Session 2014 - 15
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Notices of Amendments:                               

16

 

, continued

 
 

(c)    

an occupational defined contributions scheme,

 

    

unless subsection (1A) provides for the scheme to be exempt.

 

(1A)    

A scheme is exempt from this section if it is—

 

(a)    

a scheme under which all the benefits that may be provided

 

are money purchase benefits,

 

(b)    

a scheme under which all the benefits that may be provided

 

are collective benefits,

 

(c)    

a scheme under which all the benefits that may be provided

 

are money purchase benefits or collective benefits, or

 

(d)    

a prescribed scheme or a scheme of a prescribed description.

 

(1B)    

Where—

 

(a)    

some of the benefits that may be provided under a scheme are

 

collective benefits and some are not, and

 

(b)    

the scheme does not fall within paragraph (c) or (d) of

 

subsection (1A),

 

    

the scheme is to be treated for the purposes of this Part as two separate

 

schemes, one relating to the collective benefits and the other relating

 

to the other benefits.”

 

14A(1)  

Section 87 (schedules of payments to money purchase schemes) is amended as

 

follows.

 

      (2)  

For subsection (1) substitute—

 

“(1)    

This section applies to an occupational pension scheme that is a

 

scheme under which —

 

(a)    

all the benefits that may be provided are money purchase

 

benefits, or

 

(b)    

all the benefits that may be provided are money purchase

 

benefits or collective benefits,

 

    

other than a scheme falling within a prescribed class or description.”

 

      (3)  

In subsection (2)(a), after “members of the scheme” insert “in respect of

 

money purchase benefits”.

 

      (4)  

In the heading, for “to money purchase schemes” substitute “in respect of

 

money purchase benefits under certain schemes”.

 

14B      

For the italic cross-heading above section 87 substitute “Schemes providing

 

money purchase benefits”.

 

14C      

In the heading to section 88 (schedules of payments to money purchase

 

schemes: supplementary), for “to money purchase schemes” substitute “in

 

respect of money purchase benefits under certain schemes”.”

 

Member’s explanatory statement

 

The text in new paragraphs 14A to 14C is taken from paragraphs 8 to 10 of Schedule 4 to the Bill,

 

which is left out by amendment 40.

 

Steve Webb

 

Schedule  1,  page  19,  line  40,  at end insert—

 

“““collective benefit” has the meaning given by section 19 of the Pension

 

Schemes Act 2014;””

 

Member’s explanatory statement

 

This text is taken from paragraph 13 of Schedule 4 to the Bill, which is left out by amendment 40.

 

The effect is unchanged.


 
 

Notices of Amendments:                               

17

 

, continued

 
 

Steve Webb

 

Schedule  1,  page  19,  line  44,  at end insert—

 

“““occupational”, in relation to a defined benefits scheme, shared risk

 

scheme or defined contributions scheme, means an occupational

 

pension scheme of that description;””

 

Member’s explanatory statement

 

This amends the Pensions Act 1995 to include definitions of terms used in amendment 31.

 

Steve Webb

 

Schedule  1,  page  20,  line  35,  at end insert—

 

“22A      

In section 17 (power of the Regulator to recover unpaid contributions), in

 

subsection (3)—

 

(a)    

in paragraph (b) of the definition of “due date”, for “to money

 

purchase schemes” substitute “in respect of money purchase benefits

 

under certain schemes”;

 

(b)    

in paragraph (a) of the definition of “employer contribution”, for “to

 

money purchase schemes” substitute “in respect of money purchase

 

benefits under certain schemes”.”

 

Member’s explanatory statement

 

This text is taken from paragraph 11 of Schedule 4 to the Bill, which is left out by amendment 40.

 

The effect is unchanged.

 

Steve Webb

 

Schedule  1,  page  21,  line  16,  leave out paragraphs 24 to 28 and insert—

 

“24      

In section 38 (contribution notices where avoidance of employer debt), for

 

subsection (1) substitute—

 

“(1)    

This section applies in relation to a pension scheme that is—

 

(a)    

an occupational defined benefits scheme,

 

(b)    

an occupational shared risk scheme, or

 

(c)    

an occupational defined contributions scheme,

 

    

unless subsection (1A) provides for the scheme to be exempt.

 

(1A)    

A scheme is exempt from this section if it is—

 

(a)    

a scheme under which all the benefits that may be provided

 

are money purchase benefits,

 

(b)    

a scheme under which all the benefits that may be provided

 

are collective benefits,

 

(c)    

a scheme under which all the benefits that may be provided

 

are money purchase benefits or collective benefits, or

 

(d)    

a prescribed scheme or a scheme of a prescribed description.

 

(1B)    

Where—

 

(a)    

some of the benefits that may be provided under a scheme are

 

collective benefits and some are not, and

 

(b)    

the scheme does not fall within paragraph (c) or (d) of

 

subsection (1A),

 

    

the scheme is to be treated for the purposes of this section and sections

 

38A to 42 as two separate schemes, one relating to the collective

 

benefits and the other relating to the other benefits.”

 

25  (1)  

Section 43 (financial support directions) is amended as follows.


 
 

Notices of Amendments:                               

18

 

, continued

 
 

      (2)  

For subsection (1) substitute—

 

“(1)    

This section applies in relation to a pension scheme that is—

 

(a)    

an occupational defined benefits scheme,

 

(b)    

an occupational shared risk scheme, or

 

(c)    

an occupational defined contributions scheme,

 

    

unless subsection (1A) provides for the scheme to be exempt.

 

(1A)    

A scheme is exempt from this section if it is—

 

(a)    

a scheme under which all the benefits that may be provided

 

are money purchase benefits,

 

(b)    

a scheme under which all the benefits that may be provided

 

are collective benefits,

 

(c)    

a scheme under which all the benefits that may be provided

 

are money purchase benefits or collective benefits, or

 

(d)    

a prescribed scheme or a scheme of a prescribed description.

 

(1B)    

Where—

 

(a)    

some of the benefits that may be provided under a scheme are

 

collective benefits and some are not, and

 

(b)    

the scheme does not fall within paragraph (c) or (d) of

 

subsection (1A),

 

    

the scheme is to be treated for the purposes of this section and sections

 

43A to 51 as two separate schemes, one relating to the collective

 

benefits and the other relating to the other benefits.”

 

      (3)  

In subsection (2), for “such a scheme” substitute “a scheme to which this

 

section applies”.

 

26         

In section 52 (restoration orders where transactions at an undervalue), for

 

subsection (1) substitute—

 

“(1)    

This section applies in relation to a pension scheme that is—

 

(a)    

an occupational defined benefits scheme,

 

(b)    

an occupational shared risk scheme, or

 

(c)    

an occupational defined contributions scheme,

 

    

unless subsection (1A) provides for the scheme to be exempt.

 

(1A)    

A scheme is exempt from this section if it is—

 

(a)    

a scheme under which all the benefits that may be provided

 

are money purchase benefits,

 

(b)    

a scheme under which all the benefits that may be provided

 

are collective benefits,

 

(c)    

a scheme under which all the benefits that may be provided

 

are money purchase benefits or collective benefits, or

 

(d)    

a prescribed scheme or a scheme of a prescribed description.

 

(1B)    

Where—

 

(a)    

some of the benefits that may be provided under a scheme are

 

collective benefits and some are not, and

 

(b)    

the scheme does not fall within paragraph (c) or (d) of

 

subsection (1A),

 

    

the scheme is to be treated for the purposes of this section and sections

 

53 to 56 as two separate schemes, one relating to the collective

 

benefits and the other relating to the other benefits.””


 
 

Notices of Amendments:                               

19

 

, continued

 
 

27         

In section 90 (codes of practice), in subsection (2)(i), for “money purchase

 

schemes” substitute “certain schemes”.

 

28         

In section 126 (schemes eligible for pension protection), for subsection (1)

 

substitute—

 

“(1)    

Subject to the following provisions of this section, in this Part

 

references to an “eligible scheme” are to a pension scheme that is—

 

(a)    

an occupational defined benefits scheme,

 

(b)    

an occupational shared risk scheme, or

 

(c)    

an occupational defined contributions scheme.

 

(1A)    

A scheme is not an eligible scheme if it is—

 

(a)    

a scheme under which all the benefits that may be provided

 

are money purchase benefits,

 

(b)    

a scheme under which all the benefits that may be provided

 

are collective benefits,

 

(c)    

a scheme under which all the benefits that may be provided

 

are money purchase benefits or collective benefits, or

 

(d)    

a prescribed scheme or a scheme of a prescribed description.

 

(1B)    

Where—

 

(a)    

some of the benefits that may be provided under a scheme are

 

collective benefits and some are not, and

 

(b)    

the scheme does not fall within paragraph (c) or (d) of

 

subsection (1A),

 

    

the scheme is to be treated for the purposes of this Part as two separate

 

schemes, one relating to the collective benefits and the other relating

 

to the other benefits.”

 

28A      

For section 221 (application of scheme funding rules) substitute—

 

“221  

Pension schemes to which this Part applies

 

(1)    

The provisions of this Part apply to a pension scheme that is—

 

(a)    

an occupational defined benefits scheme,

 

(b)    

an occupational shared risk scheme, or

 

(c)    

an occupational defined contributions scheme,

 

    

unless subsection (2) provides for the scheme to be exempt.

 

(2)    

A scheme is exempt from this Part if it is—

 

(a)    

a scheme under which all the benefits that may be provided

 

are money purchase benefits,

 

(b)    

a scheme under which all the benefits that may be provided

 

are collective benefits,

 

(c)    

a scheme under which all the benefits that may be provided

 

are money purchase benefits or collective benefits, or

 

(d)    

a prescribed scheme or a scheme of a prescribed description.

 

(3)    

Where—

 

(a)    

some of the benefits that may be provided under a scheme are

 

collective benefits and some are not, and

 

(b)    

the scheme does not fall within paragraph (c) or (d) of

 

subsection (2),


 
 

Notices of Amendments:                               

20

 

, continued

 
 

    

the scheme is to be treated for the purposes of this Part as two separate

 

schemes, one relating to the collective benefits and the other relating

 

to the other benefits.

 

(4)    

Regulations under subsection (2)(d) may provide for exemptions from

 

all or any of the provisions of this Part, but for the purposes of

 

subsection (3)(b) a scheme falls within subsection (2)(d) only if it is

 

exempt from all of the provisions of this Part.””

 

Member’s explanatory statement

 

The text is partly taken from paragraphs 6 and 7 of Schedule 4. It also amends the Pensions Act

 

2004 to set out how certain powers of the Pensions Regulator apply in respect of collective benefits

 

and makes it clear how the new scheme categories apply in relation to scheme funding and PPF

 

eligibility.

 

Steve Webb

 

Schedule  1,  page  22,  line  9,  leave out “in subsection (1)” and insert “subsection (1)

 

is amended as follows.

 

      ( )  

At the appropriate places insert—

 

““collective benefit” has the meaning given by section 19 of the Pension

 

Schemes Act 2014;””

 

““defined benefits scheme” has the meaning given by section 2 of the

 

Pension Schemes Act 2014;”

 

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

 

the Pension Schemes Act 2014;”

 

““occupational”, in relation to a defined benefits scheme, shared risk

 

scheme or defined contributions scheme, means an occupational

 

pension scheme of that description;”

 

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

 

Schemes Act 2014;”.”

 

Member’s explanatory statement

 

This amends the Pensions Act 2004 to include definitions of terms used in amendment 35.

 

Steve Webb

 

That Schedule 1 be transferred to the end of line 29 on page 32

 

Member’s explanatory statement

 

The Bill needs restructuring in light of the proposed Government amendments. There are a number

 

of motions to transfer provisions around. Collectively they are designed to move Part 2 of the Bill

 

to after Part 3 and to move clause 8 and Schedule 1 to the end of what is currently Part 2.

 

Steve Webb

 

Schedule  2,  page  26,  line  40,  at end insert—

 

“( )    

A benefit of the kind mentioned in section 83(1)(a) that is a collective benefit

 

must be revalued using the default method.”

 

Member’s explanatory statement

 

This amendment means that the default method is to be used when revaluing a collective benefit.

 

Steve Webb

 

Schedule  2,  page  26,  line  41,  after “section 83(1)(a)” insert “that is not a collective

 

benefit”

 

Member’s explanatory statement


 
 

Notices of Amendments:                               

21

 

, continued

 
 

This amendment means that a collective benefit can only be revalued by the default method. It is

 

consequential on amendment 37.

 

Steve Webb

 

Schedule  2,  page  26,  line  42,  after “with” insert “the following provisions of”

 

Member’s explanatory statement

 

This is consequential on amendment 37. It does not alter the meaning.

 

Steve Webb

 

Page  32,  line  30,  leave out Schedule 4

 

Member’s explanatory statement

 

Many of the amendments made by Schedule 4 are added back in to other places in the Bill.

 


 
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