House of Lords Amendments

House of Lords

Session 2006 - 07
Internet Publications
Other Bills before Parliament

Pensions Bill
5

MOTION C

(LORDS AMENDMENTS NOS. 15 TO 21, 23 AND 24)

LORDS AMENDMENT NO. 15
15
Insert the following new Clause—

“Financial assistance scheme: scheme manager

(1)
The Financial Assistance Scheme Regulations 2005 (S.I. 2005/1986) are

amended as follows.

(2)
In regulation 5(1) for “Secretary of State” substitute “Board of the Pension

Protection Fund (“the Board”)”.

(3)
In regulation 5(2)(a) omit the words from “Secretary of State” to the end of

that paragraph and insert “the Board”.

(4)
In regulation 5, sub-paragraph (2)(b) is omitted.”

COMMONS DISAGREEMENT AND REASON

The Commons disagree to Lords Amendment No. 15 for the following Reason—
15A
Because it is inappropriate to replace the Secretary of State as the manager of the Financial

Assistance Scheme with the Board of the Pension Protection Fund.

LORDS AMENDMENT NO. 16
16
Insert the following new Clause—

“Financial assistance scheme: qualifying pension schemes

(1)
The Financial Assistance Scheme Regulations 2005 (S.I. 2005/1986) are

amended as follows.

(2)
In regulation 9, sub-paragraph (1)(c) is omitted.

(3)
Regulations 11 to 13 are omitted.”

COMMONS DISAGREEMENT AND REASON

The Commons disagree to Lords Amendments Nos. 16, 17, 18, 23 and 24 for the following

Reason—
16A
Because they would involve charges on public funds, and the Commons do not offer any

further Reason, trusting that this reason may be deemed sufficient.

LORDS AMENDMENT NO. 17
17
Insert the following new Clause—

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6

“Pension Protection Lifeboat Fund

(1)
There shall be established as soon as reasonably practicable a Pension

Protection Lifeboat Fund (“the Lifeboat Fund”) which shall be

administered by the Board of the Pension Protection Fund (“the Board”).

(2)
The purpose of the Lifeboat Fund shall be to make supplementary

payments to persons who are qualifying members of qualifying schemes as

defined by the Financial Assistance Scheme Regulations 2005 (S.I. 2005/

1986) (or who would be qualifying members if the qualifying age for the

Financial Assistance Scheme were set at the level of the qualifying scheme

retirement age), in addition to the sums payable in any event under those

regulations.

(3)
The supplementary payments made to any person in accordance with

subsection (2) shall equal the amount that, taken together with any

amounts payable to that person under the Financial Assistance Scheme and

amounts payable to that person as scheme benefits under the qualifying

pension scheme in respect of which he is a qualifying member of the

Financial Assistance Scheme (or would be a qualifying member if the

qualifying age for the Financial Assistance Scheme were set at the level of

the qualifying scheme retirement age), is the amount that would be payable

to that person if that qualifying pension scheme were accepted into the

Pension Protection Fund.

(4)
The Secretary of State shall make such loans to the Lifeboat Fund as are

necessary to allow the discharge of its functions and in particular its

obligation to make supplementary payments under subsection (2).

(5)
The Secretary of State shall make such loans from time to time having

regard to—

(a)
requests for such loans received from the Board;

(b)
the amount of assets transferred or to be transferred to the Lifeboat

Fund under the Scheme (as defined in section (Transfer of unclaimed

assets) (“the Scheme”));

(c)
the level of any claims on the Lifeboat Fund in respect of assets

transferred to it under the Scheme.

(6)
Loans made in accordance with this section must be repaid to the Secretary

of State as soon as, in the reasonable opinion of the Board, it is prudent to

do so having regard to—

(a)
the obligations of the Lifeboat Fund;

(b)
the amount of assets transferred or to be transferred to the Lifeboat

Fund under the Scheme; and

(c)
the level of claims on the Lifeboat Fund in respect of assets

transferred to it under the Scheme.

(7)
Loans made under this section shall be interest free.

(8)
The assets of the Lifeboat Fund shall be held separately from the assets of

any other fund under the control of the Board.

(9)
The Secretary of State may by regulations make further provision in

connection with the Lifeboat Fund.

(10)
A statutory instrument containing regulations under this section is subject

to annulment in pursuance of a resolution of either House of Parliament.”

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7

COMMONS DISAGREEMENT AND REASON

The Commons disagree to Lords Amendments Nos. 16, 17, 18, 23 and 24 for the following

Reason—
17A
Because they would involve charges on public funds, and the Commons do not offer any

further Reason, trusting that this reason may be deemed sufficient.

LORDS AMENDMENT NO. 18
18
Insert the following new Clause—

“Pensions Unclaimed Assets Recovery Agency

(1)
There shall be a body called the Pensions Unclaimed Assets Recovery

Agency (“the Agency”).

(2)
The Agency must be established no later than three months after the

passing of this Act.

(3)
The Agency shall consist of not fewer than six nor more than twelve

members to be appointed by the Secretary of State, and the Secretary of

State shall appoint one member to be the chairman, and another member

to be a deputy chairman, of the Agency.

(4)
In appointing a person to be a member of the Agency, the Secretary of State

shall have regard to the desirability of appointing persons who have

knowledge of, or experience relating to, matters relevant to the functions of

the Agency.

(5)
A member of the Agency may hold office for such a period as the Secretary

of State may determine, but not exceeding—

(a)
six years, in the case of the chairman, and

(b)
four years, in the case of other members.

(6)
The Secretary of State may make payments to the members of the Agency

by way of remuneration and make payments to them in respect of expenses

incurred by them in the performance of their duties.

(7)
The Secretary of State may also defray any other expenses of the Agency.”

COMMONS DISAGREEMENT AND REASON

The Commons disagree to Lords Amendments Nos. 16, 17, 18, 23 and 24 for the following

Reason—
18A
Because they would involve charges on public funds, and the Commons do not offer any

further Reason, trusting that this reason may be deemed sufficient.

LORDS AMENDMENT NO. 19
19
Insert the following new Clause—

“Functions of Pensions Unclaimed Assets Recovery Agency

The functions of the Agency are—

Pensions Bill
8

(a)
to obtain such information about such classes of unclaimed assets

as may be prescribed by the Secretary of State by regulations;

(b)
to provide the Secretary of State with that information and any

other related information held by the Agency which the Secretary

of State may from time to time require;

(c)
to administer the scheme to be established by virtue of section

(Transfer of unclaimed assets).”

COMMONS DISAGREEMENT AND REASON

The Commons disagree to Lords Amendments Nos. 19, 20 and 21 for the following

Reason—
19A
Because they make provision connected with that made by Lords Amendments Nos. 17 and

18, to which the Commons have disagreed.

LORDS AMENDMENT NO. 20
20
Insert the following new Clause—

“Pensions Unclaimed Assets Recovery Agency: provision of information

(1)
Subject to subsection (2), the Agency may, by notice, require any person to

supply it, within a specified period or at a specified time or times, such

specified information as the Agency considers it needs for the purposes of

carrying out its functions under section (Functions of Pensions Unclaimed

Assets Recovery Agency).

(2)
This section does not authorise any requirement in relation to information

to be imposed on any person unless that person carries on a business in the

United Kingdom; but a requirement may be imposed under this section on

a person in relation to information in the possession or control of a

connected person or undertaking outside the United Kingdom.

(3)
Any person who, when required to do so under this section, fails without

reasonable excuse to supply any information, shall be liable on summary

conviction—

(a)
to a fine not exceeding level 5 on the standard scale; and

(b)
in the case of a continuing offence, to an additional fine not

exceeding £200 for every day during which the offence continues.

(4)
Any person who knowingly or recklessly supplies any information which

is false or misleading shall be liable—

(a)
on conviction on indictment, to imprisonment for a term not

exceeding two years, or to a fine, or both; and

(b)
on summary conviction, to a fine not exceeding the statutory

maximum.”

COMMONS DISAGREEMENT AND REASON

The Commons disagree to Lords Amendments Nos. 19, 20 and 21 for the following

Reason—
20A
Because they make provision connected with that made by Lords Amendments Nos. 17 and

18, to which the Commons have disagreed.

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LORDS AMENDMENT NO. 21
21
Insert the following new Clause—

“Transfer of unclaimed assets

(1)
The Secretary of State shall by regulations, not later than twelve months

after the passing of this Act, establish a scheme (“the Scheme”) for the

transfer of such unclaimed assets as the regulations shall prescribe to the

Lifeboat Fund.

(2)
Regulations made under this subsection shall provide for—

(a)
a definition of those unclaimed assets to which the Scheme applies,

including the extent to which the Scheme is applicable to assets

whose ownership is known, or can be determined;

(b)
the transfer to the Lifeboat Fund of a prescribed proportion of such

unclaimed assets as the regulations shall prescribe, and the manner

and timing of such transfers;

(c)
the transfer to the Lifeboat Fund of liability for any claim in respect

of assets transferred under the Scheme to the Lifeboat Fund;

(d)
penalties to be imposed on any person holding assets prescribed

under subsection (1) or (2)(b) who fails to transfer them or such

proportion of them as is prescribed in accordance with the Scheme.

(3)
The power to make regulations under this section is exercisable by

statutory instrument.

(4)
A statutory instrument containing regulations under this section is subject

to annulment in pursuance of a resolution of either House of Parliament.”

COMMONS DISAGREEMENT AND REASON

The Commons disagree to Lords Amendments Nos. 19, 20 and 21 for the following

Reason—
21A
Because they make provision connected with that made by Lords Amendments Nos. 17 and

18, to which the Commons have disagreed.

LORDS AMENDMENT NO. 23
23
Insert the following new Clause—

“Duty to make on-account payments

(1)
Pursuant to his powers under section 286(3)(d) of the Pensions Act 2004

(c. 35), the Secretary of State shall as soon as is reasonably practicable make

regulations requiring trustees of qualifying pension schemes to make on-

account payments to qualifying members, or persons who would be

qualifying members if the qualifying age for the Financial Assistance

Scheme were set at the level of the qualifying scheme retirement age.

(2)
The Secretary of State may make such loans to trustees of qualifying

schemes as appear to him to be expedient to enable them to make such on-

account payments where adequate scheme assets appear to him not to be

available to them and regulations may prescribe for the recovery of such

loans upon completion of wind-up of a qualifying scheme.

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10

(3)
Regulations made under subsection (1) shall provide that on-account

payments shall equal the amounts that would be payable if the qualifying

scheme were accepted into the Pension Protection Fund.

(4)
The regulations shall provide for payment to trustees of a qualifying

pension scheme of payments due to a qualifying member of that pension

scheme (or a person who would be a qualifying member if the qualifying

age for the Financial Assistance Scheme were set at the level of the

qualifying scheme retirement age) by the Financial Assistance Scheme or

by the Lifeboat Fund (as defined in section (Transfer of unclaimed assets)) in

respect of periods for which on-account payments to that member have

been made in accordance with subsection (1).”

COMMONS DISAGREEMENT AND REASON

The Commons disagree to Lords Amendments Nos. 16, 17, 18, 23 and 24 for the following

Reason—
23A
Because they would involve charges on public funds, and the Commons do not offer any

further Reason, trusting that this reason may be deemed sufficient.

LORDS AMENDMENT NO. 24
24
Insert the following new Clause—

“Financial Assistance Scheme: payment

The Secretary of State shall by regulations ensure that payments made to

any person under the Financial Assistance Scheme as defined by the

Financial Assistance Scheme Regulations 2005 (S.I 2005/1986) shall equal

the amount that would be payable to that person if that person were

entitled to receive benefits under the Pensions Protection Fund.”

COMMONS DISAGREEMENT AND REASON

The Commons disagree to Lords Amendments Nos. 16, 17, 18, 23 and 24 for the following

Reason—
24A
Because they would involve charges on public funds, and the Commons do not offer any

further Reason, trusting that this reason may be deemed sufficient.

MOTION C
C
Lord McKenzie of Luton to move, That this House do not insist on its Amend

ments 15 to 21, 23 and 24, to which the Commons have disagreed for their Rea

sons 15A to 21A, 23A and 24A.

MOTION D

(LORDS AMENDMENT NO. 22)

LORDS AMENDMENT NO. 22
22
Insert the following new Clause—

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11

“Purchase of annuities

The Secretary of State shall, as soon as is reasonably practicable, by

regulations require the trustees of qualifying schemes as defined by the

Financial Assistance Scheme Regulations 2005 (S.I. 2005/1986) which have

not yet completed winding-up to desist from purchasing (except where, on

or before 18th April 2007, they have entered into a binding contractual

commitment so to do) or making binding commitments to purchase

annuities on behalf of scheme members, for a period of nine months from

18th April 2007.”

COMMONS DISAGREEMENT AND REASON

The Commons disagree to Lords Amendment No. 22 for the following Reason—
22A
Because the Commons consider that the prohibition on the purchase of annuities may have

undesirable effects.

MOTION D
D
Lord McKenzie of Luton to move, That this House do not insist on its Amend

ment 22, to which the Commons have disagreed for their Reason 22A.

MOTION D1
D1
Lord Skelmersdale to move, as an amendment to Motion D, at end insert “but

do propose the following amendments in lieu thereof—”
22B
Insert the following new Clause—


“Temporary restriction on purchase of annuities

(1)
The Secretary of State must by regulations make provision for securing

that, during the period of 9 months beginning with the date on which the

regulations come into force, the trustees of relevant pension schemes are

prohibited from purchasing, or agreeing to purchase, annuities on behalf of

qualifying members, unless—

(a)
before that date they have entered into a binding commitment to

purchase the annuities, or

(b)
the purchase of the annuities is approved in pursuance of

subsection (2).

(2)
The regulations must make provision—

(a)
for enabling the trustees of a relevant pension scheme to apply to

the scheme manager for approval of the purchase of annuities on

behalf of qualifying members;

(b)
for authorising the scheme manager to approve the purchase of any

such annuities if the scheme manager thinks it appropriate to do so.

(3)
For the purposes of this section an occupational pension scheme is a

“relevant pension scheme” at any time during the period mentioned in

subsection (1) if at that time the scheme is a qualifying pension scheme

which has not been fully wound up.

(4)
Regulations under this section—