Pensions Bill (HL Bill 76)

27 In section 40 (scope of Chapter 2)—

(a) omit paragraph (a);

(b) in paragraph (c) for “such schemes” substitute “schemes that were
contracted-out pension schemes”.

28 35The italic heading above section 41 is repealed.

29 Section 41 (reduced rates of Class 1 contributions) is repealed.

30 (1) Section 42 (review and alteration of reduced rates of Class 1 contributions)
is repealed.

(2) There is no duty, before the repeal of section 42 comes into force, to lay
40before Parliament any reports under that section.

31 In section 48A (additional pension and other benefits), in subsection (1), for
the words from the beginning to the end of paragraph (b) substitute “In
relation to—

“(a) any tax week falling before the first abolition date where the
45amount of a Class 1 contribution attributable to
section 8(1)(a) of the Social Security Contributions and
Benefits Act 1992 in respect of the earnings paid to or for the

benefit of an earner in that week was reduced under section
42A of this Act (as it then had effect),

(b) any tax week falling before the second abolition date where
the amount of a Class 1 contribution attributable to
5section 8(1)(a) of the Social Security Contributions and
Benefits Act 1992 in respect of the earnings paid to or for the
benefit of an earner in that week was reduced under section
41 of this Act (as it then had effect), or

(c) any tax week falling before the first abolition date where an
10amount was paid under section 45(1) of this Act (as it then
had effect) in respect of the earnings paid to or for the benefit
of an earner,”.

32 Section 49 (women, married women and widows) is repealed.

33 Section 50 (powers of HMRC to approve arrangements for scheme ceasing
15to be certified) is repealed.

34 In section 51 (calculation of guaranteed minimum pensions under approved
arrangements), in subsection (1)(b), for “ceases” substitute “ceased”.

35 For section 52 substitute—

“52 Supervision of former salary related contracted-out schemes

20Section 53 shall apply for the purpose of making provision for
securing the continued supervision of any scheme that was a salary
related contracted-out scheme, other than a public service pension
scheme, if any person is entitled to receive or has accrued rights to—

(a) a guaranteed minimum pension under the scheme, or

(b) 25a pension under the scheme attributable to service on or after
the principal appointed day but before the scheme ceased to
be contracted-out.”

36 In section 53 (supervision: former contracted-out schemes), omit
subsection (3).

37 30Sections 55 to 68 (state scheme premiums) are repealed.

38 In section 87 (general protection principle), in subsection (1)(a), for sub-
paragraph (i) substitute—

“(i) the date (“the cessation date”) which is the earlier of—

(a) the date on which an earner ceases to be in
35pensionable service under a scheme that was,
before the second abolition date, a salary
related contracted-out scheme; and

(b) the date on which the earner attains
pensionable age;”.

39 40In section 96 (further provisions concerning exercise of option to take cash
equivalent in a particular way), in subsection (2), in paragraph (a)(i) omit
“which is not a contracted-out scheme”.

40 In section 109 (annual increase of guaranteed minimum pensions), in
subsection (3A)(b), omit “for the purposes of Part 3 of the Pensions Act
451995”.

41 In section 171 (questions arising in proceedings), in subsection (1), omit
paragraph (b) and the “or” before it.

42 In section 178 (trustees and managers of schemes), in paragraph (a)—

(a) after “1985” insert “or”;

(b) 5omit “or Part II of Schedule 5 to the Child Support, Pensions and
Social Security Act 2000”.

43 (1) Section 181(1) (general interpretation) is amended as follows.

(2) In the appropriate places insert—

• ““the first abolition date” has the meaning given by section 7A;”

• 10““the second abolition date” has the meaning given by section 7A;”

• ““the principal appointed day” means 6 April 1997 (which is the day
  designated as the principal appointed day for the purposes of Part 3
  of the Pensions Act 1995);”

• ““salary related contracted-out scheme” is to be construed in
  15accordance with section 7B;”.

(3) Omit the definition of “abolition date”.

(4) In the definition of “appropriate scheme” and “appropriate scheme
certificate”, for “section 181A” substitute “section 7B”.

(5) In the definition of “contracting-out certificate”, for “section 7 and section
20181A” substitute “section 7B”.

(6) In the definition of “contributions equivalent premium”, for “has the
meaning given in” substitute “means a premium that was paid under”.

(7) In the definition of “earner” and “earnings”, after “in accordance with” insert
“section 8(1B) of this Act and”.

(8) 25In the definition of “money purchase contracted-out scheme”, for “section
181A” substitute “section 7B”.

44 Section 181A (interpretation of references to money purchase contracted-out
schemes or appropriate schemes after first abolition date) is repealed.

45 In section 185 (consultation about other regulations), omit subsection (9).

46 (1) 30Schedule 2 (certification regulations) is amended as follows.

(2) Omit paragraphs 1 to 4.

(3) In paragraph 5(3A), for “a contracted-out occupational pension scheme
which is being wound up if,” substitute “a scheme which was a contracted-
out occupational pension scheme and which was being wound up before the
35second abolition date”.

(4) Omit paragraphs 6 to 8.

47 (1) Schedule 4 (priority in bankruptcy) is amended as follows.

(2) In paragraph 2—

(a) in sub-paragraph (1), after “contributions to a” insert “Northern
40Ireland”;

(b) in sub-paragraph (5), at the appropriate place insert—

• ““Northern Ireland salary related contracted-out
  scheme” means a salary related contracted-out
  scheme within the meaning of the Pension Schemes
  5(Northern Ireland) Act 1993 (and references to
  employment that is contracted-out by reference to a
  scheme are to be read accordingly);”.

(3) In paragraph 3—

(a) in sub-paragraph (1), after “on account of a” insert “Northern
10Ireland”;

(b) after sub-paragraph (5) insert—

“(6) In this paragraph “Northern Ireland contributions
equivalent premium” means a contributions equivalent
premium within the meaning of the Pension Schemes
15(Northern Ireland) Act 1993.”

(4) Omit paragraph 4(2).

Part 2 Other Acts: amendments

Social Security Contributions and Benefits Act 1992 (c. 4)Social Security Contributions and Benefits Act 1992 (c. 4)

48 20The Contributions and Benefits Act is amended as follows.

49 In section 1 (outline of contributory system), in subsection (3), omit the
words after paragraph (b).

50 In section 4C (power to make provision in consequence of provision made
by virtue of section 4B(2) etc), in subsection (5), in each of paragraphs (a)
25and (b) omit the words from “, including” to the end.

51 In section 8 (calculation of primary Class 1 contributions), in subsection (3),
omit paragraph (c) and the “and” before it.

52 In section 9 (calculation of secondary Class 1 contributions), in
subsection (3), omit paragraph (c) and the “and” before it.

53 30In section 20 (descriptions of contributory benefits), in subsection (3), for
“(reduction in state scheme contributions and benefits for members of
certified schemes)” substitute “(reduction in benefits for members of
schemes that were contracted-out)”.

54 In Schedule 1 (supplementary provisions relating to national insurance
35contributions), in paragraph 1, omit sub-paragraphs (2), (3), (6) and (9)
to (11).

Social Security Administration Act 1992 (c. 5)Social Security Administration Act 1992 (c. 5)

55 The Administration Act is amended as follows.

56 In section 150 (annual up-rating of benefits), in subsection (10A), for “the
40abolition date, as defined by section 181(1) of the Pensions Act,” substitute
“6 April 2012 (the date appointed for the commencement of section 15(1) of
the Pensions Act 2007)”.

57 In section 191 (interpretation - general)—

(a) in the definition of “money purchase contracted-out scheme”, for
“section 181A” substitute “section 7B”;

(b) in the definition of “personal pension scheme” etc, for “section
5181A(6)” substitute “section 7B(6)”.

Pensions Act 1995 (c. 26)Pensions Act 1995 (c. 26)

58 The Pensions Act 1995 is amended as follows.

59 (1) Section 51 (annual increase in rate of pension) is amended as follows.

(2) For “the appointed day” (in each place) substitute “6 April 1997”.

(3) 10For subsection (8) substitute—

“(8) An occupational pension scheme is a “relevant occupational pension
scheme” if—

(a) it has not, at any time on or after 6 April 1997, been a salary
related contracted-out scheme (see section 7B of the Pension
15Schemes Act 1993), or

(b) it has, at any time on or after 6 April 1997, been a salary
related contracted-out scheme but no person is entitled to
receive, or has accrued rights to, benefits under the scheme
attributable to a period on or after that day when it was such
20a scheme.”

60 In section 54 (sections 51 to 53: supplementary), in subsection (3), omit the
definition of “the appointed day”.

61 For section 69 substitute—

“69 Grounds for applying for modifications: winding up registered
25schemes

(1) The Authority may, on an application made to them by the trustees
of a registered pension scheme which is being wound up, make an
order—

(a) modifying the scheme for the purpose of enabling assets
30remaining after the liabilities of the scheme have been fully
discharged to be distributed to the employer, or

(b) authorising the trustees to modify the scheme for that
purpose.

(2) But the Authority may act under subsection (1) only if prescribed
35requirements in relation to the distribution are satisfied.

(3) Regulations may make provision requiring applications under
subsection (1) to meet prescribed requirements.

(4) Regulations may provide that in prescribed circumstances this
section does not apply to schemes falling within a prescribed class or
40description or applies to them with prescribed modifications.

(5) In this section “registered pension scheme” means an occupational
pension scheme registered under section 153 of the Finance Act 2004
(other than a public service pension scheme).”

62 In section 70 (section 69: supplementary), omit subsection (3).

63 In section 71 (effect of orders under section 69), in subsection (1)—

(a) for “paragraph (a)” substitute “paragraph (b)”;

(b) for “paragraph (b)” substitute “paragraph (a)”;

(64) 5In section 72 (modification of public service pension schemes), in subsection (1), for “section 69(1)(b)” substitute “section 69(1)(a)”.

65 Sections 136(1), (3) and (5), 137(3) and (4) and 148 (amendments to do with
contracting-out) are repealed.

Employment Rights Act 1996 (c. 18)Employment Rights Act 1996 (c. 18)

66 The Employment Rights Act 1996 is amended as follows.

67 10In section 3 (note to be included in statement of initial employment
particulars), omit subsection (5).

68 In section 11 (references to employment tribunals), in subsection (3), omit
paragraph (a) (including the “and” at the end of it).

Child Support, Pensions and Social Security Act 2000 (c. 19)Child Support, Pensions and Social Security Act 2000 (c. 19)

69 15The Child Support, Pensions and Social Security Act 2000 is amended as
follows.

70 (1) Section 42 (disclosure of state pension information) is amended as follows.

(2) In subsection (3)(d), omit “which is not contracted-out employment”.

(3) In subsection (11), omit the definition of “contracted-out employment”.

71 20Part 2 of Schedule 5 (alternative to anti-franking rules) is repealed.

Employment Act 2002 (c. 22)Employment Act 2002 (c. 22)

72 In section 15 of the Employment Act 2002 (use of information by HMRC), in
subsection (2)(c), for “(certification of pension schemes etc)” substitute
“(schemes that were contracted-out etc)”.

25Pensions Act 2004 (c. 35)Pensions Act 2004 (c. 35)

73 In section 258 of the Pensions Act 2004 (pension protection on transfer of
employment), in subsection (2)(c), for sub-paragraphs (i) and (ii) substitute
“complies with prescribed requirements”.

Companies Act 2006 (c. 46)Companies Act 2006 (c. 46)

74 30The Companies Act 2006 is amended as follows.

75 In section 140 (interests to be disregarded: employer’s rights of recovery
under pension scheme or employee’s share scheme), in subsection (2), omit
“section 61 of the Pension Schemes Act 1993 or”.

76 In section 673 (interests to be disregarded in determining whether company
35has beneficial interest: employer’s charges and other rights of recovery), in
subsection (1)(b), omit sub-paragraph (ii).