Pensions Bill

House of Commons

Session 2007 - 08
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Other Bills before Parliament

Pensions Bill

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 5 — Personal Accounts Delivery Authority
29

62
Principles
(1)
In carrying out its functions under section 61(2) the Authority must have
regard to the principles in subsection (2).
(2)
The principles are that—
(a)
participation in qualifying schemes should be encouraged and
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facilitated;
(b)
the burdens imposed on employers as a result of this Part should be
minimised;
(c)
any adverse effects on qualifying pension schemes, and members and
future members of those schemes, as a result of implementation of
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Chapter 4 of this Part should be minimised;
(d)
the cost of membership of a scheme established under section 50 should
be minimised;
(e)
the preferences of members and future members should, so far as
practicable, be taken into account in making any provision about
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investment choice in such a scheme;
(f)
diversity among members and future members of such a scheme
should be respected.
(3)
The Authority must take any steps it considers appropriate to promote and
engage in discussion with relevant public authorities and others about its
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functions under section 61(2) and how it carries them out.
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Directions and guidance
(1)
The Secretary of State may give the Authority guidance or directions about the
discharge of its functions.
(2)
In discharging its functions, the Authority must have regard to any guidance,
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and comply with any directions, under this section.
(3)
Guidance or directions under this section may vary or revoke earlier guidance
or directions under this section.
(4)
Directions under this section must be in writing.
(5)
The Secretary of State must publish any direction given under this section.
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64
Finance
In Schedule 6 to the Pensions Act 2007 (c. 22), for paragraph 18 and the italic
cross-heading immediately before it, substitute—
“Finance
18    (1)
The Secretary of State may give financial assistance to the Authority.
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      (2)
The assistance—
(a)
may take the form of grants, loans, guarantees or indemnities;
(b)
may be given on conditions (which may include conditions about
repayment with or without interest).”

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 5 — Personal Accounts Delivery Authority
30

65
Disclosure of information by the Pensions Regulator
In section 84 of the Pensions Act 2004 (disclosure for facilitating exercise of
functions by the Pensions Regulator) after subsection (3) insert—
“(4)
Section 82 does not preclude the disclosure by the Regulator to the
Personal Accounts Delivery Authority of such information as appears
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to the Regulator to be necessary to enable the Authority to provide
assistance or advice to the Regulator under section 61(2) of the Pensions
Act 2008.”
Non-executive committee
66
Non-executive committee
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(1)
Schedule 6 to the Pensions Act 2007 (c. 22) is amended as follows.
(2)
In paragraph 6(3) and (5), for “the chairman and other non-executive
members” substitute “the non-executive committee”.
(3)
In paragraph 7(2) and (3), for “the chairman and other non-executive
members” substitute “the non-executive committee”.
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(4)
At the beginning of Part 2 insert—
“Non-executive committee
8A    (1)
There is to be a committee of the Authority consisting of the
chairman and every other non-executive member of the Authority
(referred to in this Schedule as the “non-executive committee”).
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      (2)
The non-executive committee must—
(a)
keep under review the question whether the Authority’s
internal financial controls secure the proper conduct of its
financial affairs, and
(b)
discharge the other functions conferred on it by this
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Schedule.
      (3)
The non-executive committee must prepare a report on the discharge
of the functions mentioned in sub-paragraph (2) for inclusion in the
annual report of the Authority under paragraph 17.
      (4)
The report under sub-paragraph (3) must relate to the same period
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as the Authority’s report.
      (5)
The non-executive committee may establish a sub-committee.
      (6)
The members of a sub-committee under sub-paragraph (5)—
(a)
must include at least one non-executive member of the
Authority, and
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(b)
must not include persons who are executive members or
employees of the Authority.
      (7)
A sub-committee under sub-paragraph (5) may include persons who
are not members of the non-executive committee or the Authority.
      (8)
Paragraphs 9 and 10 do not apply to the non-executive committee.”
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Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 5 — Personal Accounts Delivery Authority
31

(5)
In the italic cross-heading immediately before paragraph 9, for “Committees”
substitute “Other committees”.
(6)
In paragraph 11, in sub-paragraph (1)(b), at the beginning insert “subject to
sub-paragraph (1A),”.
(7)
In that paragraph, after sub-paragraph (1) insert—
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   “(1A)
The non-executive committee may, subject to this Schedule—
(a)
regulate its own procedure;
(b)
regulate the procedure of its sub-committees;
(c)
enable its sub-committees to regulate their own procedure
subject to any provision it makes.”
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(8)
In that paragraph, in sub-paragraph (2)—
(a)
for “the chairman and non-executive members of the Authority”
substitute “the non-executive committee”;
(b)
for “the non-executive members” substitute “the members of that
committee”.
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(9)
In that paragraph, in sub-paragraph (3), for “the chairman and non-executive
members” substitute “the non-executive committee”.
(10)
In paragraph 17(2), before “and” at the end of paragraph (a) insert—
“(aa)
the report prepared by the non-executive committee under
paragraph 8A(3),”.
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Winding up
67
Winding up of the Authority
(1)
Section 23 of the Pensions Act 2007 (c. 22) (winding up of the Authority) is
amended as follows.
(2)
For subsection (1) substitute—
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“(1)
The Secretary of State may by order provide for the winding up and
dissolution of the Authority.”
(3)
Subsections (2) to (4) are omitted.
(4)
In subsection (5)(a), after “Secretary of State” insert “or any other person”.
(5)
In subsection (7)—
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(a)
the words after “provision of” become paragraph (a) of that subsection;
and
(b)
at the end of that paragraph insert —

“;
(b)
sections 61 to 66 of the Pensions Act 2008.”
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Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 6 — Stakeholder pension schemes
32

Chapter 6
Stakeholder pension schemes
68
Stakeholder pension schemes
(1)
The Welfare Reform and Pensions Act 1999 (c. 30) is amended as follows.
(2)
Section 3 (duty of employers to facilitate access to stakeholder pension
5
schemes) is amended as follows.
(3)
In subsection (1), for “the requirements set out below” substitute “the
requirement in subsection (5)”.
(4)
After subsection (1) insert—
“(1A)
A relevant employee, in relation to an employer, is an employee of the
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employer who, on the relevant date, satisfies the conditions in
subsection (1B).
(1B)
The conditions are that—
(a)
the employee is a member of a stakeholder pension scheme;
(b)
the employee made a request under subsection (5) before the
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relevant date and that request has not been withdrawn;
(c)
the employee pays contributions (which are deducted in
accordance with that request) to the scheme at regular intervals;
(d)
at least one deduction has been made before the relevant date in
accordance with that request.
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(1C)
A person ceases to be a relevant employee—
(a)
on ceasing to be employed by the employer;
(b)
on withdrawing a request under subsection (5);
(c)
on ceasing to pay contributions at regular intervals.”
(5)
Omit subsections (2) to (4).
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(6)
In subsection (5)—
(a)
omit the word “fourth”;
(b)
omit the words from “of his” to “qualifying scheme”;
(c)
in paragraph (a), for “scheme” substitute “stakeholder pension
scheme”.
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(7)
After subsection (5) insert—
“(5A)
That requirement only applies in relation to a request to make
deductions made before the relevant date (whether or not that request
is varied after that date).”
(8)
Omit subsection (6).
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(9)
In subsection (7), for “any of the requirements” substitute “the requirement”.
(10)
In subsection (8)—
(a)
for the words from “whether before” to “those purposes” substitute
“while subject to the requirement in subsection (5)”;
(b)
omit paragraph (a)(ii) and (iii).
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(11)
In subsection (9), after the definition of “employer” insert—

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 7 — Interpretation
33

““relevant date” means the date on which section 68 of the Pensions Act
2008 comes into force.”
(12)
In that subsection—
(a)
omit the definition of “qualifying scheme”;
(b)
omit the definition of “relevant employees”.
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(13)
In section 6 (application of certain enactments)—
(a)
omit subsection (1);
(b)
in subsection (2), for “designated scheme” substitute “stakeholder
pension scheme”.
(14)
In section 8 (interpretation), in subsection (1), omit the definition of
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“designated scheme”.
Chapter 7
Interpretation
“Employee", “worker” etc.
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“Employee”, “worker” and related expressions
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(1)
This section applies for the purposes of this Part.
(2)
“Employee” means an individual who has entered into or works under a
contract of employment.
(3)
“Contract of employment” means a contract of service or apprenticeship,
whether express or implied, and (if it is express) whether oral or in writing.
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(4)
“Worker” means an individual who has entered into or works under—
(a)
a contract of employment; or
(b)
any other contract by which the individual undertakes to do work or
perform services personally for another party to the contract.
(5)
But a contract is not within subsection (4)(b) if the status of the other party is
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by virtue of the contract that of a client or customer of a profession or business
undertaking carried on by the individual concerned.
(6)
For the purposes of subsection (4)(b), it does not matter whether the contract is
express or implied or (if it is express) whether it is oral or in writing.
(7)
Any reference to a worker’s contract is to be read in accordance with
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subsections (4) to (6).
(8)
“Employer”, in relation to an employee or worker, means the person by whom
the employee or worker is employed.
(9)
“Employment”—
(a)
in relation to an employee, means employment under a contract of
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employment;
(b)
in relation to a worker, means employment under the worker’s
contract.