Public Bill Committee: 22nd January 2008

119

Pensions Bill, continued

Mr Mike O’Brien

142

Clause  77,  page  37,  line  12,  at end add—

‘“trustee or manager”—

(a)	in relation to England and Wales or Scotland, is to be construed in

accordance with section 178 of the Pension Schemes Act 1993 (c. 48)

(trustees and managers of schemes: interpretation);

(b)	in relation to Northern Ireland, is to be construed in accordance with

section 173 of the Pension Schemes (Northern Ireland) Act 1993 (c. 49)

(trustees or managers of schemes);’.

Member’s explanatory statement

See Member’s explanatory statement for Amendment 141.

Danny Alexander

Paul Rowen

112

Page  37,  line  20,  leave out Clause 79.

Member’s explanatory statement

The purpose of this amendment is to ensure that deferred pensions are not unfairly devalued.

Danny Alexander

Paul Rowen

113

Page  57,  line  10,  leave out Schedule 2.

Member’s explanatory statement

The purpose of this amendment is to ensure that deferred pensions are not unfairly devalued.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

7

Clause  89,  page  41,  line  17,  leave out ‘4 months’ and insert ‘2 months.’.

Public Bill Committee: 22nd January 2008

120

Pensions Bill, continued

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

8

Clause  90,  page  41,  line  39,  at end insert ‘and transferor.’.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

9

Clause  90,  page  42,  line  12,  leave out subsection (8).

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

10

Clause  91,  page  42,  line  24,  leave out paragraph (a).

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Mr John Greenway

Miss Julie Kirkbride

137

Schedule  8,  page  88,  line  16,  at end add—

‘Part 5

Removal of annuity protection lumpsum death benefit

	Citation	Extent of repeal
	Finance Act 2004 (c.12)	In Schedule 29 paragraph 16(1)(a).’.

Member’s explanatory statement

This amendment intends to repeal the qualifying age limit of 75 upon a member’s death in defining

an annuity protection lump sum death benefit.

Public Bill Committee: 22nd January 2008

121

Pensions Bill, continued

NEW CLAUSES

Workers without qualifying earnings

Mr Mike O’Brien

NC8

To move the following Clause:—

‘(1)	This section applies to a worker—

(a)	to whom paragraphs (a) and (b) of section 1(1) apply (working in Great

Britain and aged between 16 and 75),

(b)	to whom paragraph (c) of section 1(1) does not apply (qualifying

earnings), and

(c)	who is not an active member of a pension scheme that satisfies the

requirements of this section.

(2)	The worker may by notice require the employer to arrange for the worker to

become an active member of a pension scheme that satisfies the requirements of

this section.

(3)	The Secretary of State may by regulations make provision—

(a)	about the form and content of the notice;

(b)	about the arrangements that the employer is required to make;

(c)	for determining the date with effect from which the worker is (subject to

compliance with any requirements of the scheme rules) to become an

active member under the arrangements.

(4)	Subsections (5) and (6) apply where a worker becomes an active member of a

pension scheme in pursuance of a notice under this section and, within the period

of 12 months beginning with the day on which that notice was given—

(a)	ceases to be an active member of that scheme because of any action or

omission by the worker, and

(b)	gives the employer a further notice under this section.

(5)	The further notice does not have effect to require the employer to arrange for the

worker to become an active member of a pension scheme.

(6)	But any arrangements the employer makes for the worker to become, within that

period, an active member of a pension scheme that satisfies the requirements of

this section must be made in accordance with regulations under this section.

(7)	A pension scheme satisfies the requirements of this section if—

(a)	it is an occupational pension scheme or a personal pension scheme,

(b)	it is registered under Chapter 2 of Part 4 of the Finance Act 2004 (c. 12),

and

(c)	in the case of a personal pension scheme, there are, in relation to the

worker concerned, direct payment arrangements (within the meaning of

section 111A of the Pension Schemes Act 1993 (c. 48)) between the

worker and the employer.’.

Member’s explanatory statement

This New Clause provides that a worker who does not have qualifying earnings may require the

employer to enrol the worker into a pension scheme that satisfies the requirements in subsection

(7). The employer is not required to make any contributions, nor accept a notice more than once

a year.

Public Bill Committee: 22nd January 2008

122

Pensions Bill, continued

Transitional periods for money purchase and personal pension schemes

Mr Mike O’Brien

nc12

To move the following Clause:—

‘(1)	During the first transitional period for money purchase and persona pension

schemes—

(a)	sections 18(1)(b) and 24(3)(b) have effect as if for “3%” there were

substituted “1%”;

(b)	sections 18(1)(c) and 24(4)(b) have effect as if for “8%” there were

substituted “2%”.

(2)	The first transitional period is a prescribed period of a least one year, beginning

with the coming into force of section 18.

(3)	During the second transitional period for money purchase and personal pension

schemes—

(a)	sections 18(1)(b) and 24(3)(b) have effect as if for “3%” there were

substituted “2%”.

(b)	sections 18(1)(c) and 24(4)(b) have effect as if for “8%” there were

substituted “5%”.

(4)	The second transitional period is a prescribed period of a least one year,

beginning with the end of the first transitional period.’.

Member’s explanatory statement

This New Clause is related to Amendment 138. The purpose of the Amendment is to set out how the

minimum employer and jobholder contributions will be phased in where the employer is using a

money purchase scheme to discharge the employer duties.

Transitional period for defined benefits and hybrid schemes

Mr Mike O’Brien

nc13

To move the following Clause:—

‘(1)	Subsection (3) applies if, in relation to a person who on the employer’s first

enrolment date is a jobholder to whom section 3 applies, the conditions in

subsection (2) are satisfied, and continue to be satisfied during the transitional

period for defined benefits and hybrid schemes.

(2)	The conditions are that—

(a)	the jobholder has been employed by the employer for a continuous period

beginning before the employer’s first enrolment date,

(b)	at a time in that period before the employer’s first enrolment date, the

jobholder became entitled to become an active member of a defined

benefits scheme or a hybrid scheme,

(c)	the jobholder is, and has always since that time been, entitled to become

an active member of a defined benefits scheme or a hybrid scheme, and

(d)	the scheme to which that entitlement relates is a qualifying scheme, and

any scheme to which it has related on or after the employer’s first

enrolment date has been a qualifying scheme.

(3)	Where this subsection applies, section 3 has effect in relation to the jobholder

with the substitution for subsection (2) of the following subsection—

---

Revised 22 January 2008