Tax deductible pension provisions
Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles
Mrs Jacqui Lait
NC8
To move the following Clause:—
'The Inland Revenue notes in relation to pensions shall be applied in such a way that no amount lost to a person's pension assets by means of a pension sharing arrangement or order shall be taken into account in such a way as to limit his entitlement to make tax deductible pension provisions in the future.'.
Reinstating full SERPS entitlement for widows who become bereaved after 5th April 2000.
Mr David Rendel
Mr Mark Oaten.
NC9
To move the following Clause:—
'(1) The Social Security Act 1986 shall be amended as follows.
(2) Section 19 (Additional pensions supplementary) shall be deleted.'.
Delaying the halving of additional pension entitlement by 10 years
Mr David Rendel
Mr Mark Oaten
NC10
To move the following Clause:—
'(1) The Social Security Act 1986 shall be amended as follows.
(2) Section 19 (Additional pensions supplementary) shall be replaced with
"—(1) The additional pension falling to be calculated under section 6 of the Social Security Pensions Act 1975 by vitue of the following provisions—
(a) section 7 (rate of widow's Category B retirement pension);
(b) section 8 (Category B retirement pension for widower)
(c) section 13 (rate of widowed mother's allowance and widow's pension); and
(d) section 16(4) (invalidity pension for widowers),
shall be one half of the amount so calculated if the deceased spouse died after 5th April 2010.
(2) In paragraph 4 of Schedule 1 to that Act—
(a) the words "Subject to sub-paragraph (2A) below where" shall be substituted for the word "Where" in sub-paragraphs (1) and (2); and
(b) the following sub-paragraph shall be inserted after sub-paragraph (2)—
"(2A) If a married person dies after 5th April 2010, the rate of the retirement pension for that person's widow or widower shall be increased by an amount equivalent to the sum of—
(a) the increase in the basic pension to which the deceased spouse was entitled: and
(b) one-half of the increase in the additional pension."
(3) In sub-paragraph (1) of paragraph 4A of that Schedule after the word "increased" there shall be inserted the words ", subject to sub-paragraph (1A) below,".
(4) The following sub-paragraph shall be inserted after that sub-paragraph—
"(1A) Where the husband dies after 5th April 2010, sub-paragraph (1) shall have effect in relation to his widow as if for the words 'the following amounts—
(i) one-half of the approriate amount after it has been reduced by the amount of any increases under section 37A of this Act; and
(ii) one-half of any increase to which he had been entitled under this paragraph.'."
(5) In sub-paragraph (2), after the word "increased" there shall be inserted the words ", subject to sub-paragraph (2A) below,".
(6) The following sub-paragraph shall be inserted after that sub-paragraph—
"(2A) Where the wife dies after 5th April 1989, sub-paragraph (2) above shall have effect as if for the words from 'an amount', in the first place where those words occur, to the end there were substituted—
(a) if she dies before 6th April 2010, the words "an amount equal to the sum of—
(i) that increase, so far as attributable to employment before 6th April 1988:
(ii) one-half of that increase so far as attributable to employment after 5th April 1988:
(iii) the appropriate amount reduced by the amount of any increases under section 37A of this Act: and
(iv) any increase to which she had been entitled under this paragraph.". and
(b) if she dies after 5th April 2010, the words "an amount equal to the sum of—
(i) one-half of that increase so far as attributable to employment before 6th April 1988:
(ii) one-half of the appropriate amount after it has been reduced by the amount of any increases under section 37A of this Act: and
(iii) one-half of any increase to which she had been entitled under this paragraph".'.
Phasing in the cut in additional pension payments to widows
Mr David Rendel
Mr Mark Oaten
NC11
To move the following Clause:—
"(1) The Social Security Act 1986 shall be amended as follows.
(2) Section 19 (Additional pensions supplementary) shall be replaced with
'—(1) The additional pension falling to be calculated under section 6 of the Social Security Pensions Act 1975 by virtue of the following provisions—
(a) section 7 (rate of widow's Category B retirement pension);
(b) section 8 (Category B retirement pension for widower)
(c) section 13 (rate of widowed mother's allowance and widow's pension); and
(d) section 16(4) (invalidity pension for widowers),
shall be nine tenths of the amount so calculated if the deceased spouse died after 5th April 2000, and shall continue to decrease by one tenth of the amount so calculated each year only until 5th April 2004 after which the amount paid shall be one-half of the original amount so calculated."
(2) In paragraph 4 of Schedule 1 to that Act—
(a) the words "Subject to sub-paragraph (2A) below where" shall be substituted for the word "Where" in sub-paragraphs (1) and (2); and
(b) the following sub-paragraph shall be inserted after sub-paragraph (2)—
"(2A) If a married person dies after 5th April 2000, the rate of the retirement pension for that person's widow or widower shall be increased by an amount equivalent to the sum of—
(a) the increase in the basic pension to which the deceased spouse was entitled: and
(b) nine tenths of the increase in the additional pension, and shall continue to decrease by one tenth of the amount so calculated each year only until 2004 when the amount paid shall be one-half of the original increase in the additional pension."
(3) In sub-paragraph (1) of paragraph 4A of that Schedule after the word "increased" there shall be inserted the words ", subject to sub-paragraph (1A) below,".
(4) The following sub-paragraph shall be inserted after that sub-paragraph—
"(1A) Where the husband dies after 5th April 2000, sub-paragraph (1) shall have effect in relation to his widow as if for the words 'the following amounts—
(i) nine tenths of the appropriate amount and shall continue to decrease by one tenth of the amount so calculated each year only until 2004 when the amount paid shall be one-half of the original approriate amount after it has been reduced by the amount of any increases under section 37A of this Act; and
(ii) nine tenths of any increase and shall continue to decrease by one tenth of the amount so calculated each year only until 2004 when the amount paid shall be one-half of any increase to which he had been originally entitled under this paragraph.'.".
(5) In sub-paragraph (2), after the word "increased" there shall be inserted the words ", subject to sub-paragraph (2A) below,".
(6) The following sub-paragraph shall be inserted after that sub-paragraph—
"(2A) Where the wife dies after 5th April 1989, sub-paragraph (2) above shall have effect as if for the words from 'an amount', in the first place where those words occur, to the end there were substituted—
(a) if she dies before 6th April 2000, the words 'an amount equal to the sum of—
(i) that increase, so far as attributable to employment before 6th April 1988:
(ii) one-half of that increase so far as attributable to employment 5th April 1988:
(iii) the appropriate amount reduced by the amount of any increases under section 37A of this Act: and
(iv) any increase to which she had been entitled under this paragraph.'. and
(b) if she dies after 5th April 2000, the words 'an amount equal to the sum of—
(i) nine tenths of that increase and shall continue to decrease by one tenth of that increase each year only until 2004 when the amount paid shall be one-half of that original increase so far as attributable to employment before 6th April 1988:
(ii) nine tenths of the appropriate amount after it has been reduced by the amount of any increases under section 37A of this Act and shall continue to decrease by one tenth of the original appropriate amount each year only until 2004 when the amount paid shall be one-half of the original appropriate amount after it has been reduced by the amount of any increases under section 37A of this Act: and
(iii) nine tenths of any increase to which she had been entitled under this paragraph, and shall continue to decrease by one tenth of the original amount each year only until 2004 when the amount paid shall be one-half of any increase to which she had been originally entitled under this paragraph'.".'.
Mr Stephen Timms
132
Schedule 8, page 91, line 16, at end insert—
'Income and Corporation Taxes Act 1988 (c.1)
1ZA.—(1) Section 617 of the Income and Corporation Taxes Act 1988 (social security benefits and contributions) is amended as follows.
(2) In subsection (1)(a)—
(a) after "maternity allowance," insert "bereavement payments,"; and
(b) omit "widow's payments,".
(3) Omit subsection (6).'.
Mr Stephen Timms
133
Schedule 8, page 94, line 17, at end insert—
'Pensions Act 1995
17A.—(1) Section 128 of the Pensions Act 1995 (additional pension: calculation of surpluses) is amended as follows.
(2) In subsection (4), after "subsections (5)" insert ", (5A)".
(3) After subsection (5) insert—
"(5A) This section has effect in the case of additional pension falling to be calculated under sections 44 and 45 of the Social Security Contributions and Benefits Act 1992 by virtue of section 39C(1) of that Act (widowed parent's allowance), including Category B retirement pension payable under section 48BB(2), if the pensioner's spouse—
(a) dies after 5th April 2000, and
(b) has not attained pensionable age on or before that date."
(4) In subsection (6), for "or 48B(2)" substitute ", 48B(2) or 48BB(5)".'.
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