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Amendment Paper as at
Thursday 28th February 2002



    Clause No. 1 (Amendment of the Income and Corporation Taxes Act 1988).Amendment (No. 7) proposed in page 1,     to leave out lines 11 to 14.)(Ruth Kelly.)Question proposed, That the Amendment be made.


Mr Howard Flight
Mrs Angela Browning
David Burnside


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


Clause     1,     page     1,     line     20,     leave out 'Subject to subsection (7) below'.


Ruth Kelly


Clause     1,     page     1,     line     20,     leave out 'must' and insert 'may'.


Ruth Kelly


Clause     1,     page     2,     leave out lines 1 to 11.


Mr Howard Flight


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


Clause     1,     page     2,     leave out lines 13 and 14.


Ruth Kelly


Clause     1,     page     2,     line     15,     leave out 'under section (1A)'.


Ruth Kelly


Clause     1,     page     2,     line     16,     leave out 'must' and insert 'may'.


Ruth Kelly


Clause     1,     page     2,     leave out lines 18 to 20.


Mr Howard Flight
Mrs Angela Browning
David Burnside


Clause     1,     page     2,     line     22,     leave out 'section is' and insert 'sections are'.


Ruth Kelly


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


Clause     1,     page     2,     leave out lines 26 and 27.


Ruth Kelly


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


Clause     1,     page     2,     line     31,     at beginning insert 'of a kind'.


Ruth Kelly


Clause     1,     page     2,     line     31,     at end insert 'for the purposes of this section'.


Ruth Kelly


Clause     1,     page     2,     line     33,     after 'may', insert ', subject to subsection (2A),'.


Ruth Kelly


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


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


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


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


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


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


Clause     2,     page     2,     line     43,     leave out leave out 'annually' and insert 'for each financial year'.


Ruth Kelly


Clause     2,     page     2,     line     44,     after 'order', insert 'before 31st January in the preceding financial year'.


Ruth Kelly


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


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'.


Application of Act

Mr Howard Flight


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.'.

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©Parliamentary copyright 2002
Prepared 28 Feb 2002