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Notices of Amendments:                               

1030

 

, continued

 
 

(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.

 
 

Notices of Amendments:                               

1031

 

, continued

 
 

Secretary Iain Duncan Smith

 

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

 

“( )    

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  7,  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

 
 

Notices of Amendments:                               

1032

 

, continued

 
 

( )    

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—

 

(a)    

section (Independent advice: income tax exemption)(3);

 

(b)    

section (Meaning of “flexible benefit”);

 

(c)    

section (Meaning of “cash balance benefit”);

 

(d)    

section (Interpretation of Part 4);

 

(e)    

this Part.”

 

Member’s explanatory statement

 

This amendment ensures that the provisions listed have UK extent. It also replicates the effect of

 

the subsection left out by the amendment, whilst taking account of the changes described in the

 

Member’s explanatory statement for amendment 32.

 

Secretary Iain Duncan Smith

 

Clause  53,  page  21,  line  24,  at end insert—

 

“( )    

The following extend to Northern Ireland only—

 

(a)    

section (Independent advice in respect of conversions and transfers:

 

Northern Ireland);

 

(b)    

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

 

section (Independent advice in respect of conversions and transfers:

 

Northern Ireland));

 

(c)    

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

 

drawdown: Northern Ireland);

 

(d)    

section (Provision about conversion of certain benefits for drawdown:

 

Northern Ireland);

 

(e)    

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

 

(f)    

section (Restriction on transfers out of public service defined benefits

 

schemes: Northern Ireland)(8) and (9).”

 

Member’s explanatory statement

 

This amendment provides for the provisions listed in the amendment to extend to Northern Ireland

 

only.

 

Secretary Iain Duncan Smith

 

Clause  54,  page  21,  line  26,  at end insert—

 

“( )    

section 43;

 

( )    

section (Independent advice: income tax exemption);

 
 

Notices of Amendments:                               

1033

 

, continued

 
 

( )    

section (Provision about conversion of certain benefits for drawdown:

 

Great Britain);

 

( )    

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

 

( )    

section (Provision about conversion of certain benefits for drawdown:

 

Northern Ireland);

 

( )    

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

 

( )    

section (Rights to transfer benefits);

 

( )    

section (Reduction of cash equivalents: funded public service defined

 

benefits schemes: Great Britain)(1) and (4);

 

( )    

section (Public service defined benefits schemes: consequential

 

amendments: Great Britain);

 

( )    

section (Reduction of cash equivalents: funded public service defined

 

benefits schemes: Northern Ireland)(1) and (4);

 

( )    

section (Public service defined benefits schemes: consequential

 

amendments: Northern Ireland);

 

( )    

section (Meaning of “flexible benefit”);

 

( )    

section (Meaning of “cash balance benefit”);

 

( )    

section (Interpretation of Part 4);

 

( )    

Schedule 4;

 

( )    

Schedule (Rights to transfer benefits);”

 

Member’s explanatory statement

 

This amendment provides the provisions listed in the amendment to come into force on Royal

 

Assent. The Bill currently provides for clause 43 and Schedule 4 (which are about the giving of

 

pensions guidance) to be brought into force by regulations.

 

Secretary Iain Duncan Smith

 

Clause  54,  page  21,  line  28,  leave out “, apart from section 49”

 

Member’s explanatory statement

 

See Member’s explanatory statement for amendment 32.

 

Secretary Iain Duncan Smith

 

Clause  54,  page  21,  line  29,  at end insert—

 

“( )    

The following come into force on 6 April 2015—

 

(a)    

section (Independent advice in respect of conversions and transfers:

 

Great Britain);

 

(b)    

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

 

section (Independent advice in respect of conversions and transfers:

 

Great Britain));

 

(c)    

section (Independent advice: consequential amendments - Great

 

Britain);

 

(d)    

section (Independent advice in respect of conversions and transfers:

 

Northern Ireland);

 

(e)    

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

 

section (Independent advice in respect of conversions and transfers:

 

Northern Ireland));

 

(f)    

section (Independent advice: consequential amendments - Northern

 

Ireland);

 

(g)    

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

 

drawdown: Great Britain);

 
 

Notices of Amendments:                               

1034

 

, continued

 
 

(h)    

section (Restrictions on conversion of benefits during winding up etc:

 

Great Britain);

 

(i)    

section (Restriction on payment of lump sums during PPF assessment

 

period: Great Britain);

 

(j)    

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

 

drawdown: Northern Ireland);

 

(k)    

section (Restrictions on conversion of benefits during winding up etc:

 

Northern Ireland);

 

(l)    

section (Restriction on payment of lump sums during PPF assessment

 

period: Northern Ireland);

 

(m)    

section (Restriction on transfers out of public service defined benefits

 

schemes: Great Britain);

 

(n)    

section (Reduction of cash equivalents: funded public service defined

 

benefits schemes: Great Britain)(2) and (3);

 

(o)    

section (Restriction on transfers out of public service defined benefits

 

schemes: Northern Ireland);

 

(p)    

section (Reduction of cash equivalents: funded public service defined

 

benefits schemes: Northern Ireland)(2) and (3).”

 

Member’s explanatory statement

 

This amendment provides for the provisions listed in the amendment to come into force on 6 April

 

2015.

 

Secretary Iain Duncan Smith

 

Clause  54,  page  21,  line  31,  after “regulations” insert “made by the Secretary of

 

State”

 

Member’s explanatory statement

 

See Member’s explanatory statement for amendment 4.

 

Secretary Iain Duncan Smith

 

Clause  54,  page  21,  line  32,  leave out “4” and insert “3”

 

Member’s explanatory statement

 

This amendment is consequential on amendment 42.

 

Secretary Iain Duncan Smith

 

Clause  54,  page  21,  line  33,  leave out “, 47 and 49” and insert “and 47”

 

Member’s explanatory statement

 

See Member’s explanatory statement for amendment 32.

 

Secretary Iain Duncan Smith

 

Clause  54,  page  21,  line  36,  leave out “Regulations may” and insert “The Secretary

 

of State or the Department for Social Development in Northern Ireland may by

 

regulations”

 

Member’s explanatory statement

 

See Member’s explanatory statement for amendment 4.

 
 

Notices of Amendments:                               

1035

 

, continued

 
 

New Schedule

 

Secretary Iain Duncan Smith

 

NS1

 

To move the following Schedule—

 

“Rights to transfer benefits

 

Great Britain amendments

 

Pension Schemes Act 1993 (c. 48)

 

1          

The Pension Schemes Act 1993 is amended as follows.

 

2    (1)  

Chapters 4 and 5 of Part 4 of the Act become Chapters 1 and 2 of a new

 

Part 4ZA.

 

      (2)  

Accordingly—

 

(a)    

before section 93 (and before the Chapter heading above it) insert—

 

“Part 4ZA

 

Transfers and contribution refunds”;

 

(b)    

for the Chapter heading above section 93 substitute—

 

“Chapter 1

 

Transfer rights: general”;

 

(c)    

for the Chapter heading above section 101AA substitute—

 

“Chapter 2

 

Early leavers: cash transfer sums and contribution refunds”.

 

3          

Until the coming into force of its repeal by Schedule 13 to the Pensions Act

 

2014, section 56 of the Pension Schemes Act 1993 (payment of state scheme

 

premiums on termination of certified status: supplementary) has effect as if, in

 

subsection (4)(b), for “Chapter 5 of Part 4” there were substituted “Chapter 2

 

of Part 4ZA”.

 

4          

In section 73 (form of short service benefit and its alternatives), in subsection

 

(3), for “Chapter IV of this Part” substitute “Chapter 1 of Part 4ZA”.

 

5          

For sections 93 to 94 substitute—

 

“93    

Scope of Chapter 1

 

(1)    

This Chapter applies to a member of a pension scheme if all of the

 

following conditions are met.

 

(2)    

Condition 1 is that the member has accrued rights to any category of

 

benefits under the scheme rules.

 

(3)    

Condition 2 is that no crystallisation event has occurred in relation to

 

the member’s accrued rights to benefits in that category (see

 

subsection (7)).

 

(4)    

Condition 3 is that—

 
 

Notices of Amendments:                               

1036

 

, continued

 
 

(a)    

the member is no longer accruing rights to benefits in that

 

category (see subsection (8)), and

 

(b)    

in the case of benefits that are not flexible benefits, the

 

member stopped accruing those rights at least one year before

 

normal pension age.

 

(5)    

But this Chapter does not apply to—

 

(a)    

a member of a salary related occupational pension scheme

 

whose pensionable service terminated before 1 January 1986

 

and in respect of whom prescribed requirements are satisfied;

 

(b)    

a member of a personal pension scheme which is comprised

 

in an annuity contract made before 4 January 1988.

 

(6)    

In this Chapter a reference to a “category” of benefits is to one of the

 

following three categories—

 

(a)    

money purchase benefits;

 

(b)    

flexible benefits other than money purchase benefits;

 

(c)    

benefits that are not flexible benefits.

 

(7)    

For the purposes of Condition 2 a crystallisation event occurs in

 

relation to a member’s accrued rights to benefits in a category when—

 

(a)    

payment of a pension in respect of any of the benefits has

 

begun,

 

(b)    

in the case of money purchase benefits, sums or assets held for

 

the purpose of providing any of the benefits are designated as

 

available for the payment of drawdown pension (as defined by

 

paragraph 4 of Schedule 28 to the Finance Act 2004), or

 

(c)    

in the case of a personal pension scheme, sums or assets held

 

for the purpose of providing any of the benefits are applied for

 

purchasing an annuity or insurance policy.

 

(8)    

For the purposes of Condition 3 a member stops accruing rights to a

 

category of benefits when there are no longer arrangements in place

 

for the accrual of rights to benefits in that category for or in respect of

 

the member.

 

(9)    

In this section a reference to accrued rights does not include pension

 

credit rights.

 

(10)    

Regulations may—

 

(a)    

provide for this Chapter not to apply in relation to a person of

 

a prescribed description;

 

(b)    

modify the application of this Chapter in relation to a member

 

who has accrued rights to benefits of a prescribed description.

 

(11)    

In the following provisions of this Chapter—

 

(a)    

a reference to a “member” of a pension scheme is a reference

 

to a member to whom this Chapter applies, and

 

(b)    

a reference to a member’s “transferrable rights” are to any

 

rights in relation to a category of benefits by virtue of which

 

this Chapter applies to the member.

 

93A    

Right to statement of entitlement: benefits other than money purchase

 

(1)    

The trustees or managers of a pension scheme must, on the application

 

of any member, provide the member with a statement of entitlement in

 
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Revised 24 November 2014