Vote Bundle Text (940519-02)

Amendments proposed to the Pensions Bill - continued	House of Commons

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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 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.'.

Referral of questions of law

Mr Secretary Smith

NC23

To move the following Clause:—

'The PPF Ombudsman may refer any question of law arising for determination in connection with—

(a)	a reviewable matter referred to him by virtue of regulations under section 196, or

(b)	a matter referred to him by virtue of regulations under section 197,

to, in England and Wales, the High Court or, in Scotland, the Court of Session.'.

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

Page 67, line 32 [Clause 97], at end insert—

'(4A) Any person appointed as an ordinary member shall have knowledge and understanding of—

(a)	the law relating to pensions and trusts,

(b)	the principles relating to—

(i)	the funding of occupational pension schemes, and

(ii)	investment of the assets of such schemes, and

(c)	such other matters as may be prescribed'.

Mr Secretary Smith

Page 68, line 19 [Clause 99], after 'Part' insert 'and any provision in force in Northern Ireland corresponding to it'.

Mr Secretary Smith
Mr Harry Barnes

Page 70, line 1 [Clause 102], leave out from 'Fund)' to end of line 2.

Mr Secretary Smith

Page 79, line 41 [Clause 118], after 'in' insert 'sections [Reviewable ill health pensions] to [Interpretation of sections [Reviewable ill health pensions] and [Effect of review]] and'.

Mr Secretary Smith

100

Page 83, line 24 [Clause 124], leave out 'owed' and insert 'due'.

Mr Secretary Smith

101

Page 84, line 7 [Clause 125], leave out 'for that period'.

Mr Secretary Smith

102

Page 84, line 16 [Clause 125], after 'pension' insert 'or payment of a member's lump sum'.

Mr Secretary Smith

103

Page 84, line 19 [Clause 125], at end insert—

'(4A) For the purposes of subsection (4)—

(a)

"normal pension age", in relation to an eligible scheme and any pension or other benefit under it, means the age specified in the scheme rules as the earliest age at which the pension or other benefit becomes payable without actuarial adjustment (disregarding any scheme rule making special provision as to early payment on the grounds of ill health), and

(b)	where different ages are so specified in relation to different parts of a pension or other benefit—

(i)	subsection (4) has effect as if those parts were separate pensions or, as the case may be, benefits, and

(ii)	in relation to a part of a pension or other benefit, the reference in that subsection to normal pension age is to be read as a reference to the age specified in the scheme rules as the earliest age at which that part becomes so payable.

(4B) In subsection (4A) "scheme rules" has the meaning given by section 134(7).'.

Mr Secretary Smith

104

Page 85, line 13 [Clause 127], leave out from second 'valuation' to end of line 15 and insert 'of the assets and protected liabilities of the scheme which—

(a)	is in the prescribed form and contains the prescribed information, and

(b)	is prepared and signed by a person with prescribed qualifications;'.

Mr Secretary Smith

105

Page 85, line 32 [Clause 127], at end insert—

'( ) In a case where there are one or more reviewable ill health pensions (within the meaning of section [Reviewable ill health pensions]) under the scheme, nothing in subsection (2) requires the actuarial valuation to be obtained during the period mentioned in section [Effect of review](5)(b) (period during which Board may exercise its power to make a decision following a review) relating to any such pension.'.