House of Commons Amendments

Session 2010 - 12
Internet Publications
Other Bills before Parliament

3483

House of Commons

Notices of Amendments

given on

Thursday 13 October 2011

For other Amendment(s) see the following page(s) of Supplement to Votes:

3449-50 and 3479-81

Consideration of Bill

Pensions Bill [Lords], As Amended

Qualifying schemes: administration charges

Secretary Iain Duncan Smith

NC2

To move the following Clause:—

‘(1)
Section 16 of the 2008 Act (qualifying schemes) is amended as follows.

(2)
In subsection (3) for paragraph (a) substitute—

“(a)
administration charges due from J while J is an active member

exceed a prescribed amount,

(aa)
administration charges due from former active members while J

is an active member exceed a prescribed amount,

(ab)
while J is an active member, the scheme contains provision under

which administration charges that will be due from J when J is

no longer an active member will exceed a prescribed amount, or

will do so in particular circumstances,”.

(3)
After that subsection insert—

“(4)
For the purposes of subsection (3) administration charges are due from a

person to the extent that—

(a)
any payments made to the scheme by, or on behalf or in respect

of, the person,

(b)
any income or capital gain arising from the investment of such

payments, or

(c)
the value of the person’s rights under the scheme,


may be used to defray the administrative expenses of the scheme, to pay

commission or in any other way that does not result in the provision of

pension benefits for or in respect of members.

(5)
In subsection (3)(aa) “former active member” means a person who at

some time after the automatic enrolment date was both a jobholder and

an active member but is no longer an active member.”’.

Notices of Amendments: 13 October 2011
3484

Pensions Bill-[Lords], continued

Definition of money purchase benefits

Secretary Iain Duncan Smith

NC3

To move the following Clause:—

‘(1)
In section 181 of the Pension Schemes Act 1993 (interpretation), in the definition

of “money purchase benefits” in subsection (1), for “which are not average salary

benefits” substitute “which fall within section 181B”.

(2)
After section 181A of that Act insert—

“181B
Money purchase benefits: supplementary

(1)
This section applies for the purposes of the definition of “money

purchase benefits” in section 181(1).

(2)
A benefit other than a pension in payment falls within this section if its

rate or amount is calculated solely by reference to assets which (because

of the nature of the calculation) must necessarily suffice for the purposes

of its provision to or in respect of the member.

(3)
A benefit which is a pension in payment falls within this section if—

(a)
its provision to or in respect of the member is secured by an

annuity contract or insurance policy made or taken out with an

insurer, and

(b)
at all times before coming into payment the pension was a benefit

falling within this section by virtue of subsection (2).

(4)
For the purposes of subsection (2) it is immaterial if the calculation of the

rate or amount of the benefit includes deductions for administrative

expenses or commission.

(5)
In this section references to a pension do not include income withdrawal

or dependants’ income withdrawal (within the meaning of paragraphs 7

and 21 of Schedule 28 to the Finance Act 2004).”

(3)
In section 99 of the Pensions Act 2008 (interpretation) in the definition of “money

purchase benefits” for “which are not average salary benefits” substitute “which

fall within section 99A”.

(4)
After that section insert—

“99A
Money purchase benefits: supplementary

(1)
This section applies for the purposes of the definition of “money

purchase benefits” in section 99.

(2)
A benefit other than a pension in payment falls within this section if its

rate or amount is calculated solely by reference to assets which (because

of the nature of the calculation) must necessarily suffice for the purposes

of its provision to or in respect of the member.

(3)
A benefit which is a pension in payment falls within this section if—

(a)
its provision to or in respect of the member is secured by an

annuity contract or insurance policy made or taken out with an

insurer, and

(b)
at all times before coming into payment the pension was a benefit

falling within this section by virtue of subsection (2).

Notices of Amendments: 13 October 2011
3485

Pensions Bill-[Lords], continued

(4)
For the purposes of subsection (2) it is immaterial if the calculation of the

rate or amount of the benefit includes deductions for administrative

expenses or commission.

(5)
In this section references to a pension do not include income withdrawal

or dependants’ income withdrawal (within the meaning of paragraphs 7

and 21 of Schedule 28 to the Finance Act 2004).”

(5)
In paragraph 1(2) of Schedule 10A to the Building Societies Act 1986

(disclosures about directors etc), in the definition of “money purchase benefits”,

for “which are not average salary benefits” substitute “which fall within

paragraph 1A”.

(6)
In that Schedule, after paragraph 1 insert—

“1A(1)
This paragraph applies for the purposes of the definition of “money

purchase benefits” in paragraph 1(2).

      (2)
A benefit other than a pension in payment falls within this paragraph

if its rate or amount is calculated solely by reference to assets which

(because of the nature of the calculation) must necessarily suffice for

the purposes of its provision to or in respect of the director.

      (3)
A benefit which is a pension in payment falls within this paragraph

if—

(a)
its provision to or in respect of the director is secured by an

annuity contract or insurance policy made or taken out with an

insurer, and

(b)
at all times before coming into payment the pension was a

benefit falling within this paragraph by virtue of sub-

paragraph (2).

      (4)
For the purposes of sub-paragraph (2) it is immaterial if the calculation

of the rate or amount of the benefit includes deductions for

administrative expenses or commission.

      (5)
In this paragraph references to a pension do not include income

withdrawal or dependants’ income withdrawal (within the meaning of

paragraphs 7 and 21 of Schedule 28 to the Finance Act 2004).”

(7)
The amendments made by subsections (1) and (2) are to be regarded as having

come into force on 1 January 1997.

(8)
The amendments made by subsections (3) and (4) are to be regarded as having

come into force at the same time as section 99 of the Pensions Act 2008.’

Transitional

Secretary Iain Duncan Smith

NC4

To move the following Clause:—

‘(1)
The Secretary of State may by regulations make transitional provision in relation

to the coming into force of the amendments in section [Definition of money

purchase benefits].

(2)
That provision includes in particular—

(a)
provision disapplying the amendments in section [Definition of money

purchase benefits] in relation to an occupational or personal pension

scheme which is wound up before the coming into force of that section;

Notices of Amendments: 13 October 2011
3486

Pensions Bill-[Lords], continued

(b)
provision disapplying the amendments in section [Definition of money

purchase benefits] to any extent, or as regards any period, in respect of

an occupational or personal pension scheme in relation to which those

amendments would otherwise have applied on the coming into force of

that section;

(c)
provision modifying the application of an enactment in respect of an

occupational or personal pension scheme in relation to which the

amendments in section [Definition of money purchase benefits] apply on

the coming into force of that section;

(d)
provision requiring trustees or managers of an occupational pension

scheme in relation to which the amendments in section [Definition of

money purchase benefits] apply on the coming into force of that section

to obtain an actuarial valuation of a description specified in the

regulations.

(3)
In subsection (2) “occupational pension scheme” and “personal pension scheme”

have the meanings given by section 1 of the Pension Schemes Act 1993.’

Consequential and supplementary

Secretary Iain Duncan Smith

NC5

To move the following Clause:—

‘(1)
The Secretary of State may by regulations make consequential or supplementary

provision in relation to the amendments made by section [Definition of money

purchase benefits].

(2)
In section 307 of the Pensions Act 2004 (modification of Act) in subsection (2)

after paragraph (b) insert—

“(ba)
Part 3 (scheme funding),”.’

Power to make further provision

Secretary Iain Duncan Smith

NC6

To move the following Clause:—

‘(1)
The Secretary of State may by regulations amend for any purpose the definition

of “money purchase benefit” in the Pension Schemes Act 1993, the Pensions Act

2008 or Schedule 10A to the Building Societies Act 1986.

(2)
Regulations under subsection (1) may in particular amend the provisions inserted

by section [Definition of money purchase benefits] above).

(3)
Regulations under this section may include transitional, consequential or

supplementary provision.’

Notices of Amendments: 13 October 2011
3487

Pensions Bill-[Lords], continued

Regulations

Secretary Iain Duncan Smith

NC7

To move the following Clause:—

‘(1)
Regulations under this Part may—

(a)
make different provision for different cases (including different

provision for pension schemes of different descriptions);

(b)
provide for a person to exercise a discretion in dealing with any matter;

(c)
amend Acts (as well as other enactments);

(d)
have retrospective effect.

(2)
Regulations under this Part must be made by statutory instrument.

(3)
A statutory instrument containing regulations under this Part which amend an Act

may not be made unless a draft of the instrument has been laid before, and

approved by resolution of, each House of Parliament.

(4)
A statutory instrument containing any other regulations under this Part is subject

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

Secretary Iain Duncan Smith

13

Page  2  [Clause  1],  leave out lines 14 to 18 and insert—

‘6th January 1954 to 5th February 1954
6th May 2019

6th February 1954 to 5th March 1954
6th July 2019

6th March 1954 to 5th April 1954
6th September 2019

6th April 1954 to 5th May 1954
6th November 2019

6th May 1954 to 5th June 1954
6th January 2020

6th June 1954 to 5th July 1954
6th March 2020

6th July 1954 to 5th August 1954
6th May 2020

6th August 1954 to 5th September
6th July 2020

1954

6th September 1954 to 5th October
6th September 2020”’.

1954

Secretary Iain Duncan Smith

14

Page  2,  line  19  [Clause  1],  leave out ‘“1960” substitute “1954”’ and insert ‘“5th

April 1960” substitute “5th October 1954”’.

Secretary Iain Duncan Smith

15

Page  11,  line  40  [Clause  14],  leave out ‘In section 30(5) of the 2008 Act’ and

insert—

‘( )
Section 30 of the 2008 Act is amended as follows.

( )
In subsection (5)’.

Notices of Amendments: 13 October 2011
3488

Pensions Bill-[Lords], continued

Secretary Iain Duncan Smith

16

Page  11,  line  41  [Clause  14],  at end insert—

‘( )
In subsection (6)(b) omit “(in accordance with section 20(1))”.’.

Secretary Iain Duncan Smith

17

Page  22,  line  1  [Clause  32],  at end insert—

‘( )
sections [Transitional] to [Regulations];’.

Uprating of the state pensions

Hywel Williams

NC8

To move the following Clause:—

‘Section 150 of the Social Security Administration Act 1992 is amended as

follows—

After subsection (2)(a), insert—

“(aa)
that the general level of prices assessed by the Secretary of State

shall include both the Retail Prices Index and the Consumer

Prices Index, and the higher of the two indices must be used to

calculate the annual uprating of the state pensions; and”.’.



© Parliamentary copyright	Revised 14 October 2011