House of Commons Amendments

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

133

House of Commons

Thursday 24th January 2008

Public Bill Committee

New Amendments handed in are marked thus

Other Amendments not tabled within the required notice period are marked thus

Pensions Bill

Note

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

Committee [15th January].

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.

Public Bill Committee: 24th January 2008
134

Pensions Bill, continued

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.

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

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.

Public Bill Committee: 24th January 2008
135

Pensions Bill, continued

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Mr John Greenway

Miss Julie Kirkbride

136

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

This amendment amends clause 10(1) to include the clauses on postponement of automatic enrol

ment, the jobholder’s right to opt out, automatic re-enrolment and workers without qualifying

earnings (New Clause 8). Regulations under clause 10(1) may require some employers to start dis

charging their duties under the Chapter before others.

Mr Mike O’Brien

138

Clause  10,  page  5,  line  28,  leave out subsection (2).

Member’s explanatory statement

This Amendment is related to New Clauses 12 and 13, Subsection (2) of Clause 10 will be replaced

by those Clauses.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

17

Clause  11,  page  6,  line  4,  leave out ‘wages, commission, bonuses and overtime’

and insert ‘and wages’.

Public Bill Committee: 24th January 2008
136

Pensions Bill, continued

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

18

Clause  11,  page  6,  line  11,  leave out paragraph (f).

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

19

Clause  11,  page  6,  line  11,  at end add—

‘(4)
For the purposes of scheme contributions by and on behalf of members of a

qualifying scheme other than that established by Chapter 4 of this Act,

subsections 11(1) to (3) may be disregarded if contributions are calculated and

made in relation to the individual’s basic earnings.’.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

20

Clause  12,  page  6,  line  15,  leave out subsection (2).

Danny Alexander

Paul Rowen

86

Clause  12,  page  6,  line  15,  leave out from first ‘in’ to end of line 16 and insert ‘the

value of the amounts in—

(a)
section 11(1)(a) are to be assessed in a way that the Secretary of State

finds appropriate and which has been approved by resolution of both

Houses of Parliament; and

(b)
section 11(1)(b) are to be in line with earnings’.

Member’s explanatory statement

The purpose of this amendment is to ensure that qualifying earnings are set at an appropriate level.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

21

Clause  12,  page  6,  line  17,  leave out ‘may in particular’ and insert ‘shall’.

Public Bill Committee: 24th January 2008
137

Pensions Bill, continued

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Mr John Greenway

Miss Julie Kirkbride

73

Clause  12,  page  6,  line  17,  leave out subsection (3).

Member’s explanatory statement

See Member’s explanatory statement for Amendment 75.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Mr John Greenway

Miss Julie Kirkbride

74

Clause  12,  page  6,  line  21,  leave out subsection (4).

Member’s explanatory statement

See Member’s explanatory statement for Amendment 75.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Mr John Greenway

Miss Julie Kirkbride

75

Clause  12,  page  6,  line  24,  at end add—

‘(4A)
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 each

amount mentioned in section 11(1)(a) and (b), increasing each amount, if the new

index is higher, by the same percentage as the amount of the increase of the

index.’.

Member’s explanatory statement

This amendment seeks to provde greater certainty regarding the methods by which the qualifying

earnings band is uprated annually.

Danny Alexander

Paul Rowen

87

Clause  12,  page  6,  line  24,  at end add—

‘(5)
The Secretary of State shall report annually on the effect of changes to the

qualifying earnings on the impact of means-tested benefits on members of the

scheme establised under section 50.’.

Member’s explanatory statement

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

effect on those enrolled into personal accounts.

Public Bill Committee: 24th January 2008
138

Pensions Bill, continued

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

22

Clause  13,  page  6,  line  27,  leave out from beginning to ‘twelve’ in line 28.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

2

Clause  14,  page  7,  line  9,  leave out paragraph (c).

Danny Alexander

Paul Rowen

88

Clause  14,  page  7,  line  10,  at end add—

‘(3)
Every employer must register their qualifying pension scheme with the

regulator.’.

Member’s explanatory statement

The purpose of this amendment is to ensure that every employer has provided a qualifying scheme.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

3

Clause  15,  page  7,  line  22,  leave out ‘or to provide any information’.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

4

Clause  16,  page  7,  line  33,  leave out paragraph (c).

Public Bill Committee: 24th January 2008
139

Pensions Bill, continued

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

5

Clause  17,  page  7,  line  40,  at end add—

‘(c)
is prescribed or is of a prescribed description and that has its main

administration elsewhere than in an EEA State.

Danny Alexander

Paul Rowen

92

Clause  18,  page  8,  line  8,  leave out from ‘least’ to end of line 9 and insert ‘5% of

basic earnings in the pay reference period’.

Member’s explanatory statement

The purpose of this amendment is to ensure compliance with the new system is not too demanding

for employers.

Danny Alexander

Paul Rowen

89

Clause  18,  page  8,  line  17,  at end add—

‘(3)
The Secretary of State may by regulations make provision for a scheme to

continue to satisfy the quality requirement notwithstanding a shortfall in the

contributions over a pay reference period if the shortfall is paid within a

prescribed period after the end of the reference period.’.

Member’s explanatory statement

The purpose of this amendment is to ensure that an employer has a certain period of time to pay

any shortfall once the comparison between payment to the exempt scheme and notional payments

to personal accounts is made.

Danny Alexander

Paul Rowen

90

Clause  18,  page  8,  line  17,  at end add—

‘(3)

(a)
the Secretary of State may by order approved by resolution of both House

of Parliament amend the lower limit of the employers’ contribution set

out in paragraph (1)(b) of this section.

(b)
the Secretary of State may by order approved by resolution of both

Houses of Parliament amend the lower limit of the total contribution paid

by the jobholder as the employer set out in paragraph (1)(c) of this

section.’.

Member’s explanatory statement

The purpose of this amendment is to ensure that contribution limits can be changed without the

need for primary legislation.