House of Commons Amendments

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

24

Clause 93
178
Page 46, line 23, leave out subsection (2)
After Clause 93
179
Insert the following new Clause—


“Activation of pension compensation sharing: supplementary (Scotland)

(1)
For the purposes of this Chapter, a qualifying agreement is an agreement

which—

(a)
has been entered into in such circumstances as the Secretary of State

may prescribe by regulations, and

(b)
is registered in the Books of Council and Session.

(2)
For the purposes of section 93, an order or provision mentioned in

paragraph (f) or (g) of that section is to be regarded as never having taken

effect if the Board does not receive before the end of the period of 2 months

beginning with the relevant date—

(a)
a copy of the relevant documents, and

(b)
such information relating to the transferor and transferee as the

Secretary of State may prescribe by regulations under section

98(1)(b)(ii).

(3)
The relevant date for the purpose of subsection (2) is—

(a)
the date of the extract of the decree or declarator responsible for the

divorce, dissolution or annulment to which the order or provision

relates, or

(b)
if the order is made in relation to disposal of an application under

section 28 of the Matrimonial and Family Proceedings Act 1984, or

of an application under paragraph 2 of Schedule 11 to the Civil

Partnership Act 2004, the date of the disposal.

(4)
The relevant documents referred to in subsection (2) are—

(a)
in the case of an order mentioned in paragraph (f) of section 93, that

order and the decree or declarator responsible for the divorce,

dissolution or annulment to which it relates,

(b)
in the case of provision mentioned in paragraph (g) of that

section—

(i)
that provision and the decree or declarator responsible for

the divorce, dissolution or annulment to which it relates,

and

(ii)
documentary evidence that the agreement containing the

provision is one to which subsection (1)(a) applies.

(5)
The Court of Session or the sheriff may, on the application of any person

having an interest, make an order—

(a)
extending the period of 2 months referred to in subsection (2), and

(b)
where that period has already expired, providing that, if the Board

receives the documents and information concerned before the end

of the period specified in the order, subsection (2) is to be treated as

never having applied.”

25

Clause 94
180
Page 46, line 30, after “compensation” insert “that derive from rights under the

specified scheme”
181
Page 46, line 34, leave out from “means” to “of” in line 35 and insert—

“(a)
where the relevant order or provision specifies a percentage to be

transferred, that percentage;”
182
Page 46, line 36, at end insert—

“(b)
where the relevant order or provision specifies an amount to be

transferred, the lesser of—

(i)
that specified amount, and

(ii)
the cash equivalent of the relevant compensation on the

valuation day.”
183
Page 46, line 40, leave out “under those provisions” and insert “to PPF

compensation that derive from rights under the specified scheme”
184
Page 46, line 43, after “section” insert “—

“the specified scheme” means the pension scheme specified in the

relevant order or provision;”
Clause 96
185
Page 47, line 7, after “Where” insert “any of”
186
Page 47, line 18, at end insert “, or

(b)
if the pension compensation sharing order or provision on which

the debit depends specifies an amount to be transferred, the

percentage which the appropriate amount for the purposes of

subsection (1) of section 94 represents of the amount mentioned in

subsection (2)(b)(ii) of that section.”
Clause 98
187
Page 47, line 37, leave out “or decree” and insert “, decree or declarator”
Clause 100
188
Page 48, line 38, at end insert—

“( )
provision enabling the Board to set off against any PPF

compensation payable to a party to pension compensation sharing

any charges owed to it by that party under the regulations;”
Clause 104
189
Page 50, line 9, leave out from beginning to “after” in line 10 and insert—

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

( )
In section 173 (Pension Protection Fund)—

(a)
in subsection (3)(b)”
190
Page 50, line 11, at end insert—

“(b)
in subsection (5) omit “of this Act”.”

26
191
Page 50, line 11, at end insert—

“( )
After paragraph 18(2)(d) of Schedule 5 (Board of the Pension Protection

Fund) insert—

“(da)
section 168A (charges in respect of pension sharing etc);”.

( )
After paragraph 18(2)(g) of that Schedule insert—

“(ga)
section 99 of, and Schedule 4 to, the Pensions Act 2008

(discharge of liability in respect of pension compensation

credit);

(gb)
section 100 of that Act (charges in respect of pension

compensation sharing costs);

(gc)
section 101 of that Act (supply of information about pension

compensation in relation to divorce etc);

(gd)
section 102 of that Act (supply of information about pension

compensation sharing);”

( )
In paragraph 18(2)(h) of that Schedule—

(a)
after “section 111” insert “of this Act”;

(b)
for “(g)” substitute “(gd)”.”
192
Transpose Clause 104 to after Clause 105
Before Clause 105
193
Insert the following new Clause—


“Charges in respect of pension sharing etc

After section 168 of the Pensions Act 2004 (c. 35) (administration of

compensation) insert—

“Charges in respect of pension sharing etc

168A
Charges in respect of pension sharing etc

(1)
Regulations may make provision for the purpose of enabling the

Board to recover prescribed charges in respect of complying with a

relevant order or provision.

(2)
In subsection (1) “a relevant order or provision” means any of the

following—

(a)
an order under section 23 of the Matrimonial Causes Act

1973 (financial provision in connection with divorce etc:

England and Wales) so far as the order—

(i)
includes provision made by virtue of section 25B or

25C of that Act (powers to include provision about

pensions), and

(ii)
applies in relation to the Board by virtue of section

25E of that Act;

(b)
an order under section 23 of that Act so far as the order

includes provision made by virtue of section 25F of that Act

(attachment of pension compensation on divorce etc:

England and Wales);

(c)
an order under Part 1 of Schedule 5 to the Civil Partnership

Act 2004 (financial provision orders in connection with

27

dissolution of civil partnerships etc: England and Wales) so

far as the order—

(i)
includes provision made by virtue of Part 6 of that

Schedule (powers to include provision about

pensions), and

(ii)
applies in relation to the Board by virtue of Part 7 of

that Schedule;

(d)
an order under Part 1 of that Schedule so far as the order

includes provision made by virtue of paragraph 34A of that

Schedule (attachment of pension compensation on

dissolution of civil partnership etc: England and Wales);

(e)
an order made under any provision corresponding to a

provision mentioned in paragraphs (a) to (d) in force in

Northern Ireland;

(f)
an order under section 8(1)(baa) to (bb) of the Family Law

(Scotland) Act 1985 (orders for financial provision) so far as

the order applies in relation to the Board;

(g)
any provision corresponding to provision which may be

made by such an order and which is contained in a

qualifying agreement (to which section 28(3) of the Welfare

Reform and Pensions Act 1999, or section (Activation of

pension compensation sharing: supplementary (Scotland))(1) of

the Pensions Act 2008 relates) so far as the agreement

applies in relation to the Board;

(h)
an order or provision of a kind mentioned in section 28(1) of

the Welfare Reform and Pensions Act 1999 (pension

sharing) so far as the order or provision applies in relation

to the Board by virtue of section 220 of this Act.

(3)
Regulations under subsection (1) may include provision enabling

the Board to set off against any PPF compensation payable to a

person any charges owed to it by that person under the regulations.

(4)
In this section “PPF compensation” means compensation payable—

(a)
under or by virtue of this Chapter, or

(b)
under or by virtue of Chapter 1 of Part 3 of the Pensions Act

2008 (pension compensation on divorce etc).””
Clause 106
194
Page 50, line 25, after “scheme”” insert “, in paragraph (b), after “began” insert “,

subject to any prescribed exception,”.

(3A)
In that definition,”
195
Page 50, line 28, at end insert—

“(3B)
In paragraph (c) of that definition, after “conditions” insert “, if any,”.”
196
Page 50, line 30, at end insert—

“(5)
Section 316 of that Act (parliamentary control of subordinate legislation) is

amended as follows.

(6)
In subsection (1), after “(2)” insert “, (2A)”.

28

(7)
In subsection (2)(n), at the end add “, except regulations prescribing an

exception for the purposes of paragraph (b) of the definition of “qualifying

pension scheme” in subsection (2) of that section;”

(8)
After subsection (2) insert—

“(2A)
Subsection (1) does not apply to regulations under section 286

prescribing an exception for the purposes of paragraph (b) of the

definition of “qualifying pension scheme” in subsection (2) of that

section, if a draft of the instrument containing them has been laid

before and approved by a resolution of each House of Parliament.””
After Clause 106
197
Insert the following new Clause—

“Restriction on purchase of annuities

(1)
After section 286 of the Pensions Act 2004 (c. 35) insert—

“286A
Restriction on purchase of annuities

(1)
This section applies to any qualifying pension scheme which has

not been fully wound up.

(2)
The trustees of the scheme must not purchase or agree to purchase

annuities on behalf of qualifying members unless—

(a)
before 26 September 2007 the trustees entered into a binding

commitment to purchase the annuities, or

(b)
the purchase of the annuities is approved by the scheme

manager on the application of the trustees and any

condition imposed under subsection (4)(b) is satisfied.

(3)
An application under subsection (2)(b) must be in writing and must

set out the trustees’ reasons for applying.

(4)
An approval under subsection (2)(b)—

(a)
may be given if the scheme manager thinks it appropriate to

do so, and

(b)
may be made subject to such conditions (if any) as the

scheme manager thinks appropriate.

(5)
If the trustees fail to comply with subsection (2), the purchase or

agreement to purchase is void if the scheme manager so

determines.

(6)
A determination under subsection (5) may be made if the scheme

manager thinks it appropriate to do so.

(7)
When making a decision under this section as to whether

something is appropriate, the scheme manager may take into

account such factors as are in the scheme manager’s opinion

relevant.

(8)
An application under the Financial Assistance Scheme (Halting

Annuitisation) Regulations 2007 (S.I. 2007/2533) that has not been

determined before 26 June 2008 has effect as if made under

subsection (2)(b).

29

(9)
An approval given under those regulations has effect for the

purposes of subsection (2)(b) as if given under this section.

(10)
In this section “qualifying pension scheme”, “qualifying member”

and “scheme manager” have the same meaning as in section 286.

(11)
Regulations may provide that references in this section to the

scheme manager have effect as references to such person as may be

prescribed.”

(2)
The amendment made by subsection (1) must be taken to have had effect

from 26 June 2008.

(3)
In section 316(2) of the Pensions Act 2004 (c. 35) (statutory instruments

subject to affirmative resolution procedure), after paragraph (n) insert—

“(na)
regulations under section 286A(11) (power to provide that

references in section 286A to the scheme manager are to

have effect as references to a prescribed person);”.”
Before Clause 107
198
Insert the following new Clause—


“Amendments of provisions of Pensions Act 2004 relating to contribution

notices or financial support directions

Schedule (Contribution notices and financial support directions under Pensions

Act 2004) (which amends the Pensions Act 2004 (c. 35) in relation to

contribution notices and financial support directions) has effect.”
199
Insert the following new Clause—

“Review of the initial operation of sections 38A and 38B of the Pensions Act 2004

(1)
The Secretary of State must carry out a review of the operation of sections

38A and 38B of the Pensions Act 2004 (c. 35) (which are inserted into that

Act by paragraph 2 of Schedule (Contribution notices and financial support

directions under Pensions Act 2004) to this Act) during the period of 4 years

beginning with the day on which that paragraph fully comes into force

(“the commencement date”).

(2)
The Secretary of State must set out the conclusions of the review in a report

and lay the report before Parliament.

(3)
The report must be laid before the end of the period of 5 years beginning

with the commencement date.”
After Clause 108
200
Insert the following new Clause—

“Payments to employers

In section 37 of the Pensions Act 1995 (payment of surplus to employer)

after subsection (1) insert—

“(1A)
But this section does not apply in the case of any of the payments

listed in paragraphs (c) to (f) of section 175 of the Finance Act 2004

30

(authorised employer payments other than public service scheme

payments or authorised surplus payments).””
After Clause 110
201
Insert the following new Clause—

“Delegation of powers by the Regulator

(1)
The Pensions Act 2004 (c. 35) is amended as follows.

(2)
In paragraph 21 of Schedule 1 (regulations relating to delegation of the

Pensions Regulator’s functions), the existing provision becomes sub-

paragraph (1).

(3)
For paragraph (e) of that sub-paragraph substitute—

“(e)
permitting the Regulator to authorise such persons, in

such circumstances and under such arrangements, as the

Regulator may determine, to exercise on behalf of the

Regulator—

(i)
the power to determine whether to exercise any of

the functions listed in sub-paragraph (2);

(ii)
the power to exercise any of the functions listed in

sub-paragraph (2) or such other functions as may

be prescribed.”

(4)
After that sub-paragraph insert—

  “(2)
The functions mentioned in sub-paragraph (1)(e) are—

(a)
the power to issue an improvement notice under section

13;

(b)
the power to issue a third party notice under section 14;

(c)
the power to recover unpaid contributions under section

17;

(d)
the power to require information under section 72;

(e)
the power to vary or revoke a determination, order,

notice or direction under section 101;

(f)
the power to require payment of a penalty under section

10 of the Pensions Act 1995;

(g)
the power to issue a compliance notice under section 31

of the Pensions Act 2008;

(h)
the power to issue a third party compliance notice under

section 32 of that Act;

(i)
the power to issue an unpaid contributions notice under

section 33 of that Act;

(j)
the power to issue a fixed penalty notice under section 35

of that Act;

(k)
the power to issue an escalating penalty notice under

section 36 of that Act;

(l)
the power to recover penalties under section 37 of that

Act;

(m)
the power to review a notice under section 38 of that Act;