Welfare Reform and Pensions Bill

Welfare Reform and Pensions Bill - continued	House of Commons

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SCHEDULE 2

PENSIONS: MISCELLANEOUS AMENDMENTS

Extended meaning of "personal pension scheme"

1. - (1) In the Pension Schemes Act 1993-

(a) in section 1 of (categories of pension schemes), in the definition of "personal pension scheme", for "employed earners" substitute "earners (whether employed or self-employed)"; and

(b) in section 181(1) (general interpretation), for the definition of "employed earner" substitute-

""employed earner" and "self-employed earner" have the meanings given by section 2 of the Social Security Contributions and Benefits Act 1992;".

(2) In consequence of subsection (1), the following provisions of that Act shall cease to have effect, namely-

(a) in subsection (2)(a)(ii) of section 73 (short service benefit), the words "or a self-employed pension arrangement" and "or arrangement";

(b) in subsection (2)(a) of section 96 (exercise of option under section 95), sub-paragraph (iii) and the word "or" immediately preceding that sub-paragraph; and

Revaluation of earnings factors: meaning of "relevant year"

2. In section 16(5) of the Pension Schemes Act 1993 (revaluation of earnings factors for purposes of section 14: early leavers etc.), for the definition of "relevant year" substitute-

""relevant year" means any tax year in the earner's working life,".

Mandatory payment of contributions equivalent premiums

3. In section 55 of the Pension Schemes Act 1993 (contributions equivalent premiums)-

(a) in subsection (2), after "the prescribed person" insert "shall, if subsection (2B) applies, pay and otherwise";

(b) in subsection (2A), omit the words following paragraph (e); and

"(2B) Except in prescribed circumstances, this subsection applies in any case where the earner has no accrued right to any benefit under the scheme."

Occupational pension schemes: institutions who may hold money deposited by trustees etc.

4. - (1) Section 49 of the Pensions Act 1995 (other responsibilities of trustees, employers, etc.) is amended as follows.

(2) In each of subsections (1) and (5) (money to be kept by trustees or employers in accounts with institutions authorised under the Banking Act 1987), for "an institution authorised under the Banking Act 1987" substitute "a relevant institution".

(3) After subsection (1) insert-

	"(1A) In this section "relevant institution" means-
	(a) an institution authorised under the Banking Act 1987;
	(b) an institution within any of paragraphs 1 to 6 of Schedule 2 to that Act (institutions not requiring authorisation); or
	(c) a European authorised institution within the meaning of the Banking Coordination (Second Council Directive) Regulations 1992 which may lawfully accept deposits in the United Kingdom in accordance with those regulations."

Occupational pension schemes: certificates etc. relating to minimum funding requirement

5. - (1) In section 58 of the Pensions Act 1995 (schedules of contributions), in subsection (6)(a) (certification by actuary of adequacy of rates of contributions to meet minimum funding requirement)-

(a) for the words from "on the date" to "is met," substitute "it appears to him that the minimum funding requirement was met on the prescribed date,"; and

(b) for "continue to be met throughout" substitute "be met throughout the remainder of".

(2) In section 59 of that Act (determination of contributions: supplementary), in subsection (3) (duty of trustees etc. to prepare report of failure to meet minimum funding requirement), after "they must" insert ", within such further period as may be prescribed,".

Pensions Compensation Board

6. - (1) In section 79(1) of the Pensions Act 1995 (annual reports of Pensions Compensation Board)-

(a) for "the first twelve months of their existence, and a report for each succeeding period of twelve months," substitute "each financial year of the Board"; and

(b) at the end insert-

"Sub-paragraph (4) of paragraph 17 of Schedule 2 (meaning of "financial year") applies for the purposes of this subsection as for those of that paragraph."

(2) The amendments made by sub-paragraph (1) have effect in relation to the financial year beginning on the first 6th April falling after that sub-paragraph comes into force and to each subsequent financial year; and the period which begins with the last 1st August before, and ends with the 5th April immediately preceding, that 6th April shall be taken to be the last period in respect of which the Board are required to prepare a report under section 79(1) as originally enacted.

Occupational pension schemes: rights of employee who is director of corporate trustee

7. - (1) The Employment Rights Act 1996 is amended as follows.

(2) In section 46 (employee who is a trustee of a pension scheme not to be subject to detriment referable to his carrying out his functions as such a trustee), after subsection (2) insert-

"(2A) This section applies to an employee who is a director of a company which is a trustee of a relevant occupational pension scheme as it applies to an employee who is a trustee of such a scheme (references to such a trustee being read for this purpose as references to such a director)."

(3) In section 58 (right to time off for pension scheme trustees), after subsection (2) insert-

(4) In section 102 (unfair dismissal of pension scheme trustees), after subsection (1) insert-

"(1A) This section applies to an employee who is a director of a company which is a trustee of a relevant occupational pension scheme as it applies to an employee who is a trustee of such a scheme (references to such a trustee being read for this purpose as references to such a director)."

Prepared 10 February 1999