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Consideration of Bill: 22nd April 2008                  

1752

 

Pensions Bill, continued

 
 

“(aa)    

a withdrawal from a Retirement Income Fund,”;

 

(d)    

in Pension Rule 6, after the second appearance of the words “scheme

 

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

 

Fund”.’.

 


 

Minimum retirement income

 

Mr Nigel Waterson

 

Andrew Selous

 

NC10

 

To move the following Clause:—

 

‘(1)    

The amount of the Minimum Retirement Income in respect of each tax year shall

 

be set by the Chancellor of the Exchequer by order at the level of the standard

 

minimum guarantee prescribed under section 2 of the State Pension Credit Act

 

2002 (c. 16).

 

(2)    

Before making an order under subsection (1), the Chancellor of the Exchequer

 

shall consult such persons as he considers appropriate.

 

(3)    

An order under this section (other than the order that applies to the first tax year

 

during which this section is in force) must be made on or before 31st January of

 

the tax year before the tax year to which the order applies.’.

 


 

Provision for conditionally indexed arrangements etc

 

Mr Nigel Waterson

 

Andrew Selous

 

NC11

 

To move the following Clause:—

 

‘(1)    

Schedule [Provision for conditionally indexed arrangements etc] which—

 

(a)    

amends section 84 and Schedule 3 of the Pension Schemes Act 1993

 

(Basis of Revaluation);

 

(b)    

amends section 51 of the Pensions Act 1995 (annual increase in rate of

 

pension);

 

(c)    

amends section 67 of the Pensions Act 1995 (restriction on powers to

 

alter schemes);

 

(d)    

amends Schedule 7 to the Pension Schemes Act 2004 (pension

 

compensation provision); and

 

(e)    

makes provision for consequential amendments for the operation of

 

conditional indexation in relation to a scheme that satisfies prescribed

 

conditions, has effect.

 

(2)    

The amendments made by Schedule [Provisions for conditionally indexed

 

arrangements etc] do not apply in relation to any scheme or arrangement in

 

existence prior to the coming into force of this section.

 

(3)    

In this section conditional indexation relates to benefits provided by a

 

conditionally indexed scheme, which—


 
 

Consideration of Bill: 22nd April 2008                  

1753

 

Pensions Bill, continued

 
 

(a)    

was established after the coming into force of this section;

 

(b)    

is not a money purchase scheme as defined by section 181(1) of the

 

Pension Schemes Act of 1993;

 

(c)    

provides that indexation of pensions both in deferment and in payment

 

may be modified in accordance with prescribed requirements; and

 

(d)    

complies with such other requirements as may be prescribed.’.

 


 

Investment principles

 

Mr Nigel Waterson

 

Andrew Selous

 

James Duddridge

 

NC12

 

To move the following Clause:—

 

‘The Authority must have regard to the United Nations principles for responsible

 

investment (“UN PRI”) and adherence to those principles will be part of the

 

contractual arrangements with fund managers in respect of—

 

(a)    

addressing environmental, social and corporate governance issues in

 

investment policy statements;

 

(b)    

assessing the capabilities of internal and external investment managers to

 

incorporate such issues;

 

(c)    

asking investment managers to report on their engagement with such

 

issues;

 

(d)    

including UN PRI requirements in requests for proposals;

 

(e)    

aligning investment mandates, monitoring procedures and performance

 

indicators with the UN PRI.’.

 


 

Periodic reviews

 

Mr Nigel Waterson

 

Andrew Selous

 

James Duddridge

 

NC13

 

To move the following Clause:—

 

‘The Regulator, in conjunction with the providers and employers of qualifying

 

schemes, may conduct risk-based periodic reviews to determine whether an

 

employer has consistently paid contributions lower than those which would have

 

been required under Personal Accounts.’.

 



 
 

Consideration of Bill: 22nd April 2008                  

1754

 

Pensions Bill, continued

 
 

Penalties for failure to comply with requirements on consultation

 

Mr Terry Rooney

 

NC14

 

To move the following Clause:—

 

‘(1)    

The Pensions Act 2004 (c. 35) is amended as follows.

 

(2)    

After section 261 (further provisions about regulations relating to consultation)

 

insert—

 

“261A    

Section 10 of the Pensions Act 1995 (c. 26) (civil penalties) applies to

 

any person who has failed to comply with any requirement imposed

 

under sections 259 to 261 or the regulations made under them.”’.

 


 

Regulations relating to indexation and revaluation

 

Mr Nigel Waterson

 

Andrew Selous

 

James Duddridge

 

NC15

 

To move the following Clause:—

 

‘The Secretary of State shall make regulations prescribing circumstances in

 

which a statutory override can be applied that enables scheme rules to be

 

amended to reflect the Pensions Act 2004 changes to the indexation cap for

 

service going forward and for the change in the revaluation cap introduced under

 

section 87.’.

 



 
 

Consideration of Bill: 22nd April 2008                  

1755

 

Pensions Bill, continued

 
 

Earnings link

 

Jim Cousins

 

Ms Katy Clark

 

Harrry Cohen

 

Jon Trickett

 

Colin Burgon

 

Lynne Jones

 

Total signatories: 19

 

John McDonnell

 

Jeremy Corbyn

 

NC16

 

To move the following Clause:—

 

‘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, no later than

 

the publication of the Pre-Budget Report for the financial year 2009-10.’.

 


 

Open market option as the default for the administration of personal accounts

 

Danny Alexander

 

Paul Rowen

 

NC20

 

To move the following Clause:—

 

‘(1)    

An annuity bought with funds saved through the scheme established under

 

section 58 or a qualifying scheme is a lifetime annuity if—

 

(a)    

it is payable by an insurance company,

 

(b)    

the member was required to select the insurance company from the open

 

market,

 

(c)    

it is payable until the member’s death or until the later of the member’s

 

death and the end of a term certain not exceeding 10 years, and

 

(d)    

it is a level annuity, an increasing annuity or a relevant linked annuity.

 

(2)    

An annuity is a level annuity if its amount does not vary from year to year.

 

(3)    

An annuity is an increasing annuity if its amount increases from year to year.

 

(4)    

An annuity is a relevant linked annuity if its amount varies from year to year but

 

only in line with changes in (or by an amount which does not exceed the amount

 

by which it would vary if it varied in line with changes in)—

 

(a)    

the retail prices index,

 

(b)    

the market value of freely marketable assets, or

 

(c)    

an index reflecting the market value of freely marketable assets.

 

(5)    

“Freely marketable assets” means assets which are sold on the open market at a

 

price not determined by the member.’.

 



 
 

Consideration of Bill: 22nd April 2008                  

1756

 

Pensions Bill, continued

 
 

Uprating pensions in line with earnings

 

Danny Alexander

 

Paul Rowen

 

NC21

 

To move the following Clause:—

 

‘The Pensions Act 2007 is amended as follows—

 


 

“In Section 5, subsection 4, delete from ‘means’ to end and insert ‘the tax year

 

beginning 1st April 2009’.”.’.

 


 

Terminally ill claimants and the Pension Protection Fund

 

Mr Mark Hendrick

 

NC22

 

To move the following Clause:—

 

‘(1)    

Where the Board is satisfied that a qualifying member is “terminally ill”, that

 

member, regardless of whether they have reached normal pension age, shall be

 

entitled to a lump sum payment equal to twice their annual entitlement under the

 

scheme if they retired at normal pension age.

 

(2)    

A person is “terminally ill” at any time if at that time they suffer from a

 

progressive disease and their death in consequence of that disease can reasonably

 

be expected within six months.’.

 


 

Scope of financial assistance scheme

 

Mark Durkan

 

Mr David Drew

 

Mrs Ann Cryer

 

NC23

 

Parliamentary Star    

To move the following Clause:—

 

‘The Financial Assistance Scheme shall cover those pension schemes which have

 

registered with the Department for Work and Pensions by 1st January 2008 and

 

which would have been entitled to assistance by either the Financial Assistance

 

Scheme or the Pension Protection Fund but for decisions taken either by the

 

company sponsoring the pension scheme or by the Trustees of the pension

 

scheme where the insolvency event occurred before the setting up of the Pension

 

Protection Fund but the winding up occurred after that date.’.

 



 
 

Consideration of Bill: 22nd April 2008                  

1757

 

Pensions Bill, continued

 
 

Mr Nigel Waterson

 

Andrew Selous

 

James Duddridge

 

29

 

Page  2,  line  28  [Clause  3],  leave out subsection (5) and insert—

 

‘( )    

Subsection (2) does not apply if there are prescribed arrangements under which

 

the jobholder is entitled to become an active member, with effect from the

 

automatic enrolment date, of a qualifying scheme which is a personal pension

 

scheme of a prescribed description.

 

( )    

An order will be made under this section to prescribe the terms under which it is

 

applicable, and the basis on which its application may be withdrawn with respect

 

to specific scheme providers or employers.’.

 

Danny Alexander

 

Paul Rowen

 

38

 

Page  2,  line  37  [Clause  3],  at end insert—

 

‘(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 58.

 

(9)    

Any report published under subsection (8) shall include details on the number of

 

pensioners facing marginal deduction rates of 40 per cent. and above.’.

 


 

Danny Alexander

 

Paul Rowen

 

37

 

Page  6,  line  4  [Clause  9],  leave out lines 5 to 7 and insert ‘that all jobholders and

 

workers are entitled to 30 minutes of one to one generic advice either by phone or in

 

person, depending on their preference, that is—

 

(a)    

independent,

 

(b)    

publicly funded, and

 

(c)    

delivered through at least one advice centre in every parliamentary

 

constituency.

 

(3)    

A scheme under section 58 may not be implemented before the entitlement set out

 

in subsection (2) can be delivered.

 

(4)    

The Secretary of State must publish an annual report on the cost of delivering the

 

entitlement set out in subsection (2).’.

 

Mr Nigel Waterson

 

Andrew Selous

 

2

 

Page  6,  line  40  [Clause  12],  leave out ‘wages, commission, bonuses and overtime’

 

and insert ‘and wages’.

 



 
 

Consideration of Bill: 22nd April 2008                  

1758

 

Pensions Bill, continued

 
 

Mr Nigel Waterson

 

Andrew Selous

 

James Duddridge

 

31

 

Page  7,  line  5  [Clause  12],  at end insert—

 

‘(4)    

For the purposes of scheme contributions by and on behalf of members of a

 

qualifying scheme other than that established by Chapter 4 of this Act,

 

subsections12(1) to (3) may be disregarded if contributions are made in relations

 

to the individuals’ total basic earnings.’.

 

Mr Nigel Waterson

 

Andrew Selous

 

James Duddridge

 

30

 

Page  7,  line  22  [Clause  14],  at end insert—

 

‘(c)    

for the purposes of section 19(1)(b) and section 25, 12 months.’.

 


 

Mr Nigel Waterson

 

Andrew Selous

 

James Duddridge

 

32

 

Page  9,  line  14  [Clause  19],  at end insert—

 

‘(4)    

The employer must not significantly alter components of an employee’s earnings

 

with the result of appreciably reducing contributions to qualifying schemes below

 

that which would be achieved in a Personal Account.’.

 


 

Mr Nigel Waterson

 

Andrew Selous

 

James Duddridge

 

33

 

Page  11,  line  10  [Clause  25],  at end insert—

 

‘(c)    

the employer must not significantly alter components of an employee’s

 

earnings with the result of appreciably reducing contributions to

 

qualifying schemes below that which would be achieved in a Personal

 

Account.’.

 


 

Mr Secretary Purnell

 

34

 

Page  31,  line  9  [Clause  60],  leave out ‘, but only in respect of reasonable expenses’.


 
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