Session 2014 - 15
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277

 

SUPPLEMENT TO THE VOTES AND PROCEEDINGS

 
 

Tuesday 25 November 2014

 

Report Stage Proceedings

 

Pension Schemes Bill, As Amended


 

New Clauses

 

Secretary Iain Duncan Smith

 

Added  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.”

 


 

Secretary Iain Duncan Smith

 

Added  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


 
 

:                                             

278

 

, continued

 
 

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

 

benefit.”

 


 

Secretary Iain Duncan Smith

 

Added  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.”

 


 

Secretary Iain Duncan Smith

 

Added  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.”

 


 

Secretary Iain Duncan Smith

 

Added  NC5

 

To move the following Clause


 
 

:                                             

279

 

, continued

 
 

         

“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;

 

(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.”

 


 

Secretary Iain Duncan Smith

 

Added  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.”

 


 

Secretary Iain Duncan Smith

 

Added  NC7

 

To move the following Clause


 
 

:                                             

280

 

, continued

 
 

         

“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.

 

(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.”

 


 

Secretary Iain Duncan Smith

 

Added  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;


 
 

:                                             

281

 

, continued

 
 

(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.”

 


 

Secretary Iain Duncan Smith

 

Added  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.””

 


 

Secretary Iain Duncan Smith

 

Added  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


 
 

:                                             

282

 

, continued

 
 

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—

 

(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.”

 


 

Secretary Iain Duncan Smith

 

Added  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;


 
 

:                                             

283

 

, continued

 
 

(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.”

 


 

Secretary Iain Duncan Smith

 

Added  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.””

 


 

Secretary Iain Duncan Smith

 

Added  NC13

 

To move the following Clause


 
contents continue
 

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Revised 26 November 2014