House of Commons Public Bill Committee Proceedings

House of Commons

Session 2006 - 07
Internet Publications
Other Bills before Parliament

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, continued

“(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

Andrew Selous

Mr Mark Lancaster

John Penrose

Mark Pritchard

Negatived on division  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).

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178

, continued

(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

Andrew Selous

Mr Mark Lancaster

John Penrose

Mark Pritchard

Not called  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

Lorely Burt

Danny Alexander

Lynne Jones

Not called  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.’.

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, continued

Mr Nigel Waterson

Andrew Selous

Mr Mark Lancaster

John Penrose

Mark Pritchard

Not called  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

Andrew Selous

Mr Mark Lancaster

John Penrose

Mark Pritchard

Not selected  nc1

To move the following Clause:—

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180

, continued

‘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

Andrew Selous

Mr Mark Lancaster

John Penrose

Mark Pritchard

Not selected  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

Andrew Selous

Mr Mark Lancaster

John Penrose

Mark Pritchard

Not selected  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

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181

, continued

contributions

Mr Nigel Waterson

Andrew Selous

Mr Mark Lancaster

John Penrose

Mark Pritchard

Not selected  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

Andrew Selous

Mr Mark Lancaster

John Penrose

Mark Pritchard

Not selected  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

Andrew Selous

Mr Mark Lancaster

John Penrose

Mark Pritchard

Not selected  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;

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, continued

(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

Andrew Selous

Mr Mark Lancaster

John Penrose

Mark Pritchard

Not selected  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

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, continued

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

Andrew Selous

Mr Mark Lancaster

John Penrose

Mark Pritchard

Not selected  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”.’.