(33-37)

House of Commons

Session 2002 - 03
Internet Publications
Other Bills before Parliament

(  33  )
193
Page 99, leave out lines 9 to 13 and insert—


““audited scheme accounts”, in relation to a scheme, means—

(a)
accounts obtained by the trustees or managers of the scheme

(“the scheme accounts”) which are prepared in accordance

with subsections (7A) to (9) and audited by the auditor in

relation to the scheme, and

(b)
a report by the auditor, in the prescribed form, as to whether

or not such requirements as may be prescribed are satisfied

in relation to the scheme accounts;


“auditor”, in relation to a scheme, has the meaning given by section 47

of the Pensions Act 1995 (c. 26);”
194
Page 99, line 18, leave out “date” and insert “time”
195
Page 99, line 19, leave out first “to” and insert “for”
196
Page 99, line 30, at end insert—


““the reconsideration time”, in relation to an application under this

section, means the time immediately before the end of the period to

which the audited scheme accounts mentioned in subsection (4)(b)

relate.”
197
Page 99, leave out lines 31 to 48
198
Page 99, line 48, at end insert—

“(7A)
The scheme accounts are prepared in accordance with this subsection if,

subject to subsections (8) and (9), they—

(a)
include a statement of the assets of the scheme (excluding any

assets representing the value of any rights in respect of money

purchase benefits under the scheme rules) as at the reconsideration

time, and

(b)
are prepared in accordance with such other requirements as may be

prescribed.”
199
Page 99, line 49, after “section 135” insert “(other than regulations made by virtue

of subsection (4A) of that section)”
200
Page 99, line 50, leave out from “to” to “as” in line 1 on page 100 and insert “the

scheme accounts”
201
Page 100, line 3, leave out from “provide” to end of line 9 and insert “that, where

an asset of a prescribed description has been acquired during the assessment

period, the value assigned to the asset as at the reconsideration time is to be

determined, for the purposes of the scheme accounts, in the prescribed manner.”
202
Page 100, line 9, at end insert—

“( )
For the purposes of this section—

(a)
regulations may prescribe how the cost of securing the benefits

mentioned in paragraph (a) of the definition of “protected benefits

quotation” in subsection (7) is to be determined, calculated and

verified, and

(b)
subject to any provision made under paragraph (a), that cost is to be

determined, calculated and verified in accordance with guidance

issued by the Board.”
203
Page 100, line 9, at end insert—

(  34  )

“( )
Where the scheme is being wound up, for the purposes of determining the

benefits which fall within paragraph (b) of the definition of “protected

benefits quotation” in subsection (7) no account is to be taken of the

winding up of the scheme.”
Clause 143
204
Page 100, line 15, leave out “date” and insert “time”
205
Page 100, line 18, after “amount” insert “at that time”
206
Page 100, line 20, at end insert “at that time”
207
Page 100, line 27, at end insert—

“(4A)
But where the Board is satisfied of the matters mentioned in subsection (2),

it is not required to assume responsibility for the scheme under subsection

(2) until the determination notice issued under subsection (3) becomes

binding.

(4B)
For the purposes of subsection (4A) a determination notice is not binding

until—

(a)
the period within which the issue of the notice may be reviewed by

virtue of Chapter 6 has expired, and

(b)
if the issue of the notice is so reviewed—

(i)
the review and any reconsideration,

(ii)
any reference to the PPF Ombudsman in respect of the issue

of the notice, and

(iii)
any appeal against his determination or directions,


has been finally disposed of and the notice has not been revoked,

varied or substituted.

(4C)
Where a determination notice issued under subsection (3) becomes

binding, the Board must as soon as reasonably practicable give a notice to

that effect together with a copy of the binding notice to—

(a)
the trustees or managers of the scheme, and

(b)
the Regulator.

(4D)
A notice under subsection (4C) must be in the prescribed form and contain

such information as may be prescribed.”
208
Page 100, line 28, leave out subsections (5) to (7) and insert—

“(5)
The Board may—

(a)
for the purposes of subsection (2), obtain its own valuation of the

assets of the scheme as at the reconsideration time (within the

meaning of section 142), and

(b)
for the purposes of subsection (2)(b), obtain its own valuation of the

liabilities of the scheme as at that time;


and where it does so, subsections (7A)(b), (8) and (9) of section 142 apply in

relation to the valuation as they apply in relation to the scheme accounts

(within the meaning of that section).

(6)
Regulations under subsection (4) of section 135, and guidance under

subsection (5) of that section, apply for the purposes of this section in

relation to the estimated costs within subsection (2)(c) as they apply for the

(  35  )

purposes of section 135 in relation to protected liabilities within section

123(1)(c).”
209
Page 100, line 46, at end insert “rules”
Clause 144
210
Page 101, line 39, after “scheme” insert “rules”
Clause 145
211
Page 102, line 37, leave out “determination” and insert “issue of the notice”
212
Page 103, line 9, after “section 126,” insert “but subject to any order made under

subsection (7A),”
213
Page 103, line 12, at end insert—

“(7A)
The Regulator may by order direct any person specified in the order—

(a)
to take such steps as are so specified as it considers are necessary as

a result of—

(i)
the winding up of the scheme beginning, by virtue of

subsection (6), immediately before the assessment period,

or

(ii)
the winding up of the scheme being continued under

subsection (1)(b), and

(b)
to take those steps within a period specified in the order.

(7B)
If the trustees or managers of a scheme fail to comply with a direction to

them under subsection (7), or contained in an order under subsection (7A),

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.

(7C)
That section also applies to any other person who, without reasonable

excuse, fails to comply with a direction to him contained in an order under

subsection (7A).”
214
Page 103, line 21, at end insert—

“(9A)
Where an assessment period in relation to an eligible scheme comes to an

end by virtue of the conditions in subsection (2) or (5) being satisfied,

subsections (1) to (1C) of section 141 apply as they apply where an

assessment period comes to an end by virtue of the Board ceasing to be

involved with the scheme, except that in subsection (1A) of that section the

reference to section 210 is to be read as a reference to subsection (6) of this

section.”
215
Page 103, line 23, leave out “provision may be made by order” and insert “the

appropriate authority may by order make provision”
216
Page 103, line 24, at end insert—

“( )
In subsection (10) “the appropriate authority”, in relation to a scheme,

means such Minister of the Crown or government department as may be

designated by the Treasury as having responsibility for the particular

scheme.”

(  36  )

Clause 146
217
Page 103, line 44, at end insert—

“( )
Regulations may require the trustees or managers of a closed scheme in

relation to which the provisions mentioned in subsection (3) apply to

comply with such requirements as may be prescribed when providing for

the discharge of any liability to, or in respect of, a member of the scheme

for pensions or other benefits.”
218
Page 104, line 1, leave out subsection (4)
Clause 147
219
Page 104, line 8, after “scheme” insert “rules”
220
Page 104, line 19, leave out “which limits the amount of its” and insert “rules which

limits the amount of the scheme’s”
221
Page 104, line 21, at end insert—

“( )
Nothing in regulations under this section may require the trustees or

managers of a closed scheme to obtain an actuarial valuation of the scheme

until—

(a)
the period within which the issue of the determination notice,

under section 144(6), in respect of the Board’s determination to

authorise the scheme to continue as a closed scheme, may be

reviewed by virtue of Chapter 6 has expired, and

(b)
if the issue of the notice is so reviewed—

(i)
the review and any reconsideration,

(ii)
any reference to the PPF Ombudsman in respect of the issue

of the notice, and

(iii)
any appeal against his determination or directions,


has been finally disposed of and the notice has not been revoked,

varied or substituted.”
222
Page 104, line 26, at end insert—


“prepared and signed by the actuary;”
223
Page 104, line 30, leave out “, a person with prescribed qualifications” and insert

“—

(i)
a person with prescribed qualifications or experience, or

(ii)
a person approved by the Secretary of State”
224
Page 104, line 33, at end insert “rules”
225
Page 104, line 36, after “scheme” insert “rules”
226
Page 104, line 41, at end insert “rules”
Clause 148
227
Page 105, line 16, leave out “an eligible” and insert “a closed”
228
Page 105, line 20, leave out “eligible” and insert “closed”
229
Page 105, line 24, leave out “an eligible” and insert “a closed”
230
Page 105, line 28, leave out “closed scheme” and insert “—

(  37  )


“assets”, in relation to a scheme, do not include assets representing the

value of any rights in respect of money purchase benefits under the

scheme rules;


“closed scheme””
Clause 149
231
Page 105, line 38, at end insert “rules”
232
Page 105, line 41, leave out “135(3)” and insert “135”
233
Page 105, line 42, at end insert—

“(3A)
Subject to subsection (5), subsection (2A) of section 135 applies for those

purposes as it applies for the purposes mentioned in subsection (2) of that

section (and the definitions contained in paragraphs (b) and (d) of

subsection (9) of that section apply accordingly).”
234
Page 106, line 4, after “(9)” insert “(b) and (d)”
235
Page 106, line 10, leave out from first “of” to “applies” in line 11 and insert

“sections 135 and 137 by virtue of subsection (3A) or (4)—

(a)
subsections (2A), (4A) and (9)(b) and (d) of section 135 apply as if

the references to “the relevant time” were references to that term as

defined in subsection (6) below, and

(b)
subsection (2) of section 137”
236
Page 106, line 12, at end insert—

“( )
An application under subsection (1) of section 148, or notification under

subsection (4) of that section, is to be disregarded for the purposes of

subsection (1) if it is made or given during an assessment period (see

sections 124 and 150) in relation to the scheme which began before the

application was made or notification was given.”
Clause 150
237
Page 106, line 20, leave out “This section” and insert “Subsection (2)”
238
Page 106, line 24, at end insert—

“( )
For the purposes of subsection (1) an application under subsection (1) of

section 148, or notification under subsection (4) of that section, is to be

disregarded if it is made or given during an assessment period (see section

124 and this section) in relation to the scheme which began before the

application was made or notification was given.”
Clause 151
239
Page 107, line 2, at end insert—

“( )
A transfer notice may not be given in relation to a scheme during any

period when the issue of, or failure to issue, a withdrawal notice under or

by virtue of section 138 or 139 (refusal to assume responsibility) is

reviewable (see section 140(6)(b)).”