Pensions Bill

House of Commons

Session 2007 - 08
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Other Bills before Parliament

Pensions Bill

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 6 — Stakeholder pension schemes
37

Winding up
75
Winding up of the Authority
(1)
Section 23 of the Pensions Act 2007 (c. 22) (winding up of the Authority) is
amended as follows.
(2)
For subsection (1) substitute—
5
“(1)
The Secretary of State may by order provide for the winding up and
dissolution of the Authority.”
(3)
Subsections (2) to (4) are omitted.
(4)
In subsection (5)(a), after “Secretary of State” insert “or any other person”.
(5)
In subsection (7)—
10
(a)
the words after “provision of” become paragraph (a) of that subsection;
and
(b)
at the end of that paragraph insert —

“;
(b)
sections 69 to 74 of the Pensions Act 2008.”
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Chapter 6
Stakeholder pension schemes
76
Stakeholder pension schemes
(1)
The Welfare Reform and Pensions Act 1999 (c. 30) is amended as follows.
(2)
Section 3 (duty of employers to facilitate access to stakeholder pension
20
schemes) is amended as follows.
(3)
In subsection (1), for “the requirements set out below” substitute “the
requirement in subsection (5)”.
(4)
After subsection (1) insert—
“(1A)
A relevant employee, in relation to an employer, is an employee of the
25
employer who, on the relevant date, satisfies the conditions in
subsection (1B).
(1B)
The conditions are that—
(a)
the employee is a member of a stakeholder pension scheme;
(b)
the employee made a request under subsection (5) before the
30
relevant date and that request has not been withdrawn;
(c)
the employee pays contributions (which are deducted in
accordance with that request) to the scheme at regular intervals;
(d)
at least one deduction has been made before the relevant date in
accordance with that request.
35
(1C)
A person ceases to be a relevant employee—
(a)
on ceasing to be employed by the employer;
(b)
on withdrawing a request under subsection (5);
(c)
on ceasing to pay contributions at regular intervals.”

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 7 — Interpretation
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(5)
Omit subsections (2) to (4).
(6)
In subsection (5)—
(a)
omit the word “fourth”;
(b)
omit the words from “of his” to “qualifying scheme”;
(c)
in paragraph (a), for “scheme” substitute “stakeholder pension
5
scheme”.
(7)
After subsection (5) insert—
“(5A)
That requirement only applies in relation to a request to make
deductions made before the relevant date (whether or not that request
is varied after that date).”
10
(8)
Omit subsection (6).
(9)
In subsection (7), for “any of the requirements” substitute “the requirement”.
(10)
In subsection (8)—
(a)
for the words from “whether before” to “those purposes” substitute
“while subject to the requirement in subsection (5)”;
15
(b)
omit paragraph (a)(ii) and (iii).
(11)
In subsection (9), after the definition of “employer” insert—
““relevant date” means the date on which section 76 of the Pensions Act
2008 comes into force.”
(12)
In that subsection—
20
(a)
omit the definition of “qualifying scheme”;
(b)
omit the definition of “relevant employees”.
(13)
In section 6 (application of certain enactments)—
(a)
omit subsection (1);
(b)
in subsection (2), for “designated scheme” substitute “stakeholder
25
pension scheme”.
(14)
In section 8 (interpretation), in subsection (1), omit the definition of
“designated scheme”.
Chapter 7
Interpretation
30
“Employee", “worker” etc.
77
“Employee”, “worker” and related expressions
(1)
This section applies for the purposes of this Part.
(2)
“Employee” means an individual who has entered into or works under a
contract of employment.
35
(3)
“Contract of employment” means a contract of service or apprenticeship,
whether express or implied, and (if it is express) whether oral or in writing.
(4)
“Worker” means an individual who has entered into or works under—

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 7 — Interpretation
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(a)
a contract of employment; or
(b)
any other contract by which the individual undertakes to do work or
perform services personally for another party to the contract.
(5)
But a contract is not within subsection (4)(b) if the status of the other party is
by virtue of the contract that of a client or customer of a profession or business
5
undertaking carried on by the individual concerned.
(6)
For the purposes of subsection (4)(b), it does not matter whether the contract is
express or implied or (if it is express) whether it is oral or in writing.
(7)
Any reference to a worker’s contract is to be read in accordance with
subsections (4) to (6).
10
(8)
“Employer”, in relation to an employee or worker, means the person by whom
the employee or worker is employed.
(9)
“Employment”—
(a)
in relation to an employee, means employment under a contract of
employment;
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(b)
in relation to a worker, means employment under the worker’s
contract.
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Agency workers
(1)
This section applies to an individual (“the agency worker”)—
(a)
who is supplied by a person (“the agent”) to do work for another person
20
(“the principal”) under a contract or other arrangements made between
the agent and the principal;
(b)
who is not, as respects that work, a worker, because of the absence of a
worker’s contract between the individual and the agent or the
principal; and
25
(c)
who is not a party to a contract under which the agency worker
undertakes to do the work for another party to the contract whose
status is, by virtue of the contract, that of a client or customer of a
profession or business undertaking carried on by the individual.
(2)
Where this section applies, the other provisions of this Part have effect—
30
(a)
as if there were a worker’s contract for the doing of the work by the
agency worker, made between the agency worker and the relevant
person under subsection (3), and
(b)
as if that person were the agency worker’s employer.
(3)
The relevant person is—
35
(a)
whichever of the agent and the principal is responsible for paying the
agency worker in respect of the work; or
(b)
if neither the agent nor the principal is responsible for doing so,
whichever of them pays the agency worker in respect of the work.
79
Crown employment
40
(1)
This Part has effect in relation to Crown employment and persons in Crown
employment as it has effect in relation to other employment and other workers.

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 7 — Interpretation
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(2)
In subsection (1) “Crown employment” means employment under or for the
purposes of a government department or any officer or body exercising on
behalf of the Crown functions conferred by a statutory provision.
(3)
For the purposes of the application of the provisions of this Part in relation to
Crown employment in accordance with subsection (1)—
5
(a)
references to a worker are to be construed as references to a person in
Crown employment; and
(b)
references to a worker’s contract are to be construed as references to the
terms of employment of a person in Crown employment.
(4)
This section is subject to section 82.
10
80
House of Lords staff
(1)
This Part has effect in relation to employment as a relevant member of the
House of Lords staff as it has effect in relation to other employment.
(2)
In this section, “relevant member of the House of Lords staff” means any
person who is employed under a worker’s contract with the Corporate Officer
15
of the House of Lords.
81
House of Commons staff
(1)
This Part has effect in relation to a relevant member of the House of Commons
staff as it has effect in relation to other employment.
(2)
In this section, “relevant member of the House of Commons staff” means any
20
person—
(a)
who was appointed by the House of Commons Commission; or
(b)
who is a member of the Speaker’s personal staff.
(3)
For the purposes of the application of the provisions of this Part in relation to
a relevant member of the House of Commons staff—
25
(a)
references to a worker are to be read as references to a relevant member
of the House of Commons staff; and
(b)
references to a worker’s contract are to be read as references to the
terms of employment of a relevant member of the House of Commons
staff.
30
82
Exception for reserve and volunteer forces
(1)
Section 79 (Crown employment) does not apply to service as a member of a
reserve force—
(a)
undergoing training under section 22 of the Reserve Forces Act 1996
(c. 14) (training obligations of members of the reserve forces), or
35
(b)
undertaking training or performing duties in accordance with section
27 of that Act (voluntary training and other duties).
(2)
Section 79 does not apply to service as a member of any of the forces specified
in subsection (3), while assisting the activities of those forces in the course of
Crown employment.
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(3)
The forces are—
(a)
the Combined Cadet Force;

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Part 1 — Pension scheme membership for jobholders
Chapter 7 — Interpretation
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(b)
the Sea Cadet Corps;
(c)
the Army Cadet Force;
(d)
the Air Training Corps.
83
Exception for share fishermen
(1)
A person to whom subsection (2) applies is not a worker for the purposes of
5
this Part.
(2)
This subsection applies to a person who—
(a)
is employed as a master, or as a member of a crew, of a fishing vessel;
and
(b)
is remunerated, in respect of that employment, only by a share of the
10
profits or gross earnings of the vessel.
84
Extension of definition of worker
The Secretary of State may by regulations make provision for this Part to apply
with or without modifications—
(a)
as if any individual of a prescribed description (who would not
15
otherwise be a worker) were a worker,
(b)
as if there were in the case of any such individual a worker’s contract
of a prescribed description under which the individual works, and
(c)
as if a person of a prescribed description were the employer under that
contract.
20
General
85
Interpretation of Part
In this Part—
“active member”—
(a)
in relation to an occupational pension scheme, means a person
25
who is in pensionable service under the scheme;
(b)
in relation to a personal pension scheme, means a jobholder in
relation to whom there is an agreement within section 25(3)
between the scheme and the employer;
“automatic enrolment scheme” is to be read in accordance with section
30
3(7);
“average salary benefits” means benefits the rate or amount of which is
calculated by reference to the average salary of a member over the
period of service on which the benefits are based;
“contract of employment” has the meaning given by section 77;
35
“defined benefits”, in relation to a member of an occupational pension
scheme, means benefits which are not money purchase benefits (but the
rate or amount of which is calculated by reference to earnings or service
of the member or any other factor other than an amount available for
their provision);
40
“defined benefits scheme” means an occupational pension scheme under
which all the benefits that may be provided are defined benefits;
“employee”, “employer” and “employment” have the meaning given by
section 77;

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Part 2 — Simplification etc
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“enrolment duty” means a duty under section 3(2), 5(2), 6(3) or 8(2);
“hybrid scheme” means an occupational pension scheme—
(a)
which is not a money purchase scheme, but
(b)
where some of the benefits that may be provided are money
purchase benefits attributable to voluntary contributions of the
5
members, or other money purchase benefits;
the “IORP Directive” means Directive 2003/41/EC of the European
Parliament and of the Council on the activities and supervision of
institutions for occupations retirement provision;
“jobholder” has the meaning given by section 1(1);
10
“money purchase benefits”, in relation to a member of a pension scheme,
means benefits the rate or amount of which is calculated by reference to
a payment or payments made by the member or by any other person in
respect of the member and which are not average salary benefits;
“money purchase scheme” means an occupational pension scheme under
15
which all the benefits that may be provided are money purchase
benefits;
“occupational pension scheme” has the meaning given by section 17;
“pension scheme” has the meaning given by section 1(5) of the Pension
Schemes Act 1993 (c. 48);
20
“pensionable age” has the meaning given by the rules in paragraph 1 of
Schedule 4 to the Pensions Act 1995 (c. 26);
“pensionable service”, in relation to a member of an occupational pension
scheme, means service in any description of employment to which the
scheme relates which qualifies the member (on the assumption that it
25
continues for the appropriate period) for pension or other benefits
under the scheme;
“personal pension scheme” has the meaning given by section 18;
“prescribed” means prescribed by regulations;
“qualifying earnings” has the meaning given by section 12;
30
“qualifying scheme” is to be read in accordance with section 2(5);
“regulations” means regulations made by the Secretary of State;
“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
35
(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);
“worker” has the meaning given by section 77.
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Part 2
Simplification etc
Private pensions
86
Abolition of safeguarded rights
Part 3A of the Pension Schemes Act 1993 (safeguarded rights) ceases to have
45
effect.