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Pensions Bill, continued

penalty notices issued under NC26.

Offence of offering financial inducements

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

NC1

To move the following Clause:—

‘An offence is committed if an employer offers financial inducements to opt out

of an automatic enrolment scheme.’.

Projections of numbers of those on means-tested benefits

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

NC2

To move the following Clause:—

‘(1)	On or before 1st April 2009 the Secretary of State shall publish his projections of

the numbers of people likely to be subject to means-tested benefits (including

housing benefit) and in ‘at risk’ groups following the introduction of personal

accounts.

(2)	If the projected figure published in accordance with subsection (1) exceeds 10 per

cent. of the pensioner population, the implementation of the scheme shall be

postponed for at least 12 months after the date of publication.

(3)	The Secretary of State shall publish any proposals for reform concurrently with

the publication of the projections under subsection (1).’

.

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Pensions Bill, continued

Restoring link with earnings

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

NC3

To move the following Clause:—

‘Before the coming into force of this Act, the Secretary of State shall announce to

Parliament his intention as to the timing of the implementation of Section 5 of the

Pensions Act 2007.’.

Transitional assistance

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

NC4

To move the following Clause:—

‘Before implementing Part 1 of this Act, the Secretary of State shall publish his

proposals to provide transitional assistance to small employers in implementing

the legislation.’.

Provision for conditional indexation

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

NC5

To move the following Clause:—

‘(1)	Schedule [Provision for conditionally indexed arrangements etc] which—

(a)	amends section 84 and Schedule 3 of the Pension Schemes Act 1993

(Basis of Revaluation);

(b)	amends section 51 of the Pensions Act 1995 (annual increase in rate of

pension);

(c)	amends section 67 of the Pensions Act 1995 (restriction on powers to

alter schemes);

(d)	amends schedule 7 to the Pension Schemes Act 2004 (pension

compensation provision); and

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Pensions Bill, continued

(e)	makes provisions for consequential amendments for the operation of

conditional indexation in relation to a scheme that satisfies prescribed

conditions,

has effect.

(2)	The amendments made by Schedule [Provision for conditionally indexed

arrangements etc] do not apply in relation to any scheme or arrangement in

existence prior to the coming into force of this section.

(3)	In this section conditional indexation relates to benefits provided by conditional

indexed scheme, which—

(a)	was established after the coming into force of this section;

(b)	is not a money purchase scheme as defined by section 181(1) of the

Pension Schemes Act of 1993;

(c)	Provides that indexation of pensions both in deferment and in payment

may be modified in accordance with prescribed requirements; and

(d)	complies with such other requirements as may be prescribed.’.

Trivial commutation limit

Danny Alexander

Paul Rowen

NC6

To move the following Clause:—

‘The Finance Act 2004 is amended as follows—

In Schedule 29, paragraph 7, subsection (4) leave out from ‘is’ to ‘of’ and insert

“2 per cent”.’.

Member’s explanatory statement

The purpose of this Clause is to ensure that the effects of means testing can be mitigated by a

doubling of the trivial commutation limit.

Role of the Information Commissioner

Danny Alexander

Paul Rowen

NC7

To move the following Clause:—

‘(1)	The Information Commissioner shall have full jurisdiction over the workings of

the Personal Accounts Delivery Authority and the Pensions Regulator.

(2)	The Secretary of State must prepare, and keep under review, a code of practice

with respect to the disclosure of information relating to pensions by public

authorities.

(3)	Before preparing or altering the code, the Secretary of State must consult—

(a)	any specified public authority;

(b)	the Information Commissioner; and

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Pensions Bill, continued

(c)	such other persons as the Secretary of State considers appropriate.

(4)	A public authority must have regard to the code in (or in connection with)

disclosing information relating to pensions.

(5)	Nothing in this section applies in relation to any disclosure by a relevant public

authority of information whose subject-matter is a matter about which provision

would be within the legislative competence of the Scottish Parliament if it were

included in an Act of the Scottish Parliament.

(6)	The Secretary of State must—

(a)	lay a copy of the code, and of any alterations to it, before Parliament; and

(b)	from time to time publish the code as for the time being in force.’.

Member’s explanatory statement

The purpose of this Clause is to ensure that the Information Commissioner can properly oversee

the workings of the personal accounts system and that a code of best practice is effective and

properly adhered to.

Retirement Income Fund

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Mr John Greenway

Miss Julie Kirkbride

NC9

To move the following Clause:—

‘(1)	The Finance Act 2004 9c. 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 HM 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

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Pensions Bill, continued

(as set under section [Minimum Retirement Income] of the Pensions Act

2008) 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

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 out 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.’.

Member’s explanatory statement

The purpose of this amendment is to introduce measures which would allow for the creation of

Retirement Income Funds, a kind of reinvestment vehicle providing an alternative to annuities.

Withdrawal from a Retirement Income Fund

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Mr John Greenway

Miss Julie Kirkbride

NC10

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 “or a withdrawal from a Retirement Income

Fund”;

(c)	in Pension Rule 6, after paragraph (a), insert—

“(aa)

a withdrawal from a Retirement Income Fund,”;

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Pensions Bill, continued

(d)	in Pension Rule 6, after the second appearance of the words “scheme

pension”, insert the words “or a withdrawal from a Retirement Income

Fund”.’.

Member’s explanatory statement

This amendment alters the Finance Act 2004 to include in its definition of pension payment

withdrawals from Retirement Income Funds, in respect of money purchase schemes.

Minimum Retirement Income

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Mr John Greenway

Miss Julie Kirkbride

NC11

To move the following Clause:—

‘(1)	The amount of the Minimum Retirement Income in respect of each tax year shall

be set by the Chancellor of the Exchequer by order at the level of the standard

minimum guarantee prescribed under section 2 of the State Pension Credit Act

2002 (c. 16).

(2)	Before making an order under subsection (1), the Chancellor of the Exchequer

shall consult such persons as he considers appropriate.

(3)	An order under this section (other than the order that applies to the first tax year

during which this section is in force) must be made on or before 31st January of

the tax year before the tax year to which the order applies.’.

Member’s explanatory statement

The purpose of this amendment is to establish a minimum retirement income level, to be set by the

Chancellor of the Exchequer in each tax year.

Pension compensation for early retirees

Miss Julie Kirkbride

NC16

To move the following Clause:—

‘The Secretary of State shall have power by regulation to require the Board of the

Pension Protection Fund to provide PPF compensation on the following terms—

(1)	eligible persons who took early retirement before April 2005 shall be treated as if

the date of their early retirement was their normal retirement date; and

(2)	an upper limit shall be placed on eligible earnings for eligible persons who have

reached their normal retirement age at a level that will compensate for any costs

incurred under subsection (1).’.

Member’s explanatory statement

This amendment seeks to remedy the present situation where pre-2005 early retirees face a large

cut in pension provision as they take a further reduction for being below the NRA and the

introduction of a cap. They receive little indexation as most of their pensions were earned before

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Pensions Bill, continued

April 1997.

Terminally ill claimants and the Pension Protection Fund

Nick Ainger

NC17

To move the following Clause:—

‘(1)	Where the Board is satisfied that a qualifying member is “terminally ill”, that

member, regardless of whether they have reached normal pension age, shall be

entitled to a lump sum payment of an amount equal to twice what would be their

annual entitlement under the scheme if they retired at normal pension age.

(2)	A person is “terminally ill” at any time if at that time they suffer from a

progressive disease and their death in consequence of that disease can reasonably

be expected within 6 months.’.

Open market option for annuities

Danny Alexander

Paul Rowen

NC18

To move the following Clause:—

‘(1)	For the purposes of chapter one and four of this Act an annuity payable to the

member is a lifetime annuity if—

(a)	it is payable by an insurance company,

(b)	the member was required to select the insurance company from the open

market,

(c)	it is payable until the member’s death or until the later of the member’s

death and the end of a term certain not exceeding ten years, and

(d)	it is a level annuity, an increasing annuity or a relevant linked annuity.

(2)	An annuity is payable until the end of a term certain even if it may, after the death

of the member during the term, end on the annuitant—

(a)

marrying,

(b)	reaching the age of 18, or

(c)	ceasing to be in full-time education.

(3)	An annuity is a level annuity if its amount does not vary from year to year.

(4)	An annuity is an increasing annuity if its amount increases from year to year.

(5)	An annuity is a relevant linked annuity if its amount varies from year to year but

only in line with changes in (or by an amount which does not exceed the amount

by which it would vary if it varied in line with changes in)—

(a)	the retail prices index,

(b)	the market value of freely marketable assets, or

(c)	an index reflecting the market value of freely marketable assets.

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Revised 19 February 2008