House of Commons Amendments

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

5

Clause 13
23
Page 7, line 9, leave out subsection (2)
24
Page 7, line 11, leave out “may” and insert “must”
25
Page 7, line 17, leave out “may” and insert “must”
Clause 14
26
Page 7, line 22, leave out paragraph (b)
27
Page 7, line 27, at end insert—

“( )
A reference in any provision to the relevant pay reference period is a

reference to the period determined in accordance with regulations under

this section, as they apply for the purposes of that provision in the case

concerned.”
Clause 15
28
Page 7, line 36, at end insert—

“(1A)
The Secretary of State may by regulations provide that subsection (1)(b)

does not apply in relation to a scheme to which section 24 or (Quality

requirement: other personal pension schemes) applies, if prescribed

requirements are satisfied.”
Clause 16
29
Page 8, line 9, leave out “the scheme is an occupational pension scheme which” and

insert “it”
30
Page 8, line 11, leave out “the scheme” and insert “it”
31
Page 8, line 11, at end insert “, and

(c)
it satisfies any further conditions prescribed.”
32
Page 8, line 12, after “conditions” insert “mentioned in subsection (1)(b)”
Clause 18
33
Page 8, line 33, leave out from “scheme” to end of line 35
Clause 19
34
Page 8, line 40, leave out “rules”
35
Page 9, line 1, leave out “must be at least” and insert “, however calculated, must

be equal to or more than”
36
Page 9, line 2, after “the” insert “relevant”
37
Page 9, line 4, leave out “must be at least” and insert “, however calculated, must

be equal to or more than”
38
Page 9, line 5, after “the” insert “relevant”

6

Clause 21
39
Page 9, line 36, leave out “such persons” and insert “them”
40
Page 9, line 38, at end insert “J and”
Clause 22
41
Page 10, line 18, leave out “age of 65” and insert “appropriate age”
42
Page 10, line 18, at end insert—

“( )
The appropriate age is 65 or any higher age prescribed.”
43
Page 10, line 23, at end insert—

“( )
Section 12(1) (qualifying earnings) applies for the purposes of this section

as if the reference to a pay reference period were a reference to a tax year.”
Clause 23
44
Page 10, line 25, leave out from beginning to “has” and insert “A hybrid scheme

that”
45
Page 10, line 29, at end insert “, subject to any prescribed modifications”
46
Page 10, line 30, leave out “section 20” and insert “sections 20 to 22, subject to any

prescribed modifications”
Clause 25
47
Page 11, line 2, leave out “A personal pension” and insert—

“( )
This section applies to a personal pension scheme if the operation of the

scheme—

(a)
is carried on in such a way as to be a regulated activity for the

purposes of the Financial Services and Markets Act 2000 (c. 8), and

(b)
is carried on in the United Kingdom by a person who is in relation

to that activity an authorised person or an exempt person under

section 19 of that Act.

( )
The”
48
Page 11, line 7, after “between” insert “the provider of”
49
Page 11, line 9, leave out “must be at least” and insert “, however calculated, must

be equal to or more than”
50
Page 11, line 10, after “the” insert “relevant”
51
Page 11, line 12, after “jobholder” insert “under the agreement referred to in

subsection (3)”
52
Page 11, line 13, after third “the” insert “relevant”
53
Page 11, line 15, at end insert “the provider of”
54
Page 11, line 17, leave out “at least equal” and insert “, however calculated, are

equal to or more than”
55
Page 11, line 26, leave out “trustees or managers” and insert “provider”

7

After Clause 25
56
Insert the following new Clause—

“Quality requirement: other personal pension schemes

The Secretary of State may by regulations make provision as to the quality

requirement to be satisfied in the case of a personal pension scheme to

which section 25 does not apply.”
57
Insert the following new Clause—

“Sections 19, 23 and 25: certification that quality requirement is satisfied

(1)
The Secretary of State may by regulations provide that, subject to provision

within subsection (6)(f), a scheme to which this section applies is to be

taken to satisfy the relevant quality requirement in relation to any

jobholder of an employer if a certificate given in accordance with the

regulations is in force in relation to the employer.

(2)
The certificate must state that, in relation to the jobholders of the employer

who are active members of the scheme, the scheme is in the opinion of the

person giving the certificate able to satisfy the relevant quality requirement

throughout the certification period.

(3)
This section applies to—

(a)
a money purchase scheme to which section 19 applies;

(b)
a personal pension scheme to which section 25 applies;

(c)
a hybrid scheme, to the extent that requirements within section

23(1)(a) apply.

(4)
The “relevant quality requirement”—

(a)
for a scheme within subsection (3)(a), means the quality

requirement under section 19;

(b)
for a scheme within subsection (3)(b), means the quality

requirement under section 25;

(c)
for a scheme within paragraph (c) of subsection (3), means the

requirements mentioned in that paragraph.

(5)
Regulations may make further provision in relation to certification under

this section.

(6)
Regulations may in particular make provision—

(a)
as to the period for which a certificate is in force (the “certification

period”);

(b)
as to the persons by whom a certificate may be given;

(c)
as to procedures in connection with certification or where a

certificate has been given;

(d)
requiring persons to have regard to guidance issued by the

Secretary of State;

(e)
requiring an employer to calculate the amount of contributions that

a scheme, and any section 25 agreements, required to be paid by or

in respect of any jobholder in the certification period;

(f)
as to cases where the requirements of a scheme, and any section 25

agreements, as to payment of contributions by or in respect of

jobholders of an employer did not satisfy prescribed conditions.

8

(7)
Provision within subsection (6)(f) includes in particular provision for a

scheme not to be treated by virtue of regulations under this section as

having satisfied the relevant quality requirement unless prescribed steps

are taken (which may include the making of prescribed payments).

(8)
In subsection (6) “section 25 agreements” means the agreement required, in

the case of a scheme within subsection (3)(b), by section 25(4) and any

agreement required, in the case of such a scheme, by section 25(6).

(9)
The Secretary of State may by order repeal this section.”
Clause 27
58
Page 13, line 1, leave out “rules”
Before Clause 28
59
Insert the following new Clause—

“Effect of freezing order or assessment period

(1)
Where a jobholder is an active member of a qualifying scheme and a

freezing event occurs in relation to the scheme, the jobholder does not, for

the purposes of this Chapter, cease to be an active member of the scheme,

and the scheme does not, for those purposes, cease to be a qualifying

scheme, by virtue of any relevant provision.

(2)
Where a worker is an active member of a scheme that satisfies the

requirements of section 8 and a freezing event occurs in relation to the

scheme, the worker does not, for the purposes of section 8(1)(c), cease to be

an active member of the scheme by virtue of any relevant provision.

(3)
In this section—

“freezing event” in relation to a scheme means—

(a)
the making of a freezing order under section 23 of the

Pensions Act 2004 (c. 35) in relation to the scheme, or

(b)
the beginning of an assessment period within the meaning

of section 132 of that Act in relation to the scheme;

“relevant provision” means—

(a)
in relation to a freezing order, provision contained in the

order, or the provision made with respect to the order by

section 23 of the Pensions Act 2004 (c. 35);

(b)
in relation to an assessment period, the provision made with

respect to the period by section 133 of that Act.”
Clause 28
60
Page 13, line 21, after first “scheme” insert “—

(a)
”
61
Page 13, line 22, at end insert “, or

(b)
by increasing the amount required to be paid in contributions, in

order for the scheme to satisfy the requirements contained in

section 19(1) or those requirements as modified under section

23(1)(a).

9

( )
An increase under subsection (1)(b) may be made only—

(a)
by increasing the amount of any contribution, directly or by

modifying the basis on which it is calculated, or

(b)
by increasing the frequency of any contributions.”
62
Page 13, line 27, leave out “the rules of”
Clause 29
63
Page 13, line 33, leave out “an occupational pension” and insert “a”
64
Page 13, line 34, leave out “6(3) or” and insert “or 6(3), or of an occupational

pension scheme in accordance with section”
65
Page 13, line 36, at end insert “(in the case of an occupational pension scheme) or

the provider of the scheme (in the case of a personal pension scheme)”
66
Page 13, line 36, at end insert—

“( )
Regulations prescribing arrangements for the purposes of section 3(2), 5(2),

6(3) or 8(2) may require the employer to make such a deduction or payment

at any time on or after the date with effect from which the jobholder is to

become an active member of a scheme under the arrangements.”
Clause 30
67
Page 14, line 11, leave out subsection (4)
Clause 31
68
Page 14, line 15, leave out “referred to in this Chapter as”
69
Page 14, line 16, leave out “an employer” and insert “a person”
70
Page 14, line 17, leave out first “employer” and insert “person”
71
Page 14, line 18, leave out “employer” and insert “person to whom it is issued”
72
Page 14, line 23, leave out “employer” and insert “person to whom it is issued”
73
Page 14, line 25, leave out “employer” and insert “person”
74
Page 14, line 26, leave out “employer” and insert “person”
75
Page 14, line 27, leave out “employer” and insert “person”
76
Page 14, line 30, leave out “jobholder” and insert “worker”
77
Page 14, line 34, after “scheme” insert “or a hybrid scheme”
78
Page 14, line 35, leave out “jobholder” and insert “worker”
79
Page 14, line 37, leave out subsection (6)
Clause 32
80
Page 15, line 4, leave out “an employer” and insert “a person”
81
Page 15, line 11, leave out “the contravention”
82
Page 15, line 14, at end insert “or must cease to be taken”