Session 2014 - 15
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Other Bills before Parliament


 
 

Public Bill Committee:                               

155

 

, continued

 
 

Steve Webb

 

Clause  28,  page  12,  line  26,  leave out “lower than the required probability” and

 

insert “below the required range”

 

Member’s explanatory statement

 

This amendment follows the approach taken in clause 20; it provides that there is a “deficit” in

 

respect of a collective benefit if the probability of the scheme meeting a target in relation to the

 

benefit is below the required range.

 

Steve Webb

 

Clause  28,  page  12,  line  29,  leave out “higher than the required probability” and

 

insert “above the required range”

 

Member’s explanatory statement

 

This amendment follows the approach taken in clause 20; it provides that there is a “surplus” in

 

respect of a collective benefit if the probability of the scheme meeting a target in relation to the

 

benefit is above the required range.

 

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.


 
 

Public Bill Committee:                               

156

 

, continued

 
 

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.

 

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  36,  leave out “probability” means the level of probability”

 

and insert “range”, in relation to a level of probability, means the range”

 

Member’s explanatory statement

 

To reflect the changes made by amendments 43, 46, 51 and 52, this amendment removes the

 

definition of “required probability” and inserts a definition of a “required range”.

 

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


 
 

Public Bill Committee:                               

157

 

, continued

 
 

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

 

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.

 

Steve Webb

 

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

 

Clause  41,  page  16,  line  20,  at end insert—

 

“( )    

Subsection (4) does not apply to a statutory instrument containing regulations

 

under section 44(2) or (4) only.”

 

Member’s explanatory statement

 

This ensures that a statutory instrument containing commencement regulations or making

 

transitional etc provision is not subject to any Parliamentary procedure. This brings the Bill into

 

line with the usual approach.


 
 

Public Bill Committee:                               

158

 

, continued

 
 

Steve Webb

 

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

 

“( )    

Section (Extension to Scotland of certain provisions about the marriage of same

 

sex couples) 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

 

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.

 

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

 

Clause  44,  page  17,  line  12,  after “3” insert “and section (Pensions guidance) and

 

Schedule (Pensions guidance)”

 

Member’s explanatory statement

 

This amendment provides for the commencement of NC12 and NS2 by regulations made by the

 

Secretary of State.


 
 

Public Bill Committee:                               

159

 

, continued

 
 

NEW CLAUSES

 

Steve Webb

 

NC1

 

To move the following Clause—

 

“Extension to Scotland of certain provisions about marriage of same sex couples

 

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.

 


 

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—

 

Fee-paid judges

 

18A    

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.


 
 

Public Bill Committee:                               

160

 

, continued

 
 

(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

 

(1)    

The Pension Schemes Act 1993 is amended as follows.

 

(2)    

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

 

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);”.

 

(3)    

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.


 
 

Public Bill Committee:                               

161

 

, continued

 
 

(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

 

(1)    

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.

 

(2)    

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.

 

(3)    

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.

 

(4)    

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.

 

(5)    

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.”

 

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.

 



 
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