House of Commons Amendments

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Public Bill Committee: 29th January 2008
180

Pensions Bill, continued

Mr Mike O’Brien

151


Page  18,  line  21,  leave out Clause 42.

Member’s explanatory statement

See Member’s explanatory statement for New Clause 14.

Mr Mike O’Brien

152


Clause  43,  page  19,  line  21,  leave out from first ‘planning’ to end of line 22 and

insert ‘and “the Northern Ireland Department” have the same meaning as in paragraph

2.”’.

Member’s explanatory statement

The effect of the amendment is to define “the Northern Ireland Department” as the Department

for Social Development in Northern Ireland.

Mr Mike O’Brien

153


Clause  43,  page  19,  line  22,  at end add—

‘(1A)
Section 323 of the Pensions Act 2004 (c. 35) (extent) is amended as follows.

(1B)
In subsection (2)(c) (provisions extending to Northern Ireland)—

(a)
for “paragraph 2” substitute “paragraphs 2 and 4”;

(b)
for “that paragraph” substitute “those paragraphs”.

(1C)
In subsection (4), for “paragraph 2” substitute “paragraphs 2 and 4”.’.

Member’s explanatory statement

This amendment provides for the paragraph inserted in the Pensions Act 2004 by clause 43(1) to

extend to Northern Ireland. The paragraph allows the Secretary of State or the Northern Ireland

Department to be given information by the Pensions Regulator for use for specified functions.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Mr John Greenway

Miss Julie Kirkbride

63

Clause  45,  page  20,  line  6,  at end add—

‘(cb)
to fund the set-up costs incurred by the duties under Chapter 1 of Part 1

of the Pensions Act 2008 from the Consolidated Fund.’.

Member’s explanatory statement

The purpose of this amendment is to ensure that the additional cost incurred by the Pensions Reg

ulator during the set-up phase of its new statutory objective to maximise compliance with new em

ployer duties is paid by the taxpayer.

Public Bill Committee: 29th January 2008
181

Pensions Bill, continued

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.

Mr Mike O’Brien

156


Clause  49,  page  22,  line  34,  at end insert—

‘( )
The fact that an agreement is to any extent void under subsection (1) does not

entitle the employer to recover any property transferred, or the value of any

benefit conferred, as an inducement to enter into, or otherwise in connection with,

the agreement.’.

Member’s explanatory statement

The purpose of this amendment is to prevent employers from being able to claim back any pay

ments or benefits given to their workers in connection with any agreement that is rendered void by

Clause 49.

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.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

25

Clause  50,  page  24,  line  10,  after ‘scheme’, insert ‘which shall commence

operation with effect from 1st April 2012’.

Public Bill Committee: 29th January 2008
182

Pensions Bill, continued

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

157


Clause  50,  page  24,  line  13,  at end insert—

‘( )
A scheme established under this section shall not be subject to the requirements

to obtain audited accounts and an auditor’s statement about contributions under

regulations made pursuant to section 41 of the Pensions Act 1995.

( )
The Secretary of State may make regulations requiring that the trustees of a

scheme established under this section—

(a)
make a declaration regarding the scheme systems and controls, and

(b)
appoint a reporting accountant to review the scheme’s systems and

controls and obtain a statement from such reporting accounting about

their design and operation.’.

Member’s explanatory statement

This amendment exempts schemes from the audit requirements imposed by section 21 of the Pen

sions Act 2005. In place of these, the trustees will be required to make a declaration on the relevant

control procedures.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

26

Clause  51,  page  25,  line  15,  leave out subsection (5).

Danny Alexander

Paul Rowen

115

Clause  52,  page  25,  line  26,  leave out ‘panels are’ and insert ‘employers panel is’.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

27

Clause  52,  page  25,  line  26,  leave out ‘by order under section 50, or’.

Danny Alexander

Paul Rowen

154


Clause  52,  page  25,  line  26,  leave out subsection (3) and insert—

‘(3)
The Members’ Panel is to consist of such members and future members, or

persons representing the interests of members and future members, as the trustees

may appoint.

Public Bill Committee: 29th January 2008
183

Pensions Bill, continued

(3A)
The trustees must appoint one of the members of the Members’ Panel to be the

chairman of the Panel.

(3B)
The trustees must secure that the membership of the Members’ Panel is such as

to:

(a)
give a fair degree of representation to members and future members; and

(b)
respect diversity among members and future members of the scheme.

(3C)
The chairman and other members of the Members’ Panel are to be—

(a)
appointed for a fixed period, and on other terms and conditions,

determined by the trustees, and

(b)
paid by the trustees in accordance with provision made by or under the

terms of appointment.

(3D)
But a person may be removed from office in accordance with those terms and

conditions only with the approval of the Secretary of State.

(3E)
A person who ceases to be a chairman or another member of the Members’ Panel

may be re-appointed.

(3F)
Representations by the Members’ Panel—

(a)
the Trustees must consider any representations made to it by the

Members’ Panel.

(b)
if the Trustees disagree with a view expressed, or proposal made, in the

representations, it must give the Members’ Panel a notice to that effect

stating its reasons for disagreeing.

(c)
the Members’ Panel may publish such information as it thinks fit about

any representations made by it to the trustees.

(d)
where the Members’ Panel publishes information about any

representations made by it, the trustees must publish any notice it gives

under subsection (2) in respect of those representations.

(3G)
Advice and research functions of the Members’ Panel—

(a)
The Members’ Panel may, at the request of the trustees—

(i)
carry out research for the trustees;

(ii)
give advice to the trustees.

(b)
The trustees must consider any advice given and the results of any

research carried out under this section.

(c)
the Members’ Panel may publish such information as it thinks fit about

advice it gives, and about the results of research carried out by it, under

this section.

Member’s explanatory statement

The purpose of this amendment is to ensure that the Members’ Panel are given the appropriate

powers and adequate resources to ensure that the scheme acts in the best interests of members and

future members.

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.

Public Bill Committee: 29th January 2008
184

Pensions Bill, continued

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Mr John Greenway

Miss Julie Kirkbride

64

Clause  52,  page  25,  line  28,  after ‘panel’, insert ‘and employers’ panel’.

Member’s explanatory statement

The purpose of this amendment is to provide the employers’s panel with the functions of appointing

members of the trustee corporation as well as the consumer panel.

Danny Alexander

Paul Rowen

155


Clause  52,  page  25,  line  30,  leave out subsection 5.

Member’s explanatory statement

See member’s explanatory statemement for amendment 154.

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

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.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

28

Clause  53,  page  25,  line  34,  at end insert ‘save that the employers’ contribution

shall be fixed at 3 per cent. of the amount of jobholders’ qualifying earnings in any pay

reference period.’.

Public Bill Committee: 29th January 2008
185

Pensions Bill, continued

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Mr John Greenway

Miss Julie Kirkbride

76

Clause  53,  page  25,  line  34,  at end insert ‘of £3,600’.

Member’s explanatory statement

See Member’s explanatory statement for Amendment 77.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Mr John Greenway

Miss Julie Kirkbride

77

Clause  53,  page  25,  line  34,  at end insert—

‘(1A)
The Secretary of State must in each tax year from 2005 determine whether the

amount prescribed in subsection (1) has maintained its value.

(1B)
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 the

amount in section (1), increasing the amount, if the new index is higher, by the

same percentage as the amount of the increase of the index.’.

Member’s explanatory statement

The purpose of this Amendment is to ensure that there is an annual contribution limit of £3,600,

uprated for inflation, as was stated by the Government in its response to the Personal Accounts

White Paper.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

29

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

‘(3)
There shall be an absolute prohibition on transfers between the pension scheme

established under section 50 and other pension or savings schemes, and jobholder

contributions shall be limited to £3,600 in any one year.’.

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.

Public Bill Committee: 29th January 2008
186

Pensions Bill, continued

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

30

Clause  53,  page  26,  line  1,  leave out subsection (3).

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

58

Clause  53,  page  26,  line  6,  leave out subsection (5).

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

31

Clause  55,  page  26,  line  19,  leave out ‘have regard to’ and insert ‘take account of’.

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

32

Clause  57,  page  27,  line  12,  leave out subsection (3).

Mr Nigel Waterson

Andrew Selous

Mr Stewart Jackson

Miss Julie Kirkbride

Mr John Greenway

53

Schedule  1,  page  49,  line  11,  at end insert—

‘(c)
the appointment of any member of the corporation shall be approved by

the Work and Pensions Committee of the House of Commons.’.