Session 2010 - 12
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Pensions Bill [HL]

commons AMENDMENTS

[The page and line references are to Bill 183, the bill as first printed for the Commons.]

Clause 1

1

Page 2, leave out lines 12 to 16 and insert—

 

“6th January 1954 to 5th February

6th May 2019

 
 

1954

  
 

6th February 1954 to 5th March

6th July 2019

 
 

1954

  
 

6th March 1954 to 5th April 1954

6th September 2019

 
 

6th April 1954 to 5th May 1954

6th November 2019

 
 

6th May 1954 to 5th June 1954

6th January 2020

 
 

6th June 1954 to 5th July 1954

6th March 2020

 
 

6th July 1954 to 5th August 1954

6th May 2020

 
 

6th August 1954 to 5th September

6th July 2020

 
 

1954

  
 

6th September 1954 to 5th October

6th September 2020””

 
 

1954

  

2

Page 2, line 17, leave out ““1960” substitute “1954”” and insert ““5th April 1960”

 

substitute “5th October 1954””

Clause 4

3

Page 4, line 9, leave out “within the prescribed period” and insert “with effect

 

from—

 
 
HL Bill 10255/1

 
 

2

 
 

(a)    

the day after the cessation referred to in paragraph (a) or (b)

 

of subsection (1), or

 

(b)    

a day within the prescribed period (if a period is

 

prescribed)”

4

Page 4, line 11, leave out “for subsection (4)” and insert “after subsection (1)

 

insert—

 

“(1A)    

This section also applies to a jobholder who—

 

(a)    

is aged at least 22,

 

(b)    

has not reached pensionable age, and

 

(c)    

is not an active member of a qualifying scheme because

 

there has been a period beginning at any time after the

 

jobholder’s automatic enrolment date during which the

 

requirements of section 1(1)(a) or (c) were not met (so that

 

the person was not a jobholder for that period).

 

(1B)    

This section also applies to a jobholder who has ceased to be an

 

active member of a qualifying scheme because of something other

 

than an action or omission by the jobholder.”

 

( )    

For subsection (4) of that section”

5

Page 4, line 19, at end insert—

 

“( )    

In subsection (8) of that section omit “, after the automatic enrolment

 

date,”.”

6

Page 4, leave out line 21 and insert “(4)—

 

(a)    

in paragraph (a) omit “at any time after the jobholder’s automatic

 

enrolment date,”;

 

(b)    

in that paragraph omit “or a qualifying scheme of which the

 

jobholder is an active member ceases to be such a scheme”;

 

(c)    

in paragraph (b) omit “or the employer”;

 

(d)    

in paragraph (c) for “time” substitute “event”.”

7

Page 4, line 22, leave out from “(inducements)” to end of line 23 and insert—

 

“(a)    

in subsection (1)(a) for “within the period prescribed under section

 

2(3)” substitute “with effect from—

 

(i)    

the day after the membership is given up, or

 

(ii)    

a day within the prescribed period (if a

 

period is prescribed)”;

 

(b)    

in subsection (1)(b) for “within the period prescribed under section

 

2(3)” substitute “with effect from—

 

(i)    

the day on which the jobholder became an

 

active member of the scheme to which the

 

notice relates, or

 

(ii)    

a day within the prescribed period (if a

 

period is prescribed)”.”

Clause 5

8

Page 4, line 39, leave out from beginning to end of line 14 on page 5 and insert—

 

““(1)    

This section applies to a jobholder—

 
 

 
 

3

 
 

(a)    

who is aged at least 22,

 

(b)    

who has not reached pensionable age, and

 

(c)    

to whom earnings of more than £7,475 are payable by the

 

employer in the relevant pay reference period (see section

 

15).””

Clause 6

9

Page 6, line 32, at end insert—

 

“( )    

In section 5 of the 2008 Act (automatic re-enrolment) omit subsection (5).”

Clause 8

10

Page 7, line 22, leave out “5(1)(a)” and insert “5(1)(c)”

After Clause 9

11

Insert the following new Clause—

 

“Qualifying schemes: administration charges

 

(1)    

Section 16 of the 2008 Act (qualifying schemes) is amended as follows.

 

(2)    

In subsection (3) for paragraph (a) substitute—

 

“(a)    

administration charges due from J while J is an active

 

member exceed a prescribed amount,

 

(aa)    

administration charges due from former active members

 

while J is an active member exceed a prescribed amount,

 

(ab)    

while J is an active member, the scheme contains provision

 

under which administration charges that will be due from J

 

when J is no longer an active member will exceed a

 

prescribed amount, or will do so in particular

 

circumstances,”.

 

(3)    

After that subsection insert—

 

“(4)    

For the purposes of subsection (3) administration charges are due

 

from a person to the extent that—

 

(a)    

any payments made to the scheme by, or on behalf or in

 

respect of, the person,

 

(b)    

any income or capital gain arising from the investment of

 

such payments, or

 

(c)    

the value of the person’s rights under the scheme,

 

    

may be used to defray the administrative expenses of the scheme,

 

to pay commission or in any other way that does not result in the

 

provision of pension benefits for or in respect of members.

 

(5)    

In subsection (3)(aa) “former active member” means a person who

 

at some time after the automatic enrolment date was both a

 

jobholder and an active member but is no longer an active

 

member.””

12

Insert the following new Clause—

 
 

 
 

4

 
 

“Test scheme standard for schemes that produce sum of money for provision of

 

benefits

 

(1)    

In section 22 of the 2008 Act (test scheme standard) after subsection (7)

 

insert—

 

“(8)    

In the case of a scheme under which a sum of money is made

 

available for the provision of benefits to a relevant member,

 

references in this section to pensions are to be read as references to

 

such sums.”

 

(2)    

For section 23 of the 2008 Act substitute—

 

“23    

Test scheme

 

(1)    

A test scheme is an occupational pension scheme which satisfies—

 

(a)    

the requirement in subsection (2),

 

(b)    

the requirement in subsection (4) or requirements

 

prescribed under subsection (6) (as appropriate), and

 

(c)    

any further requirements that are prescribed.

 

(2)    

The scheme must either—

 

(a)    

provide for a member to be entitled to a pension

 

commencing at the appropriate age and continuing for life,

 

or

 

(b)    

provide for a sum of money to be made available for the

 

provision of benefits to a member commencing at the

 

appropriate age and continuing for life.

 

(3)    

The appropriate age is 65 or any higher age prescribed.

 

(4)    

In the case of a scheme that provides entitlement to a pension as

 

mentioned in subsection (2)(a), the annual rate of the pension at the

 

appropriate age must be—

 

(a)    

1/120th of average qualifying earnings in the last three tax

 

years preceding the end of pensionable service,

 

multiplied by

 

(b)    

the number of years of pensionable service, up to a

 

maximum of 40.

 

(5)    

Section 13(1) (qualifying earnings) applies for the purposes of

 

subsection (4) as if the reference to a pay reference period were a

 

reference to a tax year.

 

(6)    

In the case of a scheme that provides for a sum of money to be made

 

available as mentioned in subsection (2)(b), regulations must

 

prescribe requirements relating to that sum.””

Clause 10

13

Page 8, line 25, leave out subsection (2) and insert—

 

“(2)    

For the heading substitute “Certification that quality requirement or

 

alternative requirement is satisfied””

 
 

 
 

5

 

After Clause 10

14

Insert the following new Clause—

 

“Certification for non-UK schemes

 

(1)    

Section 28 of the 2008 Act is amended as follows.

 

(2)    

After subsection (3) insert—

 

“(3A)    

This section also applies to—

 

(a)    

a money purchase scheme that is an occupational pension

 

scheme within section 18(b);

 

(b)    

a personal pension scheme of a prescribed description for

 

which provision is made under section 27;

 

(c)    

a hybrid scheme that is an occupational pension scheme

 

within section 18(b), to the extent prescribed.”

 

(3)    

In subsection (4) at the end insert—

 

“(d)    

for a scheme within subsection (3A), means a prescribed

 

requirement.”

 

(4)    

In paragraphs (e) and (f) of subsection (6) for “section 26 agreements”

 

substitute “contribution agreements”.

 

(5)    

In subsection (8)—

 

(a)    

for ““section 26 agreements” means the agreement” substitute

 

““contribution agreements” means—

 

(a)    

the agreement”;

 

(b)    

at the end insert “, or

 

(b)    

any agreement of the same or a similar kind that is

 

required, in the case of a scheme within subsection

 

(3A)(b), by regulations under section 27.””

Clause 12

15

Page 10, line 5, leave out “In section 30(5) of the 2008 Act” and insert—

 

“( )    

Section 30 of the 2008 Act is amended as follows.

 

( )    

In subsection (5)”

16

Page 10, line 6, at end insert—

 

“( )    

In subsection (6)(b) omit “(in accordance with section 20(1))”.”

After Clause 14

17

Insert the following new Clause—

 

“Power to exempt certain cross-border employment from enrolment duty

 

In Part 7 of the Pensions Act 2004 (cross-border activities within European

 

Union) after section 292 insert—

 
 

 
contents continue
 

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Revised 20 October 2011