House of Commons Amendments

Session 2014 - 15
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Other Bills before Parliament

907

House of Commons

Notices of Amendments

given on

Wednesday 19 November 2014

Consideration of Bill

Pension Schemes Bill, As Amended

Secretary Iain Duncan Smith

Title,  line  3,  at end insert “and provision designed to give people greater flexibility in

accessing benefits and to help them make informed decisions about what to do with

benefits”

Secretary Iain Duncan Smith

Clause  2,  page  2,  line  2,  at end insert “, and

(d)
such other requirements as may be specified in regulations are met.”

Member’s explanatory statement

This amendment enables the Secretary of State to make regulations to prescribe additional

requirements which must be met in order for a scheme to fall within the defined benefit scheme

definition.

Secretary Iain Duncan Smith

Clause  5,  page  3,  line  4,  at end insert—

“( )
A promise about the level of retirement income is not to be treated as a pensions

promise if—

(a)
the promise is conditional on the retirement income coming into payment

by a particular date,

(b)
the scheme provides for the member to be first given the promise during

such period ending on that date as may be specified in regulations, and

(c)
the promise is not of a description specified in regulations.”

Member’s explanatory statement

Under clause 5 a pensions promise is a promise made at a time before the benefit comes into

payment. This amendment makes an exception to that provision.

Secretary Iain Duncan Smith

Clause  7,  page  4,  line  5,  at end insert—

Notices of Amendments:
908

, continued

““regulations” means regulations made by the Secretary of State;”

Member’s explanatory statement

This amendment is consequential on amendment 34. Provision about by whom regulations may be

made is now to be dealt with in the relevant Part or clause.

Secretary Iain Duncan Smith

Clause  19,  page  8,  line  29,  at end insert—

“( )
set out matters that the trustees or managers must take into account, or

principles they must follow, in formulating the policy;”

Member’s explanatory statement

The amendment allows regulations which require trustees or managers to have a policy relating

to a deficit or surplus to make provision about matters to take into account and principles they must

follow.

Secretary Iain Duncan Smith

Clause  19,  page  8,  line  36,  after “policy” insert “, or any requirements imposed by

regulations under section (Power to impose requirements about dealing with a deficit or

surplus),”

Member’s explanatory statement

This amendment allows regulations to require that the policy on deficits and surpluses explains the

possible effect on members of any requirements imposed by regulations made under NC3.

Secretary Iain Duncan Smith

Clause  22,  page  9,  line  24,  after “in” insert “the following—

(a)
”

Member’s explanatory statement

This is one of a group of amendments to ensure the policy on calculating cash equivalents applies

in all cases where trustees or managers need to calculate a cash equivalent for the member’s

benefits.

Secretary Iain Duncan Smith

Clause  22,  page  9,  line  25,  leave out “93A(1ZB)” and insert “93A(3)”

Member’s explanatory statement

This is consequential on NS1, which replaces the provision mentioned in clause 22(2).

Secretary Iain Duncan Smith

Clause  22,  page  9,  line  25,  at end insert—

“(b)
section 101H(1) of that Act;

(c)
section 29(2) and (3) of the Welfare Reform and Pensions Act 1999;

(d)
any other provision specified in regulations.”

Member’s explanatory statement

This amendment extends the scope of the policy on calculating cash equivalents to cover cash

equivalents calculated for the purposes of provisions about transfers of pension credit rights and

pension sharing on divorce and for other purposes specified in regulations.

Secretary Iain Duncan Smith

Clause  22,  page  9,  line  26,  leave out “The regulations” and insert “Regulations

Notices of Amendments:
909

, continued

under subsection (1)”

Member’s explanatory statement

This is consequential on amendment 9.

Secretary Iain Duncan Smith

Clause  22,  page  9,  line  29,  after “97” insert “or 101I”

Member’s explanatory statement

This is consequential on amendment 9.

Secretary Iain Duncan Smith

Clause  22,  page  9,  line  30,  at end insert “or section 30 of the Welfare Reform and

Pensions Act 1999 or any other specified requirements”

Member’s explanatory statement

This is consequential on amendment 9.

Secretary Iain Duncan Smith

Clause  22,  page  9,  line  31,  at end insert—

“( )
set out matters that the trustees or managers must take into account, or

principles they must follow, in formulating the policy;”

Member’s explanatory statement

The amendment allows regulations which require trustees or managers to have a policy on

calculating cash equivalents to make provision about matters to take into account and principles

they must follow.

Secretary Iain Duncan Smith

Clause  23,  page  9,  line  34,  at end insert—

“( )
Regulations may make provision about the winding up of a pension scheme under

which collective benefits may be provided or part of such a scheme.

( )
The regulations may, in particular, make provision about—

(a)
the distribution of assets (including any order of priority);

(b)
the operation of the scheme during winding up;

(c)
the discharge of liabilities;

(d)
excess assets on winding up.”

Member’s explanatory statement

This confers a broader power to make provision about the winding up of schemes that provide

collective benefits or parts of those schemes. Where appropriate, this will enable provision to be

made that is neither corresponding nor similar to the provisions currently listed in clause 23.

Secretary Iain Duncan Smith

Clause  23,  page  9,  line  35,  at the beginning insert “The”

Member’s explanatory statement

This is consequential on amendment 14.

Secretary Iain Duncan Smith

Clause  23,  page  9,  line  35,  after “may” insert “, in particular”

Member’s explanatory statement

This is consequential on amendment 14.

Notices of Amendments:
910

, continued

Secretary Iain Duncan Smith

Clause  23,  page  9,  line  36,  leave out “modify and” insert “amend or otherwise

modify”

Member’s explanatory statement

This allows the provisions listed in clause 23 to be amended.

Secretary Iain Duncan Smith

Clause  23,  page  9,  line  36,  after “sections” insert “38,”

Member’s explanatory statement

This adds to the list of winding up provisions that may be disapplied or modified etc under clause

23.

Secretary Iain Duncan Smith

Clause  23,  page  9,  line  36,  leave out “and 74” and insert “, 74 and 76”

Member’s explanatory statement

This adds to the list of winding up provisions that may be disapplied or modified etc under clause

23.

Secretary Iain Duncan Smith

Clause  23,  page  9,  line  37,  leave out “in relation to collective benefits”

Member’s explanatory statement

This amendment and amendment 21 broaden the power to make provision about winding up. In a

case where a scheme contains a mixture of benefits, it might be necessary to make provision about

the non-collective benefits as well as the collective benefits.

Secretary Iain Duncan Smith

Clause  23,  page  9,  line  39,  leave out “in relation to collective benefits”

Member’s explanatory statement

See Member’s explanatory statement for amendment 20.

Secretary Iain Duncan Smith

Clause  24,  page  10,  line  5,  leave out “required by regulations under this Part”

Member’s explanatory statement

This amendment extends the power to specify when trustees and managers must seek actuarial

advice so that it can relate to decisions and actions that are beyond the scope of regulations made

under Part 2 of the Bill.

Secretary Iain Duncan Smith

Clause  29,  page  10,  line  34,  at end insert—

““deficit”, in respect of a collective benefit, has the meaning given by

section 19 (but this definition does not apply in section 20, which

contains its own definition);”

Member’s explanatory statement

This amendment inserts a definition of “deficit” into clause 29, and gives it the same meaning as

the definition included in clause 19.

Notices of Amendments:
911

, continued

Secretary Iain Duncan Smith

Clause  29,  page  10,  line  38,  at end insert—

““regulations” means regulations made by the Secretary of State;”

Member’s explanatory statement

See Member’s explanatory statement for amendment 4.

Secretary Iain Duncan Smith

Clause  29,  page  11,  line  2,  at end insert—

““surplus”, in respect of a collective benefit, has the meaning given by

section 19;”

Member’s explanatory statement

This amendment inserts a definition of “surplus” into clause 29, and gives it the same meaning as

the definition included in clause 19.

Secretary Iain Duncan Smith

Clause  30,  page  11,  line  17,  leave out “Regulations may” and insert “The Secretary

of State may by regulations”

Member’s explanatory statement

See Member’s explanatory statement for amendment 4.

Secretary Iain Duncan Smith

Clause  31,  page  11,  line  40,  leave out “Regulations may” and insert “The Secretary

of State may by regulations”

Member’s explanatory statement

See Member’s explanatory statement for amendment 4.

Secretary Iain Duncan Smith

Page  14,  line  26,  leave out Clause 35

Member’s explanatory statement

Clause 35 and Schedule 2 are superseded by NC24 and NS1.

Secretary Iain Duncan Smith

Page  14,  line  28,  leave out Clause 36

Member’s explanatory statement

This amendment removes clause 36. For the replacement provision imposing restrictions on

transfers out of public service defined benefits schemes in Great Britain, see NC25.

Secretary Iain Duncan Smith

Clause  43,  page  17,  line  32,  leave out “cash balance benefits or other money

purchase” and insert “flexible”

Member’s explanatory statement

This amendment is consequential on amendment 56.

Secretary Iain Duncan Smith

Clause  45,  page  18,  line  24,  at end insert—

Notices of Amendments:
912

, continued

“( )
The power under section 18(5) of the Public Service Pensions Act 2013 is to

include power to provide for exceptions in the case of a person who—

(a)
served as a fee-paid judge before 1 April 2012, and

(b)
has been notified by the appropriate Minister that he or she will

potentially be eligible for benefits under a scheme under this section in

relation to that service,


(and section 18(6) to (8) of the 2013 Act apply accordingly).

( )
The power under section 18(5) of the Public Service Pensions Act (Northern

Ireland) 2014 is to include power to provide for exceptions in the case of a person

who—

(a)
served as a fee-paid judge before 1 April 2012, and

(b)
has been notified by the appropriate Minister that he or she will

potentially be eligible for benefits under a scheme under this section in

relation to that service,


(and section 18(7) to (9) of the 2014 Act apply accordingly).”

Member’s explanatory statement

Among other things this amendment would allow regulations to be made ensuring that fee-paid

judges who are subsequently appointed to the salaried judiciary are extended the same transitional

protection rights as members moving between existing public service pension schemes.

Secretary Iain Duncan Smith

Page  19,  line  37,  leave out clause 49

Member’s explanatory statement

The purpose behind this amendment and amendments 43, 47, 51, 52, 53, 54 and 55 is to move the

text of clause 49 into Schedule 3 to the Bill. This is desirable because of structural changes made

to the Bill as amended in Public Bill Committee.

Secretary Iain Duncan Smith

Clause  50,  page  20,  line  21,  after “State” insert “or the Treasury”

Member’s explanatory statement

This gives the Treasury power to make consequential amendments etc under clause 50.

Secretary Iain Duncan Smith

Clause  51,  page  20,  line  30,  leave out subsection (1)

Member’s explanatory statement

See Member’s explanatory statement for amendment 4.

Secretary Iain Duncan Smith

Clause  51,  page  20,  line  32,  after “Regulations” insert “made by the Secretary of

State or the Treasury”

Member’s explanatory statement

This amendment is consequential upon amendment 33.

Secretary Iain Duncan Smith

Clause  51,  page  20,  line  32,  at end insert—

Notices of Amendments:
913

, continued

“( )
A power of the Department for Social Development in Northern Ireland to make

regulations under this Act is exercisable by statutory rule for the purposes of the

Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).”

Member’s explanatory statement

This amendment is consequential on the new clauses to do with independent advice and drawdown.

Secretary Iain Duncan Smith

Clause  51,  page  20,  line  40,  at end insert—

“( )
Regulations made by the Department for Social Development in Northern Ireland

under this Act are subject to negative resolution within the meaning of section

41(6) of the Interpretation Act (Northern Ireland) 1954 (c. 33 (N.I.)).”

Member’s explanatory statement

This amendment is consequential on the new clauses to do with independent advice and drawdown.

Secretary Iain Duncan Smith

Clause  52,  page  21,  line  5,  at end insert—

“( )
section 31,”

Member’s explanatory statement

This amendment ensures that clause 31 applies to schemes managed by or on behalf of the Crown.

Secretary Iain Duncan Smith

Clause  52,  page  21,  line  7,  at end insert—

“( )
section (Independent advice in respect of conversions and transfers:

Great Britain),

( )
section (Power to require employer to arrange advice for purposes of

section (Independent advice in respect of conversions and transfers:

Great Britain)),

( )
section (Independent advice in respect of conversions and transfers:

Northern Ireland),

( )
section (Power to require employer to arrange advice for purposes of

section (Independent advice in respect of conversions and transfers:

Northern Ireland)),

( )
section (Sums or assets that may be designated as available for

drawdown: Great Britain),

( )
section (Provision about conversion of certain benefits for drawdown:

Great Britain),

( )
section (Provision about calculation of lump sums: Great Britain),

( )
section (Sums or assets that may be designated as available for

drawdown: Northern Ireland),

( )
section (Provision about conversion of certain benefits for drawdown:

Northern Ireland), and

( )
section (Provision about calculation of lump sums: Northern Ireland).”

Member’s explanatory statement

This amendment ensures that the provisions listed in the amendment apply to schemes managed by

or on behalf of the Crown.

Secretary Iain Duncan Smith

Clause  53,  page  21,  line  24,  leave out subsection (4) and insert—

“( )
The following extend also to Northern Ireland—



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