House of Commons Amendments

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Public Bill Committee: 7th February 2008
298

Pensions Bill, continued

Mr Mike O’Brien

180

Clause  94,  page  43,  line  31,  leave out ‘has’ and insert ‘and Schedule [Pension

compensation on divorce etc: Scotland] (which amends in relation to pension

compensation sharing orders similar legislation applying in Scotland) have’.

Member’s explanatory statement

The purpose of this amendment is to give effect to new Schedule [Pension compensation on

Divorce etc: Scotland].

Mr Mike O’Brien

181

Schedule  8,  page  87,  line  40,  at end insert—

‘Family Law (Scotland) Act 1985 (c. 37)
Section 8(4A).’

Member’s explanatory statement

The amendment is a repeal made in the new Schedule [Pension compensation on Divorce etc:

Scotland].

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: 7th February 2008
299

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: 7th February 2008
300

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—

Public Bill Committee: 7th February 2008
301

Pensions Bill, continued

“(2)
The employer must make prescribed arrangements by which the

jobholder becomes an active member, with effect from the end of the

transitional period for defined benefits and hybrid schemes, of an

automatic enrolment scheme which is a defined benefits scheme or a

hybrid scheme.”.

(4)
If at any time in the transitional period for defined benefits and hybrid schemes

the condition in subsection (2)(c) or (d) of this section ceases to be satisfied,

subsection (5) applies instead of subsection (3) (and the day after the last day on

which that condition is satisfied is referred to as “the closure date”).

(5)
Where this subsection applies, section 3 has effect in relation to the jobholder

with the substitution for subsection (2) of the following subsection —

“(2)
The employer must make prescribed arrangements by which the

jobholder either—

(a)
becomes an active member, with effect from the closure date, of

an automatic enrolment scheme which is a defined benefits

scheme or a hybrid scheme, or

(b)
becomes an active member, with effect from the automatic

enrolment date, of an automatic enrolment scheme which is a

money purchase scheme.”

(6)
If the jobholder becomes a member of a scheme under arrangements made under

subsection (2)(b) of that section (as substituted by subsection (5))—

(a)
the employer’s contributions are payable with effect from the automatic

enrolment date;

(b)
any requirement of the scheme rules (in accordance with section 18(1))

for contributions to be payable by the jobholder does not apply in respect

of the period of the jobholder’s membership before the closure date;

(c)
regulations made for the purposes of section 3(2)(b) must secure that the

jobholder may pay, within a period prescribed by the regulations, any

contributions which would have been payable by the jobholder but for

paragraph (b) of this subsection.

(7)
Where subsection (3) or (5) of this section applies, section 3(3) and (4) apply as

if references to the automatic enrolment date were references to the day on which

arrangements would by virtue of this section fall to be made in respect of the

jobholder.

(8)
The transitional period for defined benefits and hybrid schemes is a prescribed

period beginning with the day on which section 3 comes into force.

(9)
In this section the “employer’s first enrolment date” means the first day on which

section 3 applies in the case of the employer (where that date falls within the

transitional period for defined benefits and hybrid schemes).’.

Member’s explanatory statement

This New Clause is related to Amendment 138. The purpose of this amendment is to set out how

employers using defined benefits or hybrid schemes to discharge the employer duties will be

permitted to phase in the automatic enrolment of a defined group of jobholders.

Public Bill Committee: 7th February 2008
302

Pensions Bill, continued

Disclosure of tax information etc

Mr Mike O’Brien

NC14

To move the following Clause:—

‘(1)
In the Pensions Act 2004 (c. 35) for section 88 (tax information) substitute—

“88
Tax information etc

(1)
This section applies to information held by the Revenue and Customs if

it is held by them in connection with a function of the Revenue and

Customs that relates to any of these matters—

(a)
tax or duty;

(b)
national insurance contributions;

(c)
the national minimum wage.

(2)
An officer of Revenue and Customs may disclose to the Regulator

information to which this section applies, if the disclosure is made for the

purpose of enabling or assisting the Regulator to discharge its functions.

(3)
Where information to which this section applies is disclosed to the

Regulator by virtue of subsection (2) above or section 19 of the Anti-

terrorism, Crime and Security Act 2001 (disclosure of information held

by revenue departments), it must, subject to subsections (4) and (5), be

treated for the purposes of section 82 as restricted information.

(4)
Information to which this section applies which is disclosed to the

Regulator as mentioned in subsection (3) may not be disclosed by the

Regulator or any person who receives the information directly or

indirectly from the Regulator except—

(a)
to, or in accordance with authority given by, the Commissioners

for Her Majesty’s Revenue and Customs,

(b)
with a view to the institution of, or otherwise for the purposes of,

any criminal proceedings,

(c)
with a view to the institution of any other proceedings by the

Regulator, or for the purposes of any such proceedings instituted

by the Regulator,

(d)
in accordance with section 84, otherwise than for the purposes of

any proceedings, or

(e)
in the form of a summary or collection of information so framed

as not to enable information relating to any particular person to

be ascertained from it.

(5)
Accordingly sections 82(3), 83, 85 to 87 and 235, and paragraph 4 of

Schedule 10, do not apply to such information, and section 84 applies

subject to subsection (4)(d).

(6)
In subsection (4)(c) and (d), “proceedings” includes the issue of notices

or any other enforcement action taken by the Regulator under Chapter 2

of Part 1 of the Pensions Act 2008 or any other enactment.

(7)
In this section “the Revenue and Customs” and a “function of the

Revenue and Customs” have the same meaning as in section 18 of the

Commissioners for Revenue and Customs Act 2005 (confidentiality).”

Public Bill Committee: 7th February 2008
303

Pensions Bill, continued

(2)
In section 82 of that Act (restricted information) in subsection (3) for “88(4)”

substitute “88(4)(d)”.’.

Member’s explanatory statement

This New Clause would replace section 88 of the Pensions Act 2004 and section 88A inserted by

clause 42. It allows HMRC to disclose information on specified matters to the Regulator to enable

the Regulator to discharge its functions. Controls are placed on the Regulator’s ability to disclose

this information.

Employment Appeal Tribunal

Mr Mike O’Brien

NC15

To move the following Clause:—

In section 21(1) of the Employment Tribunals Act 1996 (jurisdiction of appeal

tribunal) after paragraph (gc) insert—

“(gd)
the Pensions Act 2008,”.’.

Member’s explanatory statement

This New Clause enables employers and workers to bring appeals to the Employment Appeal

Tribunal from decisions of an employment tribunal under the Bill.

Offence of offering financial inducements

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

NC1

To move the following Clause:—

‘An offence is committed if an employer offers financial inducements to opt out

of an automatic enrolment scheme.’.

Public Bill Committee: 7th February 2008
304

Pensions Bill, continued

Projections of numbers of those on means-tested benefits

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

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.

(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

Miss Julie Kirkbride

Mr John Greenway

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

Miss Julie Kirkbride

Mr John Greenway

NC4

To move the following Clause:—