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| |
| | |
26 | Page 13, line 42, leave out “includes a promise that” |
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27 | Page 13, line 44, leave out from beginning to end of line 4 on page 14 and insert— |
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| “(b) | the rate or amount of a benefit will represent a particular |
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| proportion of the available sum.” |
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28 | Page 14, line 4, at end insert— |
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| “( ) | But a pension is not prevented from being a cash balance benefit merely |
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| because under the scheme there is a promise that— |
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| (a) | the rate or amount of a benefit payable in respect of a deceased |
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| member will be a particular proportion of the rate or amount of a |
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| benefit which was (or would have been) payable to the member; |
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| (b) | the amount of a lump sum payable to a member, or in respect of a |
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| deceased member, will represent a particular proportion of the |
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| |
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29 | Insert the following new Clause— |
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| “Definition of money purchase benefits |
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| (1) | In section 181 of the Pension Schemes Act 1993 (interpretation), in the |
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| definition of “money purchase benefits” in subsection (1), for “which are |
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| not average salary benefits” substitute “which fall within section 181B”. |
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| (2) | After section 181A of that Act insert— |
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| “181B | Money purchase benefits: supplementary |
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| (1) | This section applies for the purposes of the definition of “money |
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| purchase benefits” in section 181(1). |
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| (2) | A benefit other than a pension in payment falls within this section |
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| if its rate or amount is calculated solely by reference to assets which |
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| (because of the nature of the calculation) must necessarily suffice |
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| 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 |
|
| |
| (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 |
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| 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 |
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| |
|
| |
|
|
| |
| | |
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| (3) | In section 99 of the Pensions Act 2008 (interpretation) in the definition of |
|
| “money purchase benefits” for “which are not average salary benefits” |
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| substitute “which fall within section 99A”. |
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| (4) | After that section insert— |
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| “99A | Money purchase benefits: supplementary |
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| (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 |
|
| |
| (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 |
|
| |
| (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 |
|
| |
| (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 |
|
| |
| (3) | A benefit which is a pension in payment falls within this |
|
| |
| (a) | its provision to or in respect of the director is secured by |
|
| an annuity contract or insurance policy made or taken out |
|
| |
| (b) | at all times before coming into payment the pension was |
|
| a benefit falling within this paragraph by virtue of sub- |
|
| |
|
| |
|
|
| |
| | |
|
| (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 |
|
| |
| (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 |
|
| |
| |
| [As an amendment to Commons Amendment 29] |
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29A | Line 17, after “insurer” insert “in the name of the member” |
|
30 | Insert the following new Clause— |
|
| |
| (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 |
|
| |
| (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 |
|
| |
31 | Insert the following new Clause— |
|
|
| |
|
|
| |
| | |
|
| “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— |
|
| |
| (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 |
|
| |
| (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 |
|
| |
|
34 | Page 19, line 1, at end insert— |
|
| “( ) | sections [Transitional] to [Regulations];” |
|
|
35 | Page 19, line 20, leave out subsection (2) |
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| |
|