House of Commons Amendments

Session 2014 - 15
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Other Bills before Parliament

141

House of Commons

Tuesday 28 October 2014

Public Bill Committee

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Pension Schemes Bill

Note

The Amendments have been arranged in accordance with the Order of the

Committee [21 October 2014].

Steve Webb

Clause  5,  page  3,  line  4,  after “circumstances” insert “and meets any other

requirements that may be specified in regulations”

Member’s explanatory statement

Under clause 5(6), discretions to vary the benefit which are only capable of being used for reasons

related to a member’s individual circumstances are disregarded when establishing whether or not

there is a full pensions promise. This amendment allows the Secretary of State to specify in

regulations other requirements that must be met in order for these discretions to be disregarded.

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

Public Bill Committee:
142

, continued

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  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  13,  at end insert—

“9A
In section 37 (payment of surplus to employer), in subsection (1A)—

(a)
after “does not apply in the case of” insert “—

(a)
”;

(b)
at the end insert—

“(b)
any payments out of funds held for the purposes of

providing collective benefits under the scheme (but

see section (Payment of amounts out of collective

benefit funds) of the Pension Schemes Act 2014).””

Member’s explanatory statement

The amendment disapplies section 37 of the Pensions Act 1995 in respect of collective benefits.

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

Public Bill Committee:
143

, continued

(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

(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.

Public Bill Committee:
144

, continued

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.

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.

Public Bill Committee:
145

, continued

(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.

      (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.

Public Bill Committee:
146

, continued

(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.””

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.

Public Bill Committee:
147

, continued

(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),


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

Schedule  1,  page  22,  line  10,  at end insert—

    “( )
In subsection (3)—

(a)
in paragraph (a), after sub-paragraph (vii) insert—

“(viii)
regulations made under Part 3 of the Pension

Schemes Act 2014;”;

(b)
in paragraph (b), after sub-paragraph (v) insert—

“(vi)
regulations made under section (Regulations under

Part 3: overriding requirements) of the Pension

Schemes Act 2014.””

Member’s explanatory statement

This inserts additional references into the definition of “relevant legislative provision” in section

318 of the Pensions Act 2004 and is consequential on NC11.



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