House of Commons portcullis
House of Commons
Session 2000-2001
Internet Publications
Other Bills before Parliament

Pensions Annuities (Amendment) Bill

This is the text of the Pensions Annuities (Amendment) Bill, as presented to the House of Commons on 17th January 2001.

 
 
  
Pensions Annuities (Amendment) Bill
 
 
 
 
ARRANGEMENT OF CLAUSES
Clause 
1.Minimum requirement annuities.
2.Short title.
 


 

 
 
A

B I L L

TO

Amend the law relating to the purchase of annuities in respect of private and personal pensions and defined contribution pension schemes.

BE IT ENACTED by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:-
 

Minimum requirement annuities.     1. - (1) The Income and Corporation Taxes Act 1988 is amended as follows.
 
      (2) In subsection (2) of section 591 (discretionary approval) after paragraph (h) there is inserted-
 
 
    "(i) in the case of a scheme which includes provision for an annuity which satisfies the conditions in section 634ZA below, allows benefits to be payable on retirement, subject to those conditions continuing to be satisfied."
      (3) In subsection (4) of section 620 (qualifying premiums) after paragraph (e) there is inserted-
 
 
    "(f) in the case of an annuity which satisfies the conditions in section 634ZA below, for benefits to be payable to the individual, subject to those conditions continuing to be satisfied."
      (4) At the beginning of subsection (1) of section 633 (scope of benefits) the words "Subject to subsection (3) below," are inserted.
 
      (5) At the end of that section there is inserted the following new subsection-
 
 
    "(3) The Board may approve a personal pension scheme which makes provision for benefits other than those for which provision is made in subsection (1) above where the scheme also makes provision for the payment of a minimum requirement annuity satisfying the conditions in sections 634 and 634ZA below."
 
      (6) After section 634 (annuity to member) there is inserted the following new section-
 
 
"Annuity to member: minimum requirement.     634ZA. The amount payable under a minimum requirement annuity shall be the amount which, when added to any other income of the member, is the same as the applicable amount for the time being prescribed in regulations made for the purposes of sections 124(1)(b) and 135 of the Social Security Contributions and Benefits Act 1992 (income support and the applicable amount)."
 
      (7) At the end of section 634A (income withdrawals by member) there is inserted the following new subsection-
 
 
    "(7) Where a member purchases a minimum requirement annuity satisfying the conditions in sections 634 and 634ZA above income withdrawals may be made by him subject to those conditions continuing to be satisfied."
 
Short title.     2. This Act may be cited as the Pension Annuities (Amendment) Act 2001.
 
 

 
House of Commons home page Houses of Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2001
Prepared 6 March 2001