Amendments proposed to the Pensions Bill - continued House of Commons

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Treatment of closed schemes required to wind up

   

Malcolm Wicks

NC11

To move the following Clause:—

    '(1)   In this section "closed scheme" means an eligible scheme which is authorised under section [schemes required to wind up but unable to buy out liabilities] to continue as a closed scheme.

    (2)   The provisions mentioned in subsection (3) apply in relation to a closed scheme at any time when the trustees or managers of the scheme are required to wind up or continue winding up the scheme under section 119 as if that time fell within an assessment period in relation to the scheme.

    (3)   The provisions are—

      (a) section 105 (admission of new members, payment of contributions etc);

      (b) section 106 (directions);

      (c) section 109 (Board to act as creditor of the employer).

    (4)   Section 105, as it applies by virtue of subsection (2), does not preclude the admission to a closed scheme of new pension credit members (within the meaning of section 124(1) of the Pensions Act 1995).'.


Valuations of closed schemes

   

Malcolm Wicks

NC12

To move the following Clause:—

    '(1)   Regulations may make provision requiring the trustees or managers of closed schemes to obtain actuarial valuations of the scheme at such intervals as may be prescribed for the purposes of enabling them to determine—

      (a) the benefits payable under the scheme;

      (b) whether to make an application under section [applications and notifications where closed schemes have insufficient assets].

    (2)   Regulations under this section may prescribe how—

      (a) the assets, the full scheme liabilities and the protected liabilities in relation to closed schemes, and

      (b) their amount or value,

    are to be determined, calculated and verified.

    (3)   Subject to any provision made under subsection (2), those matters are to be determined, calculated and verified in accordance with guidance issued by the Board.

    (4)   In calculating the amount of any liabilities for the purposes of a valuation required by virtue of this section, a provision of the scheme which limits the amount of its liabilities by reference to the value of its assets is to be disregarded.

    (5)   In this section, in relation to a scheme—

"actuarial valuation" means a written valuation of—

      (a) the scheme's assets,

      (b) the full scheme liabilities, and

      (c) the protected liabilities in relation to the scheme;

"the actuary" means—

      (a) the actuary appointed under section 47(1)(b) of the Pensions Act 1995 ? (professional advisers) in relation to the scheme, or

      (b) if no such actuary has been appointed, a person with prescribed qualifications;

"assets" do not include assets representing the value of any rights in respect of money purchase benefits under the scheme;"closed scheme" has the same meaning as in section [treatment of closed schemes required to wind up];"full scheme liabilities" means—

      (a) the liabilities under the scheme to or in respect of members of the scheme,

      (b) other liabilities of the scheme, and

      (c) the estimated cost of winding up the scheme;

"liabilities" does not include liabilities in respect of money purchase benefits under the scheme.'.
Applications and notifications where closed schemes have insufficient assets

   

Malcolm Wicks

NC13

To move the following Clause:—

    '(1)   If at any time the trustees or managers of a closed scheme become aware that the value of the assets of the scheme is less than the amount of the protected liabilities in relation to the scheme, they must, before the end of the prescribed period beginning with that time, make an application to the Board for it to assume responsibility for the scheme.

    (2)   Where the Board receives an application under subsection (1), it must give a copy of the application to the Regulator.

    (3)   If at any time the Regulator becomes aware that the value of the assets of the scheme is less than the amount of the protected liabilities in relation to the scheme, it must give the Board a notice to that effect.

    (4)   Where the Board receives a notice under subsection (3), it must give the trustees or managers of the scheme a notice to that effect.

    (5)   The duty imposed by subsection (1) does not apply where the trustees or managers of an eligible scheme become aware as mentioned in that subsection by reason of a notice given to them under subsection (4).

    (6)   The duty imposed by subsection (3) does not apply where the Regulator becomes aware as mentioned in that subsection by reason of a copy of an application made by the trustees or managers of the eligible scheme being given to it under subsection (2).

    (7)   Regulations may require notices and applications under this section to be in the prescribed form and contain the prescribed information.

    (8)   If the trustees or managers of an eligible scheme fail to comply with subsection (1), section 10 of the Pensions Act 1995 (civil penalties) applies to any trustee or manager who has failed to take all reasonable steps to secure compliance.

    (9)   In this section closed scheme has the same meaning as in section [treatment of closed schemes required to wind up].'.


Duty to assume responsibility for closed schemes

   

Malcolm Wicks

NC14

To move the following Clause:—

    '(1)   Where the trustees or managers of a closed scheme—

      (a) make an application under subsection (1) of section [applications and notifications where closed schemes have insufficient assets], or

      (b) receive a notice from the Board under subsection (4) of that section,

    the Board must assume responsibility for the scheme in accordance with this Chapter if the value of the assets of the scheme at the relevant time was less than the amount of the protected liabilities at that time.

    (2)   In subsection (1) the reference to the assets of the scheme is a reference to those assets excluding any assets representing the value of any rights in respect of money purchase benefits under the scheme.

    (3)   For the purposes of determining whether the condition in subsection (1) is satisfied, the Board must, as soon as reasonably practicable, obtain an actuarial valuation (within the meaning of section 112(3)) of the scheme as at the relevant time.

    (4)   Subject to subsection (6), the following provisions apply in relation to a valuation obtained under subsection (3) as they apply in relation to a valuation obtained under section 112—

      (a) subsections (4) to (6) and (8) of that section;

      (b) section 113 (approval of valuation), other than subsection (2)(b) (iii) (duty to give copy of approved valuation to employer's insolvency practitioner);

      (c) section 114 (binding valuations), other than subsection (3)(b) (duty to give copy of binding valuation to employer's insolvency practitioner).

    (5)   In the application of section 114 by virtue of subsection (4), subsection (2) of that section applies as if the reference to section 100(2)(a) included a reference to subsection (1) of this section.

    (6)   In this section—

"closed scheme" has the same meaning as in section [treatment of closed schemes required to wind up];"the relevant time" means the time immediately before the application mentioned in subsection (1)(a) was made, or (as the case may be) the notice mentioned in subsection (1)(b) was received, by the trustees or managers of the scheme.'.


Closed schemes: further assessment periods

   

Malcolm Wicks

NC15

To move the following Clause:—

    '(1)   This section applies where—

      (a) an application is made under subsection (1) of section [applications and notifications where closed schemes have insufficient assets] in relation to a closed scheme, or

      (b) the trustees or managers of the scheme receive a notice under subsection (4) of that section.

    (2)   An assessment period —

      (a) begins when the application is made or the notice is received by the trustees or managers of the scheme, and

      (b) ends when—

      (i) the trustees or managers receive a transfer notice under section 122, or

      (ii) the conditions in section 119(5) (closed scheme with sufficient assets to meet protected liabilities etc) are satisfied in relation to the scheme,

      whichever first occurs.

    (3)   In this section "closed scheme" has the same meaning as in section [treatment of closed schemes required to wind up].'.


Meaning of "reviewable matters"

   

Malcolm Wicks

NC16

*To move the following Clause:—

    '(1)   For the purposes of this Chapter, "reviewable matter" means a matter mentioned in Schedule [Reviewable matters].

    (2)   Regulations may provide, in relation to any reference in that Schedule to a failure by the Board to do any act or make any determination, that the reference is to be construed as a reference to a failure by the Board to do the act or make the determination within a prescribed period.

    (3)   Regulations may amend that Schedule by—

      (a) adding to it any other description of determination, act or failure of, or matter determined or for determination by, the Board, or

      (b) removing from it any such determination, act, failure or matter for the time being mentioned in it.'.


Interim Pension Protection Fund

   

Mr David Willetts
Mr Nigel Waterson
Mr George Osborne
Mr Peter Atkinson
Adam Price

NC1

To move the following Clause:—

    '(1)   The Interim Pension Protection Fund shall consist of—

      (a) property and rights transferred to the Board from salary-related occupational pension schemes—

      (i) to which section 56 of the Pensions Act 1995 (c. 26) applies;

      (ii) which are being wound up prior to the coming into force of Part 2 of this Act; and

      (iii) where prima facie there is a shortfall of assets to meet all obligations to current and future pensioners thereunder, and

      (b) proceeds of the interim levy upon unclaimed assets.

    (2)   Regulations must make provision for imposing a levy ("the interim levy") to be applied to unclaimed assets.

    (3)   The regulations must prescribe—

      (a) the identification of unclaimed assets for the purposes of this Act,

      (b) the factors by reference to which the interim levy is to be assessed,

      (c) the rate of the levy, and

      (d) the time or times during the interim period when the levy becomes payable.

    (4)   The Board shall have the same powers of compensation in respect of schemes hereunder as those set out in section 124 and Schedule 7 of this Act.

    (5)   In no circumstances may any of the proceeds of the levies established pursuant to sections 136 and 137 of this Act be applied for the purposes of this section.'.



 
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