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Amendment Paper as at
Friday 11th July 2003

CONSIDERATION OF BILL


RETIREMENT INCOME REFORM BILL, AS AMENDED

NEW CLAUSES

Definition of 'dependant' and 'surviving spouse'

   

Mr John Healey

NC2

To move the following Clause:—

    '(1)   Section 630(1) of the Income and Corporation Taxes Act 1988 (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 is aged 18 or over and who is continuing to receive full-time education;

          (c) a person who is financially dependant on the member; and

          (d) a person who is dependant 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.".'.

Retirement Income Fund: review

   

Mr Barry Gardiner

NC3

To move the following Clause:—

       '.—In the Income and Corporation Taxes Act 1988, 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.".'.


   

Mr John Healey

1

Page     1,     line     15     [Clause     1],      leave out 'Subject to subsection (7) below'.

   

Mr John Healey

2

Page     1,     line     16     [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 John Healey

3

Page     1,     line     18     [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.'.


   

Mr John Healey
Mr Andrew Dismore

4

Page     2     [Clause     1],      leave out lines 11 and 12

   

Mr Andrew Dismore

15

Page     2,     line     14     [Clause     1],     leave out from 'index' to end of line 15.

   

Mr John Healey

5

Page     2,     line     21     [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 he defers the purchase, designate part of the personal pension fund as a Retirement Income Fund under this section.'.

   

Mr John Healey

6

Page     2     [Clause     1],      leave out lines 24 and 25.

   

Mr John Healey

7

Page     2,     line     27     [Clause     1],      leave out from 'kind' to 'or' in line 28 and insert 'specified in the Schedule to the Personal Pension Schemes (Restrictions on Discretion to Approve) (Permitted Investments) Regulations 2001'.

   

Mr John Healey

8

Page     2,     line     29     [Clause     1],      at beginning insert 'investments of a kind'.

   

Mr John Healey

9

Page     2,     line     29     [Clause     1],      at end insert 'for the purposes of this section'.

   

Mr Barry Gardiner

13

Page     2,     line     35     [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.'.

   

Mr John Healey

10

Page     2,     line     36     [Clause     1],      leave out 'and any income derived from it' and insert 'the right to withdraw funds from it under subsection (2)'.

   

Mr John Healey

11

Page     2,     line     37     [Clause     1],      at end insert 'except for the purpose of giving effect to any pension sharing order or provision'.

   

Mr Andrew Dismore

16

Page     2,     line     43     [Clause     2],     at end insert—

    '(1A)   In setting the level of the Minimum Retirement Income, the Chancellor of the Exchequer shall have regard to—

      (a) the level of the Minimum Income Guarantee and anticipated increases therein;

      (b) the level of Pension Credit and anticipated increases therein;

      (c) the extent to which the State meets the costs of long-term care of the elderly, and any anticipated changes therein;

      (d) the maximum level of council tax benefit and anticipated increases therein;

      (e) the level of housing benefit and anticipated increases therein;

      (f) the level of such other means-tested benefits available to pensioners as may be in force at the time, or are anticipated to be brought into force in the next two years, and any anticipated increases therein.'.

   

Mr Andrew Dismore

19

Page     2,     line     43     [Clause     2],     at end insert—

    '(1A)   In setting the level of the Minimum Retirement Income the Chancellor of the Exchequer shall have regard to—

      (a) the current rate of inflation,

      (b) the inflation target, and

      (c) the historic rate of inflation for the preceding 10 years.'.

   

Mr Andrew Dismore

20

Page     2,     line     43     [Clause     2],     at end insert—

    '(1A)   In setting the level of the Minimum Retirement Income, the Chancellor of the Exchequer shall have regard to the current real rate of return on investment and the historic rate for the preceding 10 years.'.


   

Mr Andrew Dismore

17

Page     3,     line     4     [Clause     2],     leave out from 'and' to end of line 6 and insert 'no such order shall be made unless a draft of that order has been laid before and approved by a resolution of each House of Parliament.'.

   

Mr John Healey

12

Page     3,     line     9     [Clause     3],      leave out '6th April 2005' and insert 'such day as the Chancellor of the Exchequer may by order made by statutory instrument appoint'.

   

Mr Andrew Dismore

18

Page     3,     line     9     [Clause     3],     leave out '6th April 2005' and insert 'such date as the Chancellor of the Exchequer may appoint'.


 
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Prepared 11 Jul 2003