House of Commons Amendments

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Public Bill Committee: 24th January 2008
154

Pensions Bill, continued

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

43

Clause  62,  page  29,  line  13,  at end insert ‘and initially based on an annual

management charge of no more than 0.3 per cent. per annum.’.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

44

Clause  62,  page  29,  line  14,  after ‘the’, insert ‘needs and’.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

45

Clause  62,  page  29,  line  16,  at end insert ‘, provided this can be done at no

disproportionate cost to the scheme overall.’.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

46

Clause  62,  page  29,  line  18,  at end insert—

‘(g)
the best interests of prospective members in the period prior to 2012;

(h)
the level of savings shall be increased as well as the number of existing

savers, and that in general better retirement incomes are achieved.’.

Danny Alexander

Paul Rowen

108

Clause  62,  page  29,  line  18,  at end insert—

‘(g)
the Authority acts in the best interests of prospective members in the

period prior to 2012’.

Member’s explanatory statement

The purpose of this amendment is to ensure that PADA acts in the best interests of prospective

members.

Danny Alexander

Paul Rowen

109

Clause  62,  page  29,  line  18,  at end insert—

‘(h)
the Authority achieves delivery of a simple system of personal accounts’.

Member’s explanatory statement

The purpose of this amendment is to ensure that PADA delivers a simple system of personal ac

counts.

Public Bill Committee: 24th January 2008
155

Pensions Bill, continued

Danny Alexander

Paul Rowen

110

Clause  62,  page  29,  line  18,  at end insert—

‘(g)
the UN Principles for Responsible Investment should be adhered to’.

Member’s explanatory statement

The purpose of this amendment is to ensure that PADA adheres to the UN Principles of Responsi

ble Investment as developing a capability to monitor and manage environmental, social and gov

ernance issues increases returns and financial security.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

47

Clause  62,  page  29,  line  20,  after ‘others’, insert ‘including Opposition parties’.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

48

Clause  62,  page  29,  line  21,  at end add—

‘(4)
The Secretary of State shall collect and publish appropriate data annually, and

will consult with industry, to measure the extent to which the Authority has

achieved these principles in carrying out its functions.

(5)
The Secretary of State shall by regulation identify the data and targets to be used

for this purpose.’.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

49

Clause  63,  page  29,  line  30,  at end insert ‘ as soon as is practicable.’.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

50

Clause  64,  page  29,  line  37,  leave out ‘grants’.

Public Bill Committee: 24th January 2008
156

Pensions Bill, continued

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

51

Clause  64,  page  29,  line  38,  leave out from ‘which’ to end of line 39 and insert

‘shall include conditions about repayment and interest at commercial rates.’.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

52

Clause  64,  page  29,  line  39,  at end add—

‘( )
For the avoidance of doubt, all the costs incurred by the Authority in establishing

the pension scheme under section 50 of the Pensions Act 2008 (c. ) shall be

recouped through charges to members over a period of five years from 2012.’.

Danny Alexander

Paul Rowen

111

Page  29,  line  31,  leave out Clause 64.

Member’s explanatory statement

The purpose of this amendment is to ensure that a proper debate can take place on the financing

of PADA.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

6

Clause  74,  page  35,  line  21,  at end insert—

‘( )
subsection (1) shall not apply to any member of the reserve forces who is paid for

more than six months in any three-year period.’.

Mr Mike O’Brien

134

Clause  77,  page  36,  line  29,  leave out ‘or 6(3)’ and insert ‘, 6(3) or [Workers

without qualifying earnings](2)’.

Member’s explanatory statement

This amendment is related to New Clause 8. It extends the definition of “enrolment duty” to in

clude a duty under that New Clause.

Public Bill Committee: 24th January 2008
157

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: 24th January 2008
158

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: 24th January 2008
159

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: 24th January 2008
160

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 personal 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 at 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 at 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—