House of Commons Amendments

Session 2014 - 15
Internet Publications
Other Bills before Parliament

Notices of Amendments:
921

, continued

(b)
at the end of paragraph (d) insert “, and

(e)
designated guidance providers.”

Member’s explanatory statement

This amendment provides for an amendment to paragraph 21 of Schedule 1ZA to the Financial

Services and Markets Act 2000 in consequence of new section 333F of that Act.

Secretary Iain Duncan Smith

Schedule  4,  page  55,  line  44,  leave out “cash balance benefits or other money

purchase” and insert “flexible”

Member’s explanatory statement

This amendment is consequential on amendments 56 and 57.

Secretary Iain Duncan Smith

NC1

To move the following Clause—


“Policy about factors used to determine each benefit

(1)
Regulations may require the trustees or managers of a pension scheme—

(a)
to have a policy as to the factors to be used to determine what

proportion of the amount available for the provision of any

collective benefits by the scheme is to be available for the

provision of a particular collective benefit, and

(b)
to follow that policy in calculating any collective benefit.

(2)
The regulations may, in particular—

(a)
require the trustees or managers to consult about the policy;

(b)
make provision about the content of the policy;

(c)
set out matters that the trustees or managers must take into

account, or principles they must follow, in formulating the

policy;

(d)
make provision about reviewing and revising the policy.”

Member’s explanatory statement

This amendment allows regulations to require trustees or managers to have a policy on the factors

used to calculate members’ benefits and to follow it. The amendment also provides that regulations

may make various provisions about the policy such as content and matters or principles that

should be followed.

Secretary Iain Duncan Smith

NC2

To move the following Clause—


“Power to impose requirements about factors used to determine each benefit

Regulations may make provision as to the factors to be used to determine what

proportion of the amount available for the provision of any collective benefits by

a pension scheme is to be available for the provision of a particular collective

benefit.”

Member’s explanatory statement

This amendment allows regulations to set out the factors that must be used to calculate members’

benefits.

Notices of Amendments:
922

, continued

Secretary Iain Duncan Smith

NC3

To move the following Clause—


“Power to impose requirements about dealing with a deficit or surplus

(1)
Regulations may specify circumstances in which a deficit or surplus in

respect of any collective benefits that may be provided by a pension

scheme must be dealt with in a particular way.

(2)
The regulations may, in particular, specify steps that must be taken by the

trustees or managers and the period or periods within which any steps

must be taken.”

Member’s explanatory statement

The amendment allows regulations to set out how a deficit or surplus must be dealt with in specific

circumstances, the steps trustees or managers may be required to take and the time period within

which those steps must be taken.

Secretary Iain Duncan Smith

NC4

To move the following Clause—


“Requirement to wind up scheme in specified circumstances

(1)
Regulations may require the trustees or managers of a pension scheme under

which collective benefits may be provided to wind up the whole or part of the

scheme in specified circumstances.

(2)
The regulations may, in particular—

(a)
provide for the winding up of the scheme or part to be as effective in law

as if it had been made under powers conferred by or under the scheme;

(b)
require the scheme or part to be wound up in spite of any legislative

provision or rule of law, or any scheme rule, which would otherwise

operate to prevent the winding up;

(c)
require the scheme or part to be wound up without regard to any

legislative provision, rule of law or scheme rule that would otherwise

require, or might otherwise be taken to require, the implementation of

any procedure or the obtaining of any consent with a view to the winding

up.”

Member’s explanatory statement

This allows regulations to require the trustees or managers of a pension scheme under which

collective benefits may be provided to wind up the scheme or part of it in circumstances specified

in the regulations.

Secretary Iain Duncan Smith

NC5

To move the following Clause—


“Policies about winding up

(1)
Regulations may require the trustees or managers of a pension scheme under

which collective benefits may be provided—

(a)
to have a policy about the winding up of the scheme or part of it;

(b)
to follow that policy.

(2)
The regulations may, in particular—

(a)
require the trustees or managers to consult about the policy;

Notices of Amendments:
923

, continued

(b)
make provision about the content of the policy;

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

principles they must follow, in formulating the policy;

(d)
make provision about reviewing and revising the policy.

(3)
The regulations may, in particular, require the policy—

(a)
to contain an explanation of the circumstances in which the trustees or

managers are permitted or required to wind up the scheme or part and any

requirements about the distribution of assets (including any order of

priority);

(b)
to contain an explanation of how the trustees or managers intend to use

any powers to wind up the scheme or part and how they intend to use any

powers in relation to the distribution of assets (including any order of

priority);

(c)
to contain an explanation of how the costs of winding up are required to

be met or how the trustees or managers will use any powers to decide how

those costs are to be met.”

Member’s explanatory statement

This allows regulations to be made requiring the trustees or managers of a pension scheme under

which collective benefits may be provided to have a policy about winding up.

Secretary Iain Duncan Smith

NC6

To move the following Clause—


“Working out which assets are available for the provision of which benefits

Regulations may make provision, in relation to a scheme under which any of the

benefits that may be provided are collective benefits, about how to work out—

(a)
which assets held by the scheme are held for the purposes of providing

collective benefits;

(b)
which assets held by the scheme are held for the purposes of providing

which collective benefits;

(c)
which assets held by the scheme are held for the purposes of providing

any benefits other than collective benefits.”

Member’s explanatory statement

This regulation making power will allow provision to be made about how to work out which assets

are held for the purposes of providing which benefits.

Secretary Iain Duncan Smith

NC7

To move the following Clause—


“Independent advice in respect of conversions and transfers: Great Britain

(1)
Where a member of a pension scheme has subsisting rights in respect of any

safeguarded benefits, or a survivor of a member has subsisting rights in respect of

any safeguarded benefits, the trustees or managers must check that the member

or survivor has received appropriate independent advice before—

(a)
converting any of the benefits into different benefits that are flexible

benefits under the scheme;

(b)
making a transfer payment in respect of any of the benefits with a view

to acquiring flexible benefits for the member or survivor under another

pension scheme.

Notices of Amendments:
924

, continued

(2)
The Secretary of State may by regulations make provision about—

(a)
what the trustees or managers must do to check that a member or survivor

has received appropriate independent advice for the purposes of

subsection (1), and

(b)
when the check must be carried out for the purposes of that subsection.

(3)
The Secretary of State may by regulations create exceptions to subsection (1).

(4)
In subsection (1)(b) the reference to another pension scheme includes a scheme

established in a country or territory outside Great Britain.

(5)
Where the trustees or managers fail to carry out a check required by this section,

section 10 of the Pensions Act 1995 (civil penalties) applies to any trustee or

manager who failed to take reasonable steps to ensure that the check was carried

out.

(6)
Failure to carry out a check required by this section does not affect the validity of

any transaction.

(7)
In this section—

“appropriate independent advice” has the meaning given by regulations

made by the Secretary of State;

“safeguarded benefits” means any benefits other than—

(a)
money purchase benefits, and

(b)
cash balance benefits.”

Member’s explanatory statement

This provides that before trustees or managers of a pension scheme (in Great Britain) in which a

person has safeguarded benefits convert them into flexible benefits, or make a transfer to another

scheme to acquire flexible benefits, they must check that the person has received appropriate

independent advice.

Secretary Iain Duncan Smith

NC8

To move the following Clause—


“Power to require employer to arrange advice for purposes of section

(Independent advice in respect of conversions and transfers: Great Britain)

(1)
The Secretary of State may by regulations specify circumstances in which an

employer must arrange or pay for a member of a pension scheme, or a survivor of

a member of a pension scheme, to receive appropriate independent advice for the

purpose of satisfying a requirement imposed by section (Independent advice in

respect of conversions and transfers: Great Britain).

(2)
Regulations under subsection (1) may, in particular—

(a)
impose limitations on the amount that an employer may be required to

pay;

(b)
prohibit an employer from seeking in any way to recover, from a member

or survivor, costs incurred by the employer in complying with the

regulations;

(c)
provide for section 10 of the Pensions Act 1995 (civil penalties) to apply

to a failure by an employer to comply with the regulations.

(3)
In this section “employer” has the meaning given by regulations made by the

Secretary of State.”

Member’s explanatory statement

This gives the Secretary of State the ability to make regulations requiring an employer to pay for

the advice required by NC7 in the circumstances specified in the regulations.

Notices of Amendments:
925

, continued

Secretary Iain Duncan Smith

NC9

To move the following Clause—


“Independent advice: consequential amendments - Great Britain

(1)
The Pension Schemes Act 1993 is amended as follows.

(2)
In section 99 (trustees’ duties after exercise of option), after subsection (1)

insert—

“(1A)
Subsection (2) does not apply if—

(a)
the trustees or managers have been unable to carry out the check

required by section (Independent advice in respect of

conversions and transfers: Great Britain) of the Pension

Schemes Act 2014 by reason of factors outside their control, or

(b)
the trustees or managers have carried out the check required by

section (Independent advice in respect of conversions and

transfers: Great Britain) of the Pension Schemes Act 2014 but

the check did not confirm that the member had received

appropriate independent advice.”

(3)
In section 101J (time for compliance with transfer notice in respect of pension

credit benefits), after subsection (2) insert—

“(2A)
Subsection (1) does not apply if—

(a)
the trustees or managers have been unable to carry out the check

required by section (Independent advice in respect of

conversions and transfers: Great Britain) of the Pension

Schemes Act 2014 by reason of factors outside their control, or

(b)
the trustees or managers have carried out the check required by

section (Independent advice in respect of conversions and

transfers: Great Britain) of the Pension Schemes Act 2014 but

the check did not confirm that the member had received

appropriate independent advice.””

Member’s explanatory statement

This amendment is consequential upon NC7.

Secretary Iain Duncan Smith

NC10

To move the following Clause—


“Independent advice in respect of conversions and transfers: Northern

Ireland

(1)
Where a member of a pension scheme has subsisting rights in respect of any

safeguarded benefits, or a survivor of a member has subsisting rights in respect of

any safeguarded benefits, the trustees or managers must check that the member

or survivor has received appropriate independent advice before—

(a)
converting any of the benefits into different benefits that are flexible

benefits under the scheme;

(b)
making a transfer payment in respect of any of the benefits with a view

to acquiring flexible benefits for the member or survivor under another

pension scheme.

(2)
The Department for Social Development in Northern Ireland may by regulations

make provision about—

Notices of Amendments:
926

, continued

(a)
what the trustees or managers must do to check that a member or survivor

has received appropriate independent advice for the purposes of

subsection (1), and

(b)
when the check must be carried out for the purposes of that subsection.

(3)
The Department for Social Development in Northern Ireland may by regulations

create exceptions to subsection (1).

(4)
In subsection (1)(b) the reference to another pension scheme includes a scheme

established in a country or territory outside Northern Ireland.

(5)
Where the trustees or managers fail to carry out a check required by this section,

Article 10 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213

(N.I. 22)) (civil penalties) applies to any trustee or manager who failed to take

reasonable steps to ensure that the check was carried out.

(6)
Failure to carry out a check required by this section does not affect the validity of

any transaction.

(7)
In this section—

“appropriate independent advice” has the meaning given by regulations

made by the Department for Social Development in Northern Ireland;

“safeguarded benefits” means any benefits other than —

(c)
money purchase benefits, and

(d)
cash balance benefits.”

Member’s explanatory statement

This provides that before trustees or managers of a pension scheme (in Northern Ireland) in which

a person has safeguarded benefits convert them into flexible benefits, or make a transfer to another

scheme to acquire flexible benefits, they must check that the person has received appropriate

independent advice.

Secretary Iain Duncan Smith

NC11

To move the following Clause—


“Power to require employer to arrange advice for purposes of section

(Independent advice in respect of conversions and transfers: Northern Ireland)

(1)
The Department for Social Development in Northern Ireland may by regulations

specify circumstances in which an employer must arrange or pay for a member of

a pension scheme, or a survivor of a member of a pension scheme, to receive

appropriate independent advice for the purpose of satisfying a requirement

imposed by section (Independent advice in respect of conversions and transfers:

Northern Ireland).

(2)
Regulations under subsection (1) may, in particular—

(a)
impose limitations on the amount that an employer may be required to

pay;

(b)
prohibit an employer from seeking in any way to recover, from a member

or survivor, costs incurred by the employer in complying with the

regulations;

(c)
provide for Article 10 of the Pensions (Northern Ireland) Order 1995 (S.I.

1995/3213 (N.I. 22)) (civil penalties) to apply to a failure by an employer

to comply with the regulations.

(3)
In this section “employer” has the meaning given by regulations made by the

Department for Social Development in Northern Ireland.”

Member’s explanatory statement

The Department for Social Development in Northern Ireland can make regulations requiring an

employer to pay for the advice required by NC10 in the circumstances specified in the regulations.

Notices of Amendments:
927

, continued

Secretary Iain Duncan Smith

NC12

To move the following Clause—


“Independent advice: consequential amendments - Northern Ireland

(1)
The Pension Schemes (Northern Ireland) Act 1993 is amended as follows.

(2)
In section 95 (trustees’ duties after exercise of option), after subsection (1)

insert—

“(1A)
Subsection (2) does not apply if—

(a)
the trustees or managers have been unable to carry out the check

required by section (Independent advice in respect of

conversions and transfers: Northern Ireland) of the Pension

Schemes Act 2014 by reason of factors outside their control, or

(b)
the trustees or managers have carried out the check required by

section (Independent advice in respect of conversions and

transfers: Northern Ireland) of the Pension Schemes Act 2014

but the check did not confirm that the member had received

appropriate independent advice.”

(3)
In section 97J (time for compliance with transfer notice in respect of pension

credit benefits), after subsection (2) insert—

“(2A)
Subsection (1) does not apply if—

(a)
the trustees or managers have been unable to carry out the check

required by section (Independent advice in respect of

conversions and transfers: Northern Ireland) of the Pension

Schemes Act 2014 by reason of factors outside their control, or

(b)
the trustees or managers have carried out the check required by

section (Independent advice in respect of conversions and

transfers: Northern Ireland) of the Pension Schemes Act 2014

but the check did not confirm that the member had received

appropriate independent advice.””

Member’s explanatory statement

This amendment is consequential upon NC10.

Secretary Iain Duncan Smith

NC13

To move the following Clause—


“Independent advice: income tax exemption

(1)
In Part 4 of the Income Tax (Earnings and Pensions) Act 2003 (employment

income: exemptions), in Chapter 9 (exemptions: pension provision), after section

308A insert—

“308B
Independent advice in respect of conversions and transfers of pension

scheme benefits

(1)
No liability to income tax arises in respect of—

(a)
the provision to an employee or former employee of appropriate

independent advice, or

(b)
the payment or reimbursement, to or in respect of an employee

or former employee, of the cost of such advice,


if conditions A to C are met.



© Parliamentary copyright	Revised 20 November 2014