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[The page and line references are to HL Bill 61, the bill as first printed for the Lords.] |
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1 | Page 2, line 32, at end insert— |
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| | “(3A) | With effect from the commencement of this section or 1st November 2007, |
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| | whichever shall be earlier, the contributor may at any time up to state |
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| | pension age, make voluntary (Class 3) contributions for any period of his |
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| | or her working life, in respect of up to 9 years, whether consecutive or not, |
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| | which for any reason shall not have satisfied the conditions for a Qualifying |
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| | Year or Years, so that such year or years shall then be deemed to be a |
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| | Qualifying Year or Years.” |
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2 | Page 8, line 35, leave out “This section has” and insert “Subsections (2) and (3) |
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3 | Page 8, line 36, at end insert— |
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| | “( ) | In section 176(1) of the SSCBA (instruments subject to affirmative |
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| | procedure), before paragraph (a) insert— |
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| | “(za) | regulations under section 5 specifying the lower earnings |
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| | limit for the tax year following the designated tax year (see |
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| | section 5(4) of the Pensions Act 2007) or any subsequent tax |
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4 | Page 9, line 3, leave out “This section has” and insert “Subsections (2) and (3) have” |
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5 | Page 9, line 4, at end insert— |
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| | “( ) | In section 172 of the Social Security Contributions and Benefits (Northern |
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| | Ireland) Act 1992 (Assembly, etc. control of regulations and orders)— |
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| | (a) | in subsection (9) for “(11), (11A) and” substitute “(11) to”; and |
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| | (b) | after subsection (11) insert— |
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| | “(11ZA) | A statutory instrument containing (whether alone or with |
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| | other provisions) regulations under section 5 specifying the |
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| | lower earnings limit for— |
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| | (a) | the tax year following the designated tax year (see |
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| | section 5(4) of the Pensions Act 2007), or |
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| | (b) | any subsequent tax year, |
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| | | shall not be made unless a draft of the instrument has been |
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| | laid before and approved by resolution of each House of |
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6 | Page 18, line 37, at end insert— |
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| | “(8) | Subsection (9) applies where— |
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| | (a) | a person has been in receipt of a guaranteed minimum pension and |
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| | a Category A or Category B retirement pension, |
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| | (b) | the guaranteed minimum pension has been increased in accordance |
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| | with section 15(1) of the Pension Schemes Act 1993 (c. 48) or the |
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| | Category A or Category B retirement pension has been increased in |
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| | accordance with paragraph 5 of Schedule 5 to the SSCBA (increase |
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| | of pension where commencement of guaranteed minimum pension |
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| | (c) | the pension scheme under which the guaranteed minimum pension |
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| | is paid is subject to GMP conversion, and |
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| | (d) | an order under section 150(2) of the Administration Act would have |
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| | applied to the person in respect of the increase mentioned in |
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| | paragraph (b) above but for the scheme having been subject to GMP |
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| | (9) | The person’s Category A or Category B retirement pension shall be |
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| | increased by the amount by which it would have increased as a result of the |
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| | (10) | If paragraph 5 of Schedule 5 to the SSCBA (increase of pension for survivor |
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| | of “S”) would apply to a person but for the fact that the scheme of which S |
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| | was a member was subject to GMP conversion before S’s death, the |
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| | paragraph shall apply to the person (with any necessary modifications) |
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| | (11) | In subsections (8)(c) and (d) and (10) “GMP conversion” has the meaning |
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| | given by section 24A of the Pension Schemes Act 1993 (c. 48) inserted by |
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| | (12) | In section 186 of the Pension Schemes Act 1993 (c. 48) (parliamentary |
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| | control of orders and regulations)— |
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| | (a) | before subsection (3)(a) insert— |
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| | “(a) | regulations made under section 24B(5), or”, |
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| | (b) | renumber the existing paragraphs of subsection (3), and |
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| | (c) | in subsection (4) for “(a) or (c)” substitute “(b) or (d)”.” |
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7 | Page 19, line 1, leave out subsection (2) |
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8 | Page 19, leave out lines 10 to 15 |
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9 | Page 19, line 21, at end insert “(but any power to make regulations conferred by |
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| | those amendments may be exercised at any time so as to make regulations having |
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| | effect as from the abolition date)” |
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10 | Page 19, line 26, leave out from “Schedule 4” to end of line 27 |
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11 | Page 20, leave out lines 26 to 33 and insert— |
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| | (a) | must include provision requiring an application to which |
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| | subsection (3A) applies to be made by the end of such |
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| | reasonable period as is specified; |
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| | (b) | may include provision about the time limits for making |
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| | such other applications for the resolution of pension |
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| | disputes as are specified. |
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| | (3A) | This subsection applies to— |
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| | (a) | any application by a person with an interest in a scheme as |
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| | mentioned in section 50A(1)(e), and |
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| | (b) | any application by a person with an interest in a scheme as |
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| | mentioned in section 50A(1)(f) who is claiming to be such a |
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| | person as is mentioned in section 50A(1)(e).”” |
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12 | Insert the following new Clause— |
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| | “Minimum retirement income |
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| | (1) | The amount of the minimum retirement income in respect of each tax year |
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| | shall be set by the Chancellor of the Exchequer by order at the level of the |
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| | standard minimum guarantee prescribed under section 2 of the State |
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| | Pension Credit Act 2002 (c. 16). |
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| | (2) | Before making an order under subsection (1), the Chancellor of the |
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| | Exchequer shall consult such persons as he considers appropriate. |
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| | (3) | An order under this section (other than the order that applies to the first tax |
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| | year during which this section is in force) must be made on or before 31st |
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| | January of the tax year before the tax year to which the order applies.” |
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13 | Insert the following new Clause— |
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| | (1) | The Finance Act 2004 (c. 12) is amended as follows. |
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| | (2) | After section 152 (meaning of “arrangement”), insert— |
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| | “152A | Meaning of “retirement income fund” |
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| | (1) | In this Part a retirement income fund means a scheme for the |
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| | reinvestment of savings in retirement which— |
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| | (a) | is operated by or on behalf of a person authorised to operate |
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| | a registered pension scheme, |
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| | (b) | is a scheme in which investments are approved by the |
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| | (c) | meets the conditions set out in subsections (2) to (9). |
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| | (2) | The first condition is that, subject to the other conditions in this |
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| | section, funds held in the retirement income fund may be invested |
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| | and withdrawn by the member as and when he elects. |
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| | (3) | The second condition is that an authorised retirement income fund |
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| | provider must set an annual maximum withdrawal allowance for |
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| | each member, based on an assessment of each member’s life |
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| | expectancy, and a member’s withdrawals from the fund in any one |
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| | year must not exceed that allowance. |
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| | (4) | The third condition is that, in setting annual maximum withdrawal |
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| | allowances, an authorised provider must ensure that no member’s |
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| | total future income falls below the minimum retirement income |
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| | level, as set out under section (Minimum retirement income) of the |
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| | Pensions Act 2007, except in the circumstances provided for in the |
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| | (5) | The fourth condition is that an authorised provider must set an |
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| | annual minimum withdrawal allowance so that each member’s |
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| | total income is at least equivalent to the minimum retirement |
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| | income level, except in the circumstances provided for in the sixth |
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| | (6) | The fifth condition is that where a member chooses not to declare |
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| | his total annual income to the authorised provider, he must |
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| | withdraw funds equivalent to the level of the minimum retirement |
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| | income level or his annual maximum withdrawal allowance, |
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| | (7) | The sixth condition is that, where there are insufficient funds to |
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| | enable the annual minimum withdrawal allowance to be set so that |
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| | a member’s total income is at least equivalent to the minimum |
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| | retirement income level, the allowance should be set at the highest |
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| | level consistent with the assessment of the member’s life |
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| | (8) | The seventh condition is that the maximum and minimum |
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| | withdrawal allowances must be set at the same level where a |
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| | member’s total annual income, including his maximum |
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| | withdrawal allowance, is lower than the minimum retirement |
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| | (9) | The eighth condition is that a retirement income fund, and any |
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| | income derived from it, must not be capable of assignment or |
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| | surrender by the member.”” |
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14 | Insert the following new Clause— |
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| | “Withdrawal from a retirement income fund |
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| | (1) | Section 165 of the Finance Act 2004 (c. 12) (pension rules) is amended as |
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| | (2) | In subsection (1) (which sets out the pension rules)— |
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| | (a) | in Pension rule 4, after paragraph (a), insert— |
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