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| | (1) | A test scheme is an occupational pension scheme which satisfies— |
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| | (a) | the requirement in subsection (2), |
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| | (b) | the requirement in subsection (4) or requirements |
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| | prescribed under subsection (6) (as appropriate), and |
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| | (c) | any further requirements that are prescribed. |
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| | (2) | The scheme must either— |
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| | (a) | provide for a member to be entitled to a pension |
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| | commencing at the appropriate age and continuing for life, |
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| | (b) | provide for a sum of money to be made available for the |
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| | provision of benefits to a member commencing at the |
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| | appropriate age and continuing for life. |
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| | (3) | The appropriate age is 65 or any higher age prescribed. |
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| | (4) | In the case of a scheme that provides entitlement to a pension as |
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| | mentioned in subsection (2)(a), the annual rate of the pension at the |
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| | (a) | 1/120th of average qualifying earnings in the last three tax |
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| | years preceding the end of pensionable service, |
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| | (b) | the number of years of pensionable service, up to a |
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| | (5) | Section 13(1) (qualifying earnings) applies for the purposes of |
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| | subsection (4) as if the reference to a pay reference period were a |
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| | (6) | In the case of a scheme that provides for a sum of money to be made |
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| | available as mentioned in subsection (2)(b), regulations must |
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| | prescribe requirements relating to that sum.”” |
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13 | Page 8, line 25, leave out subsection (2) and insert— |
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| | “(2) | For the heading substitute “Certification that quality requirement or |
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| | alternative requirement is satisfied”” |
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14 | Insert the following new Clause— |
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| | “Certification for non-UK schemes |
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| | (1) | Section 28 of the 2008 Act is amended as follows. |
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| | (2) | After subsection (3) insert— |
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| | “(3A) | This section also applies to— |
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| | (a) | a money purchase scheme that is an occupational pension |
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| | scheme within section 18(b); |
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| | (b) | a personal pension scheme of a prescribed description for |
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| | which provision is made under section 27; |
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| | (c) | a hybrid scheme that is an occupational pension scheme |
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| | within section 18(b), to the extent prescribed.” |
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| | (3) | In subsection (4) at the end insert— |
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| | “(d) | for a scheme within subsection (3A), means a prescribed |
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| | (4) | In paragraphs (e) and (f) of subsection (6) for “section 26 agreements” |
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| | substitute “contribution agreements”. |
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| | (a) | for ““section 26 agreements” means the agreement” substitute |
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| | ““contribution agreements” means— |
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| | (b) | at the end insert “, or |
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| | (b) | any agreement of the same or a similar kind that is |
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| | required, in the case of a scheme within subsection |
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| | (3A)(b), by regulations under section 27.”” |
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15 | Page 10, line 5, leave out “In section 30(5) of the 2008 Act” and insert— |
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| | “( ) | Section 30 of the 2008 Act is amended as follows. |
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16 | Page 10, line 6, at end insert— |
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| | “( ) | In subsection (6)(b) omit “(in accordance with section 20(1))”.” |
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17 | Insert the following new Clause— |
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| | “Power to exempt certain cross-border employment from enrolment duty |
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| | In Part 7 of the Pensions Act 2004 (cross-border activities within European |
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| | Union) after section 292 insert— |
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| | “292A | Exemption from enrolment duty under Part 1 of Pensions Act |
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| | Regulations may provide for section 2(1), 3(2), 5(2), 7(3), 9(2) or 54 of the |
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| | Pensions Act 2008 (employer’s obligations regarding membership of a |
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| | qualifying scheme) not to apply in relation to a person’s employment of— |
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| | (a) | an individual in relation to whom the person is a European |
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| | (b) | someone whom the person reasonably believes to be such |
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18 | Page 10, line 24, at end insert— |
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| | “( ) | Schedule 3 to the 1993 Act (which sets out methods for revaluing accrued |
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| | benefits for the purposes of section 84 of the 1993 Act) is amended as |
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| | ( ) | After paragraph 1(4) insert— |
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| | “(5) | The sub-paragraphs above are subject to sub-paragraph (6). |
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| | (6) | If paragraph 2A applies to the pension or other benefit, the final |
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| | salary method is to apply the requirement of the rules of the |
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| | scheme mentioned in paragraph 2A(1).” |
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| | ( ) | After paragraph 2 insert— |
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| | “2A(1) | This paragraph applies to the pension or other benefit if the rules |
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| | of the scheme under which it is payable contain a requirement |
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| | that the accrued benefit be revalued by adding to the accrued |
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| | benefit an amount of at least the relevant amount. |
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| | (2) | “The accrued benefit” has the same meaning as in paragraph 1. |
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| | (3) | “The relevant amount” means the amount which, ignoring |
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| | paragraph 1(5) and (6), would be the additional amount specified |
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| | in paragraph 1(1A), (1B), (1C) or (1D) (as the case may be) were |
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| | the appropriate higher revaluation percentage and the |
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| | appropriate lower revaluation percentage to be determined on |
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| | (4) | The higher revaluation percentage and the lower revaluation |
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| | percentage for the revaluation period mentioned in paragraph |
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| | 2(7) are to be taken to be the percentages which would have been |
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| | specified in the Secretary of State’s order— |
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| | (a) | had the following been substituted for paragraph |
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| | “(a) | the percentage increase in the retail prices |
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| | index for the reference period in relation to the |
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| | revaluation period (“the inflation percentage”), |
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| | (b) | had, in paragraph 2(3A)(a), the words “the percentage |
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| | which appears to the Secretary of State to be” been |
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| | (c) | had paragraph 2(4) been omitted, |
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| | (d) | had, in paragraph 2(5), the words “sub-paragraph (3)(a)” |
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| | been substituted for “that sub-paragraph”, |
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| | (e) | had, in paragraph (b) of the definitions of “the higher |
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| | maximum rate” and “the lower maximum rate” in |
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| | paragraph 2(6), the words “retail prices index” been |
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| | substituted for “general level of prices”, and |
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| | (f) | had the following been inserted after paragraph 2(6)— |
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| | “(6A) | In this paragraph “retail prices index” means— |
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| | (a) | the general index of retail prices (for all items) |
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| | published by the Statistics Board (or any |
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| | (b) | where that index is not published for a month, |
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| | any substituted index or figures published by |
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| | the Board (or any predecessor).””” |
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19 | Page 10, line 27, leave out “subsection (4) substitute—” and insert “subsections (3) |
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| | “(3) | Subsection (2) does not apply to the annual rate of a pension under |
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| | an occupational pension scheme, or to a part of that rate, if under |
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| | the rules of the scheme the rate or part is for the time being being |
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| | increased at intervals of not more than twelve months by at least the |
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20 | Page 10, line 33, leave out from beginning to end of line 36 on page 11 and insert— |
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| | “(4ZA) | Subsection (2) does not apply to the annual rate of a pension under |
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| | an occupational pension scheme, or to a part of that rate, if |
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| | subsection (4ZB) applies to the rate or part. |
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| | (4ZB) | Subject to subsection (4ZD), this subsection applies to the rate or |
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| | part if, under the rules of the scheme, the rate or part is for the time |
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| | being being increased, and since the relevant time has always been |
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| | increased, at intervals of not more than twelve months by at least— |
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| | (a) | the percentage increase in the retail prices index for the |
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| | reference period, being a period determined, in relation to |
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| | each periodic increase, under the rules, or |
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| | (b) | if lower, the default percentage for that period. |
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| | (4ZC) | In subsection (4ZB) “the relevant time” means— |
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| | (a) | the beginning of 2011 or, if later, the time when the pension |
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| | became a pension in payment, or |
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| | (b) | if the pension was transferred to the scheme from another |
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| | occupational pension scheme as a pension in payment after |
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| | the beginning of 2011, the time of the transfer. |
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| | (4ZD) | If the pension was transferred to the scheme as mentioned in |
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| | subsection (4ZC)(b), subsection (4ZB) does not apply to the rate or |
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| | part unless, immediately before the transfer, subsection (4ZB) (read |
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| | with this subsection if relevant) applied to the rate or part by |
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| | reference to the scheme from which the pension was transferred (or |
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| | would have applied had subsection (4ZB) been in force |
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| | immediately before the transfer).” |
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21 | Page 11, line 39, leave out “(4)” and insert “(3)” |
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22 | Page 11, line 42, leave out “to (4ZD)” and insert “and (4ZB)” |
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23 | Page 11, line 46, leave out “to (4ZD)” and insert “and (4ZB)” |
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24 | Page 13, line 23, after “period” insert “on or after that day” |
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25 | Page 13, line 41, after “(3)(b)” insert “includes a promise that” |
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