Amendments proposed to the Child Support, Pensions and Social Security Bill - continued House of Commons

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Modification of earnings factors

   

Mr Jeff Rooker
Angela Eagle
Mr Kevin Hughes
Mr Richard Burden

NC36

To move the following Clause:—

    '.—(1) In section 48A(5) of the Pension Schemes Act 1993 (power to modify the application of section 44(5) of the Social Security Contributions and Benefits Act 1992 where in any year a pensioner's earnings derive only partially from contracted-out employment) after "44(5)" there shall be inserted "or (5A)".

    (2) This section shall have effect in relation to the application of section 44(5A) of the Social Security Contributions and Benefits Act 1992 in the circumstances described in section 128(4) to (6) of the Pensions Act 1995.'.


Annual report on service pensions, war pensions and war widows' pensions

   

Mr Andrew Mackinlay
Mr Paul Burstow
Mr Andrew George
Mrs Jacqui Lait
Mr Eric Pickles
Mr Edward Leigh

NC4

To move the following Clause:—

    '.—After section 169 of the Pensions Act 1995 there shall be inserted—

"Annual report on service pensions, war pensions and war widows' pensions.169A.—(1) The Secretary of State shall lay before Parliament on or before the last day of April 2001 and annually thereafter a report for the previous financial year on service pensions, war pensions and war widows' pensions, setting out in particular—

      (a) the numbers of those in receipt of such pensions;

      (b) an assessment of whether the payments made during the year in respect of those pensions have been sufficient to prevent their recipients suffering any unnecessary hardship; and

      (c) what plans, if any, he has to improve the well-being of those recipients, whether by means of changes to the level of payments made in respect of those pensions or otherwise.

    (2) In preparing the report referred to in subsection (1), the Secretary of State shall—

      (a) consider any representations made to him by individual recipients of the pensions referred to in that subsection or organisations representing their interests; and

      (b) consult such other persons or organisations as appear to him to be appropriate.'.


Notification

   

Mr Paul Burstow
Mr Andrew George

NC14

To move the following Clause:—

    '.—The Secretary of State shall in regulations make provision for the notification of additional pension contributors of any changes to the additional pension that will materially affect their entitlement.'.


Backdating of additional pension contributions

   

Mr Paul Burstow
Mr Andrew George

NC17

To move the following Clause:—

    'The Secretary of State shall in regulations make provision for a scheme to back-date additional pension contributions to qualifying carers who would also have qualified under section 28 in any of the last 10 years.'.


Long term solvency of trust-based stakeholder schemes

   

Mrs Jacqui Lait
Mr Eric Pickles
Mr Edward Leigh
Mr Laurence Robertson
Miss Julie Kirkbride
Mr Desmond Swayne

NC18

To move the following Clause:—

    'Trust-based stakeholder schemes shall be regulated and monitored as to their long term solvency.'.


Pensions and annuities

   

Mrs Jacqui Lait
Mr Eric Pickles
Mr Edward Leigh
Mr Laurence Robertson
Miss Julie Kirkbride
Mr Desmond Swayne

NC19

To move the following Clause:—

    '.—The Secretary of State may, by regulations, introduce alternative arrangements to those contained in sections 28, 28A, 28B and 29 of the Pension Schemes Act 1993 to the extent that he deems appropriate.'.


Alternatives to annuities

   

Mrs Jacqui Lait
Mr Eric Pickles
Mr Edward Leigh
Mr Laurence Robertson
Miss Julie Kirkbride
Mr Desmond Swayne

NC20

To move the following Clause:—

    '.—The Secretary of State may, by regulations, approve alternative schemes of payment of pensions to those people currently committed to annuities purchased on retirement.'.


War pensions for widows: entitlement

   

Mrs Jacqui Lait
Mr Eric Pickles
Mr Edward Leigh
Mr Laurence Robertson
Miss Julie Kirkbride
Mr Desmond Swayne

NC21

To move the following Clause:—

    '(.—(1) Subject to subsection (2), a widow in receipt of a widow's pension under any of the enactments mentioned in subsection (3) ("the DSS pension") and in receipt of a pension paid under the Armed Forces Pension Scheme shall on remarriage or when living together as husband and wife with a member of the opposite sex only retain the Forces Family Pension (attributable).

    (2) Subsection (1) does not apply to a widow in receipt of a basic pension under section 44 of the Social Security Contributions and Benefits Act 1992; and a widow in receipt of such a pension who has remarried or is living together as husband and wife with a member of the opposite sex may not retain the Forces Family Pension (attributable).

    (3) The enactments referred to in subsection (1) are—

      (a) the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 1983, and any order re-enacting the provisions of that order,

      (b) the Personal Injuries (Civilians) Scheme 1983, and any subsequent scheme made under the Personal Injuries (Emergency Provisions) Act 1939,

      (c) any scheme made under the Pensions (Navy, Army, Air Force and Mercantile Marine) Act 1939 or the Polish Resettlement Act 1947 applying the provisions of any such order as is referred to in paragraph (a),

      (d) the order made under section 1(5) of the Ulster Defence Regiment Act 1969 concerning pensions and other grants in respect of disablement or death due to service in the Ulster Defence Regiment.)'.


Conditions for coming into force of Part III

   

Mr Eric Pickles
Mrs Jacqui Lait
Mr Edward Leigh
Mr Laurence Robertson
Miss Julie Kirkbride
Mr Desmond Swayne

NC25

To move the following Clause:—

    '48A. The measures in this Part shall not come into force until the Secretary of State shall have procured the publication by the Treasury Solicitor of—

      (a) A statement from the Treasury Solicitor summarising the advice received by the Secretary of State which relied upon by the Secretary of State in support of his statement under section 19(1)(a) of the Human Rights Act 1998; and

      (b) All and any Advice received from Counsel on the subject of whether the provisions of this Part are compatible with the European Convention of Human Rights and, if such advice was given by Counsel otherwise than in writing, any written record of the same.'.


NEW SCHEDULES

   

Mr Jeff Rooker
Angela Eagle
Mr Richard Burden
Mr Kevin Hughes

NS1

To move the following Schedule:—

'ADDITIONAL PENSION

    The Schedule to be inserted after Schedule 4 to the Social Security Contributions and Benefits Act 1992 is as follows—

"SCHEDULE 4A

Additional pension

Part I

The amount

    1.—(1) The amount referred to in section 45(2)(c) above is to be calculated as follows—

      (a) take for each tax year concerned the amount for the year which is found under the following provisions of this Schedule;

      (b) add the amounts together;

      (c) divide the sum of the amounts by the number of relevant years;

      (d) the resulting amount is the amount referred to in section 45(2)(c) above, except that if the resulting amount is a negative one the amount so referred to is nil.

    (2) For the purpose of applying sub-paragraph (1) above in the determination of the rate of any additional pension by virtue of section 39(1), 39C(1), 48A(4), 48B(2) or 48BB(5) above, in a case where the deceased spouse died under pensionable age, the divisor used for the purposes of sub-paragraph (1)(c) above shall be whichever is the smaller of the alternative numbers referred to below (instead of the number of relevant years).

    (3) The first alternative number is the number of tax years which begin after 5th April 1978 and end before the date when the entitlement to the additional pension commences.

    (4) The second alternative number is the number of tax years in the period—

      (a) beginning with the tax year in which the deceased spouse attained the age of 16 or, if later, 1978-79; and

      (b) ending immediately before the tax year in which the deceased spouse would have attained pensionable age if he had not died earlier.

    (5) In this paragraph "relevant year" has the same meaning as in section 44 above.

Part II

Surplus earnings factor

    2.—(1) This Part of this Schedule applies if for the tax year concerned there is a surplus in the pensioner's earnings factor.

    (2) The amount for the year is to be found as follows—

      (a) calculate the part of the surplus for that year falling into each of the bands specified in the appropriate table below;

      (b) multiply the amount of each such part in accordance with the last order under section 148 of the Administration Act to come into force before the end of the final relevant year;

      (c) multiply each amount found under paragraph (b) above by the percentage specified in the appropriate table in relation to the appropriate band;

      (d) add together the amounts calculated under paragraph (c) above.

    (3) The appropriate table for persons attaining pensionable age after the end of the first appointed year but before 6th April 2009 is as follows—

Table 1

     Amount of surplus
Percentage
      Band 1.      Not exceeding LET40 + 2N
      Band 2.      Exceeding LET but not exceeding 3LET - 2QEF10 + N/2
      Band 3.      Exceeding 3LET - 2QEF20 + N

    (4) The appropriate table for persons attaining pensionable age on or after 6th April 2009 is as follows—

Table 2

     Amount of surplus
Percentage
      Band 1.      Not exceeding LET40
      Band 2.      Exceeding LET but not exceeding 3LET - 2QEF10
      Band 3.      Exceeding 3LET - 2QEF20

    (5) Regulations may provide, in relation to persons attaining pensionable age after such date as may be prescribed, that the amount found under this Part of this Schedule for the second appointed year or any subsequent tax year is to be calculated using only so much of the surplus in the pensioner's earnings factor for that year as falls into Band 1 in the table in sub-paragraph (4) above.

    (6) For the purposes of the tables in this paragraph—

      (a) the value of N is 0.5 for each tax year by which the tax year in which the pensioner attained pensionable age precedes 2009-10;

      (b) "LET" means the low earnings threshold for that year as specified in section 44A above;

      (c) "QEF" means the qualifying earnings factor for the tax year concerned.

    (7) In the calculation of "2QEF" the amount produced by doubling QEF shall be rounded to the nearest whole £100 (taking any amount of £50 as nearest to the previous whole £100).

    (8) In this paragraph "final relevant year" has the same meaning as in section 44 above.

Part III

Contracted-out employment etc

Introduction

    3.—(1) This Part of this Schedule applies if the following condition is satisfied in relation to each tax week in the tax year concerned.

    (2) The condition is that any earnings paid to or for the benefit of the pensioner in the tax week in respect of employment were in respect of employment qualifying him for a pension provided by a salary related contracted-out scheme or by a money purchase contracted-out scheme or by an appropriate personal pension scheme.

    (3) If the condition is satisfied in relation to one or more tax weeks in the tax year concerned, Part II of this Schedule does not apply in relation to the year.

The amount

    4. The amount for the year is amount C where—

      (a) amount C is equal to amount A minus amount B, and

      (b) amounts A and B are calculated as follows.

Amount A

    5.—(1) Amount A is to be calculated as follows.

    (2) If there is an assumed surplus in the pensioner's earnings factor for the year—

      (a) calculate the part of the surplus for that year falling into each of the bands specified in the appropriate table below;

      (b) multiply the amount of each such part in accordance with the last order under section 148 of the Administration Act to come into force before the end of the final relevant year;

      (c) multiply each amount found under paragraph (b) above by the percentage specified in the appropriate table in relation to the appropriate band;

      (d) add together the amounts calculated under paragraph (c) above.

    (3) The appropriate table for persons attaining pensionable age after the end of the first appointed year but before 6th April 2009 is as follows—

Table 3

     Amount of surplus
Percentage
      Band 1.      Not exceeding LET40 + 2N
      Band 2.      Exceeding LET but not exceeding 3LET - 2QEF10 + N/2
      Band 3.      Exceeding 3LET - 2QEF20 + N

    (4) The appropriate table for persons attaining pensionable age on or after 6th April 2009 is as follows—

Table 4

     Amount of surplus
Percentage
      Band 1.      Not exceeding LET40]
      Band 2.      Exceeding LET but not exceeding 3LET - 2QEF10
      Band 3.      Exceeding 3LET - 2QEF20

Amount B (first case)

    6.—(1) Amount B is to be calculated in accordance with this paragraph if the pensioner's employment was entirely employment qualifying him for a pension provided by a salary related contracted-out scheme or by a money purchase contracted-out scheme.

    (2) If there is an assumed surplus in the pensioner's earnings factor for the year—

      (a) multiply the amount of the assumed surplus in accordance with the last order under section 148 of the Administration Act to come into force before the end of the final relevant year;

      (b) multiply the amount found under paragraph (a) above by the percentage specified in sub-paragraph (3) below.

    (3) The percentage is—

      (a) 20 + N if the person attained pensionable age after the end of the first appointed year but before 6th April 2009;

      (b) 20 if the person attained pensionable age on or after 6th April 2009.

Amount B (second case)

    7.—(1) Amount B is to be calculated in accordance with this paragraph if the pensioner's employment was entirely employment qualifying him for a pension provided by an appropriate personal pension scheme.

    (2) If there is an assumed surplus in the pensioner's earnings factor for the year—

      (a) calculate the part of the surplus for that year falling into each of the bands specified in the appropriate table below;

      (b) multiply the amount of each such part in accordance with the last order under section 148 of the Administration Act to come into force before the end of the final relevant year;

      (c) multiply each amount found under paragraph (b) above by the percentage specified in the appropriate table in relation to the appropriate band;

      (d) add together the amounts calculated under paragraph (c) above.

    (3) The appropriate table for persons attaining pensionable age after the end of the first appointed year but before 6th April 2009 is as follows—

Table 5

     Amount of surplus
Percentage
      Band 1.      Not exceeding LET40 + 2N
      Band 2.      Exceeding LET but not exceeding 3LET - 2QEF10 + N/2
      Band 3.      Exceeding 3LET - 2QEF20 + N

    (4) The appropriate table for persons attaining pensionable age on or after 6th April 2009 is as follows—

Table 6

     Amount of surplus
Percentage
      Band 1.      Not exceeding LET40]
      Band 2.      Exceeding LET but not exceeding 3LET - 2QEF10
      Band 3.      Exceeding 3LET - 2QEF20

Interpretation

    8.—(1) In this Part of this Schedule "salary related contracted-out scheme", "money purchase contracted-out scheme" and "appropriate personal pension scheme" have the same meanings as in the Pension Schemes Act 1993.

    (2) For the purposes of this Part of this Schedule the assumed surplus in the pensioner's earnings factor for the year is the surplus there would be in that factor for the year if section 48A(1) of the Pension Schemes Act 1993 (no primary Class 1 contributions deemed to be paid) did not apply in relation to any tax week falling in the year.

    (3) Section 44A above shall be ignored in applying section 44(6) above for the purposes of calculating amount B.

    (4) For the purposes of this Part of this Schedule—

      (a) the value of N is 0.5 for each tax year by which the tax year in which the pensioner attained pensionable age precedes 2009-10;

      (b) "LET" means the low earnings threshold for that year as specified in section 44A above;

      (c) "QEF" is the qualifying earnings factor for the tax year concerned.

    (5) In the calculation of "2QEF" the amount produced by doubling QEF shall be rounded to the nearest whole £100 (taking any amount of £50 as nearest to the previous whole £100).

    (6) In this Part of this Schedule "final relevant year" has the same meaning as in section 44 above.

Part IV

Other cases

    9. The Secretary of State may make regulations containing provisions for finding the amount for a tax year in—

      (a) cases where the circumstances relating to the pensioner change in the course of the year;

      (b) such other cases as the Secretary of State thinks fit."'.

 
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Prepared 7 Mar 2000