Public Service Pensions Bill

MARSHALLED
LIST OF AMENDMENTS
TO BE MOVED
ON REPORT

The amendments have been marshalled in accordance with the Order of 30th January 2013, as follows—

Clause 1
Schedule 1
Clause 2
Schedule 2
Clause 3
Schedule 3
Clauses 4 to 17
Schedule 4
Clause 18
Schedule 5
Clause 19
Schedule 6
Clause 20
Schedule 7
Clauses 21 to 26
Schedule 8
Clauses 27 and 28
Schedule 9
Clauses 29 and 30
Schedule 10
Clauses 31 and 32
Schedule 11
Clauses 33 to 40

[Amendments marked * are new or have been altered]

Schedule 1

LORD EATWELL

LORD WHITTY

LORD DAVIDSON OF GLEN CLOVA

1*

Page 23, line 6, at end insert—

“(c) the Defence Fire and Rescue Service”

LORD EATWELL

LORD DAVIDSON OF GLEN CLOVA

2*

Page 23, line 12, at end insert—

“(c) includes members of the Ministry of Defence Police nominated under section 1 of the Ministry of Defence Police Act 1987”

Schedule 2

LORD NEWBY

3

Page 23, line 30, leave out from “servants” to end of line 31

4

Page 23, line 33, leave out sub-paragraph (2) and insert—

“1A (1) Scheme regulations for the judiciary may be made by the Lord Chancellor.

(2) Before making scheme regulations in relation to an office with a jurisdiction exercised exclusively in relation to Scotland, the Lord Chancellor must consult the Secretary of State.”

Clause 3

LORD NEWBY

5

Page 2, line 13, leave out paragraph (b)

6

Page 2, line 15, at end insert (but see section (Procedure for retrospective provision))

LORD WHITTY

7

Page 2, line 15, at end insert “where this is to provide for efficient implementation of necessary amendments that do not cause material detriment to scheme members”

LORD NEWBY

8

Page 2, line 16, at end insert—

“( ) The consequential provision referred to in subsection (2)(b) includes consequential provision amending any primary legislation passed before or in the same session as this Act (as well as consequential provision amending any secondary legislation).”

Clause 5

LORD NEWBY

9

Page 3, line 4, at end insert “(or each scheme manager)”

10

Page 3, line 26, leave out paragraph (c) and insert—

“(c) requiring the board to include employer representatives and member representatives in equal numbers.”

11

Page 3, line 32, at end insert—

“( ) In subsection (4)(c)—

(a) “employer representatives” means persons appointed to the board for the purpose of representing employers for the scheme and any connected scheme;

(b) “member representatives” means persons appointed to the board for the purpose of representing members of the scheme and any connected scheme.”

Clause 7

LORD NEWBY

12

Page 4, line 10, leave out from “Where” to “in” in line 13 and insert “, by virtue of section 4(5), there is more than one scheme manager for a scheme mentioned in subsection (1) (and accordingly there is more than one pension board for the scheme), the regulations may also provide for the board to provide advice (on request or otherwise) to the scheme managers or the scheme’s pension boards”

13

Page 4, line 33, after “scheme” insert “or any connected scheme”

Clause 8

LORD EATWELL

LORD DAVIDSON OF GLEN CLOVA

14*

Page 5, line 4, at end insert—

“(3A) A scheme under section 1 which replaces a defined benefit scheme may only be established as a defined benefits scheme.”

Clause 9

LORD WHITTY

15

Page 5, line 22, leave out “or decrease”

16

Page 5, line 23, at end insert “, where the change is negative the order shall specify a zero increase”

LORD EATWELL

LORD DAVIDSON OF GLEN CLOVA

17*

Page 5, line 31, leave out “negative” and insert “affirmative”

Clause 10

LORD KENNEDY OF SOUTHWARK

18

Page 6, line 2, after “be” insert “set in scheme regulations but must be no more than”

LORD EATWELL

LORD DAVIDSON OF GLEN CLOVA

19*

Page 6, line 2, at end insert—

“(2A) Subsections (1) and (2) shall not apply in relation to any category or public service worker as the Secretary of State may by order specify following the publication of a scheme specific capability review.”

20*

Page 6, line 14, at end insert—

“(4B) The link between the state pension age and a person’s normal or deferred pension age shall be regularly and independently reviewed to ensure that the link remains appropriate in light of scheme members’ longevity.”

After Clause 10

LORD EATWELL

LORD DAVIDSON OF GLEN CLOVA

21*

Insert the following new Clause—

“Fair Deal

The Secretary of State will, within twelve months of this Act coming into force, bring forward proposals to ensure that a member of a public service pension scheme is entitled to remain an active member of that scheme following—

(a) the compulsory transfer of his contract of employment to an independent contractor; and

(b) any subsequent compulsory transfer of his contract of employment.”

Clause 12

LORD EATWELL

LORD DAVIDSON OF GLEN CLOVA

22*

Page 7, line 42, at end insert “provided that they do not have the effect of reducing members’ accrued benefits”

23*

Page 8, line 1, leave out “negative” and insert “affirmative”

LORD WHITTY

24

Page 8, line 2, at end insert—

“(10) This section does not apply to the Local Government Superannuation Scheme.”

Clause 18

LORD EATWELL

LORD DAVIDSON OF GLEN CLOVA

25*

Page 10, line 25, after “scheme” insert “except for a Scottish scheme, where the closing date is 31 March 2016”

Schedule 5

LORD NEWBY

26

Page 32, line 27, at end insert—

“6A A scheme under paragraph 7A of Schedule 10 to the Rent Act 1977.

Exception: injury benefits and compensation benefits”

Schedule 6

LORD NEWBY

27

Page 34, line 18, at end insert—

“1A A scheme under paragraph 7A of Schedule 10 to the Rent Act 1977.

Specified benefits: injury benefits and compensation benefits”

Schedule 7

LORD NEWBY

28

Page 36, leave out lines 14 and 15 and insert—

“(ii) such earnings as scheme regulations for the new scheme may specify, being earnings derived by the person from the new scheme service, are to be regarded as derived from the old scheme service (subject to sub-paragraph (3)).

(3) The amount of the earnings that are to be regarded as derived from the old scheme service must not be materially less than the amount of the earnings that would have been the person’s pensionable earnings derived from that service had it ended when the new scheme service ended.”

29

Page 36, leave out lines 41 to 43 and insert—

“(ii) such earnings as scheme regulations for the new scheme may specify, being earnings derived by the person from the new scheme service, are to be regarded as derived from the deemed transfer scheme service (subject to sub-paragraph (2A)).

(2A) The amount of the earnings that are to be regarded as derived from the deemed transfer scheme service must not be materially less than the amount of the earnings that would have been the person’s pensionable earnings derived from that service had it ended when the new scheme service ended.”

LORD WHITTY

30

Page 37, line 13, at end insert—

“(3) Where the existing scheme in paragraphs 1(2)(a) and 2(2)(a) is a relevant local government scheme “pensionable public service” means service which is pensionable service in relation to a local government scheme made under section 1.

(4) In sub-paragraph (3), “relevant local government scheme” means—

(a) regulations under section 7 of the Superannuation Act 1972 which relate to persons in England and Wales, or

(b) regulations under Article 9 of the Superannuation (Northern Ireland) Order 1972 (S.I. 1972/1073 (N.I. 10)).”

Clause 21

LORD WHITTY

31

Page 11, line 23, at end insert “with a view to reaching agreement with them”

Clause 22

LORD NEWBY

32

Page 11, line 34, leave out from “period” to end of line 38

33

Page 12, line 7, leave out “In the case referred to in subsection (1)(a)”

34

Page 12, line 14, at end insert “or the Lord Chancellor”

LORD WHITTY

35

Leave out Clause 22 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 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).”

After Clause 22

LORD NEWBY

36

Insert the following new Clause—

“Procedure for retrospective provision

(1) Where the responsible authority proposes to make scheme regulations containing retrospective provision which appears to the authority to have significant adverse effects in relation to the pension payable to or in respect of members of the scheme, the authority must first obtain the consent of the persons referred to in subsection (3).

(2) Where the responsible authority proposes to make scheme regulations containing retrospective provision which appears to the authority—

(a) not to have significant adverse effects as specified in subsection (1), but

(b) to have significant adverse effects in any other way in relation to members of the scheme (for example, in relation to injury or compensation benefits),

the authority must first consult the persons specified in subsection (3) with a view to reaching agreement with them.

(3) The persons referred to in subsections (1) and (2) are the persons (or representatives of the persons) who appear to the responsible authority to be likely to be affected by the provision if it were made.

(4) The responsible authority must, in a case falling within subsection (1) or (2), lay a report before the appropriate legislature (as defined in section 22).

(5) In a case falling within subsection (1) or (2) there is no requirement to consult under section 21(1).”

LORD EATWELL

LORD DAVIDSON OF GLEN CLOVA

[Amendments 37 to 39 are amendments to Amendment 36]

37*

Line 4, leave out “to the authority”

38*

Line 9, leave out “to the authority”

39*

Line 18, leave out “to the responsible authority”

Clause 23

LORD NEWBY

40

Page 12, line 34, leave out paragraph (b) and insert—

“(b) section (Procedure for retrospective provision)(1) or (2) (procedure for retrospective provision having significant adverse effects) applies.”

41

Page 12, line 36, at end insert “or

(c) they are scheme regulations for a scheme relating to the judiciary, unless the pension board for that scheme has stated that it considers the regulations to be minor or wholly beneficial.”

Clause 24

LORD NEWBY

42

Page 13, line 19, leave out subsections (6) and (7) and insert—

“(6) By virtue of a determination under subsection (5) the scheme regulations then apply to the persons to whom the determination relates as they apply to other persons to or in respect of whom pensions and other benefits are provided under the scheme (or such class of other persons as may be specified in the determination).

(7) Subsection (6) is subject to—

(a) any special provision made in the scheme regulations, and

(b) a direction under subsection (7A).

(7A) Scheme regulations made under subsection (2) or (3) in relation to any persons may include provision authorising the responsible authority by direction to modify provisions of the regulations in their application to those persons for the purpose of—

(a) securing appropriate protection against additional costs to the scheme that might result from the application of the scheme regulations to those persons,

(b) obtaining information about those persons, their employers and other relevant persons, or

(c) taking appropriate account of—

(i) the arrangements under which those persons are employed, and

(ii) the organisational structures of their employers.”

43

Page 13, line 27, at end insert—

“( ) Where, by virtue of section 4(5), there is more than one scheme manager for a scheme under section 1, the responsible authority may delegate its functions under subsection (5) or (8) to the scheme managers, subject to such conditions as the responsible authority considers appropriate.”

Clause 25

LORD NEWBY

44

Page 13, line 32, leave out “persons to whom the scheme relates” and insert “—

(a) persons within the description of persons specified in section 1(2) for which the responsible authority may make the scheme, and

(b) any other persons to whom the scheme relates by virtue of section 25.”

45

Page 13, line 32, at end insert—

“( ) Subsection (1) is subject to any provision made in the scheme regulations for the scheme that restricts or otherwise affects the power to make payments under that subsection.”

Schedule 8

LORD NEWBY

46

Page 40, line 36, at end insert—

“15A In section 11 of that Act (provision against pensions under two or more judicial pension schemes), at the end there is inserted—

“(5) This section does not prevent a scheme under section 1 of the Public Service Pensions Act 2013 having effect in relation to a person”.”

47

Page 42, leave out line 33 and insert—

“Schedule 1, paragraph 2(1).

Schedule 2, paragraph 1A.”

48

Page 42, line 37, at end insert—

“Legal Aid, Sentencing and Punishment of Offenders Act 2012 (c. 10)

In Schedule 4 to the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (transfer of employees etc of Legal Services Commission), in paragraph 4 (pension schemes), after sub-paragraph (2) there is inserted—

“(2A) Where an individual who is employed in the civil service of the State by virtue of paragraph 1(1)—

(a) was a member of a relevant LSC scheme immediately before the transfer day,

(b) had been a member of that scheme immediately before 1 April 2012, and

(c) becomes, on or after the transfer day, a member of a civil service scheme,

the individual is to be regarded, for the purposes of section 18(5) of the Public Service Pensions Act 2013, as having been a member of the civil service scheme immediately before 1 April 2012.

(2B) In sub-paragraph (2A)—

(a) “relevant LSC scheme” means a scheme made or treated as made under paragraph 10(1) of Schedule 1 to the Access to Justice Act 1999;

(b) “civil service scheme” means a scheme under section 1 of the Superannuation Act 1972.””

LORD WHITTY

49

Page 42, line 37, at end insert—

“Local Government Superannuation Scheme

29 The Directions Order is repealed.”

Before Clause 35

LORD DUBS

50

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 shall be 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 36

LORD NEWBY

51

Page 20, line 26, after “Service” insert “or the Lord Chancellor”

Prepared 11th February 2013