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House of Commons
Session 2006-07
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Tuesday 23rd January 2007

Public Bill Committee


      New Amendments handed in are marked thus *

      Other Amendments not tabled within the required notice period are marked thus 8

Pensions Bill


Note

The Amendments have been arranged in accordance with the Resolution of the Programming Sub-Committee.


RESOLUTION OF THE PROGRAMMING SUB-COMMITTEE

       The Programming Sub-Committee appointed by the Speaker in respect of the Bill agreed the following Resolution at its meeting on Thursday 18th January (Standing Order No. 83C):

       That—

        (1) the Committee shall (in addition to its first meeting at 10.30 a.m. on Tuesday 23rd January) meet—

        (a) at 4.00 p.m. on Tuesday 23rd January;

        (b) at 9.10 a.m. and 1.30 p.m. on Thursday 25th January;

        (c) at 10.30 a.m. and 4.00 p.m. on Tuesday 30th January;

        (d) at 9.10 a.m. and 1.30 p.m. on Thursday 1st February;

        (e) at 10.30 a.m. and 4.00 p.m. on Tuesday 6th February;

        (f) at 9.10 a.m. and 1.30 p.m. on Thursday 8th February;

        (2) the proceedings shall be taken in the following order: Clauses 1 to 11; Schedule 2; Clauses 12 and 13; Schedule 3; Schedule 1; Clauses 14 and 15; Schedule 4; Clauses 16 and 17; Schedule 5; Clause 18; Schedule 6; Clauses 19 to 24; Schedule 7; Clauses 25 to 29; new Clauses; new Schedules; remaining proceedings on the Bill;

        (3) the proceedings shall (so far as not previously concluded) be brought to a conclusion at 5.00 p.m. on Thursday 8th February.

       James Purnell has given notice of his intention to make a motion in the terms of the Resolution of the Programming Sub-Committee [Standing Order No. 83C(9)].


James Purnell

       That, subject to the discretion of the Chairman, any written evidence received by the Committee shall be reported to the House for publication.

Mr David Laws
Lorely Burt

62

Clause 1, page 1, line 13, leave out ‘2010’ and insert ‘2008’.

Mr David Laws
Lorely Burt

24

Clause 1, page 2, line 32, at end insert—

      ‘(5) If the contributor has reached the state pension age and not made the necessary National Insurance contributions or accrued the necessary credits for entitlement to the full Basic State Pension, the contributor may defer claiming the Basic State Pension and may continue to pay NI contributions until the entitlement to a full Basic State Pension has been accrued.’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

46

Clause 1, page 2, line 32, at end insert—

      ‘(5) In sub-paragraph (2), the term “working life” includes periods where a contributor is earning while entitled to be paid a Category A or Category B retirement pension but is not in receipt of that Category A or Category B pension.’.


Mr David Laws
Lorely Burt

26

Clause 3, page 3, line 31, at end insert—

        ‘(d) is in receipt of certification by a relevant health or social care professional, verifying that they are involved in caring for a person or persons, for a minimum of 20 hours a week, not otherwise recognised by the regulations.’.

Ms Sally Keeble

61

Clause 3, page 3, line 31, at end insert—

        ‘(d) is certified by the local social services authority as providing caring services for at least 20 hours a week for one or more people.’.

Mr David Laws
Lorely Burt

63

Clause 3, page 3, line 31, at end insert—

        ‘(d) is engaged in caring for a person or persons in receipt of the higher, medium or lower rate care component of the Disability LIving Allowance, Attendance Allowance, Constant Attendance Allowance, higher rate of short-term or long-term incapacity benefit, severe disablement allowance and any means-tested benefit for which a disability premium or addition has been added in the applicable amount for 20 hours a week or more.’.

Mr David Laws
Lorely Burt

27

Clause 3, page 3, line 40, leave out ‘52 Class 3 contributions for each tax year’ and insert ‘Class 3 contributions for each tax week’.

James Purnell

47

Clause 3, page 3, line 42, at end insert ‘within the meaning of regulations made under paragraph 5(7) of Schedule 3.

      (5A) But the maximum number of tax years for which a person can be credited with contributions under subsection (5) above is—

        (a) in the case of a benefit mentioned in subsection (1)(a) to (c) above, 22;

        (b) in the case of a benefit mentioned in subsection (1)(d) or (e) above, half the requisite number of years of the person’s working life.

      (5B) The table in paragraph 5(5) of Schedule 3 (requisite number of years of a working life of given duration) applies for the purposes of subsection (5A)(b) above as it applies for the purposes of the second condition set out in paragraph 5(3) of that Schedule.’.

James Purnell

48

Clause 3, page 3, line 43, leave out from beginning to end of line 2 on page 4.


Ms Sally Keeble

69

Clause 5, page 5, line 24, at end insert—

        ‘(aa) the amounts of the additional pension that different persons are entitled to receive;’.

Mr David Laws
Lorely Burt

28

Clause 5, page 5, line 26, at end insert ‘including those claimed by British citizens living abroad’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

1

Clause 5, page 5, leave out lines 32 to 38.

Mr David Laws
Lorely Burt

29

Clause 5, page 5, line 38, at end insert ‘; or by a percentage not less than the percentage by which the general level of prices is greater at the end of the period than it was at the beginning, whichever is the higher.’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster
Mr David Laws
Lorely Burt

2

Clause 5, page 5, leave out lines 39 to 41.

Mr David Laws
Lorely Burt

31

Clause 5, page 5, line 41, at end insert—

      ‘(3A) The general level of earnings shall be defined as the Average Earnings Index.

      (3B) The general level of prices shall be defined as the Retail Prices Index.’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

3

Clause 5, page 5, leave out lines 42 to 44.

Mr David Laws
Lorely Burt

32

Clause 5, page 6, line 10, leave out from ‘force’ to end of line 11 and insert ‘from 1st April 2008.’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

4

Clause 5, page 6, line 13, leave out from ‘shall’ to end of line 14 and insert ‘determine the general level of earnings as set out in subsections (8A) and (8B).

      (8A) If the average earnings index (including bonuses) for the whole economy for September in any year is higher than the index for the previous September, the Secretary of State shall as soon as practicable make an order in relation to each sum mentioned in subsection (1), increasing each sum, if the new index is higher, by the same percentage as the amount of the increase of the index.

      (8B) In making the calculation required by subsection (8A), the Secretary of State shall in the case of the sums set out in subsections (1)(a) to (1)(d) inclusive, round up the result to the nearest 10 pence.’.

Mr David Laws
Lorely Burt

33

Clause 5, page 6, line 14, leave out ‘he thinks fit’ and insert ‘may be approved by resolution of each House of Parliament’.

Mr David Laws
Lorely Burt

34

Clause 5, page 6, line 38, leave out from ‘the’ to ‘(with’ in line 39 and insert ‘tax year beginning 1st April 2008’.

Mr David Laws
Lorely Burt

35

Clause 5, page 6, line 43, leave out ‘1st April 2011’ and insert ‘the first 1st April after the first meeting of the next Parliament’.

Mr David Laws
Lorely Burt

36

Clause 5, page 6, line 44, leave out subsections (5) to (7).

Mr David Laws
Lorely Burt

76

* Clause 5, page 6, line 46, leave out ‘the relevant dissolution date’ and insert ‘6th April 2013’.

Mr David Laws
Lorely Burt

77

* Clause 5, page 7, line 1, leave out subsection (6).

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

5

Clause 5, page 7, line 3, at end insert—

      ‘(6A) The Secretary of State must, within six months of the beginning of the Parliament referred to in subsection (6), inform Parliament by means of an oral statement of the date at which the provision set out in this section could be afforded.’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

78

* Clause 5, page 7, line 3, at end insert—

      ‘(6A) The Secretary if State must, on or before 5th April 2009, announce his decision as to the date from which he will implement the provision set out in this section.’.


Ms Sally Keeble

70

Clause 10, page 11, line 14, leave out ‘40’ and insert ‘45’.

Ms Sally Keeble

71

Clause 10, page 11, leave out lines 15 and 16.

Ms Sally Keeble

72

Clause 10, page 11, line 31, leave out ‘40’ and insert ‘45’.

Ms Sally Keeble

73

Clause 10, page 11, leave out lines 32 and 33.

Ms Sally Keeble

74

Clause 10, page 12, line 7, leave out ‘40’ and insert ‘45’.

Ms Sally Keeble

75

Clause 10, page 12, leave out lines 8 and 9.

Mr David Laws
Lorely Burt

64

Clause 10, page 12, line 15, at end add—

      ‘(7) The Secretary of State shall publish estimates, no later than 1st April 2008, of how many people he expects to receive less than £135 a week in Basic State Pension and Second State Pension combined in 2030 and 2050.’.


James Purnell

49

Clause 11, page 12, line 35, at end insert ‘and

        (c) Part 3 contains consequential and related amendments.’.


James Purnell

58

Schedule 2, page 38, line 13, at end add—

‘Part 3

Consequential and related amendments

    Social Security Contributions and Benefits Act 1992 (c. 4)

3 In section 39 of the SSCBA (rate of widowed mother’s allowance and widow’s pension) omit—

      (a) “and Schedule 4A” wherever occurring; and

      (b) subsection (3).

    4 (1) Section 39C of the SSCBA (rate of widowed parent’s allowance and bereavement allowance) is amended as follows.

    (2) In subsection (1) after “section 46(2)” insert “and (4)”.

    (3) In subsection (3) in each of paragraphs (a) and (b) for “sections” substitute “provisions”.

    5 (1) Section 44 of the SSCBA (Category A retirement pension) is amended as follows.

    (2) In subsection (5A) for “Schedule 4A” substitute “Schedules 4A and 4B”.

    (3) In subsection (6) for “Schedule 4A” substitute “Schedule 4A or 4B”.

6 In section 46 of the SSCBA (modification of section 45 for calculating the additional pension in certain benefits) after subsection (3) insert—

      “(4) For the purpose of determining the additional pension falling to be calculated under section 45 above by virtue of section 39C(1) above in a case where the deceased spouse or civil partner died under pensionable age, section 45 has effect subject to the following additional modifications—

        (a) the omission of subsection (2)(d), and

        (b) the omission in subsection (3A)(b) of the words ‘before the flat rate introduction year’.”

7 In section 48A of the SSCBA (rate of Category B retirement pension for married person or civil partner) in subsection (4) for “Schedule 4A” substitute “Schedules 4A and 4B”.

8 In section 48B of the SSCBA (Category B retirement pension for surviving spouse or civil partner) in subsection (2) for “Schedule 4A” substitute “Schedules 4A and 4B”.

9 In section 48BB of the SSCBA (Category B retirement pension: entitlement by reference to benefits under section 39A or 39B) in subsection (5)—

      (a) for “Schedule 4A” substitute “Schedules 4A and 4B”; and

      (b) for the words from “subject” to the end substitute “subject to section 46(3) above and to the following provisions of this section and the modification in section 48C(4) below.”

10 In section 48C of the SSCBA (Category B retirement pension: general) in subsection (4) for “Schedule 4A” substitute “Schedules 4A and 4B”.

11 In Schedule 4A to the SSCBA (additional pension) in paragraph 1(2) omit “39(1),”.

    Pension Schemes Act 1993 (c. 48)

12 In section 42 of the Pension Schemes Act 1993 (review and alteration of rates of contributions applicable under section 41) in subsection (1)(a)(ii) for “Schedule 4A” substitute “Schedules 4A and 4B”.’.


James Purnell

50

Clause 12, page 14, line 4, after ‘revoke’, insert ‘any provision of’.


James Purnell

57

Schedule 1, page 30, line 5, leave out paragraph 21.


James Purnell

51

Clause 15, page 18, line 36, at end insert—

James Purnell

52

Clause 15, page 18, line 43, at end insert—

      ‘ “protected rights provisions” means provisions contained in, or in subordinate legislation made under—

      (a) any of sections 26 to 33A of that Act, or

      (b) any other provision of that Act if and so far as the provisions relate to, or otherwise have effect in relation to, protected rights within the meaning of that Act (see section 10 of the Act).’.

James Purnell

53

Clause 15, page 18, line 44, leave out subsections (3) and (4) and insert—

      ‘(3) In Schedule 4—

        (a) Parts 1 and 2 contain amendments which are consequential on, or related to, the provision made by subsection (1), and

        (b) Part 3 contains savings relating to amendments made by Part 1.’.

James Purnell

54

Clause 15, page 19, line 8, leave out ‘this section and that Schedule’ and insert ‘subsection (1) and Schedule 4 or any amendment, repeal or revocation of any protected rights provisions by virtue of subsection (1A).’.

James Purnell

55

Clause 15, page 19, line 9, leave out subsections (7) to (9) and insert—

      ‘(7) Regulations under subsection (6) may in particular amend, repeal or revoke any provision of any Act or subordinate legislation (whenever passed or made).

      (8) No regulations which amend or repeal any provision of an Act may be made under this section unless a draft of the regulations has been laid before and approved by a resolution of each House of Parliament.

      (9) A statutory instrument containing regulations under this section that do not fall within subsection (8) is subject to annulment in pursuance of a resolution of either House of Parliament.’.

Mr David Laws
Lorely Burt

37

Clause 15, page 19, line 16, at end add—

      ‘(10) The Secretary of State must lay before Parliament no later than 31st December 2007 a report setting out how additional revenues from increasing National Insurance Contributions collected from abolishing contracting-out will be used to improve pension provision.’.


Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

6

Schedule 4, page 43, line 11, leave out paragraph 8.

James Purnell

59

Schedule 4, page 43, line 11, leave out ‘(identification and valuation of protected rights)’ and insert ‘(persons who may establish scheme)’.


Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

81

* Clause 18, page 20, line 31, leave out subsection (2).


Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

8

Schedule 6, page 55, line 1, after ‘a’, insert ‘lay’.

Mr David Laws
Lorely Burt

41

Schedule 6, page 55, line 1, leave out ‘chairman’ and insert ‘lay chair who is not perceived to have a conflict of interest with regard to the financial services industry, but is there to represent the views and look after the interests of scheme members and prospective scheme members,’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

9

Schedule 6, page 55, line 2, after ‘members’, insert ‘(of which two shall be appointed to represent the interests of consumers)’.

Mr David Laws
Lorely Burt

42

Schedule 6, page 55, line 2, after ‘ members’, insert ‘, of which at least two out of nine members will be non-executive consumer directors who represent scheme members and prospective scheme members and are recognised professionally by consumer groups,’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster
Mr David Laws
Lorely Burt

10

Schedule 6, page 55, line 3, leave out ‘or (3)’ and insert ‘, (3) or (3A)’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

11

Schedule 6, page 55, line 8, at end insert—

      ‘(3A) Before appointing, or approving the appointment of, any member representing the interests of consumers for the purposes of sub-paragraph (1)(b), the Secretary of State must consult such organisations as appear to him to represent the interests of consumers.’.

Mr David Laws
Lorely Burt

44

Schedule 6, page 55, line 8, at end insert—

      ‘(3A) Any consumer appointments for the purposes of sub-sub-paragraph (1)(b) must be discussed with consumer groups prior to appointment and the said consumer groups will have the right to comment on the said appointments.’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

12

Schedule 6, page 55, line 11, at end insert—

‘1A Before appointing any member of the Authority under sub-paragraph 1(1) the Secretary of State must—

      (a) conduct and open recruitment competition inviting applications from individuals with extensive knowledge, experience and expertise in the fields of pensions or financial marketing or both;

      (b) consult organisations which appear to him to represent key groups of stakeholders;

      (c) have regard to the desirability of appointing a group of members whose expertise collectively spans all aspects of occupational and personal pension provision and financial marketing.’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

13

Schedule 6, page 55, line 11, at end insert—

‘1A In appointing members the Secretary of State shall have regard to the desirability of recruiting a group of members so that there is a balance as the Secretary of State considers appropriate between—

      (a) members with knowledge and experience of consumers’ pension needs;

      (b) members with knowledge and experience of employers’ involvement in pensions;

      (c) members with knowledge and experience of pensions from the pension providers;

      (d) members with knowledge and experience of pensions from the relevant regulators.’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

15

Schedule 6, page 55, line 30, leave out ‘or other’.

 
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Prepared: 23 January 2007