77

House of Commons

Notices of Amendments

given on

Thursday 17th January 2008

For other Amendment(s) see the following page(s):

Pensions Bill Committee 55-76

Public Bill Committee

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Pensions Bill

Danny Alexander

Paul Rowen

78

Clause  3,  page  2,  line  18,  leave out from ‘reached’ to end of line and insert ‘the age

of of 50’.

Member’s explanatory statement

The purpose of this amendment is to ensure that everybody who is automatically enrolled into the

personal accounts system will benefit financially.

Danny Alexander

Paul Rowen

79

Clause  3,  page  2,  line  36,  at end add—

‘(8)	The Secretary of State must publish an annual report on the impact of means-

tested benefits on automatically enrolled members of the scheme established

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 automatically enrolled into personal acccounts.

Danny Alexander

Paul Rowen

80

Clause  5,  page  3,  line  33,  leave out subsection (6) and insert ‘The automatic re-

enrolment date shall be 1st April of each year’.

Member’s explanatory statement

The purpose of this amendment is to ensure that administration of the system is easier for employ­

ers to and to reduce the chances of inadvertent non-compliance.

Notices of Amendments: 17th January 2008

78

Pensions Bill, continued

Danny Alexander

Paul Rowen

81

Clause  7,  page  4,  line  39,  at end add—

‘(c)	to be given in writing by the jobholder’.

Member’s explanatory statement

The purpose of this amendment is to ensure that opting out is genuinely a decision taken by the

worker.

Danny Alexander

Paul Rowen

82

Clause  7,  page  4,  line  39,  at end add—

‘(c)	to be registered personally with the enforcement body by the jobholder’.

Member’s explanatory statement

The purpose of this amendment is to ensure that opting out is genuinely a decision taken by the

worker.

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 it shall be publicly funded; and

(e)	that it 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.

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

Notices of Amendments: 17th January 2008

79

Pensions Bill, continued

whether personal accounts are likely to leave them better off.

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.

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.

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.

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.

Notices of Amendments: 17th January 2008

80

Pensions Bill, continued

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.

Danny Alexander

Paul Rowen

92

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

‘(3)	The Secretary of State must report annually on the extent to which employers

operating schemes defined under subsection (1) have reduced their

contributions.’.

Member’s explanatory statement

The purpose of this amendment is to ensure that employers are not levelling down their existing

pension schemes.

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

93

Clause  19,  page  8,  line  35,  at end add—

‘(5)	The Secretary of State must report annually on the extent to which employers

operating schemes defined under subsection (1) have reduced their contribution.’.

Member’s explanatory statement

The purpose of this amendment is to ensure that employers are not levelling down their existing

pension schemes.

Danny Alexander

Paul Rowen

94

Clause  22,  page  9,  line  41,  at end add—

Notices of Amendments: 17th January 2008

81

Pensions Bill, continued

‘(5)	The Secretary of State must report annually on the extent to which employers

operating schemes defined under subsection (1) have reduced their contribution.’.

Member’s explanatory statement

The purpose of this amendment is to ensure that employers are not levelling down their existing

pension schemes.

Danny Alexander

Paul Rowen

95

Clause  31,  page  13,  line  14,  leave out from ‘within’ to ‘after’ in line 15 and insert

‘three months’.

Member’s explanatory statement

The purpose of this amendment is to ensure that contributions are paid within a reasonable time

period.

Danny Alexander

Paul Rowen

96

Clause  31,  page  13,  line  17,  at end insert—

‘(d)	if the contributions are not paid within one year of the due date a

requirement to pay interest of inflation or 5%, whichever is lower, on

unpaid relevant contributions.’.

Member’s explanatory statement

The purpose of this amendment is to ensure that job-holders are adequately compensated for em­

ployer non-compliance.

Danny Alexander

Paul Rowen

97

Clause  36,  page  16,  line  29,  at end add—

‘(4)	The Secretary of State must bring forward a report on the funding of the Pensions

Regulator Tribunal for references made under this section within 12 months of

the section coming into force.’.

Member’s explanatory statement

The purpose of this amendment is to ensure that the Pension Regulator has adequate funding to

successfully undertake its new role.

Danny Alexander

Paul Rowen

98

Clause  46,  page  20,  line  31,  at end add—

‘(6)	An applicant for a job has the right not to be refused employment on grounds

relating to pension scheme membership.’.

Member’s explanatory statement

The purpose of this amendment is to ensure that employers do not disciminate against job appli­

cants on the basis of their existing or likely future membership of a pension scheme.

Notices of Amendments: 17th January 2008

82

Pensions Bill, continued

Danny Alexander

Paul Rowen

99

Clause  50,  page  24,  line  10,  leave out from ‘State’ to ‘and’ and insert ‘shall

establish a money purchase scheme’.

Member’s explanatory statement

The purpose of this amendment is to ensure that the variety of pension scheme established is on the

face of the bill and that its establishment is mandatory.

Danny Alexander

Paul Rowen

100

Clause  52,  page  25,  line  31,  at end add—

‘(6)	The Secretary of State must provide the panels with—

(a)	an annual report considering the impact of means-tested benefits on

members of the scheme established under section 50,

(b)	an annual report assessing the quality of qualifying schemes’.

Member’s explanatory statement

The purpose of this amendment is to ensure that the panels have the information necessary to make

informed recommendations to the trustees.

Danny Alexander

Paul Rowen

101

Clause  52,  page  25,  line  27,  at end insert—

‘(3A)

The members’ panel shall be comprised of members of the scheme nominated

and selected by a process including all the members of the scheme or an

organisation representing the members.’.

Member’s explanatory statement

The purpose of this amendment is to ensure that the members’ panel adequately represents the in­

terests of members.

Danny Alexander

Paul Rowen

102

Clause  53,  page  25,  line  33,  leave out subsection (1) and insert—

‘(1)	Member contributions shall be limited to £10,000 in the first year of the scheme

and £3,600 for each following year’.

Member’s explanatory statement

The purpose of this amendment is to ensure that contribution limits are set at a reasonable level.

Danny Alexander

Paul Rowen

103

Clause  53,  page  26,  line  1,  leave out subsection (3) and insert—

‘(3)	A member may make payments that are not contributions for the purposes of

provision under subsection (1) up to a maximum of 2 per cent. of the standard

lifetime allowance’.

Member’s explanatory statement

The purpose of this amendment is to ensure that jobholders have the flexibility to make payments

when they can best afford to do so and to enable those who are commencing pension saving later

in life to make up for lost time.

Notices of Amendments: 17th January 2008

83

Pensions Bill, continued

Danny Alexander

Paul Rowen

104

Clause  58,  page  27,  line  21,  at end insert—

‘(c)	to consider the impact of means-tested benefits on members of the

scheme established under section 50, and report these findings on an

annual basis.’.

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.

Danny Alexander

Paul Rowen

105

Clause  61,  page  28,  line  26,  after ‘Part’, insert ‘but excluding sections 14 to 24’.

Member’s explanatory statement

The purpose of this amendment is to ensure that PADA does not suffer a conflict of interest.

Danny Alexander

Paul Rowen

106

Clause  62,  page  29,  line  6,  at end insert ‘among those on low incomes and who are

not currently saving enough for retirement’.

Member’s explanatory statement

The purpose of this amendment is to ensure that personal accounts are properly aimed at the target

group.

Danny Alexander

Paul Rowen

107

Clause  62,  page  29,  line  9,  after ‘on’, insert ‘high-quality’.

Member’s explanatory statement

The purpose of this amendment is to ensure that the adverse effects on high-quality qualifying

schemes are minimised.

Danny Alexander

Paul Rowen

108

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

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

should be’.

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)	achieve 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.

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Revised 18 January 2008