Public Service Pensions Bill

THIRD
MARSHALLED
LIST OF AMENDMENTS
TO BE MOVED
IN COMMITTEE

The amendments have been marshalled in accordance with the Instruction of 8th January 2013, as follows—

Clauses 20 to 24
Schedule 8
Clauses 25 and 26
Schedule 9
Clauses 27 and 28
Schedule 10
Clauses 29 and 30
Schedule 11
Clauses 31 to 38

[Amendments marked * are new or have been altered]

Clause 20

LORD EATWELL

LORD DAVIDSON OF GLEN CLOVA

116A

Page 11, line 19, leave out “significant”

LORD NEWBY

117

Page 11, line 40, leave out paragraph (d)

LORD FLIGHT

117A

Page 11, leave out lines 42 and 43 and insert—

““protected period” means the period of 12 years beginning with 1 April 2015, subject to extension following a review by the Office of Budget Responsibility (to be conducted in 2026, after publication of the valuation reports) as to the effectiveness of the employer cost cap arrangements;”

LORD NEWBY

118

Page 11, line 42, leave out from second “period” to end of line 43 and insert “beginning with the coming into force of this section and ending with 31 March 2040;”

LORD EATWELL

LORD DAVIDSON OF GLEN CLOVA

118ZA

Page 11, line 43, at end insert “or in the case of the Local Government Pension Scheme the period of 26 years beginning with 1 April 2014”

LORD FLIGHT

118A

Page 12, line 4, at end insert—

“(d) pensions in payment”

LORD EATWELL

LORD DAVIDSON OF GLEN CLOVA

118B

Page 12, line 4, at end insert—

“(d) the scheme’s definition of pensionable earnings;

(e) ill-health benefits;

(f) early retirement rights.”

118C

Page 12, line 5, leave out subsection (6)

LORD WHITTY

119

Leave out Clause 20 and insert the following new Clause—

“Consultation and report

(1) This section applies where—

(a) after the coming into force of scheme regulations establishing a scheme under section 1, the responsible authority proposes to make further scheme regulations, or

(b) the responsible authority proposes to make scheme regulations containing retrospective provision which appears to the responsible authority to have significant adverse effects in relation to members of the scheme.

(2) The responsible authority must—

(a) consult the persons specified in subsection (3) with a view to reaching agreement with them, and

(b) lay a report before the appropriate legislature.

(3) The persons referred to in subsection (2)(a) are the persons (or representatives of the persons) who appear to the responsible authority to be likely to be affected by the regulations if they were made.

(4) In the case referred to in subsection (1)(a), the report under subsection (2)(b) must set out why the responsible authority proposes to make the regulations.

(5) The scheme regulations may not amend the protected elements of a scheme under section 1 within the protected period.

(6) In this section—

“the appropriate legislature” means—

(a) Parliament, where the responsible authority is the Secretary of State or the Minister for the Civil Service;

(b) the Scottish Parliament, where the responsible authority is the Scottish Ministers;

(c) the National Assembly for Wales, where the responsible authority is the Welsh Ministers;

(d) the Northern Ireland Assembly, where the responsible authority is a Northern Ireland department;

“protected period” means the period of 25 years beginning with 1 April 2015;

“protected elements”, in relation to a scheme under section 1, means—

(a) the extent to which the scheme is a career average revalued earnings scheme;

(b) members’ contribution rates under the scheme;

(c) benefits accrued under the scheme.

(7) In this section, references to a change to the protected elements under subsection (5) do not include a change that has been agreed as a result of consultation under this section.

(8) In a case where this section applies, there is no requirement to consult under section 19(1).”

Clause 21

LORD EATWELL

LORD DAVIDSON OF GLEN CLOVA

119A

Page 12, line 14, leave out “significant”

LORD WHITTY

120

Page 12, line 16, leave out subsection (2) and insert—

“(2) Unless otherwise stated in this Act, scheme regulations are subject to the negative procedure.”

After Clause 21

LORD EATWELL

LORD DAVIDSON OF GLEN CLOVA

120A

Insert the following new Clause—

“Scheme participation

The Treasury shall commission an independent review into the appropriateness of increased pension contributions if, following the full implementation of the increases in employee contributions announced in the Government’s 2010 Spending Review, the number of members opting out of any public service pension scheme increases by more than 5 per cent compared with the drop-out rate in the 12 months immediately before any contribution increases were implemented.”

Clause 22

LORD NEWBY

121

Page 12, line 24, leave out “in public service” and insert “specified in section 1(2)”

122

Page 12, line 26, leave out “that section” and insert “section 1”

123

Page 12, line 28, leave out “in public service” and insert “specified in section 1(2)”

124

Page 12, line 30, leave out “not in public service” and insert “, not being persons specified in section 1(2),”

125

Page 12, line 32, leave out “not in public service” and insert “(other than persons specified in section 1(2))”

Clause 23

LORD WHITTY

126

Page 13, line 6, after “1” insert “(other than a scheme made in relation to section 1(2)(c))”

Schedule 8

LORD WHITTY

127

Page 45, line 18, at end insert—

“4 (1) Part 1 of the Pensions (Increase) Act 1971 (general provisions) is amended as follows.

(2) In section 8(2) after “which is not attributable to a pension credit” there is inserted “and is not a career average revalued earnings pension under the Local Government Pension Scheme”.

(3) After section 8(2A) there is inserted—

“(2B) A pension which is accrued under a career average revalued earnings pension scheme for local government workers (made under section 1 of the Public Service Pensions Act 2013) shall be revalued in the same manner as the benefit for an active member of the same scheme.””

LORD NEWBY

128

Page 47, leave out lines 4 to 39

129

Page 48, line 24, leave out from beginning to end of line 8 on page 49

130

Page 49, leave out lines 24 to 30

131

Page 50, line 27, leave out from beginning to end of line 7 on page 51

132

Page 52, leave out lines 1 to 12

Clause 25

LORD NEWBY

133

Page 13, line 16, leave out from “Wales” to end of line 18

134

Page 13, line 26, leave out “or (as the case may be) Northern Ireland”

Clause 26

LORD NEWBY

135

Page 13, line 31, leave out from “1972” to “(schemes” in line 33 and insert “so as to extend access to schemes under section 1 of that Act”

Schedule 9

LORD NEWBY

136

Page 54, line 15, leave out from beginning to end of line 12 on page 55

Clause 27

LORD NEWBY

137

Page 14, line 12, leave out “13 and” and insert “(Information about benefits) to”

138

Page 14, line 21, leave out from “Treasury” to end of line 28

139

Page 14, line 28, at end insert—

“( ) This section does not apply to a new public body pension scheme which relates to a devolved body or office.”

Clause 28

LORD NEWBY

140

Page 15, line 2, leave out “the scheme” and insert “a scheme to which subsection (2) applies”

141

Page 15, line 10, leave out “the scheme” and insert “a scheme to which subsection (2) applies”

142

Page 15, line 14, leave out “this section” and insert “subsection (2)”

143

Page 15, line 22, at end insert—

“but may not add a devolved body or office.”

LORD EATWELL

LORD DAVIDSON OF GLEN CLOVA

143A

Page 15, line 22, leave out paragraph (b)

LORD NEWBY

144

Page 15, line 30, leave out “which are closed under this section” and insert “to which subsection (2) applies”

Clause 29

LORD NEWBY

145

Page 15, line 44, at end insert—

“( ) This section does not apply to a public body pension scheme which relates to a devolved body or office.”

Clause 31

LORD NASEBY

146

Page 16, line 8, leave out from beginning to end of line 39 and insert—

“(1) Schedule 6 to the Constitutional Reform and Governance Act 2010 (parliamentary and other pensions) is amended as follows.

(2) In paragraph 19, for sub-paragraph (3) substitute—

“(3) Sub-paragraph (2) does not apply if either—

(a) the trustees of the Fund consent to the new scheme making the provision, and the person making the new scheme is satisfied that the consent requirement is met, or

(b) the provision provides for a person’s normal pension age or deferred pension age to change in consequence of a change in state pension age in respect of service after the provision comes into force, but not affecting that person’s right (including a contingent right) or entitlement to or in respect of a pension or future pension payable from the Fund which has accrued in respect of service where that age does not change in consequence of a change in state pension age.”

(3) In paragraph 19, at the end insert—

“(8) In this paragraph—

(a) “normal pension age”, in relation to a person and a scheme, means the earliest age at which a person with relevant service is entitled to receive benefits (without actuarial adjustment) on leaving that service (and disregarding any special provision as to early payment of benefits on the grounds of ill-health or otherwise),

(b) “deferred pension age”, in relation to a person and a scheme, means the earliest age at which a person with relevant service is entitled to receive benefits under the scheme (without actuarial adjustment) after leaving that service at a time before normal pension age (and disregarding any special provision as to early payment of benefits on the grounds of ill-health or otherwise), and

(c) “state pension age”, in relation to a person, means the person’s pensionable age as specified from time to time in Schedule 4 to the Pensions Act 1995.””

Before Clause 33

LORD DUBS

147

Insert the following new Clause—

“Amendment to the Railways Act 1993

(1) The Railways Act 1993 is amended as follows.

(2) In Schedule 11 (pensions), after paragraph 11 there is inserted—

“11A (1) This paragraph applies if an insolvency event occurs in relation to the employer or former employer of a protected person.

(2) Where this paragraph applies, the Secretary of State shall become liable to discharge any liabilities in respect of relevant pension rights, to the extent that they are not discharged by the trustees of a new scheme in which the employer was a participating employer.

(3) For the purposes of this paragraph—

(a) “insolvency event” has the meaning set out in section 121 of the Pensions Act 2004;

(b) “relevant pension rights” means the relevant pension rights referred to in paragraph 6(3) above.

11B The duty referred to in paragraph 11A also applies if an insolvency event has occurred in relation to the employer or former employer of a protected person on or after 1 October 1994.””

Clause 33

LORD NEWBY

148

Page 18, line 14, at end insert—

““devolved”: a body or office is “devolved” if or to the extent that provision about pensions payable to or in respect of members or staff of the body, or a holder of the office—

(a) would be within the legislative competence of the Northern Ireland Assembly were that provision contained in an Act of the Assembly, or

(b) is not a reserved matter within the meaning of the Scotland Act 1998;”

149

Page 18, leave out line 15

150

Page 18, line 44, at end insert—

““local authority” means—

(a) a local authority in England and Wales within the meaning of Part 1 of the Local Government and Housing Act 1989;

(b) a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994;”

151

Page 18, leave out line 49

152

Page 18, line 50, at end insert—

““pension board” has the meaning given by section 5(8);”

153

Page 19, line 22, at end insert—

““scheme advisory board” has the meaning given by section (Scheme advisory board)(6);”

Clause 34

LORD NEWBY

154

Page 19, line 46, leave out paragraph (b)

155

Page 20, line 10, leave out paragraph (c)

156

Page 20, line 22, leave out paragraph (c)

Prepared 18th January 2013