S.C.B.
Amendment Paper as at
Tuesday 3rd February 2004
STANDING COMMITTEE B
New Amendments handed in are marked thus *
ARMED FORCES (PENSIONS AND COMPENSATION) BILL
NOTE
The Amendments have been arranged in accordance with the Resolution of the Programming Sub-Committee [2nd February 2004].
RESOLUTION OF THE PROGRAMMING SUB-COMMITTEE
The Programming Sub-Committee appointed by the Speaker in respect of the Bill agreed the following Resolution at its meeting on Monday 2nd February (Sessional Order C relating to Programming)
That—
(1) during proceedings on the Armed Forces (Pensions and Compensation) Bill the Standing Committee shall, in addition to its first meeting on Tuesday 3rd February at 2.30 pm, meet—
| (a) | on Tuesday 10th February at 8.55 am and 2.30 pm; |
| (b) | on Tuesday 24th February at 8.55 am and 2.30 pm; |
| (c) | on Thursday 26th February at 8.55 am and 2.30 pm; |
(2) the proceedings shall be taken in the following order namely, Clauses 1 to 5, Schedule 1, Clause 6, Schedule 2, Clause 7, Schedule 3, Clauses 8 to 12, new Clauses, new Schedules, remaining proceedings on the Bill;
(3) the proceedings shall (so far as not previously concluded) be brought to a conclusion at 5 pm on Thursday 26th February.
Mr Ivor Caplin has given notice of his intention to move a motion in the terms of the resolution of the Programming Sub-Committee [Sessional Order C(9) relating to Programming (28th June 2001)].
Mr Gerald Howarth
Hugh Robertson
1
Clause 1, page 1, line 3, after 'establish', insert 'and modify'.
Mr Gerald Howarth
Hugh Robertson
2
Clause 1, page 1, line 3, after 'schemes', insert 'in accordance with the provisions of Schedule [Armed Forces Pension Scheme].'.
Mr Gerald Howarth
Hugh Robertson
3
Clause 1, page 1, line 5, after 'for', insert 'defined'.
Mr Gerald Howarth
Hugh Robertson
4
Clause 1, page 1, line 9, after 'establish', insert 'in accordance with the provisions of Schedule [Armed Forces Compensation Scheme].'.
Mr Gerald Howarth
Hugh Robertson
5
Clause 1, page 1, line 14, at end insert—
'(2A) The Secretary of State shall not alter or amend the guaranteed defined pensions benefits or the compensation benefits without the agreement of Parliament.'.
Mr Gerald Howarth
Hugh Robertson
6
Clause 1, page 1, line 16, at end insert 'and shall appoint a body to be known as Representative Trustees with the duties and responsibilities set out in section [Representative Trustees].'.
Mr Gerald Howarth
Hugh Robertson
9
Clause 3, page 2, line 26, at end insert 'under affirmative resolution procedure'.
Mr Gerald Howarth
Hugh Robertson
7
Clause 3, page 2, line 26, at end insert—
'(1A) Where a person receives a benefit under the existing scheme which would not be provided under a proposed scheme, that person ("the transferor") may transfer to the proposed schemes while also continuing to receive personally the additional benefits derived from the present scheme.
(1B) The documentation of the transfer procedure shall prominently include particulars of how the transferor may protect such additional personal benefit.'.
Mr Gerald Howarth
Hugh Robertson
8
Clause 3, page 2, line 30, at end insert 'of which a draft has been laid before, and approved by a resolution of, each House of Parliament.'.
Mr Ivor Caplin
14
*Clause 10, page 3, line 33, at end insert—
'( ) An order under this Act may make different provision for different purposes.'.
Mr Gerald Howarth
Hugh Robertson
10
Clause 10, page 3, line 38, at end insert—
'(2A) Authority vested in the Secretary of State to vary the schemes set out in section 1 may only be made by the authority under this section.'.
Mr Gerald Howarth
Hugh Robertson
11
Clause 10, page 4, line 3, leave out from 'Act' to 'is' in line 6.
Mr Gerald Howarth
Hugh Robertson
13
Clause 10, page 4, line 5, after 'which', insert 'modifies the working of the scheme or which'.
Mr Gerald Howarth
Hugh Robertson
12
Clause 10, page 4, line 8, leave out from 'Parliament' to end.
NEW CLAUSES
No Detriment
Mr Gerald Howarth
Hugh Robertson
NC1
To move the following Clause:—
'(1) Where a person receives a benefit under an existing scheme which would not be provided under changes included in a proposed scheme, that person ("the transferor") may transfer to the proposed schemes whilst also continuing to receive personally the additional benefits derived from the present scheme.
(2) The documentation of the transfer procedure shall prominently include particulars of how the transferor may protect such additional personal benefit.'.
Re-employment of Armed Forces Pension recipients
Mr Gerald Howarth
Hugh Robertson
NC2
To move the following Clause:—
'(1) Where—
| (a) | the Secretary of State determines for reasons of general personnel management that a person shall cease to be employed as an active full time member of the armed forces and therefore grants that person Early Retirement Income in accordance with Schedule [Armed Forces Pension Scheme], and |
| (b) | the person concerned is re-employed for service under the Crown, including for service with the armed forces in another capacity, |
such re-employment will be permissible without abatement of Early Retirement Income.
(2) In this section "reasons of general personnel management" means decisions reached by the Secretary of State in his absolute discretion as to future requirements of numbers in particular roles and ranks.
(3) In certifying reasons of general personnel management as the grounds for granting Early Retirement Income the Secretary of State's decision shall be conclusive and binding grounds for excluding the Early Retirement Income in this case from rules otherwise applying to pensions.'.
Representative Trustees
Mr Gerald Howarth
Hugh Robertson
NC3
to move the following Clause:—
'(1) The Secretary of State shall appoint not less than seven and not more than nine persons to serve as Representative Trustees in respect of the two schemes taken together ("the Trustees").
(2) Persons so appointed may be appointed for between three and seven years in the first instance and thereafter for periods of three years which shall be renewable.
(3) Persons so appointed shall include—
| (a) | not less than five persons who have served in the armed forces, of whom at least two shall have served in non-commissioned rank; |
| (b) | at least one beneficiary under the compensation scheme; |
| (c) | at least two who are expert in pensions matters; |
| (d) | at least two who are concurrently members of the Armed Forces Pay Review Body; and |
| (e) | a person appointed by the Secretary of State to serve as Chairman of the Trustees ("the Chairman"). |
(4) The categories listed in subsection (3) are not mutually exclusive.
(5) The Secretary of State in consultation with the Chairman shall appoint a suitably qualified person to serve as Secretary to the Trustees ("the Secretary") and shall provide the Secretary and Trustees with all the facilities necessary for their work.
(6) The Secretary of State must consult with the Trustees on proposals to modify the scheme in accordance with section 3(1)(b).
(7) The Trustees shall keep the Schemes under regular review and shall report at least annually to the Secretary of State and may so report more frequently if they believe that to be necessary.
(8) The Secretary of State shall cause any report to him by the Trustees to be published if the Trustees so request.
(9) The Trustees may make to the Secretary of State recommendations for variations in the Scheme.
(10) The Secretary of State may, at his discretion, reject, vary or accept and apply such recommendations. In either case he shall make a written statement to Parliament setting out the recommendation, the reasons of the Trustees for making it, his decision and his reasons for that.'.
Representative Trustees (No. 2)
Mr Gerald Howarth
Hugh Robertson
NC4
To move the following Clause:—
'(1) The Secretary of State shall appoint not less than seven and not more than nine persons to serve as Representative Trustees in respect of the two schemes taken together ("the Trustees").
(2) Persons so appointed may be appointed for between three and seven years in the first instance and thereafter for periods of three years which shall be renewable.
(3) Persons so appointed shall include—
| (a) | not less than five persons who have served in the armed forces whom of at least two shall have served in non-commissioned rank; |
| (b) | at least one beneficiary under the compensation scheme; |
| (c) | at least two who are expert in pensions matters; |
| (d) | at least two who are concurrently members of the Armed Forces Pay Review Body; and |
| (e) | a person appointed by the Secretary of State to serve as Chairman of the Trustees ("the Chairman"). |
(4) The categories listed in subsection (3) are not mutually exclusive.
(5) The Secretary of State after consultation with the Chairman shall appoint a suitably qualified person to serve as Secretary to the Trustees ("the Secretary") and shall provide the Secretary and the Trustees with all the facilities necessary for their work.
(6) The Trustees shall keep the schemes and their management under regular review, shall report at least annually to the Secretary of State, and may so report more frequently if they believe that to be necessary.
(7) The Secretary of State shall give notice to the Trustees of any modification in the schemes he is minded to make and shall invite the observations of the Trustees in respect of such proposed modification.
(8) The Trustees shall have a special duty to review and advise on arrangements for the provision of competent independent advice to participants in the schemes and any predecessor schemes and for access to such advice.
(9) The Secretary of State shall cause any report to him by the Trustees to be published if the Trustees so request.
(10) The Trustees may make to the Secretary of State recommendations for modification to the schemes and in relation to the general conduct of the schemes.
(11) The Secretary of State may, at his discretion, reject, vary or accept and apply such recommendations. In any case he shall make a written statement to Parliament setting out the recommendation, the reasons of the Trustees for making it, his decision and his reasons for that.'.
