House of Commons Amendments

House of Commons

Session 2009 - 10
Internet Publications
Other Bills before Parliament

Committee of the whole House: 1 February 2010
674

Constitutional Reform and Governance Bill, continued

(a)
for ““the Commissioner”” substitute ““the Compliance Officer””, and

(b)
omit the definition of “the MPs’ code of conduct relating to financial

interests”.

      (3)
In subsection (2)—

(a)
after “committee” (in each place) insert “or officer”, and

(b)
in paragraph (a) for “its” substitute “the”.

5    (1)
Section 13 (transitional provision) is amended as follows.

      (2)
Omit subsection (2)(b) and (c).

      (3)
In subsection (4) and (6)(c) for “Commissioner” substitute “Compliance

Officer”.

6
In section 14 (commencement) omit subsection (2)(d).

7    (1)
Schedule 1 (the IPSA) is amended as follows.

      (2)
Omit paragraph 10 and the heading above it.

      (3)
In paragraph 18(1)—

(a)
for paragraph (a) substitute—

“(a)
section 4 (MPs’ salaries), so far as relating to the

payment (but not the determination) of salaries,”,

(b)
in paragraph (c), after “claims)” insert “(except as mentioned in sub-

paragraph (2) below)”, and

(c)
omit the words following paragraph (c).

      (4)
In paragraph 18(2)—

(a)
before paragraph (a) insert—

“(za)
sections 4 and 4A (MPs’ salaries) (except as

mentioned in sub-paragraph (1) above),”,

(b)
after paragraph (a) insert—

“(aa)
section 6(10) (determining procedures for

publication of allowances claims),”,

(c)
omit paragraph (b) (and the “and” following it), and

(d)
for paragraph (c) substitute—

“(c)
section 9(8)(b) and (9) (determining conditions),

(d)
section 9A (determining procedures for

investigations etc),

(e)
paragraphs 1, 2(2), 4(2) and 9(2) of Schedule 2

(appointment and removal of Compliance Officer

etc), and

(f)
paragraphs 2, 8 and 9 of Schedule 4 (scheme,

guidance etc for Compliance Officer).”

      (5)
In paragraph 22(8) for “Any repayments” substitute “Any payments received

by the IPSA as a result of a repayment direction under Schedule 4, and any

repayments otherwise”.’.

Committee of the whole House: 1 February 2010
675

Constitutional Reform and Governance Bill, continued

Secretary Jack Straw

NS9

To move the following Schedule:—

‘Parliamentary and other pensions

Part 1

Parliamentary and other pensions

The Parliamentary Contributory Pension Fund
5
Continuance of Fund

1    (1)
There is to continue to be a fund known as the Parliamentary Contributory

Pension Fund (“the Fund”).

      (2)
The persons who are the trustees of the Fund immediately before this

paragraph comes into force are to continue as the trustees of the Fund (subject
10
to provision made by or under this Schedule).

      (3)
The IPSA may, after consulting the Minister for the Civil Service—

(a)
remove a trustee of the Fund;

(b)
fill any vacancy in the trustees;

(c)
appoint additional trustees.
15
      (4)
The power conferred by sub-paragraph (3) is subject to any provision in a

scheme under paragraph 3.

Powers of trustees

2    (1)
The trustees of the Fund may invest the assets of the Fund, whether at the time

in a state of investment or not, in any investment whatever and may also from
20
time to time vary any such investments.

      (2)
The trustees of the Fund may settle or compromise any claim or dispute

relating to the Fund, but—

(a)
so far as the claim or dispute relates to a scheme under paragraph 3 or

7, they may do so only with the consent of the IPSA, and
25
(b)
so far as the claim or dispute relates to a scheme under paragraph 11,

they may do so only with the consent of the Minister for the Civil

Service.

      (3)
The IPSA must consult the Minister for the Civil Service before giving its

consent to the settlement or compromise of a claim or dispute relating to a
30
scheme under paragraph 3.

      (4)
Section 35(1) to (4) of the Pensions Act 1995 (pension scheme trustees must

prepare statement of investment principles) applies to the trustees of the Fund

despite any provision in regulations under section 35 of that Act which would

(apart from this sub-paragraph) prevent it applying.
35
      (5)
Any provision in regulations under that section which would require the

trustees of the Fund to consult the employer applies as if it required them to

consult the IPSA and the Minister for the Civil Service.

Administration scheme

3    (1)
The IPSA may make a scheme containing provision about—
40
(a)
the administration of the Fund,

(b)
the management of the Fund’s assets,

Committee of the whole House: 1 February 2010
676

Constitutional Reform and Governance Bill, continued

(c)
the number, qualification and proceedings of the trustees of the Fund,

and

(d)
the application of the Fund’s assets in connection with the matters in
45
paragraphs (a) to (c).

      (2)
A scheme under this paragraph may in particular—

(a)
include any or all of the provisions specified in paragraphs 26 to 28,

(b)
make different provision in relation to different cases, circumstances

or persons,
50
(c)
make such incidental, consequential and transitional provision (other

than provision modifying an enactment or subordinate legislation) as

the IPSA considers appropriate.

      (3)
In sub-paragraph (2)(c) the reference to subordinate legislation does not

include a scheme under this paragraph.
55
      (4)
No provision of a scheme under this paragraph is to be construed as restricting

the powers of the trustees under paragraph 2(1).

Procedure for administration scheme

4    (1)
Before making a scheme under paragraph 3 the IPSA must consult—

(a)
the Treasury,
60
(b)
the Minister for the Civil Service,

(c)
the trustees of the Fund,

(d)
persons the IPSA considers to represent those likely to be affected by

the scheme, and

(e)
any other person the IPSA considers appropriate.
65
      (2)
The IPSA must send to the Speaker of the House of Commons for laying

before the House of Commons—

(a)
any representations made to it by the trustees of the Fund in response

to consultation under this paragraph,

(b)
any scheme made by it under paragraph 3, and
70
(c)
a statement of the reasons for making the scheme.

      (3)
When the scheme and the statement of reasons have been laid, the IPSA must

publish them in a way it considers appropriate.

Exchequer contribution to Fund

5    (1)
In respect of each financial year an Exchequer contribution is to be paid into
75
the Fund out of money provided by Parliament.

      (2)
Subject to any provision made by the IPSA under paragraph 6, the amount of

the contribution for any financial year is to be calculated in accordance with

recommendations for that year contained in a report made by the Government

Actuary under this paragraph.
80
      (3)
The Government Actuary must make a report under this paragraph as soon as

practicable after the beginning of—

(a)
the period of three years beginning with the relevant date, and

(b)
each succeeding period of three years.

      (4)
The “relevant date” means the date immediately following the end of the three
85
year period which is current for the purposes of section 3 of the Parliamentary

and other Pensions Act 1987 when this paragraph comes into force.

      (5)
The report is to be made to—

(a)
the trustees of the Fund,

(b)
the IPSA,

Committee of the whole House: 1 February 2010
677

Constitutional Reform and Governance Bill, continued

90
(c)
the Minister for the Civil Service, and

(d)
the Treasury.

      (6)
The report must—

(a)
report on the general financial position of the Fund at the beginning of

the period of three years in which the report is made, and
95
(b)
make a recommendation as to the rate at which (subject to any

subsequent report under this paragraph) Exchequer contributions

should be paid into the Fund in respect of any financial year beginning

after the report is made.

      (7)
The rate is to be expressed by reference to such matters as the Government
100
Actuary considers appropriate.

      (8)
A copy of every report made by the Government Actuary under this paragraph

is to be laid before the House of Commons.

Power to determine Exchequer contribution

6    (1)
The IPSA may, with the consent of the Treasury and the Minister for the Civil
105
Service, make provision for determining the Exchequer contribution in respect

of any financial year.

      (2)
The “Exchequer contribution” means the amount to be paid into the Fund

under paragraph 5.

      (3)
Before making provision under this paragraph the IPSA must consult—
110
(a)
the trustees of the Fund, and

(b)
persons appearing to the IPSA to represent persons likely to be

affected by the provision.

      (4)
The IPSA must send to the Speaker of the House of Commons for laying

before the House of Commons—
115
(a)
any representations made by the trustees of the Fund in response to

consultation under this paragraph,

(b)
any provision made by the IPSA under this paragraph, and

(c)
a statement of the reasons for making the provision.

      (5)
When the provision and the statement of reasons have been laid, the IPSA must
120
publish them in a way it considers appropriate.

      (6)
Provision under this section may—

(a)
apply to a financial year which has already ended or which has begun

before the making of the provision, and

(b)
make such incidental, consequential and transitional provision (other
130
than provision modifying an enactment or subordinate legislation) as

the IPSA considers appropriate.

MPs’ pension scheme

MPs’ pension scheme

7    (1)
The IPSA may make a scheme containing provision about the application of
135
the assets of the Fund in or towards the provision of pensions for or in respect

of persons with service as a member of the House of Commons, in respect of

that service.

      (2)
A scheme under this paragraph may not provide for the application of any of

the assets of the Fund in or towards the provision of pensions for or in respect
140
of persons with service as Lord Chancellor.

Committee of the whole House: 1 February 2010
678

Constitutional Reform and Governance Bill, continued

      (3)
A scheme under this paragraph may not provide for the application of any of

the assets of the Fund in or towards the provision of pensions for or in respect

of a person (“P”) with service as—

(a)
Prime Minister and First Lord of the Treasury, or
145
(b)
Speaker of the House of Commons.

      (4)
Sub-paragraph (3) does not apply if P elects, in accordance with provision

made by the scheme, to contribute to the Fund out of P’s salary as a member

of the House of Commons while holding the office of Prime Minister and First

Lord of the Treasury or Speaker of the House of Commons.
150
      (5)
The provision mentioned in sub-paragraph (4) may not provide for a pension

payable under the scheme for or in respect of P to be calculated by reference

to service as a member of the House of Commons before 28 February 1991.

Meaning of “service as a member of the House of Commons”

8    (1)
For the purposes of this Schedule a person is to be treated as a member of the
155
House of Commons at any time if at that time a salary is or was payable to the

person under—

(a)
section 4 of the Parliamentary Standards Act 2009, or

(b)
in relation to a time before that section was in force, the resolutions of

the House of Commons then in force relating to the remuneration of
160
its members.

      (2)
For the purposes of this Schedule service as a member of the House of

Commons includes service as the holder of a qualifying office or position.

      (3)
In relation to a time when a determination under section 4(4) of the

Parliamentary Standards Act 2009 is in effect a “qualifying office or position”
165
means an office or position in respect of which, because of section 4A(2) of

that Act, a higher salary is payable than the salary payable to members of the

House of Commons generally.

      (4)
In relation to a time before the first determination under section 4(4) of the

Parliamentary Standards Act 2009 comes into effect a “qualifying office or
170
position” means—

(a)
the office of Chairman of Ways and Means and the office of Deputy

Chairman of Ways and Means,

(b)
an office or position in respect of which, under the resolutions of the

House of Commons then in force relating to the remuneration of its
175
members, a higher salary was payable than the salary payable to

members of the House of Commons generally.

MPs’ pension scheme: further provision

9    (1)
A scheme under paragraph 7 may in particular—

(a)
include any or all of the provisions specified in paragraphs 19 to 27,
180
except for the provision specified in paragraph 24(2),

(b)
make provision which has effect from a date earlier than the date the

scheme is made,

(c)
make provision in relation to service before the passing of this Act,

(d)
make different provision in relation to different cases, circumstances
185
or persons, and

(e)
make such incidental, consequential and transitional provision (other

than provision modifying an enactment or subordinate legislation) as

the IPSA considers appropriate.

      (2)
In sub-paragraph (1)(e) the reference to subordinate legislation does not
190
include a scheme under paragraph 7.

Committee of the whole House: 1 February 2010
679

Constitutional Reform and Governance Bill, continued

Procedure for MPs’ pension scheme

10  (1)
Before making a scheme under paragraph 7 the IPSA must consult—

(a)
the Treasury,

(b)
the Minister for the Civil Service,
195
(c)
the trustees of the Fund,

(d)
persons the IPSA considers to represent those likely to be affected by

the scheme,

(e)
the Government Actuary,

(f)
the Review Body on Senior Salaries, and
200
(g)
any other person the IPSA considers appropriate.

      (2)
The IPSA must send to the Speaker of the House of Commons for laying

before the House of Commons—

(a)
any representations made to it by the trustees of the Fund in response

to consultation under this paragraph,
205
(b)
any scheme made by it under paragraph 7, and

(c)
a statement of the reasons for making the scheme.

      (3)
When the scheme and the statement of reasons have been laid, the IPSA must

publish them in a way it considers appropriate.

      (4)
The reference in sub-paragraph (1)(f) to the Review Body on Senior Salaries—
210
(a)
if the name of the body is changed, is to be treated as a reference to the

body by its new name, and

(b)
if the functions of the body (or substantially corresponding functions)

become functions of a different body, is to be treated as a reference to

the body by which those functions are exercisable.
215
      (5)
Any question arising under sub-paragraph (4) is to be determined by the

Speaker of the House of Commons.

Ministers’ etc pension scheme

Ministers’ etc pension scheme

11  (1)
The Minister for the Civil Service may make a scheme containing provision
220
about the application of the assets of the Fund in or towards the provision of

pensions for or in respect of persons with service to which this paragraph

applies, in respect of that service.

      (2)
This paragraph applies to service as—

(a)
the holder of an office specified in Parts 1 to 4 of Schedule 1 to the
225
Ministerial and other Salaries Act 1975 (ministerial offices),

(b)
the holder of an office specified in Part 1 of Schedule 2 to that Act

(Opposition leaders and whips),

(c)
Speaker of the House of Lords,

(d)
Chairman of Committees of the House of Lords,
230
(e)
Deputy Chairman of Committees of the House of Lords.

      (3)
A scheme under this paragraph may not provide for the application of any of

the assets of the Fund in or towards the provision of pensions for or in respect

of a person with service as—

(a)
Lord Chancellor,
235
(b)
Prime Minister and First Lord of the Treasury, or

(c)
Speaker of the House of Commons.

Committee of the whole House: 1 February 2010
680

Constitutional Reform and Governance Bill, continued

Ministers’ etc pension scheme: further provision

12  (1)
A scheme under paragraph 11 may in particular—

(a)
include any or all of the provisions specified in paragraphs 19 to 27
240
and 29,

(b)
make provision which has effect from a date earlier than the date the

scheme is made,

(c)
make provision in relation to service before the passing of this Act

(including, in relation to service within paragraph 11(2)(a) or (b),
245
service before the passing of the Ministerial and other Salaries Act

1975),

(d)
make different provision in relation to different cases, circumstances

or persons, and

(e)
make such incidental, consequential and transitional provision (other
250
than provision modifying an enactment or subordinate legislation) as

the Minister considers appropriate.

      (2)
In sub-paragraph (1)(e) the reference to subordinate legislation does not

include a scheme under paragraph 11.

Procedure for Ministers’ etc pension scheme
255
13  (1)
Before making a scheme under paragraph 11 the Minister for the Civil Service

must consult—

(a)
the IPSA,

(b)
the Government Actuary,

(c)
the trustees of the Fund, and
260
(d)
any other person the Minister considers appropriate.

      (2)
The Minister for the Civil Service must lay before the House of Commons—

(a)
any representations made to the Minister by the trustees of the Fund in

response to consultation under this paragraph,

(b)
any scheme made by the Minister under paragraph 11, and
265
(c)
a statement of the reasons for making the scheme.

      (3)
When the scheme and the statement of reasons have been laid, the Minister

must publish them in a way the Minister considers appropriate.

Supplementary provision

Protection of accrued rights
270
14  (1)
This paragraph applies where—

(a)
the IPSA makes a scheme under paragraph 7, or

(b)
the Minister for the Civil Service makes a scheme under paragraph 11,


(the “new scheme”).

      (2)
The new scheme must not make any provision in relation to an accrued right
275
which puts a person in a worse position than the person would have been in

apart from the provision.

      (3)
Sub-paragraph (2) does not apply if the person making the new scheme is

satisfied that—

(a)
the person (“P”) in respect of whose service the right has accrued (or
280
will have accrued by the time the provision comes into force) is in

service when the new scheme is made, or



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