Amendments proposed to the Pensions Bill - continued House of Commons

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John Robertson

50

Page     154,     line     44     [Clause     232],     at end insert—

    '(4A)   Consultation regulations shall require that—

      (a) the employer consults any recognised trade unions with a view to seeking their agreement to the measures to be taken;

      (b) in the course of those consultations the employer shall—

      (i) consider any representations made by the recognised trade unions; and

      (ii) reply to those representations and, if he rejects any of those representations, state his reasons.

    (4B)   For the purposes of subsection (4A) above a recognised trade union is an independent trade union recognised to any extent for the purpose of collective bargaining in relation to the employees concerned.'.

   

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):

   

Mr Frank Field
Derek Wyatt

(d)

*Line     7,     after 'prescribed', insert '(irrespective of the time at which the winding up of the scheme took place)'.

   

Mr Frank Field
Derek Wyatt

(e)

*Line     10,     after 'prescribed', insert '(irrespective of the time at which the winding up of the scheme took place)'.

   

Steve Webb
Sue Doughty
Derek Wyatt

(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
Sue Doughty
Derek Wyatt

(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;'.

 
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