Session 2014 - 15
Internet Publications
Other Bills before Parliament


 
 

1

 

House of Commons

 
 

Notices of Amendments

 

given on

 

Thursday 11 September 2014

 

Public Bill Committee


 

Pension Schemes Bill


 

Steve Webb

 

1

 

Clause  41,  page  16,  line  15,  leave out “or repeal” and insert “, repeal or otherwise

 

modify”

 

Member’s explanatory statement

 

This amendment ensures that where regulations under clause 40 make consequential provision

 

modifying primary legislation the regulations will be subject to the affirmative procedure.

 

Steve Webb

 

2

 

Clause  43,  page  17,  line  5,  at end insert—

 

“( )    

Section (Extension to Scotland of certain provisions about same sex marriage)

 

extends to Scotland only.”

 

Member’s explanatory statement

 

The effect of this amendment is that the new clause inserted by amendment NC1 extends to

 

Scotland only.

 

Steve Webb

 

3

 

Clause  44,  page  17,  line  9,  at end insert—

 

“( )    

Sections (Judicial pensions: pension sharing on divorce etc) and (Pension

 

scheme for fee-paid judges) and Schedule (Amendments to do with section

 

(Pension scheme for fee-paid judges)) come into force on the day on which this

 

Act is passed.”

 

Member’s explanatory statement

 

This ensures that the amendments relating to judicial pensions come into force on the day on which

 

the Bill receives Royal Assent.

 



 
 

Notices of Amendments: 11 September 2014                

2

 

Pension Schemes Bill, continued

 
 

Steve Webb

 

4

 

Schedule  2,  page  26,  line  12,  at end insert—

 

“( )    

Where this Chapter applies in relation to a benefit payable by virtue of

 

a pension credit right, then—

 

(a)    

if entitlement to the relevant pension credit arose before the

 

2014 Act commencement date, the benefit is to be treated for

 

the purposes of sections 84(1) and 84B(1) as attributable to

 

pensionable service before that date;

 

(b)    

if entitlement to the relevant pension credit arose on or after

 

the 2014 Act commencement date, the benefit is to be treated

 

for the purposes of sections 84(1) and 84B(1) as attributable

 

to pensionable service on or after that date.”

 

Member’s explanatory statement

 

For occupational schemes the new revaluation rules in Schedule 2 depend on when the member’s

 

pensionable service took place. For benefits derived from pension sharing on divorce, this

 

amendment will mean that the revaluation rules depend on when the pension was shared rather

 

than when the pensionable service took place.

 

Steve Webb

 

5

 

Schedule  3,  page  32,  line  29,  at end insert—

 

“Pension credits: transfer values

 

10         

Chapter 2 of Part 4A of the Pension Schemes Act 1993 (pension credit benefit:

 

transfer values) is amended as follows.

 

11         

In section 101F (power to give transfer notice), in subsection (4)(a), for “salary

 

related occupational pension scheme” substitute “scheme to which section

 

101H applies”.

 

12         

In section 101G (restrictions on power to give transfer notice), in subsection

 

(1), for “salary related occupational pension scheme” substitute “scheme to

 

which section 101H applies”.

 

13  (1)  

Section 101H (salary related schemes: statements of entitlement) is amended

 

as follows.

 

      (2)  

For subsection (1) substitute—

 

“(1)    

This section applies to a qualifying scheme that is—

 

(a)    

a defined benefits scheme,

 

(b)    

a shared risk scheme, or

 

(c)    

a defined contributions scheme that is not a scheme under

 

which all the benefits that may be provided are money

 

purchase benefits,

 

    

other than a scheme that falls within a prescribed class.

 

(1A)    

The trustees or managers of a scheme to which this section applies

 

must, on the application of any eligible member, provide the member

 

with a written statement of the amount of the cash equivalent of the

 

member’s pension credit benefit under the scheme.”

 

      (3)  

In subsections (2) and (3), for “(1)” substitute “(1A)”.

 

      (4)  

In subsection (4)—

 

(a)    

for “to whom subsection (1)” substitute “of a scheme to which this

 

section”;


 
 

Notices of Amendments: 11 September 2014                

3

 

Pension Schemes Bill, continued

 
 

(b)    

for “that subsection” substitute “subsection (1A)”.

 

      (5)  

In the heading, for “Salary related schemes” substitute “Schemes with a

 

promise or target”.

 

14  (1)  

Section 101J (time for compliance with transfer notice) is amended as follows.

 

      (2)  

In subsection (1), for paragraphs (a) and (b) substitute—

 

“(a)    

in the case of a scheme to which section 101H applies, within

 

6 months of the valuation date, and

 

(b)    

in the case of any other scheme, within 6 months of the date

 

on which the notice is given.”

 

      (3)  

For subsection (7) substitute—

 

“(7)    

In subsection (1)(a), “valuation date” means the date by reference to

 

which the amount shown in the relevant statement under section 101H

 

is determined.”

 

15  (1)  

Section 101P (interpretation) is amended as follows.

 

      (2)  

Omit subsection (2).

 

      (3)  

In subsection (3), for “salary related occupational pension scheme” substitute

 

“scheme to which that section applies”.”

 

Member’s explanatory statement

 

Schedule 3 to the Bill makes changes to the general rules about transfers from one pension scheme

 

to another (for reasons related to the new definitions in Part 1). This amendment makes similar

 

changes for cases where benefits are derived from pension sharing on divorce.

 


 

Steve Webb

 

NC1

 

To move the following Clause—

 

“Extension to Scotland of certain provisions about same sex marriage

 

Sections 17(11), 24D(5), 37(7) and 38A of the Pension Schemes Act 1993

 

(regulations about relevant gender change cases) extend to Scotland.”

 

Member’s explanatory statement

 

This amendment extends certain provisions in the Pension Schemes Act 1993, that were inserted

 

by the Marriage (Same Sex Couples) Act 2013, to Scotland to allow regulations made under

 

section 38A of the Pension Schemes Act to extend to Scotland.

 

Steve Webb

 

Nc2

 

To move the following Clause—

 

“Judicial pensions: pension sharing on divorce etc

 

In paragraph 1(5) of Schedule 2A to the Judicial Pensions and Retirement Act

 

1993 (pension credits), for the words from “in respect of the office” to the end

 

substitute “in respect of the rights from which the pension credit is derived”.”

 

Member’s explanatory statement

 

This corrects paragraph 1(5) of Schedule 2A to the Judicial Pensions and Retirement Act 1993,

 

which is about funding of pensions shared on divorce etc. The amendment ensures that the Act

 

works for cases where pension sharing is activated after a person has left judicial office.


 
 

Notices of Amendments: 11 September 2014                

4

 

Pension Schemes Bill, continued

 
 

Steve Webb

 

NC3

 

To move the following Clause—

 

“Pension scheme for fee-paid judges

 

(1)    

In the Judicial Pensions and Retirement Act 1993, after Part 1 insert—

 

“PART 1A

 

Fee-paid judges

 

1      

Pension scheme for fee-paid judges

 

(1)    

The appropriate Minister may by regulations establish a scheme for the

 

payment of pensions and other benefits to or in respect of fee-paid judges.

 

(2)    

The scheme may make provision for payments to or in respect of a person

 

in relation to the person’s service before the scheme is established.

 

(3)    

No benefits are to be provided under a new public service pension

 

scheme in relation to service in relation to which benefits are to be

 

provided under a scheme under this section.

 

    

“New public service pension scheme” means a scheme under—

 

(a)    

section 1 of the Public Service Pensions Act 2013, or

 

(b)    

section 1 of the Public Service Pensions Act (Northern Ireland)

 

2014 (c. 2).

 

(4)    

Regulations under this section may, in particular, include provision

 

corresponding or similar to—

 

(a)    

any provision made by Part 1, section 20 or Schedule 2 or 2A;

 

(b)    

any provision that may be made by regulations under Part 1,

 

section 20 or Schedule 2 or 2A.

 

(5)    

In this section—

 

“judge” means a person who holds an office specified in the regulations;

 

“fee-paid judge” means a judge whose service is remunerated by the

 

payment of fees (as opposed to the payment of a salary).”

 

(2)    

Schedule (Amendments to do with section (Pension scheme for fee-paid judges))

 

contains related amendments.”

 

Member’s explanatory statement

 

This clause allows a pension scheme to be established for fee-paid judges, as required by case law.

 

It is aimed at old and transitional cases. Pensions for fee-paid judges will in future be governed by

 

a new scheme under the recent public service pensions legislation.

 

Steve Webb

 

NC4

 

To move the following Clause—

 

“Pension sharing and normal benefit age

 

(3)    

The Pension Schemes Act 1993 is amended as follows.

 

(4)    

In section 101B (interpretation), for the definition of “normal benefit age”

 

substitute—

 

““normal benefit age”, in relation to a pension credit benefit for a member

 

of a scheme, is the earliest age at which the member is entitled to receive

 

the benefit without adjustment for taking it early or late (disregarding any


 
 

Notices of Amendments: 11 September 2014                

5

 

Pension Schemes Bill, continued

 
 

special provision as to early payment on the grounds of ill-health or

 

otherwise);

 

“normal pension age”, in relation to a benefit for a member of a scheme,

 

means the earliest age at which the member is entitled to receive the

 

benefit without adjustment for taking it early or late (disregarding any

 

special provision as to early payment on the grounds of ill-health or

 

otherwise);”.

 

(5)    

In section 101C (basic principle as to pension credit benefit), for subsection (1)

 

substitute—

 

“(1)    

The normal benefit age in relation to a pension credit benefit for a

 

member of a scheme—

 

(a)    

must not be lower than 60, and

 

(b)    

must not be higher than the permitted maximum.

 

(1A)    

The “permitted maximum” is 65 or, if higher, the highest normal pension

 

age for any benefit that is payable under the scheme to or in respect of

 

any of the members by virtue of rights which are not attributable (directly

 

or indirectly) to a pension credit.””

 

Member’s explanatory statement

 

This amendment allows schemes to increase beyond 65 the age at which a pension shared on

 

divorce can first be put into payment but only if the scheme has a normal pension age above 65 for

 

any benefits payable under the scheme.

 

Steve Webb

 

NC5

 

To move the following Clause—

 

“Duty to act in the best interests of members

 

(6)    

Regulations may impose a duty on the managers of a relevant non-trust based

 

scheme to act in the best interests of members when taking decisions of a

 

specified description.

 

(7)    

In this section “relevant non-trust based scheme” means a non-trust based scheme

 

that is—

 

(a)    

a shared risk scheme, or

 

(b)    

a defined contributions scheme under which any of the benefits that may

 

be provided are collective benefits.

 

(8)    

Regulations under this section—

 

(a)    

may provide for the duty to act in the best interests of members to

 

override obligations that are inconsistent with that duty (including

 

obligations imposed by any instrument, enactment or rule of law), but

 

(b)    

do not otherwise affect any duty that might arise apart from this section.

 

(9)    

Regulations under this section may provide for the consequences of a manager

 

breaching (or threatening to breach) the duty to act in the best interests of

 

members to be the same as the consequences of breaching (or threatening to

 

breach) a fiduciary duty owed by the manager to the members and, accordingly,

 

for the duty to be enforceable in the same way as a fiduciary duty.

 

(10)    

In this section—

 

“collective benefit” has the meaning given by section 19;

 

“defined contributions scheme” has the meaning given by section 4;

 

“non-trust based scheme” means a scheme that is not established under a

 

trust;

 

“shared risk scheme” has the meaning given by section 3.”


 
 

Notices of Amendments: 11 September 2014                

6

 

Pension Schemes Bill, continued

 
 

Member’s explanatory statement

 

This amendment inserts a new power to make regulations which may impose a duty on managers

 

of non-trust based schemes to act in members’ best interests when taking certain specified

 

decisions. This duty may apply in relation to shared-risk schemes and schemes providing collective

 

benefits.

 


 

Steve Webb

 

NS1

 

To move the following Schedule—

 

“Amendments to do with section (Pension scheme for fee-paid judges)

 

Pensions (Increase) Act 1971 (c. 56)

 

16         

The Pensions (Increase) Act 1971 is amended as follows.

 

17         

In section 19(2)(a) (extent to Northern Ireland)—

 

(a)    

after “or section” insert “18A or”, and

 

(b)    

after “section 10 of that Act” insert “or provision made under section

 

18A of that Act that is corresponding or similar to the provision that

 

may be made by regulations under section 10 of that Act”.

 

18         

In Schedule 2 (official pensions), after paragraph 4A insert—

 

“4AA      

A pension payable under a scheme made under section 18A of the

 

Judicial Pensions and Retirement Act 1993, other than a pension

 

payable under or by virtue of provision that is corresponding or

 

similar to the provision that may be made by regulations under

 

section 10 of that Act.”

 

Judicial Pensions and Retirement Act 1993 (c. 8)

 

19         

The Judicial Pensions and Retirement Act 1993 is amended as follows.

 

20         

In section 22 (application of the Pensions (Increase) Act 1971 to Northern

 

Ireland), in subsection (2)—

 

(a)    

after “shall include” insert “—

 

(a)    

”;

 

(b)    

at the end insert “; and

 

(b)    

pensions payable under a scheme made under section

 

18A above, other than pensions payable under or by

 

virtue of provision that is corresponding or similar to

 

the provision that may be made by regulations under

 

section 10 above.”

 

21  (1)  

Section 28 (funding arrangements) is amended as follows.,

 

      (2)  

In subsection (2) (benefits payable out of money provided by Parliament), after

 

paragraph (a) (but before the “and” at the end) insert—

 

“(aa)    

any pension or other benefits payable under a scheme made

 

under section 18A above;”.

 

      (3)  

In subsection (7), for “section 10 above” substitute “—

 

(a)    

section 10 above, or


 
 

Notices of Amendments: 11 September 2014                

7

 

Pension Schemes Bill, continued

 
 

(b)    

provision made under section 18A above that is

 

corresponding or similar to the provision that may be made by

 

regulations under section 10 above.”

 

22         

In section 28A (contributions in respect of Northern Ireland judges), at the end

 

insert “or as a fee-paid judge in Northern Ireland (within the meaning given by

 

section 18A)”.”

 

Member’s explanatory statement

 

These amendments in this new Schedule relate to the pension scheme for fee-paid judges - see

 

amendment NC3. Among other things, they deal with inflation increases.

 


 
contents
 

© Parliamentary copyright
Revised 12 September 2014