Public Bill Committee: 15th January 2008

47

Pensions Bill, continued

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

8

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

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

9

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

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

10

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

NEW CLAUSES

Offence of offering financial inducements

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

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

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.

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48

Pensions Bill, continued

(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).’

.

Restoring link with earnings

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

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

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

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);

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Pensions Bill, continued

(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

(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.’.

NEW SCHEDULE

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

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”.

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Pensions Bill, continued

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—

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.”.’.

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

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51

Pensions Bill, continued

consideration of Lords Amendments or on any further messages from the

Lords) may be programmed.

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Revised 15 January 2008