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Public Bill Committee: 22nd January 2008                

105

 

Pensions Bill, continued

 
 

Mr Mike O’Brien

 

133

 

Clause  28,  page  12,  line  2,  after ‘8’ insert ‘and [Workers without qualifying

 

earnings]’.

 

Member’s explanatory statement

 

This amendment is related to New Clause 8. It enables the Secretary of State to make regulations

 

about the application of the New Clause in cases where an employer fails to meet obligations under

 

that clause.

 


 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

24

 

Clause  30,  page  13,  line  2,  at end add—

 

‘(g)    

require the employer to pay interest in respect of any period for which

 

contributions remain unpaid.’.

 


 

Danny Alexander

 

Paul Rowen

 

 

95

 

Clause  31,  page  13,  line  14,  leave out from ‘within’ to ‘after’ in line 15 and insert

 

‘three months’.

 

Member’s explanatory statement

 

The purpose of this amendment is to ensure that contributions are paid within a reasonable time

 

period.

 

Danny Alexander

 

Paul Rowen

 

 

96

 

Clause  31,  page  13,  line  17,  at end insert—

 

‘(d)    

if the contributions are not paid within one year of the due date a

 

requirement to pay interest of inflation or 5%, whichever is lower, on

 

unpaid relevant contributions.’.

 

Member’s explanatory statement

 

The purpose of this amendment is to ensure that job-holders are adequately compensated for em­

 

ployer non-compliance.

 



 
 

Public Bill Committee: 22nd January 2008                

106

 

Pensions Bill, continued

 
 

Danny Alexander

 

Paul Rowen

 

 

97

 

Clause  36,  page  16,  line  29,  at end add—

 

‘(4)    

The Secretary of State shall publish a report on the funding of the Pensions

 

Regulator Tribunal for references made under this section within 12 months of

 

the section coming into force.’.

 

Member’s explanatory statement

 

The purpose of this amendment is to ensure that the Pension Regulator has adequate funding to

 

successfully undertake its new role.

 


 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Mr John Greenway

 

Miss Julie Kirkbride

 

63

 

Clause  45,  page  20,  line  6,  at end add—

 

‘(cb)    

to fund the set-up costs incurred by the duties under Chapter 1 of Part 1

 

of the Pensions Act 2008 from the Consolidated Fund.’.

 

 

Member’s explanatory statement

 

The purpose of this amendment is to ensure that the additional cost incurred by the Pensions Reg­

 

ulator during the set-up phase of its new statutory objective to maximise compliance with new em­

 

ployer duties is paid by the taxpayer.

 


 

Danny Alexander

 

Paul Rowen

 

 

98

 

Clause  46,  page  20,  line  31,  at end add—

 

‘(6)    

An applicant for a job has the right not to be refused employment on grounds

 

relating to pension scheme membership.’.

 

Member’s explanatory statement

 

The purpose of this amendment is to ensure that employers do not disciminate against job appli­

 

cants on the basis of their existing or likely future membership of a pension scheme.

 


 

Danny Alexander

 

Paul Rowen

 

 

99

 

Clause  50,  page  24,  line  10,  leave out from ‘State’ to ‘and’ and insert ‘shall

 

establish a money purchase scheme’.

 

Member’s explanatory statement


 
 

Public Bill Committee: 22nd January 2008                

107

 

Pensions Bill, continued

 
 

The purpose of this amendment is to ensure that the variety of pension scheme established is on the

 

face of the bill and that its establishment is mandatory.

 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

25

 

Clause  50,  page  24,  line  10,  after ‘scheme’, insert ‘which shall commence

 

operation with effect from 1st April 2012’.

 


 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

26

 

Clause  51,  page  25,  line  15,  leave out subsection (5).

 


 

Danny Alexander

 

Paul Rowen

 

115

 

Clause  52,  page  25,  line  26,  leave out ‘panels are’ and insert ‘employers panel is’.

 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

27

 

Clause  52,  page  25,  line  26,  leave out ‘by order under section 50, or’.

 

Danny Alexander

 

Paul Rowen

 

101

 

Clause  52,  page  25,  line  27,  at end insert—

 

‘(3A)    

The members’ panel shall be comprised of members of the scheme nominated

 

and selected by a process including all the members of the scheme or an

 

organisation representing the members.’.

 

Member’s explanatory statement

 

The purpose of this amendment is to ensure that the members’ panel adequately represents the in­

 

terests of members.


 
 

Public Bill Committee: 22nd January 2008                

108

 

Pensions Bill, continued

 
 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Mr John Greenway

 

Miss Julie Kirkbride

 

64

 

Clause  52,  page  25,  line  28,  after ‘panel’, insert ‘and employers’ panel’.

 

 

Member’s explanatory statement

 

The purpose of this amendment is to provide the employers’s panel with the functions of appointing

 

members of the trustee corporation as well as the consumer panel.

 

Danny Alexander

 

Paul Rowen

 

 

100

 

Clause  52,  page  25,  line  31,  at end add—

 

‘(6)    

The Secretary of State must provide the panels with—

 

(a)    

an annual report considering the impact of means-tested benefits on

 

members of the scheme established under section 50,

 

(b)    

an annual report assessing the quality of qualifying schemes’.

 

Member’s explanatory statement

 

The purpose of this amendment is to ensure that the panels have the information necessary to make

 

informed recommendations to the trustees.

 


 

Danny Alexander

 

Paul Rowen

 

102

 

Clause  53,  page  25,  line  33,  leave out subsection (1) and insert—

 

‘(1)    

Member contributions shall be limited to £10,000 in the first year of the scheme

 

and £3,600 for each following year’.

 

Member’s explanatory statement

 

The purpose of this amendment is to ensure that contribution limits are set at a reasonable level.

 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

28

 

Clause  53,  page  25,  line  34,  at end insert ‘save that the employers’ contribution

 

shall be fixed at 3 per cent. of the amount of jobholders’ qualifying earnings in any pay

 

reference period.’.

 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Mr John Greenway

 

Miss Julie Kirkbride

 

76

 

Clause  53,  page  25,  line  34,  at end insert ‘of £3,600’.


 
 

Public Bill Committee: 22nd January 2008                

109

 

Pensions Bill, continued

 
 

Member’s explanatory statement

 

See Member’s explanatory statement for Amendment 77.

 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Mr John Greenway

 

Miss Julie Kirkbride

 

77

 

Clause  53,  page  25,  line  34,  at end insert—

 

‘(1A)    

The Secretary of State must in each tax year from 2005 determine whether the

 

amount prescribed in subsection (1) has maintained its value.

 

(1B)    

If the average earnings index (including bonuses) for the whole economy for

 

September of a year is higher than the index for the previous September, the

 

Secretary of State shall as soon as practicable make an order in relation to the

 

amount in section (1), increasing the amount, if the new index is higher, by the

 

same percentage as the amount of the increase of the index.’.

 

Member’s explanatory statement

 

The purpose of this Amendment is to ensure that there is an annual contribution limit of £3,600,

 

uprated for inflation, as was stated by the Government in its response to the Personal Accounts

 

White Paper.

 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

29

 

Clause  53,  page  26,  line  1,  leave out subsection (3) and insert—

 

‘(3)    

There shall be an absolute prohibition on transfers between the pension scheme

 

established under section 50 and other pension or savings schemes, and jobholder

 

contributions shall be limited to £3,600 in any one year.’.

 

Danny Alexander

 

Paul Rowen

 

103

 

Clause  53,  page  26,  line  1,  leave out subsection (3) and insert—

 

‘(3)    

A member may make payments that are not contributions for the purposes of

 

provision under subsection (1) up to a maximum of 2 per cent. of the standard

 

lifetime allowance’.

 

Member’s explanatory statement

 

The purpose of this amendment is to ensure that jobholders have the flexibility to make payments

 

when they can best afford to do so and to enable those who are commencing pension saving later

 

in life to make up for lost time.

 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

30

 

Clause  53,  page  26,  line  1,  leave out subsection (3).


 
 

Public Bill Committee: 22nd January 2008                

110

 

Pensions Bill, continued

 
 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

58

 

Clause  53,  page  26,  line  6,  leave out subsection (5).

 


 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

31

 

Clause  55,  page  26,  line  19,  leave out ‘have regard to’ and insert ‘take account of’.

 


 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

32

 

Clause  57,  page  27,  line  12,  leave out subsection (3).

 


 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

53

 

Schedule  1,  page  49,  line  11,  at end insert—

 

‘(c)    

the appointment of any member of the corporation shall be approved by

 

the Work and Pensions Committee of the House of Commons.’.

 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

54

 

Schedule  1,  page  49,  line  14,  at end insert ‘of which at least three members shall be

 

appointed to represent the interests of members and prospective members.’.


 
 

Public Bill Committee: 22nd January 2008                

111

 

Pensions Bill, continued

 
 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

55

 

Schedule  1,  page  50,  line  2,  after ‘financial’, insert ‘, political.’

 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

56

 

Schedule  1,  page  51,  line  8,  leave out ‘four’ and insert ‘three’.’

 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

57

 

Schedule  1,  page  51,  line  19,  leave out ‘the Secretary of State may determine’ and

 

insert ‘it thinks fit.’

 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Mr John Greenway

 

Miss Julie Kirkbride

 

68

 

Schedule  1,  page  54,  line  42,  leave out ‘and’ and insert—

 

‘(aa)    

an analysis of the potential impact on the financial position of the trustee

 

corporation of different levels of—

 

(i)    

take-up of;

 

(ii)    

persistency in; and

 

(iii)    

contributions to,

 

    

the scheme, and setting out appropriate options for managing the

 

financial risks associated with different outcomes; and’.

 

Member’s explanatory statement

 

The purpose of this amendment is to place a duty on PADA to incorporate in its annual report as

 

a trustee corporation a report relating to the financial position of the corporation, addressing is­

 

sues such as take-up, persistency and contributions.

 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Mr John Greenway

 

Miss Julie Kirkbride

 

69

 

Schedule  1,  page  55,  line  2,  at end insert—

 

‘(2A)    

In preparing the report, the Trustee Coporation must have regard to such

 

independent actuarial advice as it considers appropriate.’.

 

Member’s explanatory statement

 

See Member’s explanatory statement for amendment 68.


 
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