Vote Bundle Text (940518-10)

Amendments proposed to the Pensions Bill - continued	House of Commons

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As an Amendment to Steve Webb's proposed Amendment (b) to Mr Secretary Smith's proposed New Clause (NC34) (Financial assistance scheme for members of certain pension schemes):

Mr Frank Field
Derek Wyatt

(a)

*Line 1, after 'closed', insert 'up until 14th May 2004'.

Steve Webb
Sue Doughty
Derek Wyatt

(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
Sue Doughty

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.'.

As Amendments to Steve Webb's proposed New Clause (NC2) (Additional duties of the Regulator)

Frank Field

(a)

Line 4, leave out subsection (2) and insert—

'(2) A scheme whose members are eligible to be included on the List is one which—

(a)	commenced winding up before the day appointed for the purposes of section 113(2) (eligible schemes); and

(b)	on the day appointed for the purposes of section 113(2) (eligible schemes) has insufficient assets to secure at least the benefits which would have been provided as compensation from the Board of the Pension Protection Fund if the scheme had qualified for such compensation.'.

Frank Field

(b)

Line 17, leave out section (5) and insert—

'(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 is eligible under subsection (2).'.

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

212

Page 76, line 27 [Clause 113], leave out subsection (2).

Mr Secretary Smith

216

Page 192, line 2 [Clause 265], leave out second 'and'.

Mr Secretary Smith

217

Page 192, line 3 [Clause 265], at end insert ', and

( )	section [Financial assistance scheme for members of certain pension schemes] (financial assistance scheme for members of certain pension schemes).'.

Mr Secretary Smith

218

Page 196, line 21 [Clause 273], at end insert—

'( )	regulations under section [Financial assistance scheme for members of certain pension schemes] (financial assistance scheme for members of certain pension schemes);'.

NEW CLAUSES RELATING TO PART 2

Reviewable ill health pensions

Mr Secretary Smith

NC20

To move the following Clause:—

'(1) This section applies where there is an assessment period in relation to an eligible scheme.

(2) The Board may review a reviewable ill health pension in respect of a member under the scheme if—

(a)	disregarding section [Effect of a review], the member would be entitled to compensation under paragraph 3 of Schedule 7 in respect of the pension if the Board assumed responsibility for the scheme,

(b)	the member did not attain normal pension age in respect of the pension before the assessment date, and

(c)	the pension is attributable to the member's pensionable service under the scheme or another scheme.

(3) An ill health pension in respect of a member under the scheme is reviewable for the purposes of subsection (2) if the member is entitled to the pension by reason of an award under the scheme ("the award") which was made—

(a)	in the period of three years ending immediately before the assessment date, or

(b)	before the end of the prescribed period beginning with the assessment date, in response to an application made before that date.

(4) Where—

(a)	before the assessment date, an application was made under the scheme for the award of a pension before normal pension age by virtue of any provision of the scheme rules making special provision as to early payment of pension on grounds of ill health, and

(b)	the trustees or managers of the scheme failed to decide the application before the end of the period mentioned in subsection (3)(b),

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 that the application was decided before the end of that period.

(5) Where—

(a)	the award was made in response to an application which—

(i)	was made on or after the assessment date, or

(ii)	was made before that date but not decided by the trustees or managers of the scheme before the end of the period mentioned in subsection (3)(b), and

(b)	in the absence of this subsection, the award would take effect before the assessment date,

the award is, for the purposes of determining the compensation payable under this Chapter in a case where the Board assumes responsibility for the scheme, to be treated as taking effect after the date on which the decision to make the award was made.

(6) Regulations must prescribe the procedure to be followed in relation to the review of a pension under this section and any subsequent decision under section [Effect of a review].'.

Effect of a review

Mr Secretary Smith

NC21

To move the following Clause:—

'(1) This section applies where, during an assessment period in relation to an eligible scheme, the Board reviews an ill health pension under the scheme by virtue of section [Reviewable ill health pensions].

(2) Where the conditions of subsection (3) are satisfied, the Board may determine that the compensation payable in respect of the pension, in a case where the Board assumes responsibility for the scheme, is to be determined in the prescribed manner on and after the relevant date.

(3) The conditions are—

(a)	that the annual rate of compensation which would be payable under this Part in respect of the pension at the assessment date, if the Board assumed responsibility for the scheme, exceeds the notional reviewed rate of compensation in respect of the pension,

(b)	that the Board is satisfied—

(i)	that the decision to make the award was made in ignorance of, or was based upon a mistake as to, a material fact relevant to the decision,

(ii)	that, at the time that decision was made, the member knew or could reasonably have been expected to know of that fact and that it was relevant to the decision, and

(iii)

that, had the trustees or managers known about, or not been mistaken as to, that fact, they could not reasonably have decided to make the award, and

(c)	that the Board is not satisfied that the criteria in the admissible scheme rules governing entitlement to early payment of pension on grounds of ill health were satisfied in respect of the member at any time after that decision but before the assessment date.

(4) For the purposes of subsection (2) "the relevant date" means the date during the assessment period on which a scheme valuation in relation to the scheme becomes binding.

(5) The power to make a decision in respect of the pension under subsection (2) may only be exercised at a time which falls—

(a)	during the assessment period but before the time the Board first approves a scheme valuation under section 128 in relation to the scheme, and

(b)	within a reasonable period beginning with the assessment date or, where the decision to make the award was made at a later date, that date.

(6) Regulations made for the purposes of subsection (2) may, in particular, include provision applying any provision of Schedule 7 with such modifications as may be prescribed.'.

Interpretation of sections [Reviewable ill health pensions] and [Effect of a review]

Mr Secretary Smith

NC22

To move the following Clause:—

'(1) For the purposes of sections [Reviewable ill health pensions] and [Effect of a review]—

"admissible rules" is to be construed in accordance with Schedule 7;

"assessment date" means the date on which the assessment period begins;

"ill health pension", in relation to a scheme, means a pension which, immediately before the assessment date, is a pension to which a person is entitled under the admissible rules in circumstances where that entitlement arose before normal pension age by virtue of any provision of the admissible rules making special provision as to early payment of pension on grounds of ill health;

"normal pension age", in relation to a scheme and any pension under it, means the age specified in the admissible rules as the earliest age at which the pension becomes payable without actuarial adjustment (disregarding any admissible rule making special provision as to early payment on the grounds of ill health) and sub-paragraphs (2) and (3) of paragraph 30 of Schedule 7 apply in relation to this section as they apply in relation to that Schedule;

"notional reviewed rate of compensation", in respect of an ill health pension, means—

(a)	the annual rate of compensation which would be payable in respect of the pension at the assessment date, if the Board assumed responsibility for the scheme and the compensation so payable at that date was determined in accordance with regulations under section [Effect of a review](2), or

(b)	if no such compensation would have been so payable at that date, nil;

"scheme rules" is to be construed in accordance with Schedule 7;

"scheme valuation", in relation to a scheme, means a valuation under section 127 of the assets and protected liabilities of the scheme as at the time immediately before the assessment period begins.

(2) For the purposes of section [Reviewable ill health pensions](4)—

(a)	the definition of "normal pension age" in subsection (1), and

(b)	sub-paragraphs (2) and (3) of paragraph 30 of Schedule 7 as they apply by virtue of that definition,

have effect as if the references in those provisions to the admissible rules were references to the scheme rules.

(3) Paragraph 33(4) of Schedule 7 (references to "ill health" to be construed in accordance with regulations) applies in relation to sections [Reviewable ill health pensions] and [Effect of a review] and this section as if, in that provision, the reference to that Schedule included a reference to those sections and this section.

(4) In those sections references to the Board assuming responsibility for the scheme are to the Board assuming responsibility for the scheme in accordance with this Chapter at the time the assessment period in question comes to an end.'.