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1

 

House of Commons

 
 

Wednesday 29 March 2017

 

Consideration of Bill (Report Stage)

 

New Amendments handed in are marked thus Parliamentary Star

 

Parliamentary Star - whiteAmendments which will comply with the required notice period at their next appearance

 

Pension Schemes Bill [Lords], As Amended


 

Note

 

This document includes all amendments tabled to date and includes any

 

withdrawn amendments at the end. The amendments have been arranged in the

 

order in which they relate to the Bill.

 


 

A Clause (NC1) (Funder of the last resort) — (Alex Cunningham) brought up, and read

 

the first time as follows—

 

Notwithstanding the provisions of section 8, the Secretary of State shall make

 

provision for a funder of last resort, to manage any cases where the Master Trust has

 

insufficient resources to meet the cost of complying with subsection (3)(b) of that section.

 

Question proposed, That the Clause be read a second time.

 

Alex Cunningham

 

NC2

 

To move the following Clause—

 

         

“Member trustees

 

(1)    

By a date to be set by the Secretary of State in regulations, approved Master Trust

 

Schemes must ensure that at least a third of the trustees of the scheme are Member

 

Trustees.

 

(2)    

Member Trustees must be individuals who are—

 

(a)    

members of the Master Trust scheme; and

 

(b)    

not members of senior management of a company that is enrolled in the

 

Master Trust scheme.

 

(3)    

Member Trustees must be appointed by a process in which—

 

(a)    

any member of the scheme who meets the condition in subsection (2) is

 

to apply to be a Member Trustee,


 
 

Consideration of Bill (Report Stage): 29 March 2017        

2

 

Pension Schemes Bill-[Lords], continued

 
 

(b)    

all the active members of the scheme, or an organisation which

 

adequately represents the active members, are eligible to participate in

 

the selection of the Member Trustees, and

 

(c)    

all the deferred members of the scheme, or an organisation which

 

adequately represents the deferred members, are eligible to participate in

 

the selection of the Member Trustees.

 

(4)    

Member Trustees should be given sufficient time off by their employer to fulfil

 

their duties.

 

(5)    

For the purpose of this clause “senior management”, in relation to an

 

organisation, means the persons who play significant roles in—

 

(a)    

the making of decisions about how the whole or a substantial part of its

 

activities are to be managed or organised, or

 

(b)    

the actual managing or organising of the whole or a substantial part of

 

those activities.”

 

Member’s explanatory statement

 

This new clause requires Master Trusts to make provision for some form of member representation

 

within Master Trusts.

 


 

Alex Cunningham

 

NC3

 

To move the following Clause—

 

         

“Member representation and engagement

 

One year on from the registration of Master Trusts by the Pensions Regulator, the

 

Government will fully review member trustee representation, member

 

engagement and annual member meetings.”

 

Member’s explanatory statement

 

This new clause requires the Government to set up a review into member representation and

 

engagement within Master Trusts.

 


 

Alex Cunningham

 

NC4

 

To move the following Clause—

 

         

“Requirement to hold an Annual Member Meeting

 

(1)    

The trustees of an authorised Master Trust scheme must hold an annual meeting

 

open to all members of the scheme.

 

(2)    

The Master Trust must take all reasonable steps to make the meeting accessible

 

to all members, this includes making arrangements for—

 

(a)    

scheme members to observe the meeting remotely, and


 
 

Consideration of Bill (Report Stage): 29 March 2017        

3

 

Pension Schemes Bill-[Lords], continued

 
 

(b)    

scheme members to submit questions to trust members remotely.”

 

Member’s explanatory statement

 

This new clause requires Master Trusts to hold an Annual Member Meeting, and sets out ways to

 

ensure members are properly given the opportunity to be involved.

 


 

Alex Cunningham

 

NC5

 

To move the following Clause—

 

         

“Excluded groups

 

(1)    

The Secretary of State must, before the end of the period of 12 months from the

 

day on which this Act receives Royal Assent, establish a review of participation

 

in Master Trust schemes.

 

(2)    

The review must consider what steps can be taken to increase the participation in

 

Master Trust schemes by the following groups—

 

(a)    

carers,

 

(b)    

self-employed,

 

(c)    

workers with multiple employees, and

 

(d)    

workers with annual earnings below £10,000.

 

(3)    

One of the options considered by the review to improve participation must be

 

changes to the terms of auto-enrolment.”

 

Member’s explanatory statement

 

This new clause enshrines the requirement on the Government to do something specific for

 

currently excluded groups.

 


 

Ian Blackford

 

Mhairi Black

 

NC6

 

To move the following Clause—

 

         

“Exit fees

 

(1)    

The Secretary of State may by regulations restrict or set limits to exit fees paid by

 

members of a Master Trust scheme.

 

(2)    

For the purposes of section (1) “members” includes past and current, active and

 

deferred members.”

 

Member’s explanatory statement

 

This new clause makes provision for the Secretary of State to restrict exit fees paid by Master Trust

 

schemes’ members.

 



 
 

Consideration of Bill (Report Stage): 29 March 2017        

4

 

Pension Schemes Bill-[Lords], continued

 
 

Ian Blackford

 

Mhairi Black

 

NC7

 

To move the following Clause—

 

         

“Asset protection for unincorporated businesses

 

The Secretary of State must, by regulations, make provision to amend section 75

 

of the Pensions Act 1995 in order to protect unincorporated businesses who are

 

at risk of losing their personal assets including their homes.”

 


 

Ian Blackford

 

Mhairi Black

 

NC8

 

To move the following Clause—

 

         

“Review of actuarial mechanisms for valuing pension scheme liabilities

 

Within six calendar months from the day on which this Act comes into force, the

 

Secretary of State must conduct a review of the actuarial mechanisms used to

 

value pension scheme liabilities under section 75 of the Pensions Act 1995.”

 


 

Ian Blackford

 

Mhairi Black

 

NC9

 

To move the following Clause—

 

         

“Non-associated multi-employer schemes: orphan debt

 

The Secretary of State must, by regulations, exclude from the calculation in

 

section 75 of the Pensions Act 1995 the orphan debt in any non-associated multi-

 

employer scheme.”

 


 

Ian Blackford

 

Mhairi Black

 

NC10

 

To move the following Clause—

 

         

“Transitional Arrangements relating to the State Pension

 

The Secretary of State must make regulations to—

 

(a)    

establish a mechanism to deliver transitional arrangements for eligible

 

individuals, and


 
 

Consideration of Bill (Report Stage): 29 March 2017        

5

 

Pension Schemes Bill-[Lords], continued

 
 

(b)    

determine eligibility for the purposes of paragraph (a) on the basis of the

 

state pension age timetable set out in the 1995 and 2011 Pensions Acts.”

 

Member’s explanatory statement

 

This new clause would require the Secretary of State to identify support for women affected by the

 

changes to the timetable for state pension age equalisation.

 


 

Ian Blackford

 

Mhairi Black

 

NC11

 

To move the following Clause—

 

         

“Pensions and Savings Commission

 

The Secretary of State must make regulations to—

 

(a)    

establish a pensions and savings commission to, but not exclusively,

 

monitor the impact of this bill within 6 months,

 

(b)    

compel the commission to report to Parliament on an annual basis, and

 

(c)    

extend the remit of the commission, as and when required.”

 

Member’s explanatory statement

 

This new clause would require the Secretary of State to establish a pensions and savings

 

commission to monitor the impact of this bill.

 

 


 

Ian Blackford

 

Mhairi Black

 

5

 

Clause  8,  page  5,  line  41,  after “scheme” insert “or scheme funder”

 

Member’s explanatory statement

 

The financial sustainability of the scheme funder must be taken into account when assessing a

 

Master Trust scheme’s financial sustainability.

 


 

Ian Blackford

 

Mhairi Black

 

7

 

Clause  10,  page  7,  line  23,  at end insert—

 

“(6A)    

The Secretary of State may by regulations define “restricted activities” and these

 

regulations must set out activities that a scheme funder cannot engage in to

 

minimise risk of losses or liabilities which might deplete or divert its financial

 

resources.”

 

Member’s explanatory statement

 

This amendment makes provision for the Secretary of State to define “restricted activities” by


 
 

Consideration of Bill (Report Stage): 29 March 2017        

6

 

Pension Schemes Bill-[Lords], continued

 
 

regulation, including a list of specific activities restricted in order to minimise risk of loss by

 

Master Trust scheme funders.

 


 

Ian Blackford

 

Mhairi Black

 

6

 

Clause  11,  page  8,  line  1,  leave out subsection (b) and insert—

 

“(b)    

either the only activities carried out by the body corporate or partnership

 

are activities that relate directly to the Master Trust scheme, or if the body

 

corporate or partnership carries out activities other than those defined as

 

“restricted activities.””

 

Member’s explanatory statement

 

This amendment allows for exceptions to the requirement that a scheme funder must only carry out

 

activities directly relating to the Master Trust scheme for which it is a scheme funder.

 

Alex Cunningham

 

1

 

Clause  11,  page  8,  line  13,  at end insert—

 

“( )    

A minimum requirement of annual reporting of administration, fund management

 

costs and transaction costs for each asset class, drawdown product and for active

 

and passive asset management strategies.”

 

Member’s explanatory statement

 

This amendment would introduce annual reporting and inclusion of transaction costs

 

requirements for Master Trusts.

 


 

Alex Cunningham

 

2

 

Clause  22,  page  16,  line  28,  after “employers” insert “and scheme members”

 

Member’s explanatory statement

 

This amendment ensures that scheme members are told of triggering events as well as employers.

 


 

Alex Cunningham

 

4

 

Clause  31,  page  23,  line  16,  leave out paragraph (d)

 

Member’s explanatory statement

 

This amendment removes the part that allows Master Trusts to halt making payments to pensioners

 

in the event of a pause order.


 
 

Consideration of Bill (Report Stage): 29 March 2017        

7

 

Pension Schemes Bill-[Lords], continued

 
 

Alex Cunningham

 

3

 

Clause  31,  page  23,  line  27,  at end insert—

 

“(f)    

directive that employers will retain both their own and employee

 

contributions pending resolution of the pause order.”

 

Member’s explanatory statement

 

This amdnement requires employers to hold onto employee and employer contributions during a

 

pause order.

 

Ian Blackford

 

Mhairi Black

 

8

 

Clause  31,  page  23,  line  27,  at end insert—

 

“(f)    

a direction that further contributions or payments to be paid towards the

 

scheme by or on behalf of any employers or members (or any specified

 

employers or members) are collected and held in a separate fund until the

 

conclusion of the pause order;”

 

Member’s explanatory statement

 

This amendment provides the Pensions Regulator with an alternative to stopping payments to the

 

schemes under subsection 5(b) of a pause order.

 

Ian Blackford

 

Mhairi Black

 

9

 

Clause  31,  page  23,  line  39,  at end insert—

 

“(7A)    

The Secretary of State may by regulations set conditions on the terms of a

 

separate fund used for purposes under section 5(f).”

 

Member’s explanatory statement

 

This amendment is consequential to amendment 8.

 

 

Order of the House [30 JANUARY 2017]

 

That the following provisions shall apply to the Pension Schemes Bill [Lords]:

 

Committal

 

1.    

The Bill shall be committed to a Public Bill Committee.

 

Proceedings in Public Bill Committee

 

2.    

Proceedings in the Public Bill Committee shall (so far as not previously

 

concluded) be brought to a conclusion on Tuesday 21 February 2017.

 

3.    

The Public Bill Committee shall have leave to sit twice on the first day on

 

which it meets.

 

Proceedings on Consideration and up to and including Third Reading

 

4.    

Proceedings on Consideration and any proceedings in legislative grand

 

committee shall (so far as not previously concluded) be brought to a

 

conclusion one hour before the moment of interruption on the day on which

 

proceedings on Consideration are commenced.

 

5.    

Proceedings on Third Reading shall (so far as not previously concluded) be

 

brought to a conclusion at the moment of interruption on that day.

 

6.    

Standing Order No. 83B (Programming committees) shall not apply to

 

proceedings on Consideration or to other proceedings up to and including

 

Third Reading.


 
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Revised 28 March 2017