House of Commons Amendments

House of Commons

Session 2006-07
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Thursday 8th 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].

NEW CLAUSES

Retirement Income Funds

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

NC8

To move the following Clause:—

‘(1) The Finance Act 2004 (c. 12) is amended as follows.

(2) After section 152 (meaning of “arrangement”), insert—

“152A Meaning of ‘Retirement Income Fund’

(1) In this Part, a Retirement Income Fund means a scheme for the reinvestment of savings in retirement which—

(a) is operated by or on behalf of a person authorised to operate a registered pension scheme,

(b) is a scheme in which investments are approved by the Inland Revenue, and

(c) meets the conditions set out in subsections (2) to (9).

(2) The first condition is that, subject to the other conditions in this section, funds held in the Retirement Income Fund may be invested and withdrawn by the member as and when he elects.

(3) The second condition is that an authorised Retirement Income Fund provider must set an annual maximum withdrawal allowance for each member, based on an assessment of each member’s life expectancy, and a member’s withdrawals from the fund in any one year must not exceed that allowance.

(4) The third condition is that, in setting annual maximum withdrawal allowances, an authorised provider must ensure that no member’s total future annual income falls below the Minimum Retirement Income level (as set under section [Minimum Retirement Income] of the Pensions Act 2007) except in the circumstances provided for in the sixth condition.

(5) The fourth condition is that an authorised provider must set an annual minimum withdrawal allowance so that each member’s total income is at least equivalent to the Minimum Retirement Income level, except in the circumstances provided for in the sixth condition.

(6) The fifth condition is that if a member chooses not to declare his total annual income to the authorised provider he must withdraw funds equivalent to the level of the Minimum Retirement Income level or his annual maximum withdrawal allowance, whichever is the lower.

(7) The sixth condition is that, where there are insufficient funds to enable the annual minimum withdrawal allowance to be set so that a member’s total income is at least equivalent to the Minimum Retirement Income level, the allowance should be set at the highest level consistent with the assessment of the member’s life expectancy.

(8) The seventh condition is that the maximum and minimum withdrawal allowances must be set at the same level if a member’s total annual income, including his maximum withdrawal allowance, is lower than the Minimum Retirement Income level.

(9) The eighth condition is that a Retirement Income Fund, and any income derived from it, must not be capable of assignment or surrender by the member.”.’.

Amendment of the pension rules

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

NC9

To move the following Clause:—

‘(1) Section 165 of the Finance Act 2004 (c. 12) (pension rules) is amended as follows.

(2) In subsection (1) (which sets out the pension rules)—

(a) in Pension Rule 4, after paragraph (a), insert—

“(aa) a withdrawal from a Retirement Income Fund,”;

(b) in Pension Rule 4, after the second appearance of the words “scheme pension”, insert the words “a withdrawal from a Retirement Income Fund”;

(c) in Pension Rule 6, after paragraph (a), insert—

“(aa) a withdrawal from a Retirement Income Fund,”;

(d) in Pension Rule 6, after the second appearance of the words “scheme pension”, insert the words “a withdrawal from a Retirement Income Fund”.’.

Minimum Retirement Income

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

NC10

To move the following Clause:—

‘(1) The amount of the Minimum Retirement Income in respect of each tax year shall be set by the Chancellor of the Exchequer by order at the level of the standard minimum guarantee prescribed under section 2 of the State Pension Credit Act 2002 (c. 16).

(2) Before making an order under subsection (1), the Chancellor of the Exchequer shall consult such persons as he considers appropriate.

(3) An order under this section (other than the order that applies to the first tax year during which this section is in force) must be made on or before 31st January of the tax year before the tax year to which the order applies.’.

Removal of age limit for annuity protection lump sum death benefit

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

NC11

To move the following Clause:—

‘(1) Schedule 29 to the Finance Act 2004 (c. 12) is amended as follows.

(2) In paragraph 16(1) (definition of annuity protection lump sum death benefit), paragraph (a) shall cease to have effect.’.

Report on phasing in the 30 year contribution condition

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

NC12

To move the following Clause:—

‘The Secretary of State must, not later than 1st July 2007, lay before Parliament a report on the costs and feasibility of phasing in the condition introduced by paragraph 5A(2)(a) of Schedule 3 to the SSCBA (inserted by section 1(3) of this Act).’.

Report on retraining opportunities for older workers etc.

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

NC13

To move the following Clause:—

‘The Secretary of State shall present a report annually to the House of Commons—

(a) analysing, by local authority area and by job sector, the number and distribution of people over 60 who are seeking work, and

(b) on the provision of training for all workers seeking to retrain.’.

Report on flexible working

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

NC14

To move the following Clause:—

‘The Secretary of State must, in the course of each Parliament, lay before the House of Commons a report on the extent of flexible employment within—

(a) the Department for Work and Pensions and its executive agencies,

(b) other Government departments and executive agencies, and

(c) the private sector.’.

Report on contribution credits

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

NC15

To move the following Clause:—

‘The Secretary of State shall present a report annually to the House of Commons on—

(a) the number of carers in receipt of contribution credits;

(b) the number of carers caring for 20 or more hours per week who are not in receipt of contribution credits;

(c) the associated costs of contribution credits to the National Insurance Fund of (a);

(d) an estimate of the cost of providing contribution credits to persons falling within paragraph (b), and

(e) any proposals he may have for reviewing eligibility for contributions credits.’.

Report on employment of people with disabilities

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

NC16

To move the following Clause:—

‘The Secretary of State must, in the course of each Parliament, lay before the House of Commons a report on the extent of employment of people with disabilities within—

(a) the Department for Work and Pensions and its executive agencies,

(b) other government departments and executive agencies, and

(c) the private sector.’.

Allocation of child benefit to the relevant parent

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

NC17

To move the following Clause:—

‘If child benefit is paid into a joint account and allocated to a parent who did not wish to accrue home responsibilities protection or contribution credits, and the other parent wishes to have accrued home responsibilities protection or contribution credits, the Secretary of State must reallocate the qualifying years of home responsibilities protection or contribution credits, as the case may be, to the parent who wished to receive them.’.

Lower earnings limit

Mr David Laws
Lorely Burt

NC18

To move the following Clause:—

‘(1) Section 5 (earnings limits) of the SSCBA is amended as follows.

(2) After subsection (2) insert—

“(2A) A person’s gross earnings from all sources shall be aggregated when determining whether an individual is above the lower earnings limit.”.’.

Linking the introduction of uprating the basic state pension in line with earnings and the increase in the state pension age

Mr David Laws
Lorely Burt

NC19

To move the following Clause:—

‘For each additional year after 2012 that retirement pensions referred to in section 23A(1)(b) of SSCBA (inserted by section 3 of this Act) are not uprated in line with the general level of earnings as defined in section 150A(2) of the Administration Act (inserted by section 5(2) of this Act) the increase in state pension age shall be delayed by an additional year.’.

Report on older workers not paying or being credited with National Insurance contributions

Mr Nigel Waterson
Andrew Selous
Mr Mark Lancaster

NC21

To move the following Clause:—

‘The Secretary of State shall present a report annually to the House of Commons—

(a) analysing, by local authority area and by job sector, the number and distribution of people over 60 seeking work and not being credited with contribution credits, and

(b) on the training opportunities for people seeking to increase the number of their qualifying years for receipt of a full Basic State Pension.’.

Commission on public sector pensions

Mr David Laws
Lorely Burt

NC22

To move the following Clause:—

‘The Secretary of State shall establish an independent commission to evaluate the future terms, benefits and financing of public sector pensions.’.

Entitlement to a Basic State Pension

Mr David Laws
Lorely Burt

NC23

To move the following Clause:—

‘The Secretary of State shall prepare a report on those groups reaching state pension age in 2010 who will not be eligible for a full Basic State Pension.’.

Independent Pensions Commission

Mr David Laws
Lorely Burt

NC24

To move the following Clause:—

‘The Secretary of State must, no later than 1st January 2010, establish an independent Pensions Commission to—

(a) advise the Government on affordability issues in relation to state pension provision and the state pension age,

(b) conduct and publish gender, carer and state pension coverage impact assessment annually, and

(c) publish annual projections of the proportion of pensioners facing different withdrawal rates.’.

Job opportunities for workers over state pension age

Mr David Laws
Lorely Burt

NC25

To move the following Clause:—

‘Before any increase in the State Pension age the Secretary of State shall publish a report on improved training packages and flexible job opportunities for workers over 55 years of age.’.

Combined pensions forecasts

Mr David Laws
Lorely Burt

NC26

To move the following Clause:—

‘The Secretary of State shall publish proposals, no later than 1st April 2008, for the delivery of accurate combined pensions forecasts.’.

Pension credit disregard

Mr David Laws
Lorely Burt

NC27

To move the following Clause:—

‘The Secretary of State shall bring forward a report, no later than 1st April 2008, on the labour market disincentive effects of the operation of the Pension Credit system, for people over entitlement age for Pension Credit, in employment.’.

Removal of overlap between carers’ allowance and state retirement pension

Ms Sally Keeble

NC28

To move the following Clause:—

‘The Secretary of State must make regulations to amend the Social Security (Overlapping Benefits) Regulations 1979 (S.I., 1979, No. 597) which will have the effect of removing the overlap between carers’ allowance and state retirement pension.’.

Category A and B retirement pensions: contribution condition

Ms Sally Keeble

NC29

To move the following Clause:—

‘(1) Schedule 3 to the SSCBA (contribution conditions) is amended as follows.

(2) In paragraph 5—

(a) delete sub-paragraph (2);

(b) in sub-paragraph (3) delete the words “The second condition is that” and, for the words “the requisite number of” in sub-paragraph (3)(a), substitute “30”; and

(c) delete sub-paragraphs (5) to (8) inclusive and insert the following sub-paragraph—

“(4A) Regulations may modify sub-paragraph (3) above for the purposes of its application in a case where—

(a) the contributor concerned has paid, or been credited with, contributions, or

(b) contributions have been deemed to be, or treated as, paid by or credited to him,

under the National Insurance Act 1946 or the National Insurance Act 1965.”.’.

Widowed parent’s allowance and bereavement allowance

Ms Sally Keeble

NC30

To move the following Clause:—

‘(1) Schedule 3 to the SSCBA (contribution conditions) is amended as follows.

(2) After paragraph 5A (inserted by section 1(3) of this Act) insert—

“5B (1) This paragraph applies to a widowed parent’s allowance or bereavement allowance in a case where the contributor concerned dies on or after 6th April 2010.

(2) Paragraphs 5A(2) to 5A(4) of this Schedule shall apply to an allowance to which this paragraph applies as if it were a Category A or Category B retirement pension.”.’.

Report on tax relief on pensions

Mr David Laws
Lorely Burt

NC31

To move the following Clause:—

‘The Secretary of State shall, not later than 1st April 2008, prepare and publish a report on tax relief on pension contributions, namely—

(a) the annual cost to the Treasury of those reliefs, including projections for the following five tax years, and

(b) the extent to which the existing tax relief on pensions is, in his opinion—

(i) economic,

(ii) properly focussed, and

(iii) comprehensible.’.

James Purnell

That certain written evidence already reported to the House be appended to the proceedings of the Committee.

ORDER OF THE HOUSE [16TH JANUARY 2007]

The following provisions shall apply to the Pensions Bill:

Committal

1. The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

2. Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Thursday 8th February 2007.

3. The Public Bill Committee shall have leave to sit twice on the first day on which it meets.

Consideration and Third Reading

4. Proceedings on consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.

5. Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

6. Standing Order No. 83B (Programming committees) shall not apply to proceedings on consideration and Third Reading.

Other proceedings

7. Any other proceedings on the Bill (including any proceedings on consideration of Lords Amendments or on any further messages from the Lords) may be programmed.

ORDER OF THE COMMITTEE [23RD JANUARY 2007]

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.


© Parliamentary copyright 2007	Prepared: 8 February 2007