S.C.A.
Amendment Paper as at
Thursday 14th February 2002
STANDING COMMITTEE A
Mr Davd Curry
That, during proceedings on the Pensions Annuities (Amendment) Bill, the Committee do meet on Thursdays when the House is sitting at five minutes to Nine o'clock and half-past Two o'clock.
PENSIONS ANNUITIES (AMENDMENT) BILL
Ruth Kelly
6
Clause 1, page 1, line 5, leave out 'sums for investment in' and insert 'withdrawals from'.
Mr Howard Flight
Mrs Angela Browning
David Burnside
1
Clause 1, page 1, line 6, after 'Fund', insert 'or sums for investment in a Retirement Failsafe Fund.'.
Mr Howard Flight
Mrs Angela Browning
David Burnside
2
Clause 1, page 1, line 9, after 'Fund', insert 'or withdrawal of funds from a Retirement Failsafe Fund'.
Ruth Kelly
7
Clause 1, page 1, leave out lines 11 to 14.
Mr Howard Flight
Mrs Angela Browning
David Burnside
3
Clause 1, page 1, line 17, at end insert—
| '(g) | the payment to a member of income from a Retirement Failsafe Fund satisfying the conditions of section 637C.'. |
Ruth Kelly
8
Clause 1, page 1, line 20, leave out 'Subject to subsection (7) below'.
Ruth Kelly
9
Clause 1, page 1, line 20, leave out 'must' and insert 'may'.
Ruth Kelly
10
Clause 1, page 2, leave out lines 1 to 11.
Mr Howard Flight
30
Clause 1, page 2, line 10, leave out from 'member' to end of line 11 and insert—
| '(i) | attains the state retirement age; and |
| (ii) | ceases to be in full or part time work for a period of more than three months.'. |
Ruth Kelly
11
Clause 1, page 2, leave out lines 13 and 14.
Ruth Kelly
12
Clause 1, page 2, line 15, leave out 'under section (1A)'.
Ruth Kelly
13
Clause 1, page 2, line 16, leave out 'must' and insert 'may'.
Ruth Kelly
14
Clause 1, page 2, leave out lines 18 to 20.
Mr Howard Flight
Mrs Angela Browning
David Burnside
4
Clause 1, page 2, line 22, leave out 'section is' and insert 'sections are'.
Ruth Kelly
15
Clause 1, page 2, line 23, at end insert—
'( ) Where a member elects to defer the purchase of an annuity such as is mentioned in section 634 he may, for such period as defers the purchase, designate part of the personal pension fund as a Retirement Income Fund under this section.'.
Ruth Kelly
16
Clause 1, page 2, leave out lines 26 and 27.
Ruth Kelly
17
Clause 1, page 2, line 29, leave out from 'kind' to 'or' in line 30 and insert 'specified in the Schedule to the Personal Pension Schemes (Restriction on Discretion to Approve) (Permitted Investments) Regulations 2001'.
Ruth Kelly
18
Clause 1, page 2, line 31, at beginning insert 'of a kind'.
Ruth Kelly
19
Clause 1, page 2, line 31, at end insert 'for the purposes of this section'.
Ruth Kelly
20
Clause 1, page 2, line 33, after 'may', insert ', subject to subsection (2A),'.
Ruth Kelly
21
Clause 1, page 2, line 34, at end insert—
'(2A) Section 634A(2) to (5) apply to withdrawals from a Retirement Income Fund as they apply to income withdrawals.'.
Ruth Kelly
22
Clause 1, page 2, line 36, leave out from beginning to end of line 37 and insert 'personal pension scheme provides for the payment of an annuity which—
| (a) | makes the provision specified in section 634(1A) and (8), and |
| (b) | commences no later than the date on which the member attains the age of 65.'. |
Ruth Kelly
23
Clause 1, page 2, line 38, leave out 'any income derived from it' and insert 'the right to withdraw funds from it under subsection (2)'.
Ruth Kelly
24
Clause 1, page 2, line 39, at end insert '(except for the purpose of giving effect to any pension sharing order or provision)'.
Ruth Kelly
25
Clause 1, page 2, line 41, leave out from 'be' to end of line and insert 'assessable to tax under Schedule E (and section 203 shall apply accordingly) and shall be treated as earned income of the member'.
Mr Howard Flight
Mrs Angela Browning
David Burnside
5
Clause 1, page 2, line 41, at end insert—
'637 Retirement Failsafe Fund
(1) Where a member elects not to purchase an annuity he may transfer funds into a Retirement Failsafe Fund as follows—
(2) The sum to be placed into the Retirement Failsafe Fund shall be the lesser of
| (a) | 150 per cent. of the fund size needed to ensure the member has an income the equivalent of the Minimum Retirement Income, or |
| (b) | the whole person pension scheme fund |
(3) Withdrawals from the Retirement Failsafe Fund must be taken such as will ensure the member has an annual income equal to the Minimum Retirement Income set under section 2 of the Pensions Annuities (Amendment) 2002.
(4) Any balance remaining in the personal pension scheme after the Retirement Failsafe Fund is established may be withdrawn as income as and when the member elects until he attains the age of 80.
(5) At the age of 80 the balance in the Retirement Failsafe Fund shall be transferred back into the personal pension scheme and withdrawals made from the whole scheme as follows—
| | In each successive year starting at the age of 80 a sum shall be withdrawn equal to the balance of the fund at the commencement of that respective year divided by the number of years then remaining to the age of 100. |
(6) All withdrawals under subsections (3), (4) and (5) shall be regarded as "income" within section 1 of this Act.
(7) The right to all withdrawals under subsections (3), (4) and (5) must not be capable of assignment or surrender.'.
Ruth Kelly
26
Clause 2, page 2, line 43, leave out leave out 'annually' and insert 'for each financial year'.
Ruth Kelly
27
Clause 2, page 2, line 44, after 'order', insert 'before 31st January in the preceding financial year'.
Ruth Kelly
28
Clause 2, page 3, line 2, at end insert—
'(2) An order under this section shall be made by statutory instrument and shall be subject to annulment in pursuance of a resolution of either House of Parliament'.
Ruth Kelly
29
Clause 3, page 3, line 5, leave out '6th April 2004' and insert 'such day as the Chancellor of the Exchequer may by order made by statutory instrument appoint'.
NEW CLAUSES
Application of Act
Mr Howard Flight
NC1
To move the following Clause:—
'(1) Subject to subsection (2), this Act shall apply only where an individual becomes a member of a personal pension scheme after the date on which this Act is passed.
(2) Any individual who was a member of a personal pension scheme before the date on which this Act is passed may elect for his membership of the scheme to be governed in accordance with this Act.'.
