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Session 2006-07
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Thursday 1st February 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 Order of the Committee [23rd January].


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
Mark Pritchard
John Penrose
Mr David Laws

89

Clause 16, page 19, line 36, at end insert—

      ‘(4B) Upon becoming aware of a matter of dispute, the specified person, or trustees or managers if appropriate, should acknowledge receipt and advise the person or persons with an interest in the scheme, in writing, of the existence of the Pensions Advisory Service and the assistance it can provide in relation to the dispute resolution.’.


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’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

82

Schedule 6, page 56, line 26, leave out sub-paragraph (2).

Mr David Laws
Lorely Burt

45

Schedule 6, page 59, line 7, at end insert—

      ‘(2) The Authority shall establish a committee for the purpose of representing scheme member and prospective scheme member interests, which shall be chaired by a consumer representative.’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

16

Schedule 6, page 59, line 13, leave out from ‘contain’ to ‘of’ in line 14 and insert ‘a majority of persons who are either members or employees’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

17

Schedule 6, page 59, line 18, leave out paragraph 10.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

14

Schedule 6, page 59, line 20, at end insert—

    ‘10A (1) The Authority must establish a committee for the purpose of representing the interests of scheme members and prospective scheme members.

    (2) The chairman of the committee must be a consumer representative appointed under paragraphs 1(1)(b) and 1(3A).’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

18

Schedule 6, page 62, line 28, at end insert—

‘18A Such grants shall be classified as—

      (a) policy grants; or

      (b) operational grants.

    18B (1) Policy grants shall be used in support of the Authority’s work on advising on preparing for the implementation of, or the modification of, any relevant proposals about personal accounts.

    (2) Policy grants shall not be made more than two years after the commencement of this Act.

18C Operational grants shall be used in support of the Authority’s work in preparing for the implementation of proposals for personal accounts.’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

19

Schedule 6, page 62, line 34, at end insert—

    ‘(2A) A statement under sub-paragraph (1)(b) must show separately the purposes to which policy grants and operational grants have been applied.

    (2B) A statement under sub-paragraph (1)(b) must show the interest charges that would have accrued on the operational grants if they had been loans taken out at commercial rates of interest.’.


Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

83

Clause 19, page 20, line 35, leave out ‘appropriate’ and insert ‘strictly necessary’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

84

Clause 19, page 21, line 2, leave out from ‘State’ to ‘which’ in line 3.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

85

Clause 19, page 21, line 5, leave out ‘pensions’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

20

Clause 19, page 21, line 11, at end insert—

      ‘(2A) It shall be the duty of the Authority to carry out their functions under subsection (1) in such manner as—

        (a) appears to them to ensure, so far as they are facilitating the implementation of any such proposals, that there is effective co-operation in relation to the implementation of the proposals between themselves, the Pensions Regulator, the Financial Services Authority and the Secretary of State; and

        (b) does not interfere with the existing provision of personal or occupational schemes.’.

Mr David Laws
Lorely Burt

40

Clause 19, page 21, line 11, at end insert—

      ‘(2A) In discharging its functions under this Part, the Authority shall publish a report on how it can ensure that individuals who have money invested in Personal Accounts and those considering doing so in future will have access to generic financial advice.’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

86

Clause 19, page 21, line 26, leave out subsection (5).

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

21

Clause 19, page 21, line 27, at end insert—

      ‘(5A) In discharging its function under this section, the Authority shall ensure that its actions and advice support the following objectives for the scheme—

        (a) ensuring that the overall outcome, taking account of the impact on the existing market, is an increase in the number of people saving and the overall amount being saved;

        (b) optimising levels of participation and contribution among the target group;

        (c) setting an investment strategy in the best interests of members;

        (d) minimising burdens on employers;

        (e) minimising the impact on other high-quality pension provision;

        (f) assuring security of administration;

        (g) governing in the best interests of members and beneficiaries;

        (h) ensuring that the board acts impartially, prudently, responsibly and honestly;

        (i) delivering appropriate levels of choice;

        (j) achieving charges that are fair and reasonable;

        (k) ensuring the funds are invested in the best interests of the members.

      (5B) Her Majesty may from time to time by Order in Council make provision for amending the objectives set out in subsection (5A).

      (5C) No recommendation shall be made to Her Majesty to make an Order in Council under subsection (5B) above unless a draft of the Order has been approved by resolution of each House of Parliament.’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

22

Clause 19, page 21, line 27, at end insert—

      ‘(5A) In making preparations and giving advice, the Authority shall seek to ensure that the full costs of setting up and operating the scheme are covered by charges to be made either to employers or to members and not met from other sources.’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

87

Clause 19, page 21, line 29, at end insert ‘, and such guidance must be reported to Parliament by an oral statement made by the Secretary of State.’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

23

Clause 19, page 21, line 31, at end insert—

      ‘(7A) Before issuing guidance under subsection (6) the Secretary of State shall consult—

        (a) the Authority;

        (b) organisations appearing to him to be representative of consumers;

        (c) organisations appearing to him to be representative of employees;

        (d) organisations appearing to him to be representative of employers;

        (e) organisations appearing to him to be representative of the financial services industry;

        (f) such other persons as the Secretary of State considers it appropriate to consult in relation to the guidance.

      (7B) A draft of any guidance proposed to be issued under this section shall be laid before each House of Parliament.

      (7C) Guidance shall not be issued under this section until after the period of forty days beginning with—

        (a) the day on which the draft is laid before each House of Parliament; or

        (b) if the draft is laid before the House of Lords on one day and the House of Commons on another, the later of those two days.

      (7D) If, before the end of that period, either House resolves that the guidance should not be issued, the Secretary of State must not issue it.

      (7E) In reckoning any period of forty days for the purposes of subsection (5) or (6), no account shall be taken of any time during which—

        (a) Parliament is dissolved or prorogued, or

        (b) both Houses are adjourned for more than four days.

      (7F) The Secretary of State shall arrange for any guidance issued under this section to published in such manner as he considers appropriate.’.

Mr David Laws
Lorely Burt

38

Clause 19, page 21, line 32, at end add—

      ‘(9) Prior to Parliament’s approval of proposals the Authority must evaluate the effect of means testing on levels of saving in personal accounts and its impact on returns in personal accounts and thereafter conduct and publish evaluations annually.’.

Mr David Laws
Lorely Burt

39

Clause 19, page 21, line 32, at end insert—

      ‘(9) The Authority shall carry out a gender impact assessment of relevant proposals regarding saving in personal accounts as specified in subsection (2).’.

Mr David Laws
Lorely Burt

65

Clause 19, page 21, line 32, at end add—

      ‘(9) The Authority shall, no later than 1st April 2008, publish a strategy for maximising participation in the new system of personal accounts in which it shall—

        (a) set out and give full explanation of targets for participation in personal accounts;

        (b) identify at-risk groups where auto-enrolment might risk very low rates or return;

        (c) outline contingency plans for coping with the workload if participation is higher than expected;

        (d) outline its strategy for maximising the participation among employees in small businesses.’.

Mr David Laws
Lorely Burt

66

Clause 19, page 21, line 32, at end add—

      ‘(9) The Authority shall prepare and publish a report, no later than 1st April 2008, on measures it proposes to take to monitor the impact of the new personal accounts scheme on existing occupational pensions provision and to guard against levelling down.’.

Mr David Laws
Lorely Burt

67

Clause 19, page 21, line 32, at end add—

      ‘(9) The Authority shall prepare and publish a report, no later than 1st April 2008, on how it plans to establish and develop any necessary IT system and reduce risks of IT problems with personal accounts.’.

Mr David Laws
Lorely Burt

68

Clause 19, page 21, line 32, at end add—

      ‘(9) The Authority shall prepare and publish a report, no later than 1st April 2008, on the percentage of the target audience of personal accounts expected to accrue returns from saving in personal account pension schemes of—

        (a) more than 100 per cent,

        (b) 0-100 per cent, and

        (c) less than 0 per cent.’.


Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

79

Clause 20, page 21, line 36, leave out ‘the Authority thinks appropriate’ and insert ‘shall be specified in regulations’.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

80

Clause 20, page 21, line 38, leave out subsection (2).


James Purnell

56

Clause 24, page 23, line 25, leave out subsection (3) and insert—

      ‘(3) The following repeals have effect at the end of the period of 2 months beginning with the day on which this Act is passed—

        (a) the repeals in Part 2 of Schedule 7 of the provisions of the Pensions Act 1995 (c. 26) other than paragraphs 19 and 20 of Schedule 4 to that Act;

        (b) the repeal in Part 2 of Schedule 7 of paragraph 36 of Schedule 24 to the Civil Partnership Act 2004 (c. 33);

        (c) the repeals in Part 3A of Schedule 7.’.


James Purnell

60

Schedule 7, page 66, line 8, at end insert—

‘Part 3A

Additional pension: simplified accrual rates

Citation Extent of repeal
Social Security Contributions and Benefits Act 1992 (c. 4) In section 39— (a) the words “and Schedule 4A” wherever occurring; (b) subsection (3).
In Schedule 4A, in paragraph 1(2) “39(1),”.
Child Support, Pensions and Social Security Act 2000 (c. 19) Section 35(3).’.

 
Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

7

Schedule 7, page 66, line 27, at end insert—

  ‘Section 28.’.

NEW CLAUSES

Report by Government Actuary on trends in longevity

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

NC1

    To move the following Clause:—

      ‘(1) Beginning in April 2014, the Government Actuary shall present a Report to Parliament every five years setting out the latest evidence on trends in longevity.

      (2) It shall be the duty of the Secretary of State to make a motion in the House of Commons in relation to any report under subsection (1).’.


 
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