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Mr David Willetts
Mr Nigel Waterson
Mr George Osborne
Mr Peter Atkinson
Gregory Barker
Andrew Rosindell
43
Page 154, line 46 [Clause 232], at end insert—
'(6) The discretion on an employer as to the persons who are to be consulted in subsection (2)(c) above shall be mandatory in cases where an employer has existing arrangements in place for direct consultation with employees.'.
Mr David Willetts
Mr Nigel Waterson
Mr George Osborne
Mr Peter Atkinson
Gregory Barker
211
Page 155, line 7 [Clause 233], at end insert '; and regulations will define the meaning of "modify" and "scheme".'.
Mr David Willetts
Mr Nigel Waterson
Mr George Osborne
Mr Peter Atkinson
Gregory Barker
210
Page 156, line 48 [Clause 233], leave out from beginning to end of line 11 on page 157.
Mr Secretary Smith
124
Page 157, line 17 [Clause 233], leave out 'or' and insert—
| '( ) | section 31(4) of the Welfare Reform and Pensions Act 1999 (pension debits: reduction of benefit), or'. |
Mr David Willetts
Mr Nigel Waterson
Mr George Osborne
Mr Peter Atkinson
Gregory Barker
208
Page 159, line 9 [Clause 233], at end insert 'and'.
Mr David Willetts
Mr Nigel Waterson
Mr George Osborne
Mr Peter Atkinson
Gregory Barker
209
Page 159, line 11 [Clause 233], leave out from 'representations' to end of line 13.
Mr David Willetts
Mr Nigel Waterson
Mr George Osborne
Mr Peter Atkinson
Gregory Barker
207
Page 159, line 29 [Clause 233], leave out 'has been maintained' and insert 'will remain broadly equivalent to that previously existing.'.
Mr Secretary Smith
125
Page 169, line 9 [Clause 240], leave out paragraph (b) and insert—
| '(b) | a prescribed scheme or a scheme of a prescribed description.'. |
Mr Secretary Smith
126
Page 171, line 6 [Clause 240], after 'day' insert ', it does not occur in prescribed circumstances'.
Mr Bill Tynan
John Robertson
56
Page 182, line 9 [Clause 253], leave out '(10)' and insert '(11)'.
Mr Bill Tynan
John Robertson
57
Page 182, line 19 [Clause 253], at end insert—
'(11) The tenth condition is that the employer contributes no less than the amounts referred to in subsection (12) below.
(12) The rates of contribution referred to in this subsection are—
| (a) | in the case of contributions by the employer, no less than 10% of earnings; |
| (b) | in the case of contributions by the employee no less than 5% of earnings.'. |
Mr Bill Tynan
John Robertson
58
Page 182, line 21 [Clause 253], leave out '(10)' and insert '(11)'.
NEW CLAUSES AND AMENDMENTS RELATING TO ANY ARRANGEMENTS OTHERWISE THAN THROUGH THE PENSION PROTECTION FUND
Financial assistance scheme for members of certain pension schemes
Mr Secretary Smith
NC34
*To move the following Clause:—
'(1) The Secretary of State must make provision, by regulations, for a scheme for making payments to, or in respect of, qualifying members of qualifying pension schemes ("the financial assistance scheme").
(2) For the purposes of this section—
"qualifying member", in relation to a qualifying pension scheme, means a person—
| (a) | who, at such time as may be prescribed, is a member of the scheme in respect of whom the scheme's pension liabilities are unlikely to be satisfied in full because the scheme has insufficient assets, or |
| (b) | who, at such time as may be prescribed, had ceased to be a member of the scheme and in respect of whom the scheme's pension liabilities were not satisfied in full, before he ceased to be such a member, because the scheme had insufficient assets, |
| | and in respect of whom prescribed conditions are satisfied at such time as may be prescribed; |
| | "qualifying pension scheme" means an occupational pension scheme (including such a scheme which has been fully wound up)— |
| (a) | which, at such time as may be prescribed, is not— |
| (i) | a money purchase scheme, or |
| (ii) | a scheme of a prescribed description, |
| (b) | the winding up of which began during such period as may be prescribed, and |
| (c) | the employer in relation to which satisfies such conditions as may be prescribed at such time as may be prescribed; |
| | "scheme's pension liabilities", in respect of a member of a qualifying pension scheme, means the liabilities of the scheme to, or in respect of, the member in respect of pensions or other benefits (including increases in pensions), |
and a qualifying pension scheme has, or had, insufficient assets if the assets of the scheme are, or were, insufficient to satisfy in full the liabilities of the scheme calculated in the prescribed manner.
(3) Regulations under subsection (1) may, in particular, make provision—
| (a) | for the financial assistance scheme to be managed by the Secretary of State, a body established by or for the purposes of the regulations or such other person as may be prescribed; |
| (b) | for the person who manages the financial assistance scheme ("the scheme manager") to hold (whether on trust or otherwise), manage and apply a fund in accordance with the regulations or, where the fund is held on trust, the deed of trust; |
| (c) | for the property, rights and liabilities of qualifying pension schemes to be transferred to the scheme manager in prescribed circumstances and for the trustees or managers of a qualifying pension scheme in respect of which such a transfer has occurred to be discharged from prescribed liabilities; |
| (d) | prescribing the circumstances in which payments are to be made by the scheme manager to, or in respect of, qualifying members of qualifying pension schemes and the manner in which the amount of any payment is to be determined, and, where the fund is held by the fund manager on trust, the circumstances and manner may be prescribed by reference to the deed of trust; |
| (e) | authorising the Secretary of State— |
| (i) | where he is not the scheme manager, to pay grants to the scheme manager; |
| (ii) | where he is the scheme manager, to pay amounts into the fund held by him in accordance with the regulations; |
| (iii) | to pay grants to other prescribed persons in connection with the financial assistance scheme; |
| (f) | prescribing the circumstances in which amounts are to be paid into or out of the fund held by the scheme manager; |
| (g) | conferring functions in relation to the financial assistance scheme on the Pensions Regulator or the Board of the Pension Protection Fund; |
| (h) | providing for a person to exercise a discretion in dealing with any matter in relation to the financial assistance scheme; |
| (i) | applying any provision of Part 1 or 2 with such modifications as may be prescribed; |
and such regulations may make different provision for different cases or descriptions of case and include such incidental, supplementary, consequential or transitional provision as appears to the Secretary of State to be expedient.
(4) Any amount which, by virtue of subsection (3)(e), the Secretary of State pays under regulations under subsection (1) is to be to paid out of money provided by Parliament.
(5) A time or period prescribed under subsection (2) may fall (or, in the case of a period, wholly or partly fall) at a time before the passing of this Act.
(6) Nothing in this section prejudices the operation of section 272 (subordinate legislation (general provisions)).'.
As Amendments to Mr Secretary Smith's proposed New Clause (NC34) (Financial assistance scheme for members of certain pension schemes):
Steve Webb
(a)
*Line 73, at end add—
'( ) The first payments from the financial assistance scheme shall be made within six months of the coming into force of this Act;'.
Steve Webb
(b)
*Line 73, at end add—
'( ) Schemes where the qualifying pension scheme was closed whilst the sponsoring employer was solvent shall be qualifying pension schemes for the purpose of this section;'.
Steve Webb
(c)
*Line 73, at end add—
'( ) Assistance from the financial assistance scheme shall be at least sufficient to provide total benefits to qualifying members as they would have received had their scheme fallen within the scope of the Pension Protection Fund.'.
Additional duties of the Regulator
Steve Webb
NC2
To move the following Clause:—
'(1) The Regulator shall provide the Secretary of State with a copy of a list of members of occupational pension schemes ("the List") which meet the conditions in subsection (2).
(2) A scheme whose members shall be eligible to be included on the List is one which—
| (a) | commenced winding up after 5th April 1997, and |
| (b) | whose members would have been eligible for pension compensation from the Board of the Pension Protection Fund if the scheme had begun winding up after the day appointed for the purposes of section 113(2) (eligible schemes). |
(3) The Regulator shall have the power to require trustees of a scheme which meets the definition in subsection (2) to write to each member of the scheme to advise him of the existence of the List, and of how to apply to have his name included in the List.
(4) Trustees of a scheme which meets the definition in subsection (2) must provide such relevant information to the Regulator as he may require.
(5) The Regulator shall add to the List the name and address of each scheme member who would have been eligible for pension compensation from the Board of the Pension Protection Fund if the scheme had commenced winding up after the day appointed for the purposes of section 113(2) (eligible schemes).
(6) The Secretary of State shall be required to provide financial assistance to each person on the List.
(7) The amount of financial assistance payable to a scheme member under subsection (6) may be prescribed in regulations but shall not be less than the amount to which he would have been entitled if the scheme had qualified for compensation from the Board of the Pension Protection Fund.'.
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