Amendments proposed to the Pensions Bill - continued	House of Commons
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Home reversion plans

   

Steve Webb
Paul Holmes

NC17

To move the following Clause:—

    '(1)   Where information is provided under section 191(2)(b), subsections (2) and (3) apply.

    (2)   Selling or arranging a home reversion plan, for the purpose of providing an income or lump sum in retirement, is a regulated activity under section 22 of the Financial Services and Markets Act 2000.

    (3)   A home reversion plan is a sale and leaseback arrangement under which an individual sells all or part of his residential accommodation (at least 40 per cent. of which is occupied by the customer and his family) to another party, with the aim of providing an income or lump sum in retirement and under which he is permitted to continue living in the property.'.

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Report on National Insurance system for self-employed people

   

Steve Webb
Paul Holmes

NC18

To move the following Clause:—

       'The Secretary of State shall require the Government Actuary—

(a)	to report to him, within six months of the coming into force of this Act, on the operation of the National Insurance system for self-employed people, and

(b)	to recommend a rate of National Insurance Contributions which would enable self-employed people to qualify for additional pension.'.

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Home responsibilities protection for pensioners

   

Steve Webb
Paul Holmes

NC19

To move the following Clause:—

       'In section 44A(2)(c)(i) of the Social Security Contributions and Benefits Act 1992 (c. 4), omit "six" and insert "twelve".'.

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Class 3 contributions

   

Steve Webb
Paul Holmes

NC20

To move the following Clause:—

       'In section 13 of the Social Security Contributions and Benefits Act 1992 (c. 4), after subsection (1) insert—

"(1A)

The prescribed conditions referred to in subsection (1) above shall not include any limits on the period between the payment year and the contribution year.".'.

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Amendment of the Income and Corporation Taxes Act 1988

   

Mr David Willetts
Mr Nigel Waterson
Mr George Osborne
Mr Peter Atkinson
Gregory Barker
Andrew Rosindell

NC27

To move the following Clause:—

    '(1)   The Income and Corporation Taxes Act 1988 is amended as follows.

    (2)   In subsection (1) of section 630 (interpretation)—

(a)	in the definition of "personal pension scheme", substitute for the words "or lump sums" the words ", lump sums, or withdrawals from a Retirement Income Fund"; and

(b)	in the definition of "income withdrawal", insert after the word "annuity" the words "or withdrawal of funds from a Retirement Income Fund".

    (3)   In section 633 (scope of benefits) after subsection (1)(e) there is inserted—

"(f)	the payment to a member of income from a Retirement Income Fund satisfying the conditions in section 637B".

    (4)   In section 634 (annuity to member)—

(a)	after subsection (1), there is inserted—

"(1A)

Subject to subsection (7) below, the annuity must provide the member with an annual income not less than the Minimum Retirement Income set under section [Minimum Retirement Income] of the Pensions Act 2004.";

(b)	in subsection (2) the words from "commence" to the end are replaced by the following—

"(a)	before the member attains the age of 50; or

(b)	in relation to a member who is in receipt of benefits under section 634A before the date of this Act's entry into force, after the member attains the age of 75; or

(c)	in relation to any member aged 65 or over as at the date of this Act's entry into force, within 12 months of that date; or

(d)	in relation to all other members, after the member attains the age of 65.".

(c)	after subsection (6) there is inserted—

"(7)	Section 45 of the Sex Discrimination Act 1975 shall not apply to the annuity provided under subsection (1A).

(8)	The income provided each year from the annuity under section (1A) must increase by reference to increases in the retail price index, so far as not exceeding 5 per cent.".

    (5)   Sections 634A and 636A are repealed.

    (6)   Subsection (5) shall not apply to schemes executed before the date of entry into effect of this Act.

    (7)   After section 637A (Return of contributions on death of a member), the following section is inserted—

    "637B    Retirement Income Fund

    (1)   Subject to subsections (2) and (3) of this section, a Retirement Income Fund is a vehicle for the reinvestment of savings in retirement, which

(a)	has been established by a person designated by subsection (1) of section 632; and

(b)	is a vehicle whose investments are—

(i)	investments of a kind described in the Insurance Companies Regulations 1994, Schedule X, Part 1; or

(ii)	approvied by the Inland Revenue.

    (2)   Funds held in a Retirement Income Fund as referred to in subsection (1) may be withdrawn from the Retirement Income Fund by a member as and when he elects.

    (3)   A member may not invest in a Retirement Income Fund unless the requirements of subsection (1A) of section 634, in relation to the Minimum Retirement Income, are satisfied.

    (4)   A Retirement Income Fund, and any income derived from it, must not be capable of assignment or surrender by the member.

    (5)   Any withdrawal from the Fund by the member under subsection (2) shall be assessable to tax under Schedule E (and section 203 shall apply accordingly) and shall be treated as earned income of the member.".'.

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Minimum Retirement Income

   

Mr David Willetts
Mr Nigel Waterson
Mr George Osborne
Mr Peter Atkinson
Gregory Barker
Andrew Rosindell

NC28

To move the following Clause:—

    '(1)   The amount of the Minimum Retirement Income shall be set for each financial year following consultation by the Chancellor of the Exchequer by order.

    (2)   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.

    (3)   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.'.

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Pension position of women

   

Vera Baird
Mrs Janet Dean
Ms Sally Keeble
Mr Jim Cunningham
Mr Kevan Jones

NC29

To move the following Clause:—

       'The Secretary of State shall prepare an annual report setting out changes made to the pension position of women.'.

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Earnings link

   

Mr Peter Kilfoyle

NC37

To move the following Clause:—

    '222   Section 150 of the Social Security Administration Act 1992 shall be amended as follows—

    (1)   In subsection (1) after the words "general level of prices" there shall be inserted the words "or, in the case of any such benefit which is in the nature of a pension benefit, the increase in the general level of earnings".

    (2)   In subsection (2) after the words "general level of prices" there shall be inserted the words "or, in the case of any such benefit which is in the nature of a pension benefit, the increase in the general level of earnings".

    (3)   In subsection (2)(a) after the words "general level of prices" there shall be inserted the words "or, in the case of any such benefit which is in the nature of a pension benefit, the increase in the general level of earnings,".'.

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Amendment of the Income and Corporation Taxes Act 1988 (No. 2)

   

Mr David Willetts
Mr Nigel Waterson
Mr George Osborne
Mr Peter Atkinson
Gregory Barker
Andrew Rosindell

Mr Adrian Flook

NC43

*To move the following Clause:—

    '(1)   The Income and Corporation Taxes Act 1988 is amended as follows.

    (2)   In subsection (1) of section 630 (interpretation)—

(a)	in the definition of "personal pension scheme", substitute for the words "or lump sums" the words ", lump sums, or withdrawals from a Retirement Income Fund"; and

(b)	in the definition of "income withdrawal", insert after the word "annuity" the words "or withdrawal of funds from a Retirement Income Fund".

    (3)   In section 633 (scope of benefits) after subsection (1)(e) there is inserted—

"(f)	the payment to a member of income from a Retirement Income Fund satisfying the conditions in section 637B".

    (4)   In section 634 (annuity to member)—

(a)	after subsection (1), there is inserted

    "(1A)   Subject to subsection (7) below, the annuity must provide the member with an annual income not less than the Minimum Retirement Income set under section [Minimum Retirement Income] of the Pensions Act 2004.";

(b)	in subsections (2) the words from "commence" to the end are replaced by the following—

"(a)	before the member attains the age of 50; or

(b)   in relation to a member who is in receipt of benefits under section 634A before the date of this Act's entry into force, after the member attains the age of 75; or

(c)   in relation to any member aged 65 or over as at the date of this Act's entry into force, within 12 months of that date; or

(d)	in relation to all other members, after the member attains the age of 65.".

(c)	after subsection (6) there is inserted—

"(7)	Section 45 of the Sex Discrimination Act 1975 shall not apply to the annuity provided under subsection (1A).

(8)	The income provided each year from the annuity under section (1A) must increase by reference to increases in the retail price index, so far as not exceeding 5 per cent.".

    (5)   Sections 634A and 636A are repealed.

    (6)   Subsection (5) shall not apply to schemes executed before the date of entry into effect of this Act.

    (7)   After section 637A (Return of contributions on death of a member), the following section is inserted—

    "637B   Retirement Income Fund

    (1)   Subject to subsections (2) and (3) of this section, a Retirement Income Fund is a vehicle for the reinvestment of savings in retirement, which

(a)	has been established by a person designated by subsection (1) of section 632; and

(b)	is a vehicle whose investments are—

(i)	investments of a kind described in the Insurance Companies Regulations 1994, Schedule X, Part 1; or

(ii)	approved by the Inland Revenue.

    (2)   Funds held in a Retirement Income Fund as referred to in subsection (1) may be withdrawn from the Retirement Income Fund by a member as and when he elects.

    (3)   A member may not invest in a Retirement Income Fund unless the requirements of subsection (1A) of section 634, in relation to the Minimum Retirement Income, are satisfied.

    (4)   A Retirement Income Fund, and any income derived from it, must not be capable of assignment or surrender by the member.'.

Prepared 22 Apr 2004