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Pensions Bill


Pensions Bill
Schedule 3 — Increase in pensionable age for men and women

40

 
 

(1)

(2)

 
 

Period within which birthday falls

Day pensionable age

 
  

attained

 
 

6th May 1968 to 5th June 1968

6th July 2034

 
 

6th June 1968 to 5th July 1968

6th September 2034

 

5

 

6th July 1968 to 5th August

6th November 2034

 
 

1968

  
 

6th August 1968 to 5th

6th January 2035

 
 

September 1968

  
 

6th September 1968 to 5th

6th March 2035

 

10

 

October 1968

  
 

6th October 1968 to 5th

6th May 2035

 
 

November 1968

  
 

6th November 1968 to 5th

6th July 2035

 
 

December 1968

  

15

 

6th December 1968 to 5th

6th September 2035

 
 

January 1969

  
 

6th January 1969 to 5th

6th November 2035

 
 

February 1969

  
 

6th February 1969 to 5th March

6th January 2036

 

20

 

1969

  
 

6th March 1969 to 5th April

6th March 2036

 
 

1969

  
 

      (8)  

A person born after 5th April 1969 but before 6th April 1977 attains

pensionable age when the person attains the age of 67.

25

      (9)  

A person born on any day in a period mentioned in column 1 of

table 4 attains pensionable age at the commencement of the day

shown against that period in column 2.

TABLE 4

 

(1)

(2)

 

30

 

Period within which birthday falls

Day pensionable age

 
  

attained

 
 

6th April 1977 to 5th May 1977

6th May 2044

 
 

6th May 1977 to 5th June 1977

6th July 2044

 
 

6th June 1977 to 5th July 1977

6th September 2044

 

35

 

 

Pensions Bill
Schedule 4 — Abolition of contracting-out for defined contribution pension schemes
Part 1 — Amendments having effect as from abolition date

41

 
 

(1)

(2)

 
 

Period within which birthday falls

Day pensionable age

 
  

attained

 
 

6th July 1977 to 5th August

6th November 2044

 
 

1977

  

5

 

6th August 1977 to 5th

6th January 2045

 
 

September 1977

  
 

6th September 1977 to 5th

6th March 2045

 
 

October 1977

  
 

6th October 1977 to 5th

6th May 2045

 

10

 

November 1977

  
 

6th November 1977 to 5th

6th July 2045

 
 

December 1977

  
 

6th December 1977 to 5th

6th September 2045

 
 

January 1978

  

15

 

6th January 1978 to 5th

6th November 2045

 
 

February 1978

  
 

6th February 1978 to 5th March

6th January 2046

 
 

1978

  
 

6th March 1978 to 5th April

6th March 2046

 

20

 

1978

  
 

     (10)  

A person born after 5th April 1978 attains pensionable age when

the person attains the age of 68.”

Schedule 4

Section 15

 

Abolition of contracting-out for defined contribution pension schemes

25

Part 1

Amendments having effect as from abolition date

Pension Schemes Act 1993 (c. 48)

1          

The Pension Schemes Act 1993 has effect subject to the following

amendments.

30

2     (1)  

Section 7 (issue of contracting-out and appropriate scheme certificates) is

amended as follows.

      (2)  

For subsection (1) substitute—

“(1)   

Regulations shall provide for HMRC to issue certificates stating that

the employment of an earner in employed earner’s employment is

35

 

 

Pensions Bill
Schedule 4 — Abolition of contracting-out for defined contribution pension schemes
Part 1 — Amendments having effect as from abolition date

42

 

contracted-out employment by reference to an occupational pension

scheme.

(1A)   

In this Act such a certificate is referred to as “a contracting-out

certificate”.”

      (3)  

Omit subsections (4) to (6) (provisions relating to appropriate scheme

5

certificates in respect of personal pension schemes).

      (4)  

In subsection (7) (no certificate to have effect from a date earlier than its

issue) omit “or appropriate scheme certificate”.

      (5)  

After that subsection insert—

“(8)   

References in this Act to a contracting-out certificate, a contracted-

10

out scheme and to contracting-out in a context relating to a money

purchase contracted-out scheme are to be construed in accordance

with section 181A.”

      (6)  

In the sidenote, omit “and appropriate scheme”.

3     (1)  

Section 8 (definitions of certain terms) is amended as follows.

15

      (2)  

In subsection (1) (definition of “contracted-out employment”) for the words

from “he is under pensionable age” to the end of paragraph (a) substitute “—

(a)   

he is under pensionable age;

(aa)   

his service in the employment is for the time being service

which qualifies him for a pension provided by an

20

occupational pension scheme contracted out by virtue of

satisfying section 9(2) (in this Act referred to as “a salary

related contracted-out scheme”);”.

      (3)  

After subsection (1) insert—

“(1A)   

In addition, in relation to any period before the abolition date, the

25

employment of an earner in employed earner’s employment was

“contracted-out employment” in relation to him during that period

if—

(a)   

he was under pensionable age;

(b)   

his employer made minimum payments in respect of his

30

employment to a money purchase contracted-out scheme,

and

(c)   

there was in force a contracting-out certificate issued in

accordance with this Chapter (as it then had effect) stating

that the employment was contracted-out employment by

35

reference to the scheme.”

      (4)  

In subsection (2) for “for the purposes of section 42A” substitute “for the tax

year in which the week falls as specified in an order made under section 42B

(as it had effect before the abolition date)”.

4     (1)  

Section 9 (general requirements for certification of schemes) is amended as

40

follows.

      (2)  

In subsection (1) (requirements for occupational pension schemes) omit “or

(3)”.

      (3)  

Omit subsections (3) and (5) (requirements for money purchase

occupational schemes and personal pension schemes).

45

 

 

Pensions Bill
Schedule 4 — Abolition of contracting-out for defined contribution pension schemes
Part 1 — Amendments having effect as from abolition date

43

 

      (4)  

In subsection (6) (meaning of “relevant requirements”)—

(a)   

in paragraph (a) omit “or, as the case may be, appropriate”;

(b)   

in paragraph (b) omit “or, as the case may be, of being an appropriate

scheme,”.

5          

In section 10 (protected rights and money purchase benefits) in subsection

5

(3) (protected rights under rules of personal pension schemes) in paragraph

(a), for “of minimum contributions” substitute “under section 45(1)”.

6          

Omit section 12 (determination of basis on which scheme is contracted-out).

7          

For the heading before section 26, substitute “Requirements for schemes with

members with protected rights”.

10

8          

Before section 26 (identification and valuation of protected rights) insert—

“25A    

Requirements for schemes with members with protected rights

(1)   

This section applies to—

(a)   

an occupational pension scheme which ceased to be a money

purchase contracted-out scheme by virtue of section 15(1) of

15

the Pensions Act 2007, or

(b)   

a personal pension scheme which ceased to be an appropriate

scheme by virtue of section 15(1) of that Act.

(2)   

For so long as there are persons who have protected rights under a

scheme to which this section applies, or who are entitled to any

20

benefit giving effect to such rights under it, the scheme must satisfy

the requirements mentioned in subsection (3).

(3)   

Those requirements are—

(a)   

the requirements imposed by or by virtue of sections 26 to 32;

and

25

(b)   

such other requirements as may be prescribed.

(4)   

Regulations made under subsection (3)(b) may contain provision

framed by reference to whether or not a scheme is a registered

pension scheme under section 153 of the Finance Act 2004.”

9     (1)  

Section 33 (tax requirements to prevail over certification requirements) is

30

amended as follows.

      (2)  

For “26” substitute “25A”.

      (3)  

In the sidenote, for “certification requirements” substitute “requirements of

sections 25A to 32”.

10    (1)  

Section 33A (appropriate schemes: “blowing the whistle”) is amended as

35

follows.

      (2)  

In subsection (1) (obligation to report failure to satisfy requirements)—

(a)   

for “an appropriate scheme” substitute “a personal pension scheme

to which section 25A applies”;

(b)   

for paragraph (a) substitute—

40

“(a)   

any requirement which, in the case of the scheme, is

required by section 25A to be satisfied is not

satisfied,”;

 

 

Pensions Bill
Schedule 4 — Abolition of contracting-out for defined contribution pension schemes
Part 1 — Amendments having effect as from abolition date

44

 

(c)   

in paragraph (b) for “appropriate schemes” substitute “personal

pension schemes to which section 25A applies”.

      (3)  

In the sidenote, for “appropriate schemes” substitute “personal pension

schemes”.

11    (1)  

Section 34 (cancellation, variation, surrender and refusal of certificates) is

5

amended as follows.

      (2)  

For subsection (1) (regulations to provide for cancellation etc. of contracting-

out or appropriate scheme certificates) substitute—

“(1)   

Regulations shall provide for the cancellation, variation or surrender

of a contracting-out certificate, or the issue of a new certificate—

10

(a)   

on any change of circumstances affecting the treatment of an

employment as contracted-out employment; or

(b)   

where the certificate was issued on or after the principal

appointed day, if any employer of persons in the description

of employment to which the scheme in question relates, or

15

the actuary of the scheme, fails to provide HMRC, at

prescribed intervals, with such documents as may be

prescribed for the purpose of verifying that the conditions of

section 9(2B) are satisfied.”

      (3)  

In subsection (3) (continued contracting-out of scheme dependent on

20

conditions for contracting-out remaining satisfied)—

(a)   

for paragraphs (a) and (b) substitute “by or by virtue of any provision

of this Part the contracting-out of a scheme in relation to an

employment depends on the satisfaction of a particular condition”;

(b)   

omit “or, as the case may be, the scheme’s continuing to be an

25

appropriate scheme”;

(c)   

omit “or appropriate scheme”.

      (4)  

Omit subsection (5) (circumstances in which HMRC can withhold etc.

appropriate scheme certificate).

      (5)  

In subsection (8) (cancellation etc. of certificates not to have effect from a

30

time earlier than when cancellation etc. made) omit “or appropriate scheme

certificate”.

      (6)  

After subsection (8) insert—

“(9)   

A reference in this section to a contracting-out certificate does not

include a reference to a contracting-out certificate issued in respect of

35

a money purchase contracted-out scheme.”

12    (1)  

Section 38 (alteration of rules of appropriate schemes) is amended as

follows.

      (2)  

For subsection (1) substitute—

“(1)   

No alteration of the rules of a personal pension scheme which was an

40

appropriate scheme shall be made so as—

(a)   

to affect any of the matters dealt with in sections 26 to 33; or

(b)   

to cause the scheme to take a different permitted form from

that previously taken.”

 

 

Pensions Bill
Schedule 4 — Abolition of contracting-out for defined contribution pension schemes
Part 1 — Amendments having effect as from abolition date

45

 

      (3)  

For subsection (5) substitute—

“(5)   

This section has effect in relation to a personal pension scheme for so

long as there are persons who have protected rights under the

scheme or who are entitled to any benefit giving effect to such rights

under it.”

5

      (4)  

In the sidenote, for “appropriate schemes” substitute “personal pension

schemes”.

13         

In section 42A (reduced rates of Class 1 contributions, and rebates) at the end

insert—

“(8)   

For the purposes of this section “the appropriate age-related

10

percentage” and “the appropriate flat-rate percentage”, in relation to

a tax year beginning before the abolition date, are the percentages

specified as such for that tax year in an order made under section 42B

(as it had effect prior to that date).”

14         

Omit section 42B (determination and alteration of rates of contributions, and

15

rebates, applicable under section 42A).

15         

In section 43 (payment of minimum contributions to personal pension

schemes) at the end insert—

“(7)   

In this section “the earner’s chosen scheme” means the scheme which

was immediately before the abolition date the earner’s chosen

20

scheme in accordance with section 44 (as it had effect prior to that

date).”

16         

Omit section 44 (earner’s chosen scheme).

17         

In section 45 (amount of minimum contributions) at the end insert—

“(4)   

For the purposes of this section “the appropriate age-related

25

percentage”, in relation to a tax year beginning before the abolition

date, is the percentage (or percentages) specified as such for that tax

year in an order made under section 45A (as it had effect prior to that

date).”

18         

Omit section 45A (determination and alteration of rates of minimum

30

contributions under section 45).

19    (1)  

Section 48A (additional pension and other benefits) is amended as follows.

      (2)  

In subsection (1) (effect of reductions and payments for contracted-out

schemes on earnings factors) in paragraph (a) for “or 42A” substitute “or, in

the case of a week falling before the abolition date, under section 42A (as it

35

then had effect)”.

      (3)  

In paragraph (b) of that subsection, for “an amount is paid under section

45(1)” substitute “in the case of a week falling before the abolition date, an

amount is paid under section 45(1) (as it then had effect)”.

20    (1)  

Section 50 (powers of HMRC to approve arrangements for scheme ceasing

40

to be certified) is amended as follows.

      (2)  

In subsection (1) (HMRC may approve arrangements for preservation etc. of

rights and liabilities under a scheme which ceases to be contracted-out)—

 

 

Pensions Bill
Schedule 4 — Abolition of contracting-out for defined contribution pension schemes
Part 1 — Amendments having effect as from abolition date

46

 

(a)   

after “ceasing to be such a scheme” insert “(including by virtue of

section 15(1) of the Pensions Act 2007)”;

(b)   

in paragraph (a) after “other than” insert “one that was”;

(c)   

in paragraph (b) for “in the case of a” substitute “in the case of an

occupational pension scheme that was a”.

5

      (3)  

In subsection (2) (HMRC to issue a certificate if they withdraw etc. approval

for arrangements) after “whether by” insert “virtue of section 15(1) of the

Pensions Act 2007, by”.

      (4)  

In subsection (4) (regulations may provide for various provisions of the Act

to have effect with modifications where arrangements are approved) for “26

10

to 33” substitute “25A to 33”.

      (5)  

In subsection (6) (approval of arrangements for salary related occupational

scheme may be withdrawn at any time) for “which is not a money purchase

contracted-out scheme” substitute “to which subsection (1)(a) applies”.

21    (1)  

Section 52 (supervision of schemes which have ceased to be certified) is

15

amended as follows.

      (2)  

In subsection (2) (occupational pension schemes to which section applies) in

paragraph (a) after “contracted-out scheme” insert “(whether by virtue of

section 15(1) of the Pensions Act 2007 or otherwise)”.

      (3)  

In subsection (3) (personal pension schemes to which section applies) in

20

paragraph (a) after “appropriate scheme” insert “(whether by virtue of

section 15(1) of the Pensions Act 2007 or otherwise)”.

22         

In section 55 (payment of state scheme premiums on termination of certified

status) in subsection (2) (prescribed person to pay contributions equivalent

premium) in paragraph (a) omit “(other than a money purchase contracted-

25

out scheme)”.

23         

In section 68A (safeguarded rights) in subsection (5) (interpretation) for “or

(3)” substitute “or a money purchase contracted-out scheme”.

24         

In section 87 (general protection principle) in subsection (1) (when

subsection applies) in paragraph (a)(i), for “which is not a money purchase

30

contracted out scheme” substitute “that satisfies the requirements of section

9(2)”.

25         

In section 96 (further provisions concerning exercise of option to take cash

equivalent under section 95) in subsection (2) (circumstances in which

option must be exercised in relation to balance of cash equivalent after

35

deducting amount sufficient to meet certain liabilities of trustees etc.) in

paragraph (a)(ii) omit “which is not an appropriate scheme”.

26    (1)  

Section 156 (information for the purposes of contracting-out) is amended as

follows.

      (2)  

In subsection (1) (Secretary of State or HMRC may give information to

40

managers or trustees of scheme) for “or appropriate scheme” substitute “or

personal pension scheme”.

      (3)  

In the sidenote, for “contracting-out” substitute “of obligations under Part

III”.

 

 

 
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