House of Commons Public Bill Committee Proceedings

House of Commons

Session 2006 - 07
Internet Publications
Other Bills before Parliament

29

House of Commons

Thursday 8th February 2007

Public Bill Committee Proceedings

Pensions Bill

[ELEVENTH and tWELFth sittings]

NEW CLAUSES

Retirement Income Funds

Mr Nigel Waterson

Andrew Selous

Mr Mark Lancaster

Withdrawn  nc8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withdrawn by the member as and when he elects.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.

Public Bill Committee Proceedings: 8th February 2007
30

Pensions Bill, continued

(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

Not called  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”.’.

Public Bill Committee Proceedings: 8th February 2007
31

Pensions Bill, continued

Minimum Retirement Income

Mr Nigel Waterson

Andrew Selous

Mr Mark Lancaster

Not called  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

Not called  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

Negatived on division  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).’.

Public Bill Committee Proceedings: 8th February 2007
32

Pensions Bill, continued

Report on retraining opportunities for older workers etc.

Mr Nigel Waterson

Andrew Selous

Mr Mark Lancaster

Not selected  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

Not selected  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

Negatived on division  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

Public Bill Committee Proceedings: 8th February 2007
33

Pensions Bill, continued

(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

Not selected  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

Not called  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

Not called  nc18

To move the following Clause:—

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

(2)
After subsection (2) insert—