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Constitutional Reform and Governance Bill


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

97

 

(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.”

39    (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

98

 

(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”.

40    (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”.

41    (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)

42         

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 16(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)

43         

Omit—

(a)   

section 1,

(b)   

section 2(1) to (8) and (10),

35

(c)   

section 3, and

(d)   

Schedule 1.

44    (1)  

The existing regulations have effect (subject to any provision in an order

under section 94 of this Act)—

(a)   

so far as they relate to matters which could be contained in a scheme

40

made by the IPSA under paragraph 8, as if they were a scheme made

by the IPSA under that paragraph,

 
 

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

99

 

(b)   

so far as they relate to matters which could be contained in a scheme

made by the IPSA under paragraph 12, as if they were a scheme

made by the IPSA under that paragraph, and

(c)   

so far as they relate to matters which could be contained in a scheme

made by the Minister for the Civil Service under paragraph 16, as if

5

they were a scheme made by the Minister under that paragraph.

      (2)  

An order under section 94 or 95 of this Act may provide for any provision of

the existing regulations which—

(a)   

relates to one or more of the matters listed in paragraph 8(1), but

(b)   

could not be contained in a scheme under paragraph 8,

10

           

to have effect as if contained in a scheme under that paragraph.

      (3)  

If it does so a scheme under paragraph 8 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

      (4)  

An order under section 94 or 95 of this Act 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 12,

           

to have effect as if contained in a scheme under that paragraph.

20

      (5)  

If it does so a scheme under paragraph 12 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).

      (6)  

An order under section 94 or 95 of this Act may provide for any provision of

25

the existing regulations which—

(a)   

relates to service to which paragraph 16 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 16 may—

30

(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 the regulations under section 2 of the

Parliamentary and other Pensions Act 1987 (c. 45) in force immediately

35

before the date specified in an order made by a Minister of the Crown by

statutory instrument.

      (9)  

An order under sub-paragraph (8) may specify different dates for different

purposes.

Ministerial and other Pensions and Salaries Act 1991 (c. 5)

40

45         

Omit section 6.

 
 

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

100

 

Pensions Act 2004 (c. 35)

46         

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)”

substitute “paragraph 8, 12 or 16 of Schedule 7 to the Constitutional Reform

and Governance Act 2010”.

5

Parliamentary Standards Act 2009 (c. 13)

47    (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

the Constitutional Reform and Governance Act 2010”.

      (2)  

In paragraph 18 of Schedule 1 (IPSA’s administration and regulation

10

functions), after sub-paragraph (2) insert—

    “(3)  

The IPSA’s functions under the following provisions are also

regulation functions—

(a)   

sections 3, 4 and 6 of the European Parliament (Pay and

Pensions) Act 1979 (but not any function relating to the

15

administration of a scheme under section 3 or 4);

(b)   

paragraphs 2 to 5, 8, 9, 11, 12 and 15 of Schedule 7 to the

Constitutional Reform and Governance Act 2010 (but not

any function relating to the administration of a scheme

under paragraph 8 or 12).”

20

      (3)  

In paragraph 29(2) of Schedule 1 (interpretation) in the definition of

“regulation functions” after “18(2)” insert “and (3)”.

48    (1)  

An order under section 13 of the Parliamentary Standards Act 2009 may

make the provision mentioned in section 13(6) (provision for transfer

schemes) in connection with this Schedule (as well as in connection with that

25

Act).

      (2)  

But for this purpose—

(a)   

the reference in section 13(6)(a) to matters dealt with by the rules is

to be treated as a reference to matters which could be dealt with by a

scheme under paragraph 8 or 12;

30

(b)   

section 13(6)(b) and (c) does not apply to property, rights and

liabilities, or documents and information, held by or on behalf of the

trustees of the Fund.

      (3)  

Section 13(7) of that Act applies to a scheme made by virtue of section 13(6)

and this paragraph.

35

Trustees of the Fund

49    (1)  

This paragraph applies if, under an order under section 95, paragraph 2

comes into force for the purpose of making an appointment under

paragraph 2(1)(a) or (b) before it comes into force for other purposes.

      (2)  

The reference in paragraph 2(1)(a) or (b) to the persons who are already

40

trustees of the Fund is to the persons who are trustees of the Fund by virtue

of section 1 of the Parliamentary and other Pensions Act 1987 (c. 45).

 
 

Constitutional Reform and Governance Bill
Schedule 8 — Conditions for removal of members of the House of Lords etc
Part 1 — Conditions for removal

101

 

50    (1)  

In this paragraph “the transitional period” means the period of six months

beginning with the day on which paragraph 2 comes into force (other than

for the purpose of making an appointment under paragraph 2(1)(a) or (b)).

      (2)  

During the transitional period—

(a)   

paragraph 2(1) applies as if for paragraph (c) there were

5

substituted—

“(c)   

the persons who (by virtue of section 1 of the

Parliamentary and other Pensions Act 1987) are the

trustees of the Fund immediately before the

beginning of the transitional period.”, and

10

(b)   

paragraph 5 applies to persons who are trustees of the Fund because

of paragraph (a) as if they were member-nominated trustees.

      (3)  

But if a person who is a trustee of the Fund immediately before the

beginning of the transitional period is appointed under paragraph 2(1)(a) or

(b) that person is not to be treated as being a trustee of the Fund because of

15

sub-paragraph (2)(a).

      (4)  

The trustees of the Fund must make arrangements (the “transitional

arrangements”) for 8 persons to be nominated and selected as member-

nominated trustees before the end of the transitional period.

      (5)  

Those persons become member-nominated trustees immediately after the

20

end of the transitional period.

      (6)  

Only persons who are trustees of the Fund immediately before the

beginning of the transitional period may be nominated and selected as

member-nominated trustees under the transitional arrangements.

      (7)  

But if it is not possible to secure 8 member-nominated trustees from among

25

those persons, the deficiency may be supplied by other persons.

      (8)  

At the end of the transitional period any persons who—

(a)   

immediately before the end of that period, are trustees of the Fund

because of sub-paragraph (2)(a), but

(b)   

have not been nominated and selected as member-nominated

30

trustees,

           

cease to be trustees of the Fund.

Schedule 8

Section 54

 

Conditions for removal of members of the House of Lords etc

Part 1

35

Conditions for removal

Condition 1: serious criminal offence

1     (1)  

Condition 1 is met if a person—

(a)   

is convicted of an offence committed after section 54 comes into

force,

40

 
 

Constitutional Reform and Governance Bill
Schedule 8 — Conditions for removal of members of the House of Lords etc
Part 2 — Supplementary provision for section 54(2)

102

 

(b)   

is sentenced or ordered to be imprisoned or detained for that offence

indefinitely or for more than one year, and

(c)   

is imprisoned or detained in pursuance of that sentence or order or

would have been were the person not unlawfully at large.

      (2)  

This condition is met when the person is first imprisoned or detained after

5

conviction in pursuance of the sentence or order or would have been were

the person not unlawfully at large.

      (3)  

The cases covered by this condition include cases in which—

(a)   

a person is convicted of an offence committed outside the United

Kingdom;

10

(b)   

anything mentioned in sub-paragraph (1)(a) to (c) occurs outside the

United Kingdom.

      (4)  

An act punishable under the law of a country or territory outside the United

Kingdom constitutes an offence for the purposes of this Schedule (however

it is described in that law).

15

Condition 2: bankruptcy restrictions orders etc

2          

Condition 2 is met if and when—

(a)   

a bankruptcy restrictions order or undertaking (but not an interim

order) under any of the following comes into force in relation to a

person—

20

(i)   

Schedule 4A to the Insolvency Act 1986 (c. 45);

(ii)   

section 56A or 56G of the Bankruptcy (Scotland) Act 1985

(c. 66);

(iii)   

Schedule 2A to the Insolvency (Northern Ireland) Order 1989

(S.I. 1989/2405 (N.I. 19)), or

25

(b)   

a debt relief restrictions order or undertaking (but not an interim

order) under Schedule 4ZB to the 1986 Act comes into force in

relation to a person.

Part 2

Supplementary provision for section 54(2)

30

Supplementary provision relating to excepted hereditary peers

3     (1)  

This paragraph applies if P is an excepted hereditary peer.

      (2)  

P is no longer excepted from section 1 of the House of Lords Act 1999 (c. 34).

      (3)  

If P counted towards the limit under section 2(2) of the 1999 Act, that limit is

reduced by one.

35

Supplementary provision relating to life peers

4     (1)  

This paragraph applies if P is a life peer.

      (2)  

P ceases to be disqualified by virtue of P’s peerage for—

(a)   

voting at elections to the House of Commons, or

(b)   

being, or being elected as, a member of that House.

40

 
 

Constitutional Reform and Governance Bill
Schedule 8 — Conditions for removal of members of the House of Lords etc
Part 3 — Reversal of effect of section 54(2)

103

 

Representation of the People Act 1985 (c. 50)

5          

In relation to P, any reference in section 1(3) or (4)(b) of the Representation

of the People Act 1985 to a register of parliamentary electors is to be read as

including—

(a)   

any register of local government electors in Great Britain, and

5

(b)   

any register of local electors in Northern Ireland,

           

which was required to be published on any date before the relevant event

occurs.

New peerages

6     (1)  

Sub-paragraph (2) applies if, after the relevant event occurs, a peerage under

10

the Life Peerages Act 1958 (c. 21) is conferred on P.

      (2)  

Section 54(2) does not stop P being entitled to receive writs of summons to

attend the House of Lords by virtue of that peerage.

      (3)  

Sub-paragraph (4) applies if, after the relevant event occurs, P becomes the

person who is to hold the office of Earl Marshal or perform the office of Lord

15

Great Chamberlain.

      (4)  

Section 54(2) does not stop P being entitled to receive writs of summons to

attend the House of Lords by virtue of the peerage that led to P becoming

the person who is to hold or perform the office in question.

Part 3

20

Reversal of effect of section 54(2)

Claims for reversal

7     (1)  

If the relevant event is the meeting of condition 1, P may make a claim for

the effect of section 54(2) to be reversed if—

(a)   

the conviction is overturned or quashed, or

25

(b)   

as a result of a determination that P should not have been sentenced

or ordered to be imprisoned or detained for the offence indefinitely

or for more than one year, the sentence or order is changed so that

the requirements of paragraph 1(1)(b) are no longer met.

      (2)  

If the relevant event is the meeting of condition 2, P may make a claim for

30

the effect of section 54(2) to be reversed if (as the case may be)—

(a)   

the bankruptcy restrictions order or undertaking is annulled

under—

(i)   

paragraph 9(3)(a) or 10 of Schedule 4A to the Insolvency Act

1986 (c. 45),

35

(ii)   

section 56E(3)(a), 56G(5)(a) or 56J of the Bankruptcy

(Scotland) Act 1985 (c. 66), or

(iii)   

paragraph 9(3)(a) or 10 of Schedule 2A to the Insolvency

(Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)),

(b)   

the bankruptcy restrictions order or the debt relief restrictions order

40

is annulled on an appeal against the making of the order,

(c)   

the debt relief restrictions order or undertaking is annulled by a

direction under paragraph 10 of Schedule 4ZB to the 1986 Act, or

 
 

 
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