Session 2014 - 15
Internet Publications
Other Bills before Parliament


 
 

9

 

House of Commons

 
 

Notices of Amendments

 

given on

 

Tuesday 14 October 2014

 

For other Amendment(s) see the following page(s):

 

Pension Schemes Bill Committee 1-7

 

Public Bill Committee


 

Pension Schemes Bill


 

Resolution of the Programming Sub-Committee

 

The Programming Sub-Committee appointed by the Speaker in respect of the Bill

 

agreed the following Resolution at its meeting on Tuesday 14 October (Standing Order

 

No. 83C):

 

That—

 

(1)  

the Committee shall (in addition to its first meeting at 8.55 a.m. on Tuesday

 

21 October) meet—

 

(a)  

at 2.00 pm on Tuesday 21 October;

 

(b)  

at 11.30 am and 2.00 pm on Thursday 23 October;

 

(c)  

at 9.25 am and 2.00 pm on Tuesday 28 October;

 

(d)  

at 11.30 am and 2.00 pm on Thursday 30 October;

 

(e)  

at 9.25 am and 2.00 pm on Tuesday 4 November;

 

(f)  

at 11.30 am and 2.00 pm on Thursday 6 November;

 

(2)  

the Committee shall hear oral evidence in accordance with the following

 

Table:

 

TABLE

 

Date

Time

Witness

 
 

Tuesday 21 October

Until no later than

The Pensions Regulator

 
  

9.30 am

  
 

Tuesday 21 October

Until no later than

Pension Protection Fund;

 
  

10.15 am

Financial Conduct Authority

 
 

Tuesday 21 October

Until no later than

Pensions Advisory Service;

 
  

11.00 am

Money Advice Service

 
 

Tuesday 21 October

Until no later than

Royal Society of Arts;

 
  

3.00 pm

Cardano; First Actuarial;

 
   

KPMG

 
 

Tuesday 21 October

Until no later than

Aon Hewitt; Financial

 
  

4.00 pm

Services Consumer Panel;

 
   

Confederation of British

 
   

Industry

 
 

Thursday 23

Until no later than

Mr Dominic Lindley; Which?;

 
 

October

12.15 pm

Trades Union Congress

 
 

Thursday 23

Until no later than

Pensions Policy Institute;

 
 

October

1.00 pm

Dr Ros Altmann; Age UK

 
 

Thursday 23

Until no later than

Association of British

 
 

October

3.00 pm

Insurers; Dr Debbie Harrison;

 
   

National Association of

 
   

Pension Funds

 
 

Thursday 23

Until no later than

Mr John Greenwood;

 
 

October

4.00 pm

Strategic Society Centre;

 
   

Towers Watson

 
 

Thursday 23

Until no later than

Department for Work and

 
 

October

4.45 pm

Pensions

 

 
 

Notices of Amendments:                               

10

 

, continued

 
 

(3)  

proceedings on consideration of the Bill in Committee shall be taken in the

 

following order: Clauses 1 to 8; Schedule 1; Clauses 9 to 12; Schedule 2;

 

Clause 13; Schedule 3, Clauses 14 to 37, Schedule 4; Clauses 38 to 45; 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 p.m. on Thursday 6 November.

 

Steve Webb has given notice of his intention to move a motion in the terms of the

 

Resolution of the Programming Sub-Committee (Standing Order No. 83C).

 

Steve Webb

 

Clause  8,  page  4,  line  23,  leave out “that use expressions defined by this Part” and

 

insert “to do with Parts 1 and 3”.

 

Member’s explanatory statement

 

The amendment changes the words used to describe Schedule 1 to the Bill. This is necessary given

 

other material that is being inserted into Schedule 1.

 

Steve Webb

 

That clause 8 be transferred to the end of line 6 on page 15

 

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.


 
 

Notices of Amendments:                               

11

 

, continued

 
 

Steve Webb

 

Clause  9,  page  4,  line  36,  leave out paragraph (b)

 

Member’s explanatory statement

 

This amendment removes the power to confer functions on a specified person in connection with

 

the enforcement of regulations made under clause 9. This is because there are existing powers that

 

are considered sufficient and appropriate to deal with enforcement in relation to any breaches of

 

those regulations.

 

Steve Webb

 

Clause  9,  page  4,  line  43,  at end insert—

 

““trustees or managers” means—

 

(a)    

in relation to a scheme established under a trust, the trustees, and

 

(b)    

in relation to any other scheme, the managers.”

 

Member’s explanatory statement

 

This amendment inserts a definition of “trustees or managers” to clarify that regulations made

 

under clause 9 may impose obligations on trustees in the context of a trust-based scheme, and on

 

managers in the context of a scheme not established under trust.

 

Steve Webb

 

Clause  11,  page  5,  line  42,  leave out “non-salary related benefit,”.” and insert

 

“benefit falling within subsection (1A),”;

 

(b)    

after subsection (1) insert—

 

“(1A)    

The following fall within this subsection—

 

(a)    

collective benefits;

 

(b)    

benefits calculated otherwise than by reference to the

 

member’s salary.””

 

Member’s explanatory statement

 

This amendment makes it clear that collective benefits are subject to the 30 day preservation rule

 

for the purposes of obtaining short service benefit.

 

Steve Webb

 

Clause  11,  page  6,  line  15,  leave out paragraph (c)

 

Member’s explanatory statement

 

This is consequential on amendment 9.

 

Steve Webb

 

Clause  11,  page  6,  line  47,  at end insert—

 

“( )    

In section 74 (computation of short service benefit), in subsections (3) and (4),

 

after “so much of any benefit” insert “, other than collective benefit,”.”

 

Member’s explanatory statement

 

As a general rule schemes are required to provide for short service benefits to be computed on the

 

same basis as long service benefit. In cases where this doesn‘t apply benefits are subject to a

 

uniform accrual rule. This amendment ensures collective benefits will not be subject to the uniform

 

accrual requirements


 
 

Notices of Amendments:                               

12

 

, continued

 
 

Steve Webb

 

Clause  18,  page  8,  line  35,  at end insert—

 

“( )    

In section 67 (the subsisting rights provisions)—

 

(a)    

in subsection (3), omit paragraph (b) and the “or” before it;

 

(b)    

after subsection (3) insert—

 

“(3A)    

Regulations may provide for cases in which the subsisting rights

 

provisions do not apply.””

 

Member’s explanatory statement

 

This amendment relates to the subsisting rights provisions. The amendment replaces the existing

 

regulation making power with a broader power to provide for cases in which the subsisting rights

 

provisions do not apply, so for example, in relation to collective benefits.

 

Steve Webb

 

Clause  18,  page  9,  line  3,  at end insert—

 

“(ab)    

on taking effect would or might result in any subsisting right of

 

a member of the scheme which is a right to retirement income in

 

respect of which there is a pensions promise becoming, or being

 

replaced with, a right to benefits other than retirement income,

 

(ac)    

on taking effect would or might result in any subsisting right

 

of—

 

(i)    

a member of the scheme, or

 

(ii)    

a survivor of a member of the scheme,

 

    

being replaced with a right or entitlement to collective benefits

 

under the scheme rules,”.”

 

Member’s explanatory statement

 

The amendment relates to the subsisting rights provisions so that any proposal to modify a scheme

 

which would or might replace a right to income with a right to a non-income benefit would be a

 

protected modification. The text in (ab) is taken from paragraph 3(2) of Schedule 4 to the Bill,

 

which is left out by amendment 40.

 

Steve Webb

 

Clause  18,  page  9,  line  3,  at end insert—

 

“( )    

In subsection (3)(b) of that section, after “rules” insert “, other than a pension that

 

is a collective benefit”.”

 

Member’s explanatory statement

 

This text is taken from paragraph 3(3) of Schedule 4 to the Bill, which is left out by amendment 40.

 

The effect is unchanged.

 

Steve Webb

 

Clause  18,  page  9,  line  4,  after “(aa)” insert “, (ab), (ac)”

 

Member’s explanatory statement

 

This is consequential on amendment 13.

 

Steve Webb

 

Clause  18,  page  9,  line  5,  leave out “place” and insert “places”

 

Member’s explanatory statement

 

This paves the way for amendment 17.


 
 

Notices of Amendments:                               

13

 

, continued

 
 

Steve Webb

 

Clause  18,  page  9,  line  8,  at end insert—

 

“““retirement income” has the meaning given by section 7 of the Pension

 

Schemes Act 2014;”.”

 

Member’s explanatory statement

 

This defines “retirement income”, which is used in amendment 13.

 

Steve Webb

 

That clauses 9 to 18 be transferred to the end of line 6 on page 15

 

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

 

Clause  32,  page  14,  line  4,  leave out “the scheme” and insert “an”

 

Member’s explanatory statement

 

The purpose of this amendment and amendments 20, 21, 22, 23 and 24 is to replace references in

 

clause 32 to “the scheme actuary” with references to “an actuary”. This follows the approach

 

taken in clauses 20 and 26. Amendment 19 is also related as it is about the actuary’s qualifications.

 

Steve Webb

 

Clause  32,  page  14,  line  5,  at end insert—

 

“( )    

The regulations may, in particular, require the trustees or managers to obtain the

 

advice from an actuary who has specified qualifications or meets other specified

 

requirements.”

 

Member’s explanatory statement

 

This amendment gives a power to require trustees or managers to obtain advice from an actuary

 

who has certain qualifications or who meets other requirements before making certain decisions

 

or taking certain steps.

 

Steve Webb

 

Clause  32,  page  14,  line  7,  leave out “the scheme” and insert “an”

 

Member’s explanatory statement

 

See explanatory statement to amendment 18.

 

Steve Webb

 

Clause  32,  page  14,  line  8,  leave out “those matters” and insert “matters in

 

accordance with the regulations”

 

Member’s explanatory statement

 

See explanatory statement to amendment 18.

 

Steve Webb

 

Clause  32,  page  14,  line  9,  leave out “the scheme” and insert “an”

 

Member’s explanatory statement

 

See explanatory statement to amendment 18.


 
 

Notices of Amendments:                               

14

 

, continued

 
 

Steve Webb

 

Clause  32,  page  14,  line  10,  leave out “those matters” and insert “matters in

 

accordance with the regulations”

 

Member’s explanatory statement

 

See explanatory statement to amendment 18.

 

Steve Webb

 

Clause  32,  page  14,  line  11,  leave out subsection (3)

 

Member’s explanatory statement

 

See explanatory statement to amendment 18.

 

Steve Webb

 

Clause  35,  page  14,  line  21,  leave out paragraph (a)

 

Member’s explanatory statement

 

This amendment removes the power to confer functions on a specified person in connection with

 

the enforcement of regulations made under Part 3. This is because there are existing powers that

 

are considered sufficient and appropriate to deal with enforcement in relation to any breaches of

 

those regulations.

 

Steve Webb

 

Clause  36,  page  14,  line  38,  at end insert—

 

““trustees or managers” means—

 

(c)    

in relation to a scheme established under a trust, the trustees, and

 

(d)    

in relation to any other scheme, the managers;”

 

Member’s explanatory statement

 

This amendment inserts a definition of “trustees or managers” to clarify that regulations made

 

under Part 3 may impose obligations on trustees in the context of a trust-based scheme, and on

 

managers in the context of a scheme not established under trust.

 

Steve Webb

 

Page  15,  line  5,  leave out Clause 37

 

Member’s explanatory statement

 

This amendment leaves out clause 37. Clause 37 introduces Schedule 4 but is no longer needed

 

because Schedule 4 is itself being left out - see amendment 40. Many of the amendments made by

 

Schedule 4 are added back in to Schedule 1 or other places in the Bill.

 

Steve Webb

 

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

 

“( )    

Section (Pension sharing and normal benefit age) comes into force on 1 April

 

2015.”

 

Member’s explanatory statement

 

This ensures that the new clause relating to pension sharing and normal benefit age (NC4) comes

 

into force on 1 April 2015.

 

Steve Webb

 

NC6

 

To move the following Clause—


 
 

Notices of Amendments:                               

15

 

, continued

 
 

“Collective benefits exempt from indexation

 

(1)    

In section 51 of the Pensions Act 1995 (annual increase in rate of pension)—

 

(a)    

in subsection (1), for “Subject to subsections (6) and (7)” substitute

 

“Subject to subsections (6) to (7A)”;

 

(b)    

after subsection (7) insert—

 

“(7A)    

This section does not apply to any pension, or part of a pension,

 

that is a collective benefit.”

 

(2)    

Omit section 21(2) of the Pensions Act 2011, which is no longer needed given

 

subsection (1).”

 

Member’s explanatory statement

 

This text is taken from paragraphs 1 and 2 of Schedule 4 to the Bill, which is left out by amendment

 

40. The effect is unchanged.

 

Steve Webb

 

Schedule  1,  page  19,  line  2,  at end insert “, or

 

(c)    

a shared risk scheme under which all the benefits that may be provided

 

are money purchase benefits or collective benefits.”

 

Member’s explanatory statement

 

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

 

The effect is unchanged.

 

Steve Webb

 

Schedule  1,  page  19,  line  4,  at end insert—

 

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

 

Schemes Act 2014;””

 

Member’s explanatory statement

 

This amendment inserts the definition of a collective benefit for the purposes of the Pension

 

Schemes Act 1993.

 

Steve Webb

 

Schedule  1,  page  19,  line  24,  leave out paragraphs 13 and 14 and insert—

 

“13      

In section 73 (preferential liabilities on winding up), for subsection (2)

 

substitute—

 

“(2)    

This section applies 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 (2A) provides for the scheme to be exempt.

 

(2A)    

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, or

 

(b)    

a prescribed scheme or a scheme of a prescribed description.”

 

14         

In section 75 (employer debt where deficiency in assets on winding up etc), 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


 
contents continue
 

© Parliamentary copyright
Revised 15 October 2014