Session 2014 - 15
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7

 

House of Commons

 
 

Tuesday 28 October 2014

 

Public Bill Committee Proceedings

 

Pension Schemes Bill


 

[FIFTH AND SIXTH sittings]


 

Clauses 1 to 4 Agreed to.

 

Steve Webb

 

Agreed to  41

 

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

 

requirements that may be specified in regulations”

 

Clause, as amended, Agreed to.

 

Clauses 6 and 7 Agreed to.

 

Steve Webb

 

Agreed to  6

 

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

 

insert “to do with Parts 1 and 3”.

 

Clause, as amended, Agreed to.

 

Steve Webb

 

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

                         Agreed to

 

Steve Webb

 

Agreed to  29

 

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.”


 
 

:                                             

8

 

, continued

 
 

Steve Webb

 

Agreed to  30

 

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

 

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

 

Schemes Act 2014;””

 

Steve Webb

 

Agreed to  55

 

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).””

 

Steve Webb

 

Agreed to  31

 

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

 

(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—


 
 

:                                             

9

 

, continued

 
 

(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”.”

 

Steve Webb

 

Agreed to  32

 

Schedule  1,  page  19,  line  40,  at end insert—

 

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

 

Schemes Act 2014;””

 

Steve Webb

 

Agreed to  33

 

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;””

 

Steve Webb

 

Agreed to  34

 

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”.”


 
 

:                                             

10

 

, continued

 
 

Steve Webb

 

Agreed to  35

 

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.

 

(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),


 
 

:                                             

11

 

, continued

 
 

    

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.

 

(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


 
 

:                                             

12

 

, continued

 
 

(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.

 

(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.””

 

Steve Webb

 

Agreed to  36

 

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;”.”


 
 

:                                             

13

 

, continued

 
 

Steve Webb

 

Agreed to  56

 

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.””

 

Schedule, as amended, Agreed to.

 

Steve Webb

 

That Schedule 1 be transferred to the end of line 29 on page 32                                        

              Agreed to

 

Steve Webb

 

Agreed to  7

 

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

 

Agreed to  8

 

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.”

 

Clause, as amended, Agreed to.

 

Clause 10 Agreed to.

 

Steve Webb

 

Agreed to  9

 

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;


 
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