Constitutional Reform and Governance Bill

House of Commons

Session 2009 - 10
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Constitutional Reform and Governance Bill

Constitutional Reform and Governance Bill
Schedule 7 — Parliamentary and other pensions
Part 1 — Parliamentary and other pensions
85

      (3)
A person is within this sub-paragraph if the person’s service includes a
period of service before the making of the new scheme.
      (4)
Where the new scheme is a scheme under paragraph 7, in this paragraph—
(a)
the “existing scheme” means the schemes under paragraph 7 in force,
or made but not yet in force, when the new scheme is made, and
5
(b)
“service” means service as a member of the House of Commons.
      (5)
Where the new scheme is a scheme under paragraph 11, in this paragraph—
(a)
the “existing scheme” means the schemes under paragraph 11 in
force, or made but not yet in force, when the new scheme is made,
and
10
(b)
“service” means service to which that paragraph applies.
      (6)
In this paragraph references to a right or entitlement include a future or
contingent right or entitlement.
Power to make consequential amendments
16    (1)
The Minister for the Civil Service may by order make such modifications of
15
any enactment or subordinate legislation (whenever passed or made) as the
Minister considers appropriate in consequence of any provision of a scheme
made by the IPSA or the Minister for the Civil Service under this Part of this
Schedule.
      (2)
In sub-paragraph (1) the reference to subordinate legislation does not
20
include a scheme made by the IPSA or the Minister for the Civil Service
under this Part of this Schedule.
      (3)
An order under this paragraph is to be made by statutory instrument.
      (4)
A statutory instrument containing an order under this paragraph is subject
to annulment in pursuance of a resolution of either House of Parliament.
25
Interpretation etc
17    (1)
A scheme made by the IPSA under paragraph 3 or 7 may amend or revoke
any previous scheme made by the IPSA under that paragraph.
      (2)
A scheme made by the Minister for the Civil Service under paragraph 11
may amend or revoke any previous scheme made by the Minister under that
30
paragraph.
      (3)
In this Part of this Schedule—
“the Fund” means the Parliamentary Contributory Pension Fund;
“the IPSA” means the Independent Parliamentary Standards
Authority;
35
“modifications” includes additions, alterations and omissions (and
related expressions are to be read accordingly);
“pension” includes gratuity;
“subordinate legislation” has the same meaning as in the Interpretation
Act 1978 (c. 30).
40

Constitutional Reform and Governance Bill
Schedule 7 — Parliamentary and other pensions
Part 2 — Provision which may be included in schemes
86

Part 2
Provision which may be included in schemes
Introductory
18    (1)
In this Part of this Schedule “relevant service”—
(a)
for the purposes of paragraph 9(1)(a), means service as a member of
5
the House of Commons, and
(b)
for the purposes of paragraph 12(1)(a), means service to which
paragraph 11 applies.
      (2)
Expressions defined in relation to Part 1 of this Schedule have the same
meaning in this Part of this Schedule as in that Part.
10
Contributions
19
Provision authorising or requiring contributions and other sums to be paid
into the Fund by or on behalf of persons in relevant service, including
provision for those contributions and sums to be paid—
(a)
by deductions from salary;
15
(b)
in the case of a person who does not draw a salary, out of money
provided by Parliament.
Conditions etc
20
Provision as to—
(a)
the circumstances in which there is to be entitlement to a pension
20
payable out of the Fund;
(b)
the conditions of any such entitlement;
(c)
the persons to or for the benefit of whom such a pension is payable;
(d)
the calculation of the amount of any such pension;
(e)
the payment or commutation of any such pension.
25
Pensions not paid out of Fund
21    (1)
Provision for the application of assets of the Fund in or towards the
provision of pensions to be paid otherwise than out of the Fund.
      (2)
In connection with such provision, provision for the payment into the Fund
out of money provided by Parliament of sums in addition to those paid into
30
the Fund under paragraph 5.
Transfer values
22    (1)
Provision for the payment and receipt of transfer values by the trustees of
the Fund (including provision for the payment of such values into the
Consolidated Fund).
35
      (2)
Provision for the transfer and receipt by the trustees of the Fund of funds or
policies of insurance in lieu of transfer values.

Constitutional Reform and Governance Bill
Schedule 7 — Parliamentary and other pensions
Part 2 — Provision which may be included in schemes
87

Service
23
Provision authorising service other than relevant service to be taken into
account, in addition to relevant service, for the purposes of any provision of
the scheme.
Repayments
5
24    (1)
Provision as to the circumstances and manner in which amounts equal to
some or all of the contributions and other sums paid by or on behalf of a
person into the Fund may be repaid or paid to that person.
      (2)
Provision as to the circumstances and manner in which any such amounts
are to be paid out of the Consolidated Fund in respect of transfer values paid
10
into that Fund.
      (3)
Provision under sub-paragraph (1) or (2) may include provision as to
whether any repayment or payment made under that provision is to be
made with or without interest.
Assignment etc
15
25
Provision rendering void—
(a)
any assignment (or, in Scotland, assignation) of a pension which is
payable or may become payable out of the Fund;
(b)
any charge on such a pension;
(c)
any agreement to assign or charge such a pension.
20
Functions
26
Provision conferring functions under the scheme on persons specified in or
determined under the scheme.
Approvals
27
Provision making the approval, satisfaction or opinion of persons on whom
25
functions are conferred by or under the scheme material for the purposes of
any provision of the scheme.
Payments without probate
28
Provision authorising (in relation to such cases, circumstances or persons as
may be specified in or determined under the scheme) any sum due to be
30
paid out of the Fund in respect of a person who has died to be paid without
probate or other proof of title.
Application of other provisions
29
Provision which (with or without modifications) applies in relation to a
pension payable out of the Fund so much of any enactment or subordinate
35
legislation (whenever passed or made) as relates to another pension, being a
pension payable out of money provided by Parliament.

Constitutional Reform and Governance Bill
Schedule 7 — Parliamentary and other pensions
Part 3 — Amendments, transitional provision etc
88

Part 3
Amendments, transitional provision etc
Pensions (Increase) Act 1971 (c. 56)
30    (1)
Part 1 of Schedule 2 is amended as follows.
      (2)
For paragraph 3A substitute—
5
“3A
A pension which, under a scheme under paragraph 7 or 11 of
Schedule 7 to the Constitutional Reform and Governance Act 2010,
is payable out of the Parliamentary Contributory Pension Fund.”
      (3)
In paragraph 3B for “an order” substitute “a scheme”.
Parliamentary and other Pensions Act 1972 (c. 48)
10
31    (1)
Section 27 (pensions for dependants of Prime Minister or Speaker) is
amended as follows.
      (2)
In subsection (1)—
(a)
in paragraph (a) for the words from “in respect” to the end substitute
“under a scheme made by the Minister for the Civil Service under
15
paragraph 11 of Schedule 7 to the Constitutional Reform and
Governance Act 2010 to receive a pension payable out of the
Parliamentary Contributory Pension Fund in respect of service to
which that paragraph applies”, and
(b)
in paragraph (c) for “Treasury” substitute “Minister for the Civil
20
Service”.
      (3)
In subsection (2)—
(a)
for “the Parliamentary pension scheme” substitute “a scheme made
by the Minister for the Civil Service under paragraph 11 of Schedule
7 to the Constitutional Reform and Governance Act 2010”,
25
(b)
in paragraph (a) for “as a Member of the House of Commons”
substitute “to which that paragraph applies”, and
(c)
in paragraph (b), for “Leader of the House of Commons” substitute
“Minister for the Civil Service”.
      (4)
In subsection (5), omit from ““the Leader” to the end.
30
32    (1)
The amendments made by paragraph 31 do not apply in relation to a person
who, having held office as Prime Minister and First Lord of the Treasury or
Speaker of the House of Commons, died before that paragraph comes into
force.
      (2)
In relation to such a person section 27 of the Parliamentary and other
35
Pensions Act 1972, and the provisions designated under that section, have
effect as if this Act had not been passed.
European Parliament (Pay and Pensions) Act 1979 (c. 50)
33    (1)
Section 4 (pensions) is amended as follows.
      (2)
In subsection (1)—
40

Constitutional Reform and Governance Bill
Schedule 7 — Parliamentary and other pensions
Part 3 — Amendments, transitional provision etc
89

(a)
for “Leader of the House of Commons may by order make”
substitute “IPSA may make a scheme containing”, and
(b)
for “by the order” substitute “in the scheme”.
      (3)
In subsection (2)—
(a)
for “orders” substitute “a scheme”, and
5
(b)
for “order” substitute “scheme”.
      (4)
In subsection (3)—
(a)
for “an order” substitute “a scheme”, and
(b)
in paragraphs (d) and (g) for “order” substitute “scheme”.
      (5)
In subsection (3A), for “An order” substitute “A scheme”.
10
      (6)
For subsection (4) substitute—
“(4)
Before making a scheme under this section the IPSA must consult—
(a)
the Treasury,
(b)
the Minister for the Civil Service,
(c)
persons it considers to represent those likely to be affected by
15
the scheme,
(d)
the Government Actuary, and
(e)
any other person it considers appropriate.
(4A)
The IPSA must send to the Speaker of the House of Commons for
laying before both Houses of Parliament—
20
(a)
any scheme made by it under this section, and
(b)
a statement of the reasons for making the scheme.
(4B)
When the scheme and the statement of reasons have been laid, the
IPSA must publish them in a way it considers appropriate.”
      (7)
For subsection (5) substitute—
25
“(5)
The IPSA must from time to time prepare a report on the operation
of any provisions in force under this section, and send it to the
Speaker of the House of Commons for laying before both Houses of
Parliament.”
      (8)
After subsection (7) insert—
30
“(8)
A scheme made by the IPSA under this section may amend or revoke
any previous scheme made by the IPSA under this section.”
34    (1)
Section 6 (block transfer into another pension scheme) is amended as
follows.
      (2)
In subsection (1)—
35
(a)
for “Leader of the House of Commons may by order” substitute
“IPSA may, with the consent of the Treasury and the Minister for the
Civil Service”, and
(b)
for “the order” substitute “the direction”.
      (3)
In subsection (2)—
40
(a)
for “making an order” substitute “giving a direction”,
(b)
for “Leader of the House of Commons” substitute “IPSA”,
(c)
for “he” (in both places) substitute “it”,

Constitutional Reform and Governance Bill
Schedule 7 — Parliamentary and other pensions
Part 3 — Amendments, transitional provision etc
90

(d)
for “make such an order” substitute “give such a direction”, and
(e)
for “the order” substitute “the direction”.
      (4)
In subsection (4), in the definition of “the relevant pension provisions”—
(a)
for “an order” substitute “a direction”,
(b)
for “orders” substitute “a scheme”, and
5
(c)
for “order is made” substitute “direction is given”.
35    (1)
Section 7 (expenses and receipts) is amended as follows.
      (2)
In subsection (1)(c) (expenses and receipts)—
(a)
for “any order” substitute “a scheme”, and
(b)
omit the words from “or of any” to the end.
10
      (3)
In subsection (1)(d) for “an order” substitute “a direction”.
36    (1)
Section 8 is amended as follows.
      (2)
In subsection (1) (interpretation)—
(a)
after the definition of “electoral region” insert—
““the IPSA” means the Independent Parliamentary
15
Standards Authority;”, and
(b)
omit the definition of “the Leader of the House of Commons”.
      (3)
Omit subsection (2).
House of Commons Members’ Fund and Parliamentary Pensions Act 1981 (c. 7)
37
In section 1 (entitlement to payments out of House of Commons Members’
20
Fund)—
(a)
in subsection (5)(b) for “paragraph (b), (c) or (d) of section 2(2) of the
Parliamentary and other Pensions Act 1987” substitute “subsection
(5A)”, and
(b)
after subsection (5) insert—
25
“(5A)
The offices are—
(a)
the offices mentioned in paragraph 11(2)(a), (b), (d) or
(e) of Schedule 7 to the Constitutional Reform and
Governance Act 2010;
(b)
the offices of Chairman of Ways and Means and
30
Deputy Chairman of Ways and Means.”
Parliamentary and other Pensions Act 1987 (c. 45)
38
Omit—
(a)
section 1,
(b)
section 2(1) to (8) and (10),
35
(c)
section 3, and
(d)
Schedule 1.
39    (1)
This paragraph applies if an order under section 89 or 90 of this Act provides
that (despite the repeals in paragraph 38) any of the existing regulations are
to have effect as if contained in a scheme under paragraph 3, 7 or 11.
40
      (2)
The order may provide for any provision of the existing regulations which—

Constitutional Reform and Governance Bill
Schedule 7 — Parliamentary and other pensions
Part 3 — Amendments, transitional provision etc
91

(a)
relates to one or more of the matters listed in paragraph 3(1), but
(b)
could not be contained in a scheme under paragraph 3,

to have effect as if contained in a scheme under that paragraph.
      (3)
If it does so a scheme under paragraph 3 may—
(a)
revoke the provision;
5
(b)
amend it so that it makes provision which may be contained in a
scheme under that paragraph (but not otherwise amend it).
      (4)
The order may provide for any provision of the existing regulations which—
(a)
relates to service as a member of the House of Commons, but
(b)
could not be contained in a scheme under paragraph 7,
10

to have effect as if contained in a scheme under that paragraph.
      (5)
If it does so a scheme under paragraph 7 may—
(a)
revoke the provision;
(b)
amend it so that it makes provision which may be contained in a
scheme under that paragraph (but not otherwise amend it).
15
      (6)
The order may provide for any provision of the existing regulations which—
(a)
relates to service to which paragraph 11 applies, but
(b)
could not be contained in a scheme under that paragraph,

to have effect as if contained in a scheme under that paragraph.
      (7)
If it does so a scheme under paragraph 11 may—
20
(a)
revoke the provision;
(b)
amend it so that it makes provision which may be contained in a
scheme under that paragraph (but not otherwise amend it).
      (8)
“The existing regulations” means regulations under section 2 of the
Parliamentary and other Pensions Act 1987 (c. 45).
25
Ministerial and other Pensions and Salaries Act 1991 (c. 5)
40
Omit section 6.
Pensions Act 2004 (c. 35)
41
In section 249A(3)(c) (schemes to which section 249A does not apply) for
“section 2 of the Parliamentary and other Pensions Act 1987 (c. 45)”
30
substitute “paragraph 3, 7 or 11 of Schedule 7 to the Constitutional Reform
and Governance Act 2010”.
Parliamentary Standards Act 2009 (c. 13)
42    (1)
In section 5(9) (MPs’ allowances scheme does not affect pensions) for “the
Parliamentary and other Pensions Act 1987 (c. 45)” substitute “Schedule 7 to
35
the Constitutional Reform and Governance Act 2010”.
      (2)
In paragraph 18 of Schedule 1 (IPSA’s administration and regulation
functions), after sub-paragraph (2) insert—
    “(3)
The IPSA’s functions under the following provisions are also
regulation functions—
40