House of Commons Amendments

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



© Parliamentary copyright	Revised 15 October 2014