House of Commons Amendments

Session 2014 - 15
Internet Publications
Other Bills before Parliament

183

House of Commons

Thursday 30 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].

Clause 19

Question proposed, That the Clause stand part of the Bill.

Steve Webb

Clause  20,  page  9,  line  32,  leave out “is equal to or higher than a level of

probability” and insert “falls within a range”

Member’s explanatory statement

This amendment and amendments 46, 51, 52 and 53 replace references to a required probability

level with references to a specified range. Here, clause 20(2)(c) is amended so that regulations

may require initial targets in relation to collective benefits to be set at a level which ensures that

the probability of meeting the targets falls within a specified range.

Steve Webb

Clause  22,  page  10,  line  28,  leave out “The regulations” and insert “Regulations

Public Bill Committee:
184

, continued

under subsection (1)”

Member’s explanatory statement

This is intended to clarify that in clause 22(3) the reference to “The regulations” is to regulations

under subsection (1).

Steve Webb

Page  11,  line  6,  leave out Clause 24

Member’s explanatory statement

The material currently in clause 24 is replaced by NC7.

Steve Webb

Clause  26,  page  11,  line  37,  leave out “is equal to or higher or lower than the

required probability” and insert “falls within the required range or is above or below it”

Member’s explanatory statement

This amendment follows the approach taken in clause 20. It amends one of the powers in clause

26 so that regulations may require an actuary to certify that the probability of a scheme meeting

targets in relation to collective benefits falls within, above or below a specified range of

probabilities.

Steve Webb

Clause  27,  page  12,  line  5,  leave out “The regulations” and insert “Regulations

under subsection (1)”

Member’s explanatory statement

This amendment is related to amendment 48. The effect is unchanged.

Steve Webb

Clause  27,  page  12,  line  9,  at end insert—

“( )
Regulations may—

(a)
make provision about the assets to be taken into account for the purposes

of a valuation report;

(b)
require the value attributed to the assets to be reduced by the amount of

any liabilities in respect of administrative expenses or other specified

matters.”

Member’s explanatory statement

This amendment inserts a regulation-making power to make provision as to which assets should

be taken into account for the purposes of a valuation report. This amendment also provides that

the regulations may require the value of the assets to be reduced by the amount of any liabilities

in respect of administrative expenses or other matters specified in regulations.

Public Bill Committee:
185

, continued

Steve Webb

Clause  27,  page  12,  line  10,  leave out “The regulations” and insert “Regulations”

Member’s explanatory statement

This amendment is consequential on amendment 48. The effect is unchanged.

Steve Webb

Clause  27,  page  12,  line  11,  leave out “methods or assumptions determined in

accordance with the regulations” and insert “specified requirements imposed by

regulations under this section”

Member’s explanatory statement

This amendment takes account of amendment 48 and provides that regulations may require an

actuary preparing a valuation report to certify that specified requirements imposed by regulations

under clause 27 have been followed.

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.

Public Bill Committee:
186

, continued

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.

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

Public Bill Committee:
187

, continued

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—

(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 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

Public Bill Committee:
188

, continued

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.

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

Public Bill Committee:
189

, continued

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.

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



© Parliamentary copyright	Revised 30 October 2014