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Bankers’ Pensions (Limits) Bill


 

Bankers’ Pensions (Limits) Bill

 

 
 

Contents

1   

Forfeiture of pension by board members of banks in certain circumstances

2   

Interpretation

3   

Short title, commencement and extent

 

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Bankers’ Pensions (Limits) Bill

1

 

A

Bill

To

Make provision for the pensions of board members of banks that are wholly or

partly in public ownership to be limited in certain circumstances; and for

connected purposes. 

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and

consent of the Lords Spiritual and Temporal, and Commons, in this present

Parliament assembled, and by the authority of the same, as follows:—

1       

 Forfeiture of pension by board members of banks in certain circumstances

(1)   

The Pensions Act 1995 (c. 26) is amended as follows.

(2)   

In section 91 (inalienability of occupational pensions), after paragraph (5) (f),

insert—

“(g)   

subject to subsection (6A), a charge or lien on, or set-off against,

5

the person in question’s entitlement, or right, where the person

in question is a member or former member of the board of

directors of a bank, provided that the person in question was a

member of the board of directors of a bank when at any time

following the coming into force of this Act—

10

(i)   

all or part of the business of that bank has been

transferred to a bridge bank or onward bridge bank in

accordance with section 12 of the Banking Act 2009 (“the

2009 Act”);

(ii)   

the bank has come under temporary public ownership

15

in accordance with section 13 of the 2009 Act; or

(iii)   

a nominee of the Treasury or a company wholly owned

by the Treasury has taken securities in the bank, and—

(a)   

the Treasury has taken a majority of the voting

share capital of the bank; and

20

(b)   

the Treasury took securities in the bank because

in the stated opinion of the Treasury the bank—

   

(i)     was incapable of trading as solvent, or

(ii)   was likely to go into administration.”

(3)   

In section 91 (inalienability of occupational pensions), after subsection (6),

25

 

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Bankers’ Pensions (Limits) Bill

2

 

insert—

“(6A)   

Where a charge, lien or set-off is exercisable by virtue of paragraph (5)

(g)—

(a)   

the amount of the charge or lien on, or set-off against, the person

in question’s entitlement, or right, shall be determined by the

5

Treasury, having regard to the responsibility of the person in

question for the events listed in paragraph (5) (g) (i), (ii) and (iii);

(b)   

the charge, lien or set-off must not exceed the amount of the

person in question‘s entitlement or accrued right; and

(c)   

the person in question must be given a certificate showing the

10

amount of the charge, lien or set-off and its effect on his benefits

under the scheme.”

2       

Interpretation

In this Act—

“bank” has the same meaning as in section 2 of the 2009 Act;

15

“securities” has the same meaning as in section 14 of the 2009 Act.

3       

 Short title, commencement and extent

(1)   

This Act may be cited as the Bankers’ Pensions (Limits) Act 2009.

(2)   

This Act shall come into force on the day following the day on which it is

passed.

20

(3)   

This Act extends to England and Wales, Scotland and Northern Ireland.

 
 

 

 
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