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Pensions Bill, continued

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.’.

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

April 1997.

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Pensions Bill, continued

NEW SCHEDULE

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

NS1

To move the following Schedule:—

‘Provision for conditional indexed arrangements etc

Part 1

Basis of Revaluation

1	The Pension Schemes Act 1993 (c.48) (Basis of Revaluation) is amended as

follows—

In section 84 after subsection (3) there is added—

“(3A)

If any benefit as is mentioned in paragraph (a) of section 83(1) is a

conditional indexation benefit that benefit shall be revalued using the

conditional indexation method”.

In Schedule 3 (Methods of Revaluation Accrued Pension Benefit) after

paragraph 4 there is added—

“(4A)

The conditional indexation method is to revalue the benefits which

have accrued to the member in respect of the pre-pension period in

such manner as may be prescribed”.

Part 2

Annual Increase in Rate of Pension

2	The Pensions Act 1995 (c.26) (Annual Increase in Rate of Pension) is amended

as follows—

After section 51(1)(iii) there is added “(iv) which is not a conditionally indexed

scheme which complies with such requirements in relation to increases in the

rate of a pension as may be prescribed”.

Part 3

Restriction on Powers to Alter Schemes

3	Section 67 of the Pensions Act 1995 (c.26) (Restriction to Alter Schemes), is

amended as follows—

After section 67(3)(b) there is added “(c) for a prescibed purpose relating to the

operation of a conditionally indexed scheme”.

Part 4

Pensions Compensation Provisions

4	Schedule 7 to the Pensions Act 2004 (c.35) (Pensions Compensation

Provisions) is amended as follows—

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After paragraph 2 to the Schedule there is added “2A This Schedule shall be

modified in relation to a conditionally indexed scheme in such manner as may

be prescribed.”.’.

Mr Mike O’Brien

That certain written evidence already reported to the House be appended to the

proceedings of the Committee.

Order of the House [7th january 2008]

That the following provisions shall apply to the Pensions Bill:

Committal

1.	The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

2.	Proceedings in the Public Bill Committee shall (so far as not previously

concluded) be brought to a conclusion on Tuesday 26th February 2008.

3.	The Public Bill Committee shall have leave to sit twice on the first day on

which it meets.

Consideration and Third Reading

4.	Proceedings on consideration shall (so far as not previously concluded) be

brought to a conclusion one hour before the moment of interruption on the

day on which those proceedings are commenced.

5.	Proceedings on Third Reading shall (so far as not previously concluded) be

brought to a conclusion at the moment of interruption on that day.

6.	Standing Order No. 83B (Programming committees) shall not apply to

proceedings on consideration and Third Reading.

Other proceedings

7.	Any other proceedings on the Bill (including any proceedings on

consideration of Lords Amendments or on any further messages from the

Lords) may be programmed.

Order of the Committee [15th january 2008]

That—

(1)	the Committee shall (in addition to its first meeting at 10.30 a.m. on Tuesday

15th January) meet—

(a)	at 4.00 p.m. on Tuesday 15th January;

(b)	at 9.00 a.m. and 1.00 p.m. on Thursday 17th January;

(c)	at 10.30 a.m. and 4.00 p.m. on Tuesday 22nd January;

(d)	at 9.30 a.m. and 1.00 p.m. on Thursday 24th January;

(e)	at 10.30 a.m. and 4.00 p.m. on Tuesday 29th January;

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(f)	at 9.30 a.m. and 1.00 p.m. on Thursday 31st January;

(g)	at 10.30 a.m. and 4.00 p.m. on Tuesday 5th February;

(h)	at 9.30 a.m. and 1.00 p.m. on Thursday 7th February;

(i)	at 10.30 a.m. and 4.00 p.m. on Tuesday 19th February;

(j)	at 9.30 a.m. and 1.00 p.m. on Thursday 21st February;

(k)	at 10.30 a.m. and 4.00 p.m. on Tuesday 26th February.

(2)	the Committee shall hear oral evidence in accordance with the following

Table:

TABLE

	Date	Time	Witness
	Tuesday 15th January	Until no later than 12 noon	Personal Accounts Delivery
			Authority
	Tuesday 15th January	Until no later than 5.10 p.m.	Association of British Insurers;
			National Association of Pension
			Funds; Investment Management
			Association
	Tuesday 15th January	Until no later than 6.40 p.m.	Trades Union Congress; Equality
			and Human Rights Commission;
			Which?; Age Concern; Help the
			Aged
	Thursday 17th January	Until no later than 9.45 a.m.	Pensions Policy Institute
	Thursday 17th January	Until no later than 10.25 a.m.	British Chambers of Commerce;
			Federation of Small Businesses
	Thursday 17th January	Until no later than 2.10 p.m.	Engineering Employers
			Federation; Confederation of
			British Industry; Association of
			Consulting Actuaries
	Thursday 17th January	Until no later than 3.15 p.m.	Pensions Commission
	Thursday 17th January	Until no later than 4.45 p.m.	Department of Work and Pensions

(3)	the proceedings on consideration of the Bill in Committee shall be taken in

the following order: Clauses 1 to 57; Schedule 1; Clauses 58 to 79; Schedule

2; Clause 80; Schedule 3; Clauses 81 to 90; Schedule 4; Clauses 91 to 94;

Schedule 5; Clauses 95 and 96, Schedule 6; Clauses 97 and 98; Schedule 7;

Clauses 99 to 108; Schedule 8; Clauses 109 to 111; new Clauses; new

Schedules; remaining proceedings on the Bill;

(4)	the proceedings shall (so far as not previously concluded) be brought to a

conclusion at 7.00 p.m. on Tuesday 26th February.

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Revised 31 January 2008