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5

 
 

“(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”.”

15

Insert the following new Clause—

 

“Financial assistance scheme: scheme manager

 

(1)    

The Financial Assistance Scheme Regulations 2005 (S.I. 2005/1986) are

 

amended as follows.

 

(2)    

In regulation 5(1) for “Secretary of State” substitute “Board of the Pension

 

Protection Fund (“the Board”)”.

 

(3)    

In regulation 5(2)(a) omit the words from “Secretary of State” to the end of

 

that paragraph and insert “the Board”.

 

(4)    

In regulation 5, sub-paragraph (2)(b) is omitted.”

16

Insert the following new Clause—

 

“Financial assistance scheme: qualifying pension schemes

 

(1)    

The Financial Assistance Scheme Regulations 2005 (S.I. 2005/1986) are

 

amended as follows.

 

(2)    

In regulation 9, sub-paragraph (1)(c) is omitted.

 

(3)    

Regulations 11 to 13 are omitted.”

17

Insert the following new Clause—

 

“Pension Protection Lifeboat Fund

 

(1)    

There shall be established as soon as reasonably practicable a Pension

 

Protection Lifeboat Fund (“the Lifeboat Fund”) which shall be

 

administered by the Board of the Pension Protection Fund (“the Board”).

 

(2)    

The purpose of the Lifeboat Fund shall be to make supplementary

 

payments to persons who are qualifying members of qualifying schemes as

 

defined by the Financial Assistance Scheme Regulations 2005 (S.I. 2005/

 

1986) (or 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), in addition to the sums payable in any event under those

 

regulations.

 

(3)    

The supplementary payments made to any person in accordance with

 

subsection (2) shall equal the amount that, taken together with any

 

amounts payable to that person under the Financial Assistance Scheme and

 

amounts payable to that person as scheme benefits under the qualifying

 

pension scheme in respect of which he is a qualifying member of the

 

Financial Assistance Scheme (or would be a qualifying member if the


 
 

6

 
 

qualifying age for the Financial Assistance Scheme were set at the level of

 

the qualifying scheme retirement age), is the amount that would be payable

 

to that person if that qualifying pension scheme were accepted into the

 

Pension Protection Fund.

 

(4)    

The Secretary of State shall make such loans to the Lifeboat Fund as are

 

necessary to allow the discharge of its functions and in particular its

 

obligation to make supplementary payments under subsection (2).

 

(5)    

The Secretary of State shall make such loans from time to time having

 

regard to—

 

(a)    

requests for such loans received from the Board;

 

(b)    

the amount of assets transferred or to be transferred to the Lifeboat

 

Fund under the Scheme (as defined in section (Transfer of unclaimed

 

assets) (“the Scheme”));

 

(c)    

the level of any claims on the Lifeboat Fund in respect of assets

 

transferred to it under the Scheme.

 

(6)    

Loans made in accordance with this section must be repaid to the Secretary

 

of State as soon as, in the reasonable opinion of the Board, it is prudent to

 

do so having regard to—

 

(a)    

the obligations of the Lifeboat Fund;

 

(b)    

the amount of assets transferred or to be transferred to the Lifeboat

 

Fund under the Scheme; and

 

(c)    

the level of claims on the Lifeboat Fund in respect of assets

 

transferred to it under the Scheme.

 

(7)    

Loans made under this section shall be interest free.

 

(8)    

The assets of the Lifeboat Fund shall be held separately from the assets of

 

any other fund under the control of the Board.

 

(9)    

The Secretary of State may by regulations make further provision in

 

connection with the Lifeboat Fund.

 

(10)    

A statutory instrument containing regulations under this section is subject

 

to annulment in pursuance of a resolution of either House of Parliament.”

18

Insert the following new Clause—

 

“Pensions Unclaimed Assets Recovery Agency

 

(1)    

There shall be a body called the Pensions Unclaimed Assets Recovery

 

Agency (“the Agency”).

 

(2)    

The Agency must be established no later than three months after the

 

passing of this Act.

 

(3)    

The Agency shall consist of not fewer than six nor more than twelve

 

members to be appointed by the Secretary of State, and the Secretary of

 

State shall appoint one member to be the chairman, and another member

 

to be a deputy chairman, of the Agency.

 

(4)    

In appointing a person to be a member of the Agency, the Secretary of State

 

shall have regard to the desirability of appointing persons who have

 

knowledge of, or experience relating to, matters relevant to the functions of

 

the Agency.


 
 

7

 
 

(5)    

A member of the Agency may hold office for such a period as the Secretary

 

of State may determine, but not exceeding—

 

(a)    

six years, in the case of the chairman, and

 

(b)    

four years, in the case of other members.

 

(6)    

The Secretary of State may make payments to the members of the Agency

 

by way of remuneration and make payments to them in respect of expenses

 

incurred by them in the performance of their duties.

 

(7)    

The Secretary of State may also defray any other expenses of the Agency.”

19

Insert the following new Clause—

 

“Functions of Pensions Unclaimed Assets Recovery Agency

 

The functions of the Agency are—

 

(a)    

to obtain such information about such classes of unclaimed assets

 

as may be prescribed by the Secretary of State by regulations;

 

(b)    

to provide the Secretary of State with that information and any

 

other related information held by the Agency which the Secretary

 

of State may from time to time require;

 

(c)    

to administer the scheme to be established by virtue of section

 

(Transfer of unclaimed assets).”

20

Insert the following new Clause—

 

“Pensions Unclaimed Assets Recovery Agency: provision of information

 

(1)    

Subject to subsection (2), the Agency may, by notice, require any person to

 

supply it, within a specified period or at a specified time or times, such

 

specified information as the Agency considers it needs for the purposes of

 

carrying out its functions under section (Functions of Pensions Unclaimed

 

Assets Recovery Agency).

 

(2)    

This section does not authorise any requirement in relation to information

 

to be imposed on any person unless that person carries on a business in the

 

United Kingdom; but a requirement may be imposed under this section on

 

a person in relation to information in the possession or control of a

 

connected person or undertaking outside the United Kingdom.

 

(3)    

Any person who, when required to do so under this section, fails without

 

reasonable excuse to supply any information, shall be liable on summary

 

conviction—

 

(a)    

to a fine not exceeding level 5 on the standard scale; and

 

(b)    

in the case of a continuing offence, to an additional fine not

 

exceeding £200 for every day during which the offence continues.

 

(4)    

Any person who knowlingly or recklessly supplies any information which

 

is false or misleading shall be liable—

 

(a)    

on conviction on indictment, to imprisonment for a term not

 

exceeding two years, or to a fine, or both; and

 

(b)    

on summary conviction, to a fine not exceeding the statutory

 

maximum.”

21

Insert the following new Clause—


 
 

8

 
 

“Transfer of unclaimed assets

 

(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 subsection (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.”

22

Insert the following new Clause—

 

“Purchase of annuities

 

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 (S.I. 2005/1986) 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.”

23

Insert the following new Clause—

 

“Duty to make on-account payments

 

(1)    

Pursuant to his powers under section 286(3)(d) of the Pensions Act 2004

 

(c. 35), 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.


 
 

9

 
 

(3)    

Regulations made under subsection (1) shall provide that on-account

 

payments shall equal the amounts that would be payable if the qualifying

 

scheme were 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).”

24

Insert the following new Clause—

 

“Financial Assistance Scheme: payment

 

The Secretary of State shall by regulations ensure that payments made to

 

any person under the Financial Assistance Scheme as defined by the

 

Financial Assistance Scheme Regulations 2005 (S.I 2005/1986) shall equal

 

the amount that would be payable to that person if that person were

 

entitled to receive benefits under the Pensions Protection Fund.”

Clause 22

25

Page 24, line 34, leave out from “State” to end of line 37

26

Page 24, line 38, leave out “or (b)”

27

Page 24, line 40, leave out “or divided”

Before Clause 23

28

Insert the following new Clause—

 

“Post-legislative scrutiny

 

Four years after the passing of this Act the Secretary of State shall arrange

 

for post-legislative scrutiny of this Act to check on its operation and may

 

arrange subsequent scrutiny.”

Clause 23

29

Page 25, line 18, at end insert—

 

“(3)    

Before the Secretary of State makes any regulations by virtue of—

 

(a)    

section 15(6), or

 

(b)    

section 18(9),

 

    

he must consult such persons as he considers appropriate.

 

(4)    

Subsection (3) does not apply—

 

(a)    

to regulations made for the purpose only of consolidating other

 

regulations revoked by them,

 

(b)    

in a case where it appears to the Secretary of State that by reason of

 

urgency consultation is inexpedient,


 
 

10

 
 

(c)    

to regulations made before the end of the period of 6 months

 

beginning with the coming into force of the provision mentioned in

 

subsection (3) by virtue of which the regulations are made, or

 

(d)    

to regulations which—

 

(i)    

state that they are consequential upon a specified

 

enactment, and

 

(ii)    

are made before the end of the period of 6 months beginning

 

with the coming into force of that enactment.

 

(5)    

In subsection (4) “enactment” includes an enactment comprised in

 

subordinate legislation.”

Clause 25

30

Page 26, line 3, leave out “Part” and insert “Parts 2A and”

Clause 27

31

Leave out Clause 27

Clause 28

32

Page 26, line 38, leave out “other than section 27”

33

Page 26, line 39, leave out subsection (2) and insert—

 

“(2)    

Section 8 and the repeal in the Social Security Contributions and Benefits

 

(Northern Ireland) Act 1992 (c. 7) in Part 3 of Schedule 7 extend to Northern

 

Ireland only.”

Schedule 1

34

Page 31, leave out lines 29 to 32 and insert—

 

“(a)    

in paragraph 5 (Category A or B retirement pension) for the

 

figure in column (3) (increase for adult dependant) substitute   

 

“—”;

 

(b)    

in paragraph 6 (Category C retirement pension) for the figure in

 

column (3) (increase for adult dependant) substitute “—”.”

35

Page 31, line 40, at end insert—

 

“19A      

In each of paragraphs 5A(3)(a), 6(4)(b) and 6A(2)(b) of that Schedule

 

(calculation of increase to survivor’s pension where member’s

 

guaranteed minimum pension deferred) omit the words “after it has

 

been reduced by the amount of any increases under section 109 of the

 

Pensions Act”.”

36

Page 32, line 38, after “allowance)” insert—

 

“(a)    

in subsection (4) (application of subsection (5)) in paragraph (a),

 

after “150” insert “, 150A”;

 

(b)    

Schedule 4

37

Page 46, line 8, at end insert—


 
 

11

 
 

“          

In section 20 (transfer of accrued rights) in subsection (3) (regulations

 

may provide for certain provisions to have effect subject to

 

modifications) for “sections 26 to 33” substitute “sections 25A to 33”.

38

Page 46, line 16, leave out “or”

39

Page 46, line 18, at end insert “, or

 

(c)    

a registered pension scheme under section 153 of the Finance Act

 

2004—

 

(i)    

which is not a scheme falling within paragraph (a) or (b),

 

and

 

(ii)    

to which the rights of a person who was at any time a

 

member of a scheme mentioned in either of those

 

paragraphs have been transferred.”

40

Page 46, line 29, at end insert—

 

“          

After section 27 insert—

 

“27A  

Requirements in relation to giving effect to protected rights

 

(1)    

The rules of the scheme must provide that if, in the case of a

 

member who is married or who has a civil partner, effect is to be

 

given to the protected rights of the member by—

 

(a)    

the provision by the scheme of a pension, or

 

(b)    

the purchase by the scheme of an annuity,

 

    

the requirement set out in subsection (2) must be satisfied in

 

relation to the pension or annuity.

 

(2)    

The requirement is that, in a case where—

 

(a)    

the member dies while the pension or annuity is payable

 

to him or her, and

 

(b)    

the member is survived by a widow, widower or

 

surviving civil partner (“the survivor”),

 

    

the pension or annuity is payable to the survivor in prescribed

 

circumstances and for the prescribed period at an annual rate

 

which at any given time is one-half of the rate at which it would

 

have been payable to the member if the member had been living

 

at that time.

 

(3)    

The rules of the scheme must provide that, if effect is to be given

 

to a member’s protected rights by the provision of a lump sum,

 

the prescribed conditions must be satisfied.

 

(4)    

The rules of the scheme must provide that, if—

 

(a)    

a member has died without effect being given to his or

 

her protected rights, and

 

(b)    

the member is survived by a widow, widower or

 

surviving civil partner,

 

    

effect is to be given to the protected rights in such manner as may

 

be prescribed.”

 

            

Omit sections 28 to 29 (ways of giving effect to protected rights etc.).

 

            

For section 32A substitute—


 
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