S.C.D.
Amendment Paper as at
Tuesday 9th March 1999
STANDING COMMITTEE D
WELFARE REFORM AND PENSIONS BILL
NOTE
The Amendments have been arranged in accordance with the Order of the Committee [2nd March], as follows:—
Clauses 1 to 5, Schedule 1, Clauses 6 to 14, Schedule 2, Clause 15, Schedule 3, Clauses 16 and 17, Schedule 4, Clauses 18 to 27, Schedule 5, Clauses 28 to 42, Schedule 6, Clauses 43 to 47, Clause 50, Clause 48, Schedule 7, Clause 49, Clause 60, Clause 58, Clauses 51 to 57, Clauses 61 to 68, Clause 71, New Clauses, New Schedules, Clause 59, Schedule 8, Clause 69, Schedule 9, Clause 70, Clause 72, Schedule 10, Clauses 73 to 75.
Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles
9
Clause 1, page 2, line 6, at end insert—
'(5A) The fourth condition shall not be satisfied if the scheme does not allow a member—
(a) to leave the scheme and transfer all his funds from the scheme without charge; or
(b) to change his contribution level at least once every year without charge or penalty.'.
Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles
5
Clause 1, page 2, line 12, leave out 'and other restrictions as may be prescribed' and insert 'up to a maximum of £5,000 a year or of the proportion of earnings which may be relieved of income tax if invested in an eligible pension scheme for a person of the relevant age in accordance with current Inland Revenue rules, whichever be the higher,'.
Mr Stephen Timms
16
Clause 1, page 2, line 15, leave out ', or may be expected to qualify for,'.
Mr Stephen Timms
17
Clause 1, page 2, line 19, leave out 'is approved by the Commissioners of Inland Revenue' and insert 'has such exemption or approval as is mentioned in subsection (8)'.
Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles
6
Clause 1, page 2, line 20, at end add—
'(10) The ninth condition is that the employer shall annually provide to each member of the scheme, or shall procure that the manager or trustees of the scheme shall provide, a report setting out—
(a) the total sums paid into the scheme for the member's account,
(b) the total sums deducted from the scheme for any purpose,
(c) the current value of the sums held for the member's account, and
(d) projections based on reasonable real rates of return indicating the range of amounts likely to be available to the member on retirement in the event either of the suspension of further contributions on his behalf or of their continuance at the current level.'.
Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles
10
Clause 1, page 2, line 20, at end add—
'(10) The ninth condition is that the scheme shall provide to somebody who applies to join the scheme full and accurate advice as to how a stakeholder pension would benefit the applicant compared with other types of pension and shall tell the applicant that they have up to 28 days to cancel the application without cost or penalty; and an applicant to a stakeholder pension scheme shall have up to 28 days from receiving the said advice to cancel the application without cost or penalty.'.
Mrs Jacqui Lait
29
Clause 1, page 2, line 20, at end add—
'(10) The ninth condition is that the trustees have power to vary the terms of the trust requirement for annuities to be purchased.'.
Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles
7
Clause 2, page 2, leave out lines 31 to 33.
Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles
11
Clause 2, page 2, leave out lines 34 to 39 and insert—
'( ) The Authority shall, before the pension scheme is registered under this section, have the power to make such investigations as are reasonable so as to establish whether the declaration under subsection 2 is true.'.
Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles
12
Clause 2, page 2, leave out lines 34 to 39 and insert—
'( ) The Authority may whenever they wish, after the pension scheme is registered under this section, make such investigations as are reasonable so as to establish whether those conditions are currently fulfilled.'.
Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles
13
Clause 2, page 3, line 11, leave out 'may' and insert 'shall'.
Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles
14
Clause 2, page 3, line 17, at end insert '; and such fees shall not be greater than the administrative cost of the relevant operation.'.
Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles
30
Clause 3, page 3, line 19, after second 'of', insert '10 or more'.
Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles
31
Clause 3, page 3, line 24, after 'employees', insert 'or shall permit any of his employees to designate his own scheme provided that the scheme is a pension scheme approved under Part XIV of the Income and Corporation Taxes Act 1988.'.
Mr Quentin Davies
Mr Eric Pickles
42
Clause 3, page 3, line 41, at end insert—
'( ) An employee shall only be allowed to make a new request to change the scheme into which his contributions are to be paid once every year and the employer shall not be bound to change the level of an employee's contributions more than twice a year.'.
Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles
32
Clause 3, page 4, line 7, leave out from 'below' to 'or' in line 8 and insert '£9,000 per year, this limit to be raised annually in line with average earnings.'.
Mr David Rendel
Mr Mark Oaten
26
Clause 4, page 4, line 10, after '(1)', insert 'Subject to subsection (7) below,'.
Mr Stephen Timms
18
Clause 4, page 4, line 11, leave out 'of relevant employees'.
Mr Stephen Timms
19
Clause 4, page 4, line 18, leave out 'provisions' and insert 'requirements'.
Mr Stephen Timms
20
Clause 4, page 4, line 19, leave out 'provisions' and insert 'requirements'.
Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles
15
Clause 4, page 4, line 23, at end insert—
'(1A) Should the inspector's actions under this section cause the employer to incur costs or cause the employer to suffer loss together exceeding £100 then the employer shall be compensated by payment of the full value of loss and costs by the Authority.'.
Mr Stephen Timms
21
Clause 4, page 4, line 26, leave out 'relevant'.
Mr Stephen Timms
22
Clause 4, page 4, leave out lines 35 to 39.
Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles
33
Clause 4, page 4, line 39, at end insert—
'(5A) No inspection in accordance with this section shall take place unless the employer has failed within 30 days to give satisfactory responses to written enquiries or unless there is prima facie evidence of the employer having committed an offence under this Act.'.
Mr Stephen Timms
23
Clause 4, page 4, leave out line 42.
Mr David Rendel
Mr Mark Oaten
27
Clause 4, page 4, line 42, at end add—
'(7) This power shall be subject to annual review by the Secretary of State'.
Mr Stephen Timms
24
Schedule 1, page 66, line 15, leave out 'this' and insert 'that'.
Mr Stephen Timms
25
Schedule 1, page 66, line 16, at end insert—
'(4) Any reference in this paragraph or paragraph 3 which is or includes a reference to subsection (4) or (5) of section 2 includes a reference to any enactment in Northern Ireland corresponding to that subsection.
3.—(1) Section 99 of the 1995 Act shall have effect in relation to any occupational pension scheme which is or has been registered under section 2 as if the regulatory provisions for the purposes of subsection (1) of section 99 included sections 1 and 2(4) to (6).
(2) Section 100 of the 1995 Act shall have effect in relation to any occupational pension scheme which is or has been registered under section 2 as if the references in subsections (1)(c)(i) and (4)(b) to that Act included references to section 2(5).'
Mr David Rendel
Mr Mark Oaten
28
Clause 6, page 5, line 11, after '(1)', insert 'Subject to an affirmative resolution of both Houses of Parliament'.
