Vote Bundle Text (940514-03)

Amendments proposed to the Pensions Bill - continued	House of Commons

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Payments of surplus to employer: transitional power to amend scheme

Mr Secretary Smith

NC31

To move the following Clause:—

'(1) This section applies to a scheme which immediately before the commencement of section (Payment of surplus to employer) was one to which section 37 of the Pensions Act 1995 applied (see subsection (1) of that section, as it then had effect).

(2) No payment to the employer may be made out of funds held for the purposes of the scheme except by virtue of a resolution of the trustees under this section.

This applies even if the payment is one proposed to be made in fulfilment of an agreement or arrangement entered into before the commencement of this section.

(3) Where the scheme was so expressed as (apart from section 37, as it then applied) to confer power to make payments to the employer out of funds held for the purposes of the scheme otherwise than in pursuance of proposals approved under paragraph 6(1) of Schedule 22 to the Income and Corporation Tax Act 1988, the trustees may resolve that the power—

(a) shall become exercisable according to its terms, or

(b) shall become so exercisable, but only in such circumstances and subject to such conditions as may be specified in the resolution.

(4) Where the scheme was so expressed as to confer power to make payments to the employer out of funds held for the purposes of the scheme only in pursuance of proposals approved under paragraph 6(1) of Schedule 22 to the Income and Corporation Tax Act 1988, the trustees may resolve that the power shall instead be exercisable in such circumstances and subject to such conditions as may be specified in the resolution.

(5) In either case the trustees must be satisfied that it is in the interests of the members of the scheme that the power is exercised in the manner proposed.

(6) The power conferred by subsection (3) or (4)—

(a) may not be exercised unless notice of the proposal to exercise it has been given, in accordance with prescribed requirements, to the employer and to the members of the scheme,

(b) may only be exercised once, and

(7) The exercise of any power to make payments to the employer by virtue of a resolution under this section is subject to section 37 of the Pensions Act 1995 as substituted by section (Payment of surplus to employer).'.

Power to make regulations governing investment by trustees of occupational pension schemes

Mr Secretary Smith

NC18

To move the following Clause:—

'(1) Section 36 of the Pensions Act 1995 (c.26) (choosing investments) is amended as follows.

(2) For subsection (1) substitute—

"(1) The trustees of a trust scheme must exercise their powers of investment in accordance with regulations and in accordance with subsections (3) and (4), and any fund manager to whom any discretion has been delegated under section 34 must exercise the discretion in accordance with regulations.

(1A) Regulations under subsection (1) may, in particular—

(a) specify criteria to be applied in choosing investments, and

(b) require diversification of investments."

(3) Omit subsection (2).

(4) In subsection (3) for "the matters mentioned in subsection (2) and" substitute "the requirements of regulations under subsection (1), so far as relating to the suitability of investments, and to".

(5) For subsection (8) substitute—

"(8) If the trustees of a trust scheme—

(a) fail to comply with regulations under subsection (1), or

(b) do not obtain and consider advice in accordance with this section,

section 10 applies to any trustee who has failed to take all reasonable steps to secure compliance."

(6) After subsection (8) insert—

"(9) Regulations may exclude the application of any of the preceding provisions of this section to any scheme which is of a prescribed description.".'.

Borrowing by trustees of occupational pension schemes

Mr Secretary Smith

NC19

To move the following Clause:—

'After section 36 of the Pensions Act 1995 (c.26) insert—

"36A Restriction on borrowing by trustees

Regulations may prohibit the trustees of a trust scheme, or the fund manager to whom any discretion has been delegated under section 34, from borrowing money or acting as a guarantor, except in prescribed cases.".'.

Occupational pension scheme receiving contributions from European employer

Mr Secretary Smith

NC5

To move the following Clause:—

'(1) The trustees or managers of an occupational pension scheme must not accept any contribution to the scheme from a European employer unless all the following conditions are met.

(2) Condition A is that the trustees or managers of the scheme are authorised by the Regulator under section (General authorisation to accept contributions from European employers).

(3) Condition B is that the trustees or managers of the scheme are approved by the Regulator under section (Approval in relation to particular European employer) in relation to the European employer.

(4) Condition C is that either—

(a) the period of 2 months beginning with the date on which the Regulator notified the trustees or managers of the scheme under section (Approval in relation to particular European employer)(2)(a)(ii) has expired, or

(b) before the end of that period, the trustees or managers have in accordance with section (Notification of legal requirements of host member State outside United Kingdom) been provided by the Regulator with information as to the social and labour law of the host member State.

(5) If the trustees or managers of a scheme fail to comply with subsection (1), section 10 of the Pensions Act 1995 (c.26) (civil penalties) applies to any trustee or manager who has failed to take all reasonable steps to secure compliance.

(6) In this Part—

"European employer" means any employer who—

(a) in the case of a body corporate, is incorporated in a member State other than the United Kingdom, and

(b) in any other case, is resident in such a member State;

"host member State", in relation to a European employer, means a member State determined in accordance with regulations.'.

General authorisation to accept contributions from European employers

Mr Secretary Smith

NC6

To move the following Clause:—

'(1) An application by the trustees or managers of an occupational pension scheme for authorisation under this section must be made to the Regulator in the prescribed form and in the prescribed manner.

(2) Regulations may make provision as to—

(a) the revocation by the Regulator of authorisation under this section, and

(b) the criteria to be applied by the Regulator in reaching any decision relating to the grant or revocation of authorisation.'.

Approval in relation to particular European employer

Mr Secretary Smith

NC7

To move the following Clause:—

'(1) An application by the trustees or managers of an occupational pension scheme for approval under this section in relation to a European employer is made by the trustees or managers of the scheme giving the Regulator in the prescribed manner a notice ("the notice of intention") in the prescribed form which—

(a) specifies the European employer ("the specified employer"),

(b) states his intention, subject to approval under this section, to accept contributions from the specified employer,

(d) contains other prescribed information.

(2) On receipt of the notice of intention, the Regulator must within 3 months—

(a) where the Regulator is satisfied that the persons giving the notice of intention meet prescribed conditions—

(i) notify the competent authority of the host member State of the receipt by the Regulator of the notice of intention and of the contents of the notice, and

(ii) notify the persons who gave the notice of intention that they are approved for the purposes of this section in relation to the specified employer, or

(b) in any other case, notify the persons who gave the notification that they are not so approved.

(3) If the Regulator does not act under subsection (2)(a) or (b) within the period of 3 months beginning with the day on which the notice of intention was received, the persons who gave the notice of intention are to be taken to have been approved for the purposes of this section in relation to the specified employer at the end of the period.

(4) Regulations may make provision as to—

(a) the revocation by the Regulator of approval under this section, and

(b) the criteria to be applied by the Regulator in reaching any decision relating to the revocation of approval.'.

Notification of legal requirements of host member State outside United Kingdom

Mr Secretary Smith

NC8

To move the following Clause:—

'Where—

(a) the Regulator has notified the competent authority of the host member State under subsection (2)(a)(i) of section (Approval in relation to particular European employer), and

(b) in pursuance of Article 20(5) of the Directive, the Regulator receives information from the competent authority as to requirements of the social and labour law of the host member State,

the Regulator must as soon as reasonably practicable forward that information to the person who gave the notice of intention under section (Approval in relation to particular European employer).'.