessary, subject to further consultation and agreement from the

 

Secretary of State.’.

 

Decumulation

 

Greg McClymont

 

NC11

 

To move the following Clause:—

 

‘(1)    

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

 

annuity brokerage service or offer such a brokerage service itself.

 

(2)    

Pension schemes shall ensure that any brokerage service selected or provided

 

meets best practice in terms of providing members with—

 

(a)    

an assisted path through the annuity process;

 

(b)    

ensuring access to most annuity providers; and

 

(c)    

minimising costs.

 

(3)    

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

 

Pensions Regulator after public consultation.

 

(4)    

The standards set out in subsection (3) shall be reviewed every three years and, if

 

required, updated.’.

 

Caroline Lucas

 

54

 

Clause  42,  page  23,  line  7,  at end add—

 

‘“(czb)    

to promote, and to improve understanding of long-term and sustainable

 

investment amongst work-based pension schemes,”.’.


 
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Revised 25 October 2013