House of Commons portcullis
House of Commons
Session 2007 - 08
Internet Publications
Other Bills before Parliament


 
 

91

 

House of Commons

 
 

Tuesday 22nd January 2008

 

Public Bill Committee

 

New Amendments handed in are marked thus Parliamentary Star

 

Other Amendments not tabled within the required notice period are marked thus Parliamentary Star - white

 

Pensions Bill


 

Note

 

The Amendments have been arranged in accordance with the Order of the

 

Committee [15th January].

 


 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

1

 

Clause  1,  page  1,  line  9,  leave out ‘and under 75’.

 


 

Mr Mike O’Brien

 

116

 

Clause  2,  page  2,  line  4,  after ‘jobholder’ insert ‘, without ceasing to be employed

 

by the employer,’.

 

Member’s explanatory statement

 

The purpose of this amendment is to ensure that an employer's ability to terminate employment is

 

not fettered by the continuing duty to maintain qualifying scheme membership.


 
 

Public Bill Committee: 22nd January 2008                

92

 

Pensions Bill, continued

 
 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

11

 

Clause  2,  page  2,  line  4,  leave out ‘, or make any omission,’.

 


 

Danny Alexander

 

Paul Rowen

 

 

78

 

Clause  3,  page  2,  line  18,  leave out from ‘reached’ to end of line and insert ‘the age

 

of of 50’.

 

Member’s explanatory statement

 

The purpose of this amendment is to ensure that everybody who is automatically enrolled into the

 

personal accounts system will benefit financially.

 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

13

 

Clause  3,  page  2,  line  27,  leave out subsection (5) and insert—

 

‘( )    

Subsection (2) does not apply if there are prescribed arrangements under which

 

the jobholder is entitled to become an active member, with effect from the

 

automatic enrolment date, of a qualifying scheme which is a personal pension

 

scheme of a prescribed description.

 

( )    

An order will be made under this section to prescribe the terms under which it is

 

applicable, and the basis on which its application may be withdrawn with respect

 

to specific scheme providers or employers.’.

 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

12

 

Clause  3,  page  2,  line  27,  leave out ‘may’ and insert ‘shall within three months of

 

this Act receiving Royal Assent.’.

 

Danny Alexander

 

Paul Rowen

 

 

79

 

Clause  3,  page  2,  line  36,  at end add—

 

‘(8)    

The Secretary of State shall publish an annual report on the impact of means-

 

tested benefits on automatically enrolled members of the scheme established

 

under section 50’.

 

Member’s explanatory statement

 

The purpose of this amendment is to ensure that means-tested benefits are not having an adverse


 
 

Public Bill Committee: 22nd January 2008                

93

 

Pensions Bill, continued

 
 

effect on those automatically enrolled into personal acccounts.

 


 

Mr Mike O’Brien

 

117

 

Clause  4,  page  3,  line  1,  leave out subsections (2) and (3).

 

Member’s explanatory statement

 

The purpose of this amendment is to enable the arrangements that must be made to automatically

 

enrol a jobholder following a postponement of automatic enrolment under this clause to be of the

 

same description as arrangements for automatic enrolment under clause 3(2).

 

Mr Mike O’Brien

 

118

 

Clause  4,  page  3,  line  8,  leave out from beginning to ‘within’ in line 10 and insert

 

‘Where a person becomes an active member of a scheme in accordance with regulations

 

under this section, the employer must not take any action, or make any omission, by which

 

the person ceases to be an active member of the scheme’.

 

Member’s explanatory statement

 

The purpose of this amendment is to impose directly rather than through regulations a duty on the

 

employer to maintain membership of the scheme that a jobholder was enrolled into following a

 

postponement under this clause for the minimum period. That period would be prescribed in reg­

 

ulations.

 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

14

 

Clause  4,  page  3,  line  15,  at end add—

 

‘(7)    

The length of any such postponement shall not exceed 6 months.’.

 


 

Danny Alexander

 

Paul Rowen

 

 

80

 

Clause  5,  page  3,  line  33,  leave out subsection (6) and insert ‘The automatic re-

 

enrolment date shall be 1st April of each year’.

 

Member’s explanatory statement

 

The purpose of this amendment is to ensure that administration of the system is easier for employ­

 

ers to and to reduce the chances of inadvertent non-compliance.

 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

15

 

Clause  5,  page  3,  line  34,  leave out from ‘that’ to end of line 35 and insert ‘fall at


 
 

Public Bill Committee: 22nd January 2008                

94

 

Pensions Bill, continued

 
 

the beginning of the tax year in any relevant year for all jobholders.’.

 

Mr Mike O’Brien

 

119

 

Clause  5,  page  3,  line  36,  leave out ‘(2)’ and insert ‘(6)’.

 

Member’s explanatory statement

 

The purpose of this amendment is to correct the reference to the regulatory power for setting au­

 

tomatic re-enrolment dates.

 


 

Mr Mike O’Brien

 

120

 

Clause  6,  page  4,  line  6,  leave out subsection (4).

 

Member’s explanatory statement

 

This amendment is related to amendment 122. It removes the restriction on a jobholder giving no­

 

tice to opt in to an automatic enrolment scheme more than once every twelve months.

 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Mr John Greenway

 

Miss Julie Kirkbride

 

70

 

Clause  6,  page  4,  line  12,  at end insert—

 

‘(5A)    

The regulations must provide for the notice—

 

(a)    

to include information about the effect in relation to jobholders of giving

 

notice under this section, and

 

(b)    

to be signed by the jobholder’.

 

 

Member’s explanatory statement

 

The purpose of this amendment is to ensure that, in situations where a jobholder seeks to opt in to

 

a qualifying scheme, a notice is signed in writing by the jobholder.

 

Mr Mike O’Brien

 

121

 

Clause  6,  page  4,  line  15,  after ‘qualifying’ insert ‘scheme which is a’.

 

Member’s explanatory statement

 

The purpose of this amendment is to attract the appropriate definitions in clause 77.

 

Mr Mike O’Brien

 

122

 

Clause  6,  page  4,  line  17,  at end add—

 

‘(7)    

Subsections (8) and (9) apply where a jobholder becomes an active member of an

 

automatic enrolment 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, and

 

(b)    

gives the employer a further notice under this section.

 

(8)    

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

 

jobholder to become an active member of an automatic enrolment scheme.


 
 

Public Bill Committee: 22nd January 2008                

95

 

Pensions Bill, continued

 
 

(9)    

But any arrangements the employer makes for the jobholder to become, within

 

that period, an active member of such a scheme must be made in accordance with

 

regulations under this section.’.

 

Member’s explanatory statement

 

This amendment is related to amendment 120. It enables an employer to choose not to accept a

 

notice from a jobholder to opt in more than once every twelve months, but where the employer

 

chooses to accept the notice, the arrangements for enrolment prescribed under this clause must be

 

followed.

 


 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Mr John Greenway

 

Miss Julie Kirkbride

 

71

 

Clause  7,  page  4,  line  25,  after ‘refunded’, insert ‘to the jobholder’.

 

 

Member’s explanatory statement

 

The purpose of this amendment is to ensure that, in situations when a jobholder opts out of an auto-

 

enrolment scheme, any contributions made by the jobholder are refunded to the jobholder and not

 

to any other party.

 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Mr John Greenway

 

Miss Julie Kirkbride

 

72

 

Clause  7,  page  4,  line  28,  after ‘refunded’, insert ‘to the employer’.

 

 

Member’s explanatory statement

 

See Member’s explanatory statement for amendment 71.

 

Danny Alexander

 

Paul Rowen

 

 

81

 

Clause  7,  page  4,  line  39,  at end add—

 

‘(c)    

to be given in writing by the jobholder’.

 

Member’s explanatory statement

 

The purpose of this amendment is to ensure that opting out is genuinely a decision taken by the

 

worker.

 

Danny Alexander

 

Paul Rowen

 

 

82

 

Clause  7,  page  4,  line  39,  at end add—

 

‘(c)    

to be registered personally with the enforcement body by the jobholder’.

 

Member’s explanatory statement

 

The purpose of this amendment is to ensure that opting out is genuinely a decision taken by the


 
 

Public Bill Committee: 22nd January 2008                

96

 

Pensions Bill, continued

 
 

worker.

 


 

Mr Mike O’Brien

 

123

 

Clause  8,  page  5,  line  2,  at end insert—

 

‘( )    

for all workers to whom section [Workers without qualifying earnings]

 

applies to be given information about the effect of that section in relation

 

to them;’.

 

Member’s explanatory statement

 

This amendment relates to New Clause 8. It would require regulations to be made for the provision

 

of information to workers without qualifying earnings who choose to opt into pension savings.

 

Danny Alexander

 

Paul Rowen

 

 

83

 

Clause  8,  page  5,  line  7,  leave out paragraph (c) and insert—

 

‘(c)    

that every jobholder shall be entitled to one-to-one generic advice either

 

by phone or in person;

 

(d)    

that the advice shall be publicly funded; and

 

(e)    

that the advice shall be independent’.

 

Member’s explanatory statement

 

The purpose of this amendment is to ensure that jobholders can make an informed decision about

 

whether personal accounts are likely to leave them better off.

 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Miss Julie Kirkbride

 

Mr John Greenway

 

16

 

Clause  8,  page  5,  line  7,  at end add—

 

‘(3)    

The information so given must include whether the jobholder is likely to benefit

 

by reason of being auto-enrolled.

 

(4)    

For the purposes of this section ‘benefit’ shall be defined as the jobholder

 

recovering all contributions to the scheme as well as an additional return the

 

extent of which the Secretary of State shall by regulation define.’.

 

Danny Alexander

 

Paul Rowen

 

 

84

 

Clause  8,  page  5,  line  7,  at end add—

 

‘(3)    

An order by which Section 50(1) comes into force at any time may not be made

 

before the establishment of a network of independent financial advice centres.’.

 

Member’s explanatory statement

 

The purpose of this amendment is to ensure that jobholders can make an informed decision about

 

whether personal accounts are likely to leave them better off.


 
 

Public Bill Committee: 22nd January 2008                

97

 

Pensions Bill, continued

 
 

Danny Alexander

 

Paul Rowen

 

 

85

 

Clause  8,  page  5,  line  7,  at end add—

 

‘(3)    

The funding for information provided under subsection (1) must be equivalent in

 

value to no less than 0.05% of all money saved through the personal accounts

 

scheme.’.

 

Member’s explanatory statement

 

The purpose of this amendment is to ensure that jobholders can make an informed decision about

 

whether personal accounts are likely to leave them better off.

 


 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Mr John Greenway

 

Miss Julie Kirkbride

 

135

 

Parliamentary Star    

Clause  9,  page  5,  line  8,  at end insert ‘or HM Revenue and Customs’.

 

Member’s explanatory statement

 

The purpose of this amendment is to allow HMRC or the Pensions Regulator to collect information

 

from employers, so that administrative costs do not disproportionately burden small businesses.

 

Mr Nigel Waterson

 

Andrew Selous

 

Mr Stewart Jackson

 

Mr John Greenway

 

Miss Julie Kirkbride

 

136

 

Parliamentary Star    

Clause  9,  page  5,  line  10,  after ‘Regulator’, insert ‘or HM Revenue and Customs’.

 

Member’s explanatory statement

 

See Member’s explanatory statement for amendment 135.

 

Mr Mike O’Brien

 

124

 

Clause  9,  page  5,  line  12,  at end insert ‘and [Workers without qualifying

 

earnings]’.

 

Member’s explanatory statement

 

This amendment relates to New Clause 8. It enables the Secretary of State to provide for the Pen­

 

sions Regulator to be given information by employers about action to comply with the duty im­

 

posed by the New Clause.

 


 

Mr Mike O’Brien

 

125

 

Clause  10,  page  5,  line  24,  leave out from ‘that’ to ‘until’ in line 26 and insert

 

‘sections 2 to 7 and [Workers without qualifying earnings] do not apply in the case an

 

employer of any description’.

 

Member’s explanatory statement


 
contents continue
 
House of Commons home page Houses of Parliament home page House of Lords home page search page enquiries

© Parliamentary copyright 2008
Revised 22 January 2008