| Pensions Bill, As Amended - continued | House of Commons |
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Transfer of unclaimed assets Mr David Cameron
NC45 To move the following Clause:— ‘(1) The Secretary of State shall by regulations, not later than twelve months after the passing of this Act, establish a scheme (“the Scheme”) for the transfer of such unclaimed assets as the regulations shall prescribe to the Lifeboat Fund. (2) Regulations made under this subsection shall provide for— (a) a definition of those unclaimed assets to which the Scheme applies, including the extent to which the Scheme is applicable to assets whose ownership is known, or can be determined; (b) the transfer to the Lifeboat Fund of a prescribed proportion of such unclaimed assets as the regulations shall prescribe, and the manner and timing of such transfers; (c) the transfer to the Lifeboat Fund of liability for any claim in respect of assets transferred under the Scheme to the Lifeboat Fund; (d) penalties to be imposed on any person holding assets prescribed under subsections (1) or (2)(b) who fails to transfer them or such proportion of them as is prescribed in accordance with the Scheme. (3) The power to make regulations under this section is exercisable by statutory instrument. (4) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of either House of Parliament.’. Purchase of annuities Mr David Cameron
NC46 To move the following Clause:— ‘The Secretary of State shall, as soon as is reasonably practicable, by regulations require the trustees of qualifying schemes as defined by the Financial Assistance Scheme Regulations 2005 which have not yet completed winding-up to desist from purchasing (except where, on or before 18th April 2007, they have entered into a binding contractual commitment so to do) or making binding commitments to purchase, annuities on behalf of scheme members, for a period of nine months from 18th April 2007.’. Duty to make on-account payments Mr David Cameron
NC47 To move the following Clause:— ‘(1) Pursuant to his powers under section 286(3)(d) of the Pensions Act 2004, the Secretary of State shall as soon as is reasonably practicable make regulations requiring trustees of qualifying pension schemes to make on-account payments to qualifying members, or persons who would be qualifying members if the qualifying age for the Financial Assistance Scheme were set at the level of the qualifying scheme retirement age. (2) The Secretary of State may make such loans to trustees of qualifying schemes as appear to him to be expedient to enable them to make such on-account payments where adequate scheme assets appear to him not to be available to them and regulations may prescribe for the recovery of such loans upon completion of wind-up of a qualifying scheme. (3) Regulations made under subsection (1) above shall provide that on-account payments shall equal the amounts that would be payable if the qualifying scheme was accepted into the Pension Protection Fund. (4) The regulations shall provide for payment to trustees of a qualifying pension scheme of payments due to a qualifying member of that pension scheme (or a person who would be a qualifying member if the qualifying age for the Financial Assistance Scheme were set at the level of the qualifying scheme retirement age) by the Financial Assistance Scheme or by the Lifeboat Fund (as defined in section [Transfer of unclaimed assets]) in respect of periods for which on-account payments to that member have been made in accordance with subsection (1).’. Mr Secretary Hutton 19 Page 24, line 37 [Clause 27], at end insert— ‘( ) section (Financial assistance scheme: increased levels of payments),’. Mr Secretary Hutton 20 Page 25, line 10 [Clause 28], at end insert— ‘( ) section (Financial assistance scheme: increased levels of payments)(4) to (11);’. Mr Secretary Hutton 21 Page 25, line 17 [Clause 28], at end insert— ‘( ) section (Financial assistance scheme: increased levels of payments) (1) to (3);’. Dr Tony Wright
14 Page 69, line 38 [Schedule 7], at end add— ‘Part 7 FINANCIAL ASSISTANCE SCHEME
Mr David Cameron
17 Title, line 4, after ‘Authority;’, insert ‘to establish the Pension Protection Lifeboat Fund;’. Mr David Cameron
18 Title, line 4, after ‘Authority;’, insert ‘to make provision for the transfer of a proportion of unclaimed assets to the Pension Protection Lifeboat Fund;’. Mr David Cameron
22 Title, line 4, after ‘Authority;’, insert ‘to make provision about the establishment and functions of, and to confer powers on, the Pensions Unclaimed Assets Recovery Agency;’. New Clauses and Amendments Relating to Part 3 Application of Freedom of Information Act to Personal Accounts Delivery Authority Mr Nigel Waterson
NC6 To move the following Clause:— ‘(1) The Freedom of Information Act 2000 (c. 36) is amended as follows. (2) In section 35 (formulation of government policy etc.) insert after subsection (2)— “(2A) Information held by or provided by the Personal Accounts Delivery Authority is not to be regarded— (a) for the purposes of subsection (1)(a), as relating to the formulation or development of government policy, or (b) for the purposes of subsection (1)(b), as relating to Ministerial communications.” (3) In section 36 (prejudice to effective conduct of public affairs) insert after subsection (2)— “(2A) Information held by or provided by the Personal Accounts Delivery Authority is not to be regarded— (a) for the purposes of subsection (2)(a), as relating to the maintenance of the convention of the collective responsibility of Ministers of the Crown, or (b) for the purposes of subsection (2)(b), as relating to the free and frank provision of advice, or the free and frank exchange of views for the purposes of deliberation; or (c) for the purposes of subsection (2)(c), as relating to the effective conduct of public affairs.”.’. Performance of the Personal Accounts Delivery Authority Mr Nigel Waterson
NC7 To move the following Clause:— ‘(1) In discharging its functions under this Part of the Act, 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. (2) Her Majesty may from time to time by Order in Council make provision for amending the objectives set out in subsection (1). (3) No recommendation shall be made to Her Majesty to make an Order in Council under subsection (2) above unless a draft of the Order has been approved by resolution of each House of Parliament.’. Winding up of Personal Accounts Delivery Authority Mr Nigel Waterson
NC29 To move the following Clause:— ‘(1) If the condition in subsection (2) is satisfied the Secretary of State must by order provide for the winding up and dissolution of the Authority. (2) The condition is that it appears to the Secretary of State that in excess of 29 per cent. of the population over state pension age will, at the time of the introduction of personal accounts, be entitled to claim pension credit or another means-tested benefit. (3) Subsections (5) to (8) of section 21 apply to an order under this section as they apply to an order under that section.’. Mr David Laws
7 Page 21, line 28 [Clause 19], at end insert— ‘(2A) In discharging its functions under this Part, the Authority shall publish no later than 1st December 2007— (a) estimates of the percentage of those people without existing occupational or personal pension provision who would be subject to means-testing if enrolled in personal accounts; (b) estimates of the percentage of people who will be auto-enrolled into personal accounts who can be expected to secure returns of— (i) £2 or more for every £1 saved, (ii) £1 or more for every £1 saved, (iii) less than £1 for every £1 saved; (c) a breakdown of the target groups for personal accounts that are most at risk of low returns on their savings; (d) plans how generic financial advice will be delivered to those people who are liable to be auto-enrolled in personal accounts.’. Mr Nigel Waterson
3 Page 22, line 6 [Clause 19], 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 (7C) or (7D), 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 be published in such manner as he considers appropriate.’. Remaining Proceedings Pension forecasts Mr Nigel Waterson
NC1 To move the following Clause:— ‘The Secretary of State shall publish estimates, no later than 1st April 2008, of how many people he expects to receive less than £135 per week in Basic State Pension and Second State Pension combined in 2030 and 2050.’. Report by Government Actuary on trends in longevity Mr Nigel Waterson
NC2 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).’. Uprating of pensions for pensioners living overseas Mr Nigel Waterson
NC3 To move the following Clause:— ‘The Secretary of State shall, within three months of the coming into force of this Act, make an oral statement to Parliament as to— (a) the numbers and locations of UK pensioners living overseas who are in receipt of the basic state pension; (b) his estimate of the net cost of annually uprating such pensions in future years; and (c) the state of negotiations with any of those countries with which the United Kingdom does not currently have reciprocal arrangements for the annual uprating of pensions.’. Report on older workers not paying or being credited with National Insurance contributions Mr Nigel Waterson
NC4 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.’. Review of the abolition of contracting-out for defined contribution pensions schemes Mr Nigel Waterson
NC5 To move the following Clause:— ‘(1) The Secretary of State shall make a statement to Parliament in each financial year after 6th April 2010 on the use of the revenue that would previously have been assigned to contracted-out rebates for defined contribution schemes. (2) For the purposes of subsection (1) above, the statement shall cover the extent to which the revenue is assigned to promoting saving.’. Pension credit Mr Nigel Waterson
NC9 To move the following Clause:— ‘(1) The Secretary of State may from time to time, and shall when required by subsection (2), lay before each House of Parliament a report on— (a) current rates and coverage of pension credit entitlement; (b) likely future rates of pension credit entitlement; and (c) such other matters as he considers to be relevant as affecting the present and future take-up of and eligibility for pension credit. (2) The Secretary of State shall lay such reports— (a) five years after the coming into force of Part I of this Act, and (b) thereafter at intervals of not more than five years.’. Retirement Income Funds Mr Nigel Waterson
NC12 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 Commissioners for Her Majesty’s Revenue and Customs, 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 pension rules Mr Nigel Waterson
NC13 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”.’. |
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| © Parliamentary copyright 2007 | Prepared: 18 April 2007 |