House of Lords Amendments - Welfare Reform and Pensions Bill

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Session 1998-99
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Amendments to the Welfare Reform and Pensions Bill

Welfare Reform and Pensions Bill -
Amendments to be debated in the House of Lords
Here you can browse the Amendments to the Welfare Reform and Pensions Bill to be moved in Committee in the House of Lords.

Clause 3

BY THE BARONESS HOLLIS OF HEIGHAM

     Page 3, line 26, leave out from ("shall") to end of line 29 and insert ("ensure that at all times there is at least one scheme designated by him for the purposes of this subsection which is registered under section 2 and offers membership to all his relevant employees (whether or not any other scheme registered under that section which does not offer membership to all those employees is for the time being designated by him for those purposes).

    Before designating a scheme for the purposes of this subsection the employer shall consult with his relevant employees and any organisations representing them.")

     Page 3, line 46, at end insert--

    ("(  )  The fifth requirement is that the employer shall, if any scheme designated by him for the purposes of subsection (2) ceases to be registered under section 2, withdraw his designation of the scheme (but this requirement is not to be taken as implying that he cannot withdraw his designation of a scheme in other circumstances).")

Clause 8

BY THE BARONESS HOLLIS OF HEIGHAM

     Page 6, line 8, leave out ("under") and insert ("for the purposes of")

     Page 6, line 16, at end insert--

    ("(  )  The Secretary of State may by regulations make provision for a stakeholder pension scheme which--
(a)  is of a prescribed description, and

(b)  would (apart from the regulations) be an occupational pension scheme,
to be treated for all purposes, or for such purposes as may be prescribed, as if it were a personal pension scheme and not an occupational pension scheme.")

Schedule 3

BY THE BARONESS HOLLIS OF HEIGHAM

     Leave out Schedule 3 and insert the following new Schedule--

("SCHEDULE 3

PENSION SHARING ORDERS: ENGLAND AND WALEs

    1. The Matrimonial Causes Act 1973 is amended as follows.

    2. After section 21 there is inserted--

Pension sharing orders. 21A.--(1) For the purposes of this Act, a pension sharing order is an order which--

(a)  provides that one party's--

(i)  shareable rights under a specified pension arrangement, or

    (ii)  shareable state scheme rights,

be subject to pension sharing for the benefit of the other party, and

(b)  specifies the percentage value to be transferred.

    (2)  In subsection (1)--

(a)  the reference to shareable rights under a pension arrangement is to rights in relation to which pension sharing is available under Chapter I of Part IV of the Welfare Reform and Pensions Act 1999, or under corresponding Northern Ireland legislation,

(b)  the reference to shareable state scheme rights is to rights in relation to which pension sharing is available under Chapter II of Part IV of the Welfare Reform and Pensions Act 1999, or under corresponding Northern Ireland legislation, and

(c)  party" means a party to a marriage."
    3. In section 24 (property adjustment orders in connection with divorce proceedings, etc), in paragraphs (c) and (d) of subsection (1), there is inserted at the end ", other than one in the form of a pension arrangement (within the meaning of section 25D below)".

    4. After section 24A there is inserted--

Pension sharing orders in connection with divorce proceedings etc. 24B.--(1) On granting a decree of divorce or a decree of nullity of marriage or at any time thereafter (whether before or after the decree is made absolute), the court may, on an application made under this section, make one or more pension sharing orders in relation to the marriage.

    (2)  A pension sharing order under this section is not to take effect unless the decree on or after which it is made has been made absolute.

    (3)  A pension sharing order under this section may not be made in relation to a pension arrangement which--

(a)  is the subject of a pension sharing order in relation to the marriage, or

(b)  has been the subject of pension sharing between the parties to the marriage.

    (4)  A pension sharing order under this section may not be made in relation to shareable state scheme rights if--

(a)  such rights are the subject of a pension sharing order in relation to the marriage, or

(b)  such rights have been the subject of pension sharing between the parties to the marriage.

    (5)  A pension sharing order under this section may not be made in relation to the rights of a person under a pension arrangement if there is in force a requirement imposed by virtue of section 25B or 25C below which relates to benefits or future benefits to which he is entitled under the pension arrangement.

Pension sharing orders: duty to stay. 24C.--(1) No pension sharing order may be made so as to take effect before the end of such period after the making of the order as may be prescribed by regulations made by the Lord Chancellor.

    (2)  The power to make regulations under this section shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Pension sharing orders: apportionment of charges. 24D. If a pension sharing order relates to rights under a pension arrangement, the court may include in the order provision about the apportionment between the parties of any charge under section 37 of the Welfare Reform and Pensions Act 1999 (charges in respect of pension sharing costs), or under corresponding Northern Ireland legislation."

    5. In section 25 (matters to which the court is to have regard in deciding how to exercise its powers with respect to financial relief)--
(a)  in subsection (1), for "or 24A" there is substituted ", 24A or 24B", and

(b)  in subsection (2), for "or 24A" there is substituted "24A or 24B".
    6. In section 25A(1) (court's duty to consider desirability of exercising power to achieve clean break), for "or 24A" there is substituted ", 24A or 24B".

    7.--(1) Section 31 (variation, discharge etc. of certain orders for financial relief) is amended as follows.

    (2)  In subsection (2), at the end there is inserted--
(g)  a pension sharing order under section 24B which is made at a time before the decree has been made absolute."
    (3)  After subsection (4) there is inserted--
    (4A)  In relation to an order which falls within paragraph (g) of subsection (2) above ("the subsection (2) order")--

(a)  the powers conferred by this section may be exercised--

    (i)  only on an application made before the subsection (2) order has or, but for paragraph (b) below, would have taken effect; and

    (ii)  only if, at the time when the application is made, the decree has not been made absolute; and

(b)  an application made in accordance with paragraph (a) above prevents the subsection (2) order from taking effect before the application has been dealt with.

    (4B)  No variation of a pension sharing order shall be made so as to take effect before the decree is made absolute.

    (4C)  The variation of a pension sharing order prevents the order taking effect before the end of such period after the making of the variation as may be prescribed by regulations made by the Lord Chancellor."
    (4)  In subsection (5)--
(a)  for "(7F)" there is substituted "(7G)",

(b)  for "or (e)" there is substituted ", (e) or (g)", and

(c)  after "property adjustment order" there is inserted "or pension sharing order".
    (5)  In subsection (7B), after paragraph (b) there is inserted--
(ba)  one or more pension sharing orders;".
    (6)  After subsection (7F) there is inserted--
    (7G)  Subsections (3) to (5) of section 24B above apply in relation to a pension sharing order under subsection (7B) above as they apply in relation to a pension sharing order under that section."
    (7)  After subsection (14) there is inserted--
    (15)  The power to make regulations under subsection (4C) above shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament."
    8. In section 33A (consent orders), in subsection (3), in the definition of "order for financial relief", after "24A" there is inserted ", 24B".

    9. In section 37 (avoidance of transactions intended to prevent or reduce financial relief), in subsection (1), after "24," there is inserted "24B,".

    10. After section 40 there is inserted--

Appeals relating to pension sharing orders which have taken effect. 40A.--(1) Subsections (2) and (3) below apply where an appeal against a pension sharing order is begun on or after the day on which the order takes effect.

    (2)  If the pension sharing order relates to a person's rights under a pension arrangement, the appeal court may not set aside or vary the order if the person responsible for the pension arrangement has acted to his detriment in reliance on the taking effect of the order.

    (3)  If the pension sharing order relates to a person's shareable state scheme rights, the appeal court may not set aside or vary the order if the Secretary of State has acted to his detriment in reliance on the taking effect of the order.

    (4)  In determining for the purposes of subsection (2) or (3) whether a person has acted to his detriment in reliance on the taking effect of the order, the appeal court may disregard any detriment which in its opinion is insignificant.

    (5)  Where subsection (2) or (3) above applies, the appeal court may make such further orders (including one or more pension sharing orders) as it thinks fit, for the purpose of putting the parties in the position it considers appropriate.

    (6)  Section 24C above only applies to a pension sharing order under this section if the decision of the appeal court can itself be the subject of an appeal.

    (7)  In subsection (2), the reference to the person responsible for the pension arrangement is to be read in accordance with section 25D(4) above."
    11. In section 52 (interpretation), in subsection (2), for "and" at the end of paragraph (a) there is substituted--
(aa)  references to pension sharing orders shall be construed in accordance with section 21A above; and"")
1973 c. 18.

Schedule 4

BY THE BARONESS HOLLIS OF HEIGHAM

     Page 100, line 31, leave out ("22A or")

     Page 100, line 48, leave out from ("arrangement",") to end of line 49

     Page 101, line 4, leave out ("22A or")

     Page 101, line 20, after first ("of") insert ("any of")

     Page 101, line 20, leave out ("any of sections 22A to 24D above") and insert ("this Part of this Act")

     Page 101, line 41, leave out ("22A or")

     Page 102, line 29, leave out ("21(2A)") and insert ("21A(1)")

Clause 22

BY THE BARONESS HOLLIS OF HEIGHAM

     Page 26, line 18, leave out ("22A or")

After Clause 22

BY THE BARONESS HOLLIS OF HEIGHAM

     Insert the following new Clause--

    ("  .--(1)  If any amendment by the Family Law Act 1996 of Part II or IV of the Matrimonial Causes Act 1973 comes into force before the day on which any provision of this Part comes into force, the Lord Chancellor may by order make such consequential amendment of that provision as he thinks fit.

    (2)  No order under this section may be made unless a draft of the order has been laid before and approved by resolution of each House of Parliament.") Power to make consequential amendments of Part III.
1996 c. 27.
1973 c. 18.

Clause 70

BY THE LORD HIGGINS
THE LORD ASTOR OF HEVER

     Page 74, line 36, leave out from ("worker")") to ("and") in line 40 and insert ("would have been an employed earner of a business carried on by another person to which he provides services ("the client") had he contracted direct with the client,")

     Page 76, leave out lines 13 to 23

© Parliamentary copyright 1999
Prepared 18 June 1999

Clause 3
BY THE BARONESS HOLLIS OF HEIGHAM
Page 3, line 26, leave out from ("shall") to end of line 29 and insert ("ensure that at all times there is at least one scheme designated by him for the purposes of this subsection which is registered under section 2 and offers membership to all his relevant employees (whether or not any other scheme registered under that section which does not offer membership to all those employees is for the time being designated by him for those purposes). Before designating a scheme for the purposes of this subsection the employer shall consult with his relevant employees and any organisations representing them.")
Page 3, line 46, at end insert-- ("( ) The fifth requirement is that the employer shall, if any scheme designated by him for the purposes of subsection (2) ceases to be registered under section 2, withdraw his designation of the scheme (but this requirement is not to be taken as implying that he cannot withdraw his designation of a scheme in other circumstances).")
Clause 8
BY THE BARONESS HOLLIS OF HEIGHAM
Page 6, line 8, leave out ("under") and insert ("for the purposes of")
Page 6, line 16, at end insert-- ("( ) The Secretary of State may by regulations make provision for a stakeholder pension scheme which-- (a) is of a prescribed description, and (b) would (apart from the regulations) be an occupational pension scheme, to be treated for all purposes, or for such purposes as may be prescribed, as if it were a personal pension scheme and not an occupational pension scheme.")
Schedule 3
BY THE BARONESS HOLLIS OF HEIGHAM
Leave out Schedule 3 and insert the following new Schedule--
("SCHEDULE 3
PENSION SHARING ORDERS: ENGLAND AND WALEs
1. The Matrimonial Causes Act 1973 is amended as follows. 2. After section 21 there is inserted--
Pension sharing orders.	21A.--(1) For the purposes of this Act, a pension sharing order is an order which--
	(a) provides that one party's--
(i) shareable rights under a specified pension arrangement, or
(ii) shareable state scheme rights,
be subject to pension sharing for the benefit of the other party, and
(b) specifies the percentage value to be transferred. (2) In subsection (1)-- (a) the reference to shareable rights under a pension arrangement is to rights in relation to which pension sharing is available under Chapter I of Part IV of the Welfare Reform and Pensions Act 1999, or under corresponding Northern Ireland legislation, (b) the reference to shareable state scheme rights is to rights in relation to which pension sharing is available under Chapter II of Part IV of the Welfare Reform and Pensions Act 1999, or under corresponding Northern Ireland legislation, and (c) party" means a party to a marriage." 3. In section 24 (property adjustment orders in connection with divorce proceedings, etc), in paragraphs (c) and (d) of subsection (1), there is inserted at the end ", other than one in the form of a pension arrangement (within the meaning of section 25D below)". 4. After section 24A there is inserted--
Pension sharing orders in connection with divorce proceedings etc.	24B.--(1) On granting a decree of divorce or a decree of nullity of marriage or at any time thereafter (whether before or after the decree is made absolute), the court may, on an application made under this section, make one or more pension sharing orders in relation to the marriage.
(2) A pension sharing order under this section is not to take effect unless the decree on or after which it is made has been made absolute.
(3) A pension sharing order under this section may not be made in relation to a pension arrangement which-- (a) is the subject of a pension sharing order in relation to the marriage, or (b) has been the subject of pension sharing between the parties to the marriage. (4) A pension sharing order under this section may not be made in relation to shareable state scheme rights if-- (a) such rights are the subject of a pension sharing order in relation to the marriage, or (b) such rights have been the subject of pension sharing between the parties to the marriage. (5) A pension sharing order under this section may not be made in relation to the rights of a person under a pension arrangement if there is in force a requirement imposed by virtue of section 25B or 25C below which relates to benefits or future benefits to which he is entitled under the pension arrangement.
Pension sharing orders: duty to stay.	24C.--(1) No pension sharing order may be made so as to take effect before the end of such period after the making of the order as may be prescribed by regulations made by the Lord Chancellor.
(2) The power to make regulations under this section shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
Pension sharing orders: apportionment of charges.	24D. If a pension sharing order relates to rights under a pension arrangement, the court may include in the order provision about the apportionment between the parties of any charge under section 37 of the Welfare Reform and Pensions Act 1999 (charges in respect of pension sharing costs), or under corresponding Northern Ireland legislation."
5. In section 25 (matters to which the court is to have regard in deciding how to exercise its powers with respect to financial relief)-- (a) in subsection (1), for "or 24A" there is substituted ", 24A or 24B", and (b) in subsection (2), for "or 24A" there is substituted "24A or 24B". 6. In section 25A(1) (court's duty to consider desirability of exercising power to achieve clean break), for "or 24A" there is substituted ", 24A or 24B". 7.--(1) Section 31 (variation, discharge etc. of certain orders for financial relief) is amended as follows. (2) In subsection (2), at the end there is inserted-- (g) a pension sharing order under section 24B which is made at a time before the decree has been made absolute." (3) After subsection (4) there is inserted-- (4A) In relation to an order which falls within paragraph (g) of subsection (2) above ("the subsection (2) order")-- (a) the powers conferred by this section may be exercised-- (i) only on an application made before the subsection (2) order has or, but for paragraph (b) below, would have taken effect; and (ii) only if, at the time when the application is made, the decree has not been made absolute; and (b) an application made in accordance with paragraph (a) above prevents the subsection (2) order from taking effect before the application has been dealt with. (4B) No variation of a pension sharing order shall be made so as to take effect before the decree is made absolute. (4C) The variation of a pension sharing order prevents the order taking effect before the end of such period after the making of the variation as may be prescribed by regulations made by the Lord Chancellor." (4) In subsection (5)-- (a) for "(7F)" there is substituted "(7G)", (b) for "or (e)" there is substituted ", (e) or (g)", and (c) after "property adjustment order" there is inserted "or pension sharing order". (5) In subsection (7B), after paragraph (b) there is inserted-- (ba) one or more pension sharing orders;". (6) After subsection (7F) there is inserted-- (7G) Subsections (3) to (5) of section 24B above apply in relation to a pension sharing order under subsection (7B) above as they apply in relation to a pension sharing order under that section." (7) After subsection (14) there is inserted-- (15) The power to make regulations under subsection (4C) above shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament." 8. In section 33A (consent orders), in subsection (3), in the definition of "order for financial relief", after "24A" there is inserted ", 24B". 9. In section 37 (avoidance of transactions intended to prevent or reduce financial relief), in subsection (1), after "24," there is inserted "24B,". 10. After section 40 there is inserted--
Appeals relating to pension sharing orders which have taken effect.	40A.--(1) Subsections (2) and (3) below apply where an appeal against a pension sharing order is begun on or after the day on which the order takes effect.
(2) If the pension sharing order relates to a person's rights under a pension arrangement, the appeal court may not set aside or vary the order if the person responsible for the pension arrangement has acted to his detriment in reliance on the taking effect of the order.
(3) If the pension sharing order relates to a person's shareable state scheme rights, the appeal court may not set aside or vary the order if the Secretary of State has acted to his detriment in reliance on the taking effect of the order. (4) In determining for the purposes of subsection (2) or (3) whether a person has acted to his detriment in reliance on the taking effect of the order, the appeal court may disregard any detriment which in its opinion is insignificant. (5) Where subsection (2) or (3) above applies, the appeal court may make such further orders (including one or more pension sharing orders) as it thinks fit, for the purpose of putting the parties in the position it considers appropriate. (6) Section 24C above only applies to a pension sharing order under this section if the decision of the appeal court can itself be the subject of an appeal. (7) In subsection (2), the reference to the person responsible for the pension arrangement is to be read in accordance with section 25D(4) above." 11. In section 52 (interpretation), in subsection (2), for "and" at the end of paragraph (a) there is substituted-- (aa) references to pension sharing orders shall be construed in accordance with section 21A above; and"")		1973 c. 18.
Schedule 4
BY THE BARONESS HOLLIS OF HEIGHAM
Page 100, line 31, leave out ("22A or")
Page 100, line 48, leave out from ("arrangement",") to end of line 49
Page 101, line 4, leave out ("22A or")
Page 101, line 20, after first ("of") insert ("any of")
Page 101, line 20, leave out ("any of sections 22A to 24D above") and insert ("this Part of this Act")
Page 101, line 41, leave out ("22A or")
Page 102, line 29, leave out ("21(2A)") and insert ("21A(1)")
Clause 22
BY THE BARONESS HOLLIS OF HEIGHAM
Page 26, line 18, leave out ("22A or")
After Clause 22
BY THE BARONESS HOLLIS OF HEIGHAM
Insert the following new Clause--
(" .--(1) If any amendment by the Family Law Act 1996 of Part II or IV of the Matrimonial Causes Act 1973 comes into force before the day on which any provision of this Part comes into force, the Lord Chancellor may by order make such consequential amendment of that provision as he thinks fit. (2) No order under this section may be made unless a draft of the order has been laid before and approved by resolution of each House of Parliament.")		Power to make consequential amendments of Part III. 1996 c. 27. 1973 c. 18.
Clause 70
BY THE LORD HIGGINS THE LORD ASTOR OF HEVER
Page 74, line 36, leave out from ("worker")") to ("and") in line 40 and insert ("would have been an employed earner of a business carried on by another person to which he provides services ("the client") had he contracted direct with the client,")
Page 76, leave out lines 13 to 23