House of Commons Amendments

House of Commons

Session 2006 - 07
Internet Publications
Other Bills before Parliament

Pensions Bill

Pensions Bill
LORDS INSISTENCE, REASON AND AMENDMENTS IN LIEU
[The page and line references are to HL Bill 61, the bill as first printed for the Lords.]
After Clause 18
LORDS AMENDMENT NO. 22
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.”

COMMONS DISAGREEMENT AND REASON

The Commons disagree to Lords Amendment No. 22 for the following Reason—
22A
Because the Commons consider that the prohibition on the purchase of annuities may have

undesirable effects.

LORDS NON-INSISTENCE AND AMENDMENTs IN LIEU

The Lords do not insist on their Amendment No. 22, but do propose the following

Amendments Nos. 22B to 22D in lieu—
22B
Insert the following new Clause—

“Temporary restriction on the purchase of annuities

(1)
The Secretary of State must by regulations make provision for securing

that, during the period of 9 months beginning with the date on which the

regulations come into force, the trustees of relevant pension schemes are

Bill 152 54/2

Pensions Bill
2

prohibited from purchasing, or agreeing to purchase, annuities on behalf of

qualifying members, unless—

(a)
before that date they have entered into a binding commitment to

purchase the annuities, or

(b)
the purchase of the annuities is approved in pursuance of

subsection (2).

(2)
The regulations must make provision—

(a)
for enabling the trustees of a relevant pension scheme to apply to

the scheme manager for approval of the purchase of annuities on

behalf of qualifying members;

(b)
for authorising the scheme manager to approve the purchase of any

such annuities if the scheme manager thinks it appropriate to do so.

(3)
For the purposes of this section an occupational pension scheme is a

“relevant pension scheme” at any time during the period mentioned in

subsection (1) if at that time the scheme is a qualifying pension scheme

which has not been fully wound up.

(4)
Regulations under this section—

(a)
must be made as soon as is reasonably practicable after the passing

of this Act;

(b)
may make such consequential, incidental, supplemental or

transitional provision as the Secretary of State considers

appropriate.

(5)
A statutory instrument containing regulations under this section is subject

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

(6)
In this section “occupational pension scheme”, “qualifying member”,

“qualifying pension scheme” and “scheme manager” have the same

meanings as in section 286 of the Pensions Act 2004 (c. 35).”
Clause 28
22C
Page 26, line 36, at end insert “and section (Temporary restriction on purchase of

annuities)”
Clause 29
22D
Page 27, line 10, at end insert “and section (Temporary restriction on purchase of

annuities)”
Before Clause 23
LORDS AMENDMENT NO. 28
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.”

Pensions Bill
3

COMMONS DISAGREEMENT AND REASON

The Commons disagree to Lords Amendment No. 28 for the following Reason—
28A
Because the Commons consider that imposing an obligation on the Secretary of State to

arrange for post-legislative scrutiny is unnecessary.

lords insistence and reason

The Lords insist on their Amendment No. 28 for the following Reason—
28B
Because the Lords remain of the view that it is appropriate to impose an early obligation on

the Secretary of State to arrange for post-legislative scrutiny.

Pensions Bill
4