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

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Calculation of Category B retirement pension

   

Mr Secretary Darling

NC33

*To move the following Clause:—

    ' .—(1) In section 46 of the Social Security Contributions and Benefits Act 1992 (modifications of section 45 for calculating the additional pension in certain benefits), after subsection (2) there shall be inserted—

            "(3) For the purpose of determining the additional pension falling to be calculated under section 45 above by virtue of section 48BB below in a case where the deceased spouse died under pensionable age, the following definition shall be substituted for the definition of "N" in section 45(4)(b) above—

                  "'N' =

                  (a) the number of tax years which begin after 5th April 1978 and end before the date when the deceased spouse dies, or

                  (b) the number of tax years in the period—

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

                      (ii) ending immediately before the tax year in which S would have attained pensionable age if S had not died earlier,

                  whichever is the smaller number."

            (2) In section 48BB of that Act (Category B retirement pension: entitlement by reference to benefits under section 39A or 39B) in subsection (5) for "section 46(2)" there shall be substituted "section 46(3)".

            (3) In paragraph 5 of Schedule 8 to the Welfare Reform and Pensions Act 1999 (welfare benefits: minor and consequential amendments), sub-paragraph (b), and the word "and" immediately preceding it, shall be omitted.'.


Transfer to Financial Services Ombudsman of functions of Pensions Ombudsman and OPRA

   

Mr David Willetts
Mrs Jacqui Lait
Mr Eric Pickles
Mr Edward Leigh
Mr Laurence Robertson
Miss Julie Kirkbride

NC22

To move the following Clause:—

    '.—(1) There shall be transferred to the Financial Services Ombudsman all the functions and powers of the Pensions Ombudsman established under Part X of the Pension Schemes Act 1993 (as amended by the Pensions Act 1995); and the functions and powers of the Occupational Pensions Regulatory Authority shall be similarly transferred.

    (2) The Treasury may by order—

      (a) provide for the transfer of any property, rights or liabilities held, enjoyed or incurred by any person in connection with functions transferred under this section;

      (b) provide for the carrying on and completion by or under the authority of the Financial Services Ombudsman of any proceedings, investigations or other matters concerned, before the order takes effect, by or under the authority of the Pensions Ombudsman or Occupational Pensions Regulatory Authority;

      (c) make any transitional, incidental or consequential provision which is necessary, or expedient as a result of the transfer of functions under this section;

      (d) provide for the substitution of the Financial Services Ombudsman for the Pensions Ombudsman or Occupational Pensions Regulatory Authority in any instrument, contract or legal proceedings made or begun before the order takes effect.

    (3) The Treasury may make regulations providing for—

      (a) the transfer to the scheme operator of any staff previously employed in the service of the Pensions Ombudsman or Occupational Pensions Regulatory Authority;

      (b) the terms on which any such transfer shall take place; and

      (c) the terms on which the employment of any person previously employed in the service of the Pensions Ombudsman may be terminated.'.


Minimum retirement income

   

Mr David Willetts
Mrs Jacqui Lait
Mr Eric Pickles
Mr Edward Leigh
Mr Laurence Robertson
Miss Julie Kirkbride
Mr John Butterfill

NC23

To move the following Clause:—

    '.—(1) Subject to subsection (2) below, the Secretary of State may by regulations require a pensioner on retirement to purchase an annuity which shall give him a minimum retirement income one per cent. higher than the Minimum Income Guarantee throughout his life.

    (2) The regulations shall require that a pensioner who is unable to fund his Minimum Retirement Income from other sources shall purchase his annuity from a defined contribution pension plan.'.


Custodianship of investments

   

Mr John Butterfill

NC30

To move the following Clause:—

    '.—(1) The trustees or managers of an occupational pension scheme or a personal pension scheme must secure that investments held for the purposes of the scheme are held in accordance with an agreement made between the trustees or managers and an appropriate authorised person ("the custodian") which contains the provisions mentioned in subsection (2).

    (2) Those provisions are—

      (a) that the investments are held in the custodian's name and he maintains adequate records for identifying them as belonging to the scheme and not to himself or any other person,

      (b) that the custodian is required to safeguard the investments,

      (c) that all documents of title relating to the investments are kept in the custodian's possession and may not be delivered to any other person except—

          (i) to another appropriate authorised person with whom the trustee or managers have made an agreement within this section or in accordance with instructions from the scheme's fund manager, and

          (ii) upon a request which is signified in the manner specified in the agreement,

      (d) that all arrangements and transactions relating to the investments are conducted and recorded in the manner and within the period so specified,

      (e) that adequate arrangements are made for the deposit or investment of money received by the custodian in pursuance of the agreement and for the payment by him of money required for the purposes of the scheme,

      (f) that the custodian is responsible for securing that the trustees and managers are fully informed of all matters relating to the investments within a period which is reasonable having regard to the importance of the information,

      (g) that, in any case where the custodian is also a person to whom any discretion to make any decision about investments has been delegated under section 38, the functions exercisable by him as custodian are adequately differentiated from those exercisable by him by virtue of that delegation,

      (h) that the custodian is liable for any reduction in value in the assets of the scheme arising from any breach of his obligations under the agreement, and

      (i) such other provisions as the trustees or managers consider appropriate for securing the safeguarding of the investments of the scheme.

    (3) Where an agreement in relation to the investment held for the purposes of a scheme has been made with a custodian in accordance with this section—

      (a) except in prescribed circumstances, the custodian shall not be regarded as a trustee or manager of the scheme by virtue only of complying with such provisions of the agreement as are mentioned in subsection (2), and

      (b) the trustees or managers of the scheme are not responsible for any act or default of the custodian in the course of exercising his functions as such if they have taken all reasonable steps to satisfy themselves—

          (i) that he is an appropriate person to appoint as custodian, and

          (ii) that he performs his functions under the agreement competently.

    (4) Subject to any restriction imposed by the scheme, an agreement under this section may include provision enabling the custodian to make arrangements with another person for him to exercise any of the custodian's functions under the agreement; and where the custodian makes such arrangements this section shall, except in prescribed circumstances, apply in relation to the other person as it applies to the custodian.

    (5) Regulations may—

      (a) provide that this section does not apply, or

      (b) modify it in its application,

    to schemes or investments falling within a prescribed class or description.'.


Supplementary provisions concerning custodianship

   

Mr John Butterfill

NC31

To move the following Clause:—

    '.—(1) In section (Custodianship of investments) references to an appropriate authorised person are to a person who—

      (a) is regulated in the carrying on of business consisting of the holding of pension scheme investments in accordance with such agreements as are mentioned in that section by a body which is a recognised self-regulating organisation for the purpose of the Financial Services Act 1986, and

      (b) subject to subsection (2), is not connected with the person who is the employer in relation to the scheme in question.

    (2) Paragraph (1)(b) does not apply—

      (a) where the employer is an institution authorised under the Banking Act 1987 or a prescribed person and the arrangements made under this section comply with such further requirements as may be prescribed, or

      (b) in prescribed circumstances.

    (3) Section 2(1) of the Financial Services Act 1986 (power to extend or restrict the meaning of "investment" and "investment business" for the purposes of all or any provisions of that Act) shall apply in relation to the provisions of section (Custodianship of investments) and this section as it applies in relation to the provisions of that Act.'.


   

Lynne Jones
Audrey Wise

70

Page     35,     line     25     [Clause     40],     at end insert—

      '(za) The word "and" shall be omitted and after paragraph (a) there shall be inserted—

          "( ) that in the case of schemes which fall in a prescribed class, that such arrangements for the selection of persons nominated by pensioner members and deferred members of the scheme to be trustees of the scheme as are required by this section are made, and".'.

 
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