NOTICES OF AMENDMENTS
given up to and including
Wednesday 17th July 2002
CONSIDERATION OF BILL
PENSIONS ANNUITIES (AMENDMENT) BILL, AS AMENDED
NEW CLAUSES
Retirement Income Fund: review
Ruth Kelly
NC1
To move the following Clause:—
'In the Income and Corporation Taxes Act 1988 (c.1), after section 637B (as inserted by section 1 above) there is inserted—
"637C Review of retirement income fund (1) Where a member has under section 637B designated part of his personal pension fund as a Retirement Income Fund, the scheme administrator must provide for the Fund to be reviewed annually in accordance with this section.
(2) A review under this section shall include—
| (a) | an assessment of the performance of the Fund, |
| (b) | an assessment as to whether all or part of the Fund should be used in the purchase of an annuity; and |
| (c) | a review of such other matters as the Board may by regulations prescribe. |
(3) The review must be conducted by a person who is authorised for the purposes of the Financial Services and Markets Act 2000 by virtue of permission given under Part 4 of that Act.
(4) The person conducting the review shall report in writing to the member as to the result of the review.
(5) The review and report shall be made free of charge to the member.
(6) The Board may by regulations make supplementary and incidental provision about reviews under this section.".'.
Annuities: advice
Mr Barry Gardiner
NC2
To move the following Clause:—
'In the Income and Corporation Taxes Act 1988 (c.1), after section 634 there is inserted—
"634ZA Advice relating to the purchase of an annuity (1) The scheme administrator must, in accordance with this section, make advice available to the member about the purchase of the annuity.
(2) The advice must be given by a person who is authorised for the purposes of the Financial Services and Markets Act 2000 by virtue of permission given under Part 4 of that Act.
(3) The advice must be made available free of charge.
(4) The advice must be made available within three months of the member attaining the age of 60 and thereafter at such times or intervals as the Board may prescribe in regulations.
(5) The Board may by regulations make supplementary and incidental provision about advice to be made available under this section.
(6) Where advice is made available under this section to a person who is an employee, his employer must permit him to absent himself from his employment, without reduction of remuneration, in order to receive the advice.
(7) Nothing in this section requires advice to be made available where the member has already purchased the annuity.".'.
Definition of 'dependant' and 'surviving spouse'
Mr Barry Gardiner
NC3
To move the following Clause:—
'(1) Section 630(1) of the Income and Corporation Taxes Act 1988 (c.1) (definitions) is amended as follows.
(2) After the definition of "authorised insurance company" there is inserted—
"'dependant' means—
| (a) | a child of the member who is under the age of 18, |
| (b) | a child of the member who aged 18 or over and who is continuing to receive full-time education, |
| (c) | a person who is financially dependent on the member; and |
| (d) | a person who is dependent on the member by reason of disability." |
(3) At the end there is inserted—
"'surviving spouse', in relation to a member, means a person to whom the member was married at the time of his death.".'.
Ruth Kelly
7
Page 1, line 16 [Clause 1], leave out 'must' and insert 'may'.
Mr Barry Gardiner
27
Page 1, line 17 [Clause 1], after 'member', insert 'and, after the member's death, any surviving spouse of the member and any person who was a dependant of his at the time of his death,'.
Mr Barry Gardiner
28
Page 1, line 19 [Clause 1], at end insert—
'(1B) Where an annuity is payable to a surviving spouse or dependant of a member in accordance with subsection (1A), section 636(4) to (10) applies.'.
Ruth Kelly
8
Page 2, [Clause 1], leave out lines 1 to 12.
Ruth Kelly
9
Page 2, [Clause 1], leave out lines 14 and 15.
Ruth Kelly
10
Page 2, line 16 [Clause 1], leave out 'under section (1A)'.
Ruth Kelly
11
Page 2, line 17 [Clause 1], leave out 'must' and insert 'may'.
Ruth Kelly
12
Page 2, [Clause 1], leave out lines 19 to 21.
Mr Howard Flight
Mrs Angela Browning
Mr Frank Field
Mr Edward Leigh
3
Page 2, line 23 [Clause 1], leave out 'section is' and insert 'sections are'.
Ruth Kelly
13
Page 2, line 24 [Clause 1], 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
14
Page 2, [Clause 1], leave out lines 27 and 28.
Ruth Kelly
15
Page 2, line 30 [Clause 1], leave out from 'kind' to 'or' in line 31 and insert 'specified in the Schedule to the Personal Pension Schemes (Restrictions on Discretion to Approve) (Permitted Investments) Regulations 2001'.
Ruth Kelly
16
Page 2, line 32 [Clause 1], at beginning insert 'investments of a kind'.
Ruth Kelly
17
Page 2, line 32 [Clause 1], at end insert 'for the purposes of this section'.
Ruth Kelly
18
Page 2, line 34 [Clause 1], after 'may' insert ', subject to subsection (2A),'.
Ruth Kelly
19
Page 2, line 35 [Clause 1], 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
20
Page 2, line 37 [Clause 1], leave out from beginning to end of line 38 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
26
Page 2, line 38 [Clause 1], at end insert—
'(3A) For the purposes of subsection (3), an annuity is not to be regarded as making the provision specified in section 634(1A) unless the member has received a certificate stating that it makes that provision from the person providing the annuity.'.
Ruth Kelly
21
Page 2, line 39 [Clause 1], leave out 'any income derived from it' and insert 'the right to withdraw funds from it under subsection (2)'.
Ruth Kelly
22
Page 2, line 40 [Clause 1], at end insert 'except for the purpose of giving effect to any pension sharing order or provision'.
Ruth Kelly
23
Page 2, line 42 [Clause 1], 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
Mr Frank Field
Mr Edward Leigh
4
Page 2, line 42 [Clause 1], at end insert—
'637C Retirement Failsafe Fund
(1) There shall be a vehicle for savings for retirement known as a Retirement Failsafe Fund.
(2) A member may transfer funds into a Retirement Failsafe Fund if he elects not to purchase an annuity.
(3) Regulations may make provision relating to Retirement Failsafe Funds, and in particular in connection with—
| (a) | the sums to be invested in the fund; |
| (b) | withdrawals from the fund; |
| (c) | the age at which a pension is payable; |
| (d) | preventing the assignment or surrender of withdrawals from the fund. |
(4) Regulations under subsection (3) shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.'.
Ruth Kelly
24
Page 3, line 3 [Clause 2], leave out from 'order' to end of line 6 and insert—
'( ) An order under this section shall, in respect of each financial year after that in which this Act comes into force, be made on or before 31st January preceding the year in question'.
Ruth Kelly
25
Page 3, line 12 [Clause 3], leave out '6th April 2004' and insert 'such day as the Chancellor of the Exchequer may by order made by statutory instrument appoint'.
