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Column 1128

Renton, Rt Hon Tim

Rhodes James, Robert

Rifkind, Rt Hon Malcolm

Roberts, Wyn (Conwy)

Roe, Mrs Marion

Rost, Peter

Rowe, Andrew

Rumbold, Mrs Angela

Ryder, Richard

Sackville, Hon Tom

Scott, Rt Hon Nicholas

Shaw, David (Dover)

Shaw, Sir Giles (Pudsey)

Shaw, Sir Michael (Scarb')

Shephard, Mrs G. (Norfolk SW)

Shersby, Michael

Sims, Roger

Skeet, Sir Trevor

Smith, Tim (Beaconsfield)

Soames, Hon Nicholas

Speed, Keith

Speller, Tony

Spicer, Michael (S Worcs)

Squire, Robin

Stanbrook, Ivor

Stanley, Rt Hon Sir John

Steen, Anthony

Stern, Michael

Stevens, Lewis

Stewart, Allan (Eastwood)

Stewart, Andy (Sherwood)

Stokes, Sir John

Stradling Thomas, Sir John

Sumberg, David

Summerson, Hugo

Tapsell, Sir Peter

Taylor, Ian (Esher)

Taylor, John M (Solihull)

Taylor, Teddy (S'end E)

Tebbit, Rt Hon Norman

Temple-Morris, Peter

Thompson, D. (Calder Valley)

Thompson, Patrick (Norwich N)

Thurnham, Peter

Townend, John (Bridlington)

Townsend, Cyril D. (B'heath)

Tracey, Richard

Tredinnick, David

Trippier, David

Trotter, Neville

Twinn, Dr Ian

Viggers, Peter

Wakeham, Rt Hon John

Waldegrave, Rt Hon William

Walker, Bill (T'side North)

Waller, Gary

Ward, John

Wardle, Charles (Bexhill)

Warren, Kenneth

Watts, John

Wells, Bowen

Wheeler, Sir John

Whitney, Ray

Widdecombe, Ann

Wiggin, Jerry

Wilshire, David

Winterton, Mrs Ann

Winterton, Nicholas

Wolfson, Mark

Wood, Timothy

Woodcock, Dr. Mike

Yeo, Tim

Young, Sir George (Acton)

Tellers for the Noes :

Mr. Tony Durant and

Mr. David Lightbown.

Question accordingly negatived.

New Schedule

-- INSERTION OF SCHEDULE 3ATO THE PENSIONS ACT

"Schedule 3A

--Annual Increase in Rate ofCertain Occupational Pensions

--Interpretation

1. In this Schedule--

"annual rate", in relation to a pension or the later or earlier service component of a pension, means the annual rate of the pension or component, as previously increased under the rules of the scheme or this Schedule ;

"the appointed day" means the day on which this Schedule and section 58A of this Act come into force ;

"the appropriate percentage", in relation to an increase in the annual rate of a pension or a component of a pension, means the percentage specified in the last revaluation order made before the increase is to take effect as the revaluation percentage for the last revaluation period of twelve months ;

"earlier service component" means so much (if any) of the annual rate of the pension as is attributable to pensionable service before the appointed day ;

"later service component" means so much (if any) of the annual rate of the pension as is attributable to pensionable service on or after the appointed day ;

"pension" does not include--

(a) a guaranteed minimum pension or any increase in such a pension under section 37A above ; or

(b) any money purchase benefit ;

"pensionable service" has the meaning given by paragraph 3 of Schedule 16 to the 1973 Act ;

"qualifying scheme" means a scheme to which section 58A of this Act applies ;

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"revaluation order", "revaluation percentage" and "revaluation period" shall be construed in accordance with section 52A above. --Annual increase of later service component

--2.--(1) If, apart from this Schedule, the annual rate of a pension under a qualifying scheme would not be increased as mentioned in section 58A(1)(b) of this Act, the annual rate of its later service component shall be increased annually by an amount equal to the appropriate percentage of the annual rate of that component as applicable immediately before the increase takes effect.

(2) The first increase by virtue of this paragraph in the rate of a pension shall take effect before the expiration of the period of twelve months beginning with the commencement of the pension and subsequent increases shall take effect at intervals of not more than twelve months thereafter.

(3) This paragraph is subject to paragraphs 4 to 6 below.

--Annual increase of earlier service componentwhere scheme is in surplus

--3.--(1) If on any valuation day the value of a qualifying scheme's assets, as determined in accordance with regulations, exceeds the value of its liabilities, as so determined, the amount of the excess (the "valuation surplus") shall be applied in accordance with the following provisions of this paragraph in providing for annual increases, up to the aggregate referred to in sub-paragraph (6) below, in the annual rate of the earlier service component of each pension under the scheme that would not, apart from this Schedule, be increased as mentioned in section 58A(1)(b) of this Act.

(2) The amount of each annual increase to be provided in pursuance of this paragraph in consequence of a valuation surplus shall be an amount equal to the appropriate percentage of the annual rate of the earlier service component of the pension in question as applicable immediately before that annual increase takes effect.

(3) The days which are "valuation days" for the purposes of this paragraph are--

(a) the appointed day, except in a case where regulations otherwise provide ; and

(b) each subsequent day as at which the assets and liabilities of the scheme in question are valued for any purpose.

(4) Where, in consequence of a valuation surplus, this paragraph requires provision to be made for annual increases in the annual rate of the earlier service component of a pension, the first of those increases shall take effect before the expiration of the period of twelve months beginning with the later of--

(a) the valuation day as at which the valuation was made which disclosed the valuation surplus ; or

(b) the commencement of the pension ;

and subsequent increases shall take effect at intervals of not more than twelve months thereafter.

(5) In any case where--

(a) a valuation of the assets and liabilities of a qualifying scheme discloses a valuation surplus, but

(b) the amount of the surplus is insufficient to provide in full for the annual increases otherwise required by this paragraph in pensions under the scheme,

the valuation surplus shall be applied in providing for the increases so required, but only at the percentage rate that would apply year by year in relation to those increases if, for the maximum percentage of 5 per cent. specified in section 52A(9)(a) above, there were substituted such lower percentage as represents the greatest maximum percentage by reference to which the valuation surplus is sufficient to provide for annual increases in the earlier service component of the pensions in question.

(6) If a valuation surplus is disclosed on a valuation at any time when either--

(a) in consequence of one or more prevous valuation surpluses, provision has already been made for the

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