House of Commons Amendments

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

17

Clause 58
139
Page 29, line 32, leave out “may” and insert “shall”
140
Page 30, line 6, leave out “powers conferred by subsection (1) are” and insert

“power to make provision in pursuance of subsection (1) is”
Clause 59
141
Page 30, line 22, after “order” insert “under section 58”
142
Page 30, line 25, after “order” insert “under section 58”
143
Page 30, line 27, after “order” insert “under section 58”
144
Page 30, line 29, after “order” insert “under section 58”
145
Page 30, line 35, after “order” insert “under section 58”
Clause 61
146
Page 31, line 24, leave out subsection (4)
After Clause 64
147
Insert the following new Clause—

“Review

(1)
The Secretary of State must appoint a person to review in relation to a

scheme established under section 58—

(a)
the effect of provision made under section 61 (maximum amount of

contributions),

(b)
the effect of any restrictions on rights to transfer into the scheme or

transfer out to another pension scheme, and

(c)
such other matters as the Secretary of State may direct.

(2)
The appointment under subsection (1) must be made on or after the later

of—

(a)
1 January 2017;

(b)
the end of five years beginning with the first day on which

contributions are paid to the scheme by or in respect of members.

(3)
The person appointed under subsection (1) must—

(a)
prepare a report of the review, and

(b)
send a copy of the report to the Secretary of State.

(4)
The Secretary of State must lay before Parliament a copy of the report.

(5)
The Secretary of State may pay to the person appointed under subsection

(1) such remuneration and expenses as the Secretary of State may

determine.”
Clause 69
148
Page 34, line 19, leave out “corporation’s” and insert “Authority’s”

18

Clause 72
149
Page 35, line 11, after “may” insert “, with the consent of the Treasury,”
150
Page 35, line 15, leave out from first “conditions” to end of line 16 and insert—

“(c)
in the case of a loan, must be given on a condition requiring the loan

to be repaid with interest at a rate approved by the Treasury.

(3)
Section 5 of the National Loans Act 1968 (rates of interest on certain loans

out of the National Loans Fund) has effect as respects the rate of interest on

a loan under this paragraph as it has effect as respects a rate of interest

within subsection (1) of that section.”
After Clause 74
151
Insert the following new Clause—

“Executive members

(1)
Schedule 6 to the Pensions Act 2007 (c. 22) is amended as follows.

(2)
For the italic cross-heading immediately before paragraph 6, substitute

“Executive members and employees”.

(3)
For paragraph 6(6) (chief executive and other executive members to be

employees) substitute—

  “(6)
The chief executive is to be an employee of the Authority.

    (6A)
The Authority may appoint any other executive members as

employees.”

(4)
In paragraph 7 (terms and conditions of executive members)—

(a)
in sub-paragraphs (1) and (2), before “employed by the Authority”

insert “, if appointed as employees under paragraph 6(6A), are to

be”;

(b)
in sub-paragraph (3)(a), omit “employees who are”.”
Clause 76
152
Page 38, line 24, leave out paragraphs (a) and (b) and insert “, omit subsections (1),

(2) and (4).”
Clause 77
153
Page 38, line 34, leave out subsection (2)
154
Page 39, line 11, leave out “an employee or” and insert “a”
155
Page 39, line 12, leave out “employee or”
156
Page 39, line 12, at end insert “(subject to sections 33(6) and 34(6))”
157
Page 39, line 14, leave out paragraph (a)
158
Page 39, line 17, at end insert “, and related expressions are to be read accordingly”

19

After Clause 78
159
Insert the following new Clause—

“Directors

(1)
A person who holds office as a director of a company is not, by virtue of

that office or of any employment by the company, a worker for the

purposes of this Part, unless—

(a)
the person is employed by the company under a contract of

employment, and

(b)
there is at least one other person who is employed by the company

under a contract of employment.

(2)
In this section, “company” includes any body corporate.”
Clause 84
160
Leave out Clause 84
After Clause 84
161
Insert the following new Clause—

“Persons working on vessels

(1)
Subject to regulations under this section, a person employed or engaged in

any capacity on board a ship is not, by virtue of that employment or

engagement, a worker for the purposes of this Part.

(2)
The Secretary of State may by regulations provide that, to the extent and for

the purposes specified in the regulations, the relevant provisions apply,

with or without modification, in relation to a person employed or engaged

in any capacity on board a ship (whether or not that person is working or

ordinarily works in any part of the United Kingdom).

(3)
For the purposes of this section, the relevant provisions are—

(a)
this Part (and any enactment as amended by this Part), and

(b)
any provision in force in Northern Ireland corresponding to any

provision of this Part (and any enactment as amended by such a

provision).

(4)
Regulations under this section—

(a)
may provide for a provision to apply in relation to individuals

whether or not they are British subjects;

(b)
may provide for a provision to apply in relation to bodies corporate

whether or not they are incorporated under the law of a part of the

United Kingdom;

(c)
may do so even where the application may affect the individual’s

or body’s activities outside the United Kingdom.

(5)
Regulations under this section—

(a)
may provide for a court or tribunal on which jurisdiction is

conferred by the relevant provisions to have jurisdiction, in respect

of offences or other matters, for the purposes of any provision as it

applies by virtue of the regulations;

20

(b)
may exclude from the operation of section 3 of the Territorial

Waters Jurisdiction Act 1878 (c. 73) (consents required for

prosecutions) proceedings for offences under any provision as it

applies by virtue of the regulations;

(c)
may provide that such proceedings may not be brought without

such consent as may be required by the regulations.

(6)
Any jurisdiction conferred on a court or tribunal under this section is

without prejudice to jurisdiction exercisable apart from this section by that

or any other court or tribunal.

(7)
In this section, “ship” includes—

(a)
a hovercraft within the meaning of the Hovercraft Act 1968 (c. 59),

and

(b)
every description of vessel used in navigation.”
162
Insert the following new Clause—

“Persons in offshore employment

(1)
Her Majesty may by Order in Council provide that, to the extent and for the

purposes specified in the Order, the relevant provisions apply, with or

without modification, in relation to a person in offshore employment.

(2)
For the purposes of this section, the relevant provisions are—

(a)
this Part (and any enactment as amended by this Part), and

(b)
any provision in force in Northern Ireland corresponding to any

provision of this Part (and any enactment as amended by such a

provision).

(3)
In this section, “offshore employment” has the same meaning as in section

201(1) of the Employment Rights Act 1996 (c. 18).

(4)
An Order in Council under this section—

(a)
may provide for a provision to apply in relation to individuals

whether or not they are British subjects;

(b)
may provide for a provision to apply in relation to bodies corporate

whether or not they are incorporated under the law of a part of the

United Kingdom;

(c)
may do so even where the application may affect the individual’s

or body’s activities outside the United Kingdom.

(5)
An Order in Council under this section—

(a)
may make different provision for different cases;

(b)
may provide for a court or tribunal on which jurisdiction is

conferred by the relevant provisions to have jurisdiction, in respect

of offences or other matters, for the purposes of any provision as it

applies by virtue of the Order;

(c)
may (without prejudice to subsection (1) and paragraph (a))

provide for a provision to apply in relation to any person in

employment in a part of the areas referred to in section 201(1)(a)

and (b) of the Employment Rights Act 1996 (c. 18);

(d)
may exclude from the operation of section 3 of the Territorial

Waters Jurisdiction Act 1878 (c. 73) (consents required for

prosecutions) proceedings for offences under any provision as it

applies by virtue of the Order;

21

(e)
may provide that such proceedings may not be brought without

such consent as may be required by the Order.

(6)
Any jurisdiction conferred on a court or tribunal under this section is

without prejudice to jurisdiction exercisable apart from this section by that

or any other court or tribunal.

(7)
No Order in Council may be made under this section unless a draft of the

Order has been laid before and approved by a resolution of each House of

Parliament.”
Clause 86
163
Page 41, line 39, after “between” insert “the provider of”
164
Page 41, line 39, at end insert “or (where section 8 applies) a worker in relation to

whom there are direct payment arrangements (within the meaning of section 111A

of the Pension Schemes Act 1993 (c. 48)) between the worker and the employer;”
165
Page 42, line 12, leave out ““employee””
166
Page 42, line 12, after ““employment”” insert “and related expressions”
167
Page 42, leave out lines 16 to 19 and insert “which is neither a defined benefits

scheme nor a money purchase scheme;”
168
Page 42, line 42, at end insert—

““provider”—

(a)
in relation to a personal pension scheme to which section 25

applies, means the person referred to in subsection (1)(b) of

that section;

(b)
in relation to any other personal pension scheme, has the

meaning prescribed;”
169
Page 42, line 45, at end insert—

““the Regulator” means the Pensions Regulator;”
170
Page 42, line 45, at end insert—

““tax year” means the 12 months beginning with 6th April in any

year;”
Clause 89
171
Page 43, line 36, leave out “uprated” and insert “revalued”
172
Page 44, line 2, leave out from first “the” to end of line 3 and insert “amount

referred to in subsection (2)(d).”
173
Page 44, line 4, leave out subsection (5)
174
Page 44, line 9, leave out “paragraph 3 of Schedule 4C to this Act” and insert

“paragraph 1A of Schedule 4C to this Act by virtue of paragraph 1D(a) of that

Schedule (the GRB amount)”
After Clause 89
175
Insert the following new Clause—

22


“Effect of entitlement to guaranteed minimum pension

(1)
The Pension Schemes Act 1993 (c. 48) is amended as follows.

(2)
In section 46 (effect of entitlement to guaranteed minimum pensions on

payment of social security benefits) after subsection (1) insert—

“(1A)
Subsection (1) does not apply in relation to a relevant benefit if the

weekly rate of the additional pension in that benefit is determined

under section 45(2A) of the Social Security Contributions and

Benefits Act 1992 (retirement in tax year after 5th April 2020).

(1B)
In subsection (1A) “a relevant benefit” means—

(a)
a Category A or Category B retirement pension, or

(b)
a widowed parent’s allowance.”

(3)
After section 46 insert—

“46A
Retirement in tax year after 5th April 2020

(1)
Subsection (2) applies where—

(a)
for any period a person is entitled to a Category A or

Category B retirement pension, or a widowed parent’s

allowance, under the 1992 Act (“the benefit”),

(b)
the person is entitled to one or more guaranteed minimum

pensions for that period, and

(c)
the weekly rate of the additional pension in the benefit is

determined under section 45(2A) of the 1992 Act (retirement

in tax year after 5th April 2020).

(2)
The weekly rate of the benefit shall, for the period mentioned in

subsection (1)(a), be reduced by an amount calculated in

accordance with regulations.

(3)
Regulations under subsection (2) must provide for the amount of

the reduction to be calculated in such a way that it does not exceed

such part of the weekly rate of the additional pension in the benefit

as is attributable to earnings factors for tax years ending before the

principal appointed day.

(4)
The effect of the reductions made under subsection (2) in relation to

any person must be actuarially equivalent to the effect of the

reductions that, but for section 46(1A), would be made under

section 46(1) in relation to that person.

(5)
The Secretary of State must require the Government Actuary or

Deputy Government Actuary (“the Actuary”) to prepare a report on

how actuarial equivalence should be determined for the purposes

of this section.

(6)
In preparing the report the Actuary must consult such persons as

appear to the Actuary to be appropriate.

(7)
The Secretary of State must lay the report before Parliament.

(8)
Having considered the report, the Secretary of State must by

regulations make provision for determining actuarial equivalence

for the purposes of this section.

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(9)
If any recommendation in the report is not followed in the

regulations, the Secretary of State must prepare and lay before

Parliament a report explaining why.

(10)
In this section “the 1992 Act” means the Social Security

Contributions and Benefits Act 1992.””

(4)
In section 185(2) (consultation) at the end of paragraph (c) insert “or 46A(2);

or”.

(5)
In section 186(3) (parliamentary control) before paragraph (a) insert—

“(za)
regulations made by virtue of section 46A(5C), or”.”
176
Insert the following new Clause—


“Additional State Pension etc: minor and consequential amendments

Schedule (Additional State Pension etc: minor and consequential amendments)

(Additional State Pension etc: minor and consequential amendments) has

effect.”
After Clause 90
177
Insert the following new Clause—


“Contracting-out: abolition of all protected rights

(1)
As from the contracting-out abolition date, pension schemes are not

required to make special provision in relation to the protected rights of

members.

(2)
Accordingly—

(a)
the provisions of the Pension Schemes Act 1993 (c. 48) (“the 1993

Act”) within subsection (3) cease to have effect as from that date,

and

(b)
sections 25A, 27A and 32A of the 1993 Act (as inserted by

paragraphs 9, 10 and 12 of Schedule 4 to the Pensions Act 2007 (c.

22)) are not to have any effect as from that date (in spite of section

15(4) of that Act of 2007).

(3)
The provisions of the 1993 Act within this subsection are—

(a)
section 10 (protected rights and money purchase benefits),

(b)
section 26 (persons who may establish scheme),

(c)
section 27 (identification and valuation of protected rights),

(d)
section 30 (securing of liability for protected rights),

(e)
section 32 (suspension or forfeiture), and

(f)
section 33A (appropriate schemes: “blowing the whistle”).

(4)
In this section—

“the contracting-out abolition date” means the day appointed under

section 30 of the Pensions Act 2007 (c. 22) for the coming into force

of section 15(1) of that Act (abolition of contracting-out for defined

contribution pension schemes), and

“protected rights” has the same meaning as in the 1993 Act (see section

10 of that Act).”