Vote Bundle Text (940427-07)

Amendments proposed to the Pensions Bill - continued	House of Commons

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The sum specified in a section [Contribution notices where non-compliance with financial support direction] contribution notice

Malcolm Wicks

NC48

To move the following Clause:—

'(1) The sum specified by the Regulator in a contribution notice under section [Contribution notices where non-compliance with financial support direction] may be either the whole or a specified part of the shortfall sum in relation to the scheme.

(2) The shortfall sum in relation to a scheme is—

(a)

in a case where, at the time of non-compliance, a debt was due from the employer to the trustees or managers of the scheme under section 75 of the Pensions Act 1995 (c.26) ("the 1995 Act") (deficiencies in the scheme assets), the amount which the Regulator estimates to be the amount of that debt at that time, and

(b)	in a case where, at the time of non-compliance, no such debt was due, the amount which the Regulator estimates to be the amount of the debt under section 75 of the 1995 Act which would become due if—

(i)	subsection (2) of that section applied, and

(ii)	the time designated by the trustees or managers of the scheme for the purposes of that subsection were the time of non-compliance.

(3) For the purposes of this section "the time of non-compliance" means—

(a)	in the case of non-compliance with paragraph (a) of subsection (3) of section [Financial support directions] (financial support directions), the time immediately after the expiry of the period specified in the financial support direction for putting in place the financial support,

(b)	in the case of non-compliance with paragraph (b) of that subsection, the time when financial support for the scheme ceased to be in place,

(c)	in the case of non-compliance with paragraph (c) of that subsection, the time when the prescribed event occurred in relation to which there was the failure to notify the Regulator, or

(d)	where more than one of paragraphs (a) to (c) above apply, whichever of the times specified in the applicable paragraphs the Regulator determines.'.

Content and effect of a section [Contribution notices where non-compliance with financial support direction] contribution notice

Malcolm Wicks

NC49

To move the following Clause:—

'(1) This section applies where a contribution notice is issued to a person under section [Contribution notices where non-compliance with financial support direction].

(2) The contribution notice must —

(a)	contain a statement of the matters which it is asserted constitute the non-compliance with the financial support direction in respect of which the notice is issued, and

(b)	specify the sum which the person is stated to be under a liability to pay.

(3) The sum specified in the notice is to be treated as a debt due from the person to the trustees or managers of the scheme.

(4) The Regulator may, on behalf of the trustees or managers of the scheme, exercise such powers as the trustees or managers have to recover the debt.

(5) But during any assessment period (within the meaning of section 104) in relation to the scheme, the rights and powers of the trustees or managers of the scheme in relation to any debt due to them by virtue of a contribution notice, are exercisable by the Board of the Pension Protection Fund to the exclusion of the trustees or managers and the Regulator.

(6) Where, by virtue of subsection (5), any amount is paid to the Board in respect of a debt due by virtue of a contribution notice, the Board must pay the amount to the trustees or managers of the scheme.

(7) The contribution notice must identify any other person to whom contribution notices have been or are issued in respect of the non-compliance in question and the sums specified in each of those notices.

(8) Where the contribution notice so specifies, the person to whom the notice is issued ("P") is to be treated as jointly and severally liable for the debt with any persons specified in the notice who are persons to whom corresponding contribution notices are issued.

(9) For the purposes of subsection (8), a corresponding contribution notice is a notice which—

(a)	is issued in respect of the same non-compliance with the financial support direction as the non-compliance in respect of which P's contribution notice is issued,

(b)	specifies the same sum as is specified in P's contribution notice, and

(c)	specifies that the person to whom the contribution notice is issued is jointly and severally liable with P for that sum.

(10) A debt due by virtue of a contribution notice is not to be taken into account for the purposes of section 75(2) and (4) of the Pensions Act 1995 (c.26) (deficiencies in the scheme assets) when ascertaining the amount or value of the assets or liabilities of a scheme.'.

Section [Contribution notices where non-compliance with financial support direction] contribution notice: relationship with employer debt

Malcolm Wicks

NC50

To move the following Clause:—

'(1) This section applies where a contribution notice is issued to a person under section [Contribution notices where non-compliance with financial support direction] and condition A or B is met.

(2) Condition A is met if, at the time at which the contribution notice is issued, there is a debt due from the employer to the trustees or managers of the scheme under section 75 of the Pensions Act 1995 (c.26) ("the 1995 Act") (deficiencies in the scheme assets).

(3) Condition B is met if, after the contribution notice is issued but before the whole of the debt due by virtue of the notice is recovered, a debt becomes due from the employer to the trustees or managers of the scheme under section 75 of the 1995 Act.

(4) The Regulator may issue a direction to the trustees or managers of the scheme not to take any or any further steps to recover the debt due to them under section 75 of the 1995 Act pending the recovery of all or a specified part of the debt due to them by virtue of the contribution notice.

(5) If the trustees or managers fail to comply with a direction issued to them under subsection (4), section 10 of the 1995 Act (civil penalties) applies to any trustee or manager who has failed to take all reasonable steps to secure compliance.

(6) Any sums paid—

(a)	to the trustees or managers of the scheme in respect of any debt due to them by virtue of the contribution notice, or

(b)	to the Board in respect of any debt due to it by virtue of the contribution notice (where it has assumed responsibility for the scheme under Chapter 3 of Part 2 (pension protection)),

are to be treated as reducing the amount of the debt due to the trustees or managers or, as the case may be, to the Board under section 75 of the 1995 Act.'.

Sections [Financial support directions] to [Section [Contribution notices where non-compliance with financial support direction]: relationship with employer debt]: interpretation

Malcolm Wicks

NC51

To move the following Clause:—

'(1) In sections [Financial support directions] to [Section [Contribution notices where non-compliance with financial support direction]: relationship with employer debt]—

"company" has the meaning given by section 735(1) of the Companies Act 1985 (c.6);"group of companies" means a holding company and its subsidiaries within the meaning given by section 736(1) of that Act;"holding company" has the meaning given by section 736(1) of that Act.

(2) For the purposes of those sections—

(a)	references to a debt due under section 75 of the Pensions Act 1995 (c.26) include a contingent debt under that section, and

(b)	references to the amount of such a debt include the amount of such a contingent debt.

(3) For the purposes of those sections—

(a)	section 249 of the Insolvency Act 1986 (c.45) (connected persons) applies as it applies for the purposes of any provision of the first Group of Parts of that Act,

(b)	section 435 of that Act (associated persons) applies as it applies for the purposes of that Act, and

(c)	section 74 of the Bankruptcy (Scotland) Act 1985 (c.66) (associated persons) applies as it applies for the purposes of that Act.'.

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.'.