House of Lords Amendments

Session 2010 - 12
Internet Publications
Other Bills before Parliament

9
26
Page 13, line 42, leave out “includes a promise that”
27
Page 13, line 44, leave out from beginning to end of line 4 on page 14 and insert—

“(b)
the rate or amount of a benefit will represent a particular

proportion of the available sum.”
28
Page 14, line 4, at end insert—

“( )
But a pension is not prevented from being a cash balance benefit merely

because under the scheme there is a promise that—

(a)
the rate or amount of a benefit payable in respect of a deceased

member will be a particular proportion of the rate or amount of a

benefit which was (or would have been) payable to the member;

(b)
the amount of a lump sum payable to a member, or in respect of a

deceased member, will represent a particular proportion of the

available sum.”
After Clause 24
29
Insert the following new Clause—

“Definition of money purchase benefits

(1)
In section 181 of the Pension Schemes Act 1993 (interpretation), in the

definition of “money purchase benefits” in subsection (1), for “which are

not average salary benefits” substitute “which fall within section 181B”.

(2)
After section 181A of that Act insert—

“181B
Money purchase benefits: supplementary

(1)
This section applies for the purposes of the definition of “money

purchase benefits” in section 181(1).

(2)
A benefit other than a pension in payment falls within this section

if its rate or amount is calculated solely by reference to assets which

(because of the nature of the calculation) must necessarily suffice

for the purposes of its provision to or in respect of the member.

(3)
A benefit which is a pension in payment falls within this section if—

(a)
its provision to or in respect of the member is secured by an

annuity contract or insurance policy made or taken out with

an insurer, and

(b)
at all times before coming into payment the pension was a

benefit falling within this section by virtue of subsection (2).

(4)
For the purposes of subsection (2) it is immaterial if the calculation

of the rate or amount of the benefit includes deductions for

administrative expenses or commission.

(5)
In this section references to a pension do not include income

withdrawal or dependants’ income withdrawal (within the

meaning of paragraphs 7 and 21 of Schedule 28 to the Finance Act

2004).”

10

(3)
In section 99 of the Pensions Act 2008 (interpretation) in the definition of

“money purchase benefits” for “which are not average salary benefits”

substitute “which fall within section 99A”.

(4)
After that section insert—

“99A
Money purchase benefits: supplementary

(1)
This section applies for the purposes of the definition of “money

purchase benefits” in section 99.

(2)
A benefit other than a pension in payment falls within this section

if its rate or amount is calculated solely by reference to assets which

(because of the nature of the calculation) must necessarily suffice

for the purposes of its provision to or in respect of the member.

(3)
A benefit which is a pension in payment falls within this section if—

(a)
its provision to or in respect of the member is secured by an

annuity contract or insurance policy made or taken out with

an insurer, and

(b)
at all times before coming into payment the pension was a

benefit falling within this section by virtue of subsection (2).

(4)
For the purposes of subsection (2) it is immaterial if the calculation

of the rate or amount of the benefit includes deductions for

administrative expenses or commission.

(5)
In this section references to a pension do not include income

withdrawal or dependants’ income withdrawal (within the

meaning of paragraphs 7 and 21 of Schedule 28 to the Finance Act

2004).”

(5)
In paragraph 1(2) of Schedule 10A to the Building Societies Act 1986

(disclosures about directors etc), in the definition of “money purchase

benefits”, for “which are not average salary benefits” substitute “which fall

within paragraph 1A”.

(6)
In that Schedule, after paragraph 1 insert—

“1A(1)
This paragraph applies for the purposes of the definition of

“money purchase benefits” in paragraph 1(2).

      (2)
A benefit other than a pension in payment falls within this

paragraph if its rate or amount is calculated solely by reference

to assets which (because of the nature of the calculation) must

necessarily suffice for the purposes of its provision to or in

respect of the director.

      (3)
A benefit which is a pension in payment falls within this

paragraph if—

(a)
its provision to or in respect of the director is secured by

an annuity contract or insurance policy made or taken out

with an insurer, and

(b)
at all times before coming into payment the pension was

a benefit falling within this paragraph by virtue of sub-

paragraph (2).

11

      (4)
For the purposes of sub-paragraph (2) it is immaterial if the

calculation of the rate or amount of the benefit includes

deductions for administrative expenses or commission.

      (5)
In this paragraph references to a pension do not include income

withdrawal or dependants’ income withdrawal (within the

meaning of paragraphs 7 and 21 of Schedule 28 to the Finance Act

2004).”

(7)
The amendments made by subsections (1) and (2) are to be regarded as

having come into force on 1 January 1997.

(8)
The amendments made by subsections (3) and (4) are to be regarded as

having come into force at the same time as section 99 of the Pensions Act

2008.”

BARONESS DRAKE

[As an amendment to Commons Amendment 29]
29A
Line 17, after “insurer” insert “in the name of the member”
30
Insert the following new Clause—

“Transitional

(1)
The Secretary of State may by regulations make transitional provision in

relation to the coming into force of the amendments in section [Definition of

money purchase benefits].

(2)
That provision includes in particular—

(a)
provision disapplying the amendments in section [Definition of

money purchase benefits] in relation to an occupational or personal

pension scheme which is wound up before the coming into force of

that section;

(b)
provision disapplying the amendments in section [Definition of

money purchase benefits] to any extent, or as regards any period, in

respect of an occupational or personal pension scheme in relation to

which those amendments would otherwise have applied on the

coming into force of that section;

(c)
provision modifying the application of an enactment in respect of

an occupational or personal pension scheme in relation to which the

amendments in section [Definition of money purchase benefits] apply

on the coming into force of that section;

(d)
provision requiring trustees or managers of an occupational

pension scheme in relation to which the amendments in section

[Definition of money purchase benefits] apply on the coming into force

of that section to obtain an actuarial valuation of a description

specified in the regulations.

(3)
In subsection (2) “occupational pension scheme” and “personal pension

scheme” have the meanings given by section 1 of the Pension Schemes Act

1993.”
31
Insert the following new Clause—

12

“Consequential and supplementary

(1)
The Secretary of State may by regulations make consequential or

supplementary provision in relation to the amendments made by section

[Definition of money purchase benefits].

(2)
In section 307 of the Pensions Act 2004 (modification of Act) in subsection

(2) after paragraph (b) insert—

“(ba)
Part 3 (scheme funding),”.”
32
Insert the following new Clause—

“Power to make further provision

(1)
The Secretary of State may by regulations amend for any purpose the

definition of “money purchase benefit” in the Pension Schemes Act 1993,

the Pensions Act 2008 or Schedule 10A to the Building Societies Act 1986.

(2)
Regulations under subsection (1) may in particular amend the provisions

inserted by section [Definition of money purchase benefits] above).

(3)
Regulations under this section may include transitional, consequential or

supplementary provision.”
33
Insert the following new Clause—

“Regulations

(1)
Regulations under this Part may—

(a)
make different provision for different cases (including different

provision for pension schemes of different descriptions);

(b)
provide for a person to exercise a discretion in dealing with any

matter;

(c)
amend Acts (as well as other enactments);

(d)
have retrospective effect.

(2)
Regulations under this Part must be made by statutory instrument.

(3)
A statutory instrument containing regulations under this Part which

amend an Act may not be made unless a draft of the instrument has been

laid before, and approved by resolution of, each House of Parliament.

(4)
A statutory instrument containing any other regulations under this Part is

subject to annulment in pursuance of a resolution of either House of

Parliament.”
Clause 29
34
Page 19, line 1, at end insert—

“( )
sections [Transitional] to [Regulations];”
Clause 30
35
Page 19, line 20, leave out subsection (2)



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