1747

House of Commons

Tuesday 22nd April 2008

Consideration of Bill

Pensions Bill, As Amended

---

new clauses

Crown employment

Mr Secretary Purnell

NC17

To move the following Clause:—

‘(1)	This Part has effect in relation to employment by or under the Crown as it has

effect in relation to other employment.

(2)	For the purposes of the application of the provisions of this Part in accordance

with subsection (1)—

(a)	references to a worker are to be construed as references to a person

employed by or under the Crown;

(b)	references to a worker’s contract are to be construed as references to the

terms of employment of a person employed by or under the Crown.

(3)	This section does not impose criminal liability on the Crown.

(4)	But on the application of the Pensions Regulator the High Court or the Court of

Session may declare unlawful a failure by the Crown to comply with any of the

duties mentioned in section 40(1).’.

Armed forces

Mr Secretary Purnell

NC18

To move the following Clause:—

‘(1)	A person serving as a member of the naval, military or air forces of the Crown is

not, by virtue of that service, a worker for the purposes of this Part.

(2)	A member of any of the forces specified in subsection (3) who assists the

activities of any of those forces is not, by virtue of anything done in assisting

those activities, a worker for the purposes of this Part.

(3)	The forces are—

Consideration of Bill: 22nd April 2008

1748

Pensions Bill, continued

(a)	the Combined Cadet Force;

(b)	the Sea Cadet Corps;

(c)	the Army Cadet Force;

(d)	the Air Training Corps.’.

Police

Mr Secretary Purnell

NC19

To move the following Clause:—

‘(1)	This Part has effect in relation to a person who—

(a)	holds the office of constable or an appointment as a police cadet, and

(b)	does not hold that office or appointment under a contract of employment,

as if the person were employed by the relevant police authority under a worker’s

contract.

(2)	A police authority that maintains a police force is the relevant police authority—

(a)	in relation to a constable, if the constable is a member of that police force;

(b)	in relation to a police cadet, if the cadet is undergoing training with a

view to becoming a member of that police force.’.

Start date of personal accounts

Mr Nigel Waterson

Andrew Selous

NC1

To move the following Clause:—

‘The pension scheme established by the Secretary of State under section 58 of this

Act shall commence operation with effect from 1st April 2012.’.

Means testing

Mr Nigel Waterson

Andrew Selous

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.

Consideration of Bill: 22nd April 2008

1749

Pensions Bill, continued

(2)	If the projected figure published in accordance with subsection (1) exceeds 10 per

cent. of the pensioner population, the implementation of the scheme under section

58 of this Act shall be postponed for at least 12 months after the date of

publication.

(3)	The Secretary of State shall publish any proposals for reform to address the

findings in subsection (1) above concurrently with the publication of the

projections thereunder.’.

Costs incurred by Pensions Regulator

Mr Nigel Waterson

Andrew Selous

NC3

To move the following Clause:—

‘The set-up costs incurred by the Pensions Regulator in carrying out its duties

under Chapter 1 of this Act shall be funded from the Consolidated Fund.’.

Costs incurred by Personal Accounts Delivery Authority

Mr Nigel Waterson

Andrew Selous

NC4

To move the following Clause:—

‘The set-up costs incurred by the Personal Accounts Delivery Authority in

carrying out its duties under section 58 of this Act shall be recouped through

charges to members over a period of five years from 1st April 2012.’.

Financial assistance to Personal Accounts Delivery Authority

Mr Nigel Waterson

Andrew Selous

NC5

To move the following Clause:—

‘Any financial assistance given to the Personal Accounts Delivery Authority by

the Secretary of State must include conditions about repayment and interest at

commercial rates.’.

Consideration of Bill: 22nd April 2008

1750

Pensions Bill, continued

Existing pension provision

Mr Nigel Waterson

Andrew Selous

NC6

To move the following Clause:—

‘In accordance with its functions under section 69 of this Act, the Personal

Accounts Delivery Authority must, to the best of its ability, minimise any adverse

effects from its activities on existing, good quality occupational and personal

pension schemes.’.

Earnings link

Mr Nigel Waterson

Andrew Selous

NC7

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.’.

Retirement income fund

Mr Nigel Waterson

Andrew Selous

NC8

To move the following Clause:—

‘(1)	The Finance Act 2004 (c. 12) is amended as follows.

(2)	After section 152 (meaning of “arrangement”), insert—

“152A

Meaning of ‘Retirement Income Fund’

(1)	In this Part, a Retirement Income Fund means a scheme for the

reinvestment of savings in retirement which—

(a)	is operated by or on behalf of a person authorised to operate a

registered pension scheme,

(b)	is a scheme in which investments are approved by HM Revenue

and Customs, and

(c)	meets the conditions set out in subsections (2) to (9).

(2)	The first condition is that, subject to the other conditions in this section,

funds held in the Retirement Income Fund may be invested and

withdrawn by the member as and when he elects.

Consideration of Bill: 22nd April 2008

1751

Pensions Bill, continued

(3)	The second condition is that an authorised Retirement Income Fund

provider must set an annual maximum withdrawal allowance for each

member, based on an assessment of each member’s life expectancy, and

a member’s withdrawals from the fund in any one year must not exceed

that allowance.

(4)	The third condition is that, in setting annual maximum withdrawal

allowances, an authorised provider must ensure that no member’s total

future annual income falls below the Minimum Retirement Income level

(as set under section [Minimum Retirement Income] of the Pensions Act

2008) except in the circumstances provided for in the sixth condition.

(5)	The fourth condition is that an authorised provider must set an annual

minimum withdrawal allowance so that each member’s total income is at

least equivalent to the Minimum Retirement Income level, except in the

circumstances provided for in the sixth condition.

(6)	The fifth condition is that if a member chooses not to declare his total

annual income to the authorised provider he must withdraw funds

equivalent to the level of the Minimum Retirement Income level or his

annual maximum withdrawal allowance, whichever is the lower.

(7)	The sixth condition is that, where there are insufficient funds to enable

the annual minimum withdrawal allowance to be set so that a member’s

total income is at least equivalent to the Minimum Retirement Income

level, the allowance should be set at the highest level consistent with the

assessment of the member’s life expectancy.

(8)	The seventh condition is that the maximum and minimum withdrawal

allowances must be set at the same level if a member’s total annual

income, including his maximum withdrawal allowance, is lower than the

Minimum Retirement Income level.

(9)	The eighth condition is that a Retirement Income Fund, and any income

derived from it, must not be capable of assignment or surrender by the

member.’.

Withdrawal from a retirement income fund

Mr Nigel Waterson

Andrew Selous

NC9

To move the following Clause:—

‘(1)	Section 165 of the Finance Act 2004 (c. 12) (pension rules) is amended as

follows.

(2)	In subsection (1) (which sets out the pension rules)—

(a)	in Pension Rule 4, after paragraph (a), insert—

“(aa)

a withdrawal from a Retirement Income Fund,”;

(b)	in Pension Rule 4, after the second appearance of the words “scheme

pension”, insert the words “or a withdrawal from a Retirement Income

Fund”;

(c)	in Pension Rule 6, after paragraph (a), insert—

---

Revised 22 April 2008