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Lord Lucas moved Amendment No. 187C:


Page 118, line 18, at end insert:
(". In section 9 (requirements for certification), in subsection (3) "22 and" is omitted.").

The noble Lord said: In moving this amendment I shall speak also to Amendments Nos. 187D and 187E. The effect of Amendment No. 187D is to repeal Section 22 of the Pension Schemes Act 1993 which requires that the resources of contracted-out occupational pension schemes must be derived in whole or in part by payments made by the employer or the employee. From 1997 there will be no specific financial requirements concerning the resourcing of contracted-out pension schemes. There will be general rules in relation to the financing of all pension schemes. Section 22 is therefore no longer required after the principal appointed day.

Amendment No. 187C merely removes a reference to Section 22.

Amendment No. 187E omits Section 31(1) of the Pension Schemes Act 1993, which is a power to set out requirements as regards the investment of resources of a contracted-out personal or occupational money purchase pension scheme. This power is no longer needed as the Bill contains new rules on investment which cover all occupational pension schemes. Investment rules for personal pension schemes are covered in the Financial Services Act. I beg to move.

On Question, amendment agreed to.

Lord Lucas moved Amendment No. 187D:


Page 118, line 30, at end insert:
(". Section 22 (financing of benefits) is repealed.").

On Question, amendment agreed to.

Lord Lucas moved Amendment No. 187DA:


Page 118, line 35, after ("rights)") insert ("(a)").

The noble Lord said: In moving this amendment, I shall speak at the same time to Amendments Nos. 187DB, 187EA and 187FA. As Members of the Committee will know, the state scheme premiums which buy back protected rights into SERPS are being abolished. As a consequence there will be no further justification for the current provision whereby protected rights in the case of money purchase occupational and personal pensions can be extinguished by the payment of a premium.

Amendments Nos. 187DA and 187DB omit the relevant subsection. Amendment No. 187EA concerns Section 34 of the Pension Schemes Act 1993 which covers certification procedures. New subsection (9) (2B) sets out the conditions for contracting out. As part of the on-going monitoring arrangements for contracted

21 Feb 1995 : Column 1065

out salary-related schemes, we will use regulations to require employers and the scheme actuary to confirm, at intervals of no more than three years, that the contracting out conditions are still being complied with.

This amendment to Section 34 is needed to make it explicit that the recertification requirement applies only to salary-related contracted-out schemes. Any change of circumstances affecting money purchase contracted-out schemes or appropriate personal pension schemes will be considered in the same way as now to see whether the contracting-out certificate is still appropriate.

Amendment No. 187FA corrects an error in paragraph 20 of Schedule 5 which refers erroneously to Section 41(3) of the Pension Schemes Act rather than to Section 42(3). I beg to move.

On Question, amendment agreed to.

5 p.m.

Lord Lucas moved Amendments Nos. 187DB to 187FA:


Page 118, line 36, at end insert ("and
(b) subsection (7) is omitted").
Page 118, leave out line 40 and insert:
("( ) subsection (1) is omitted, and").
Page 118, line 47, leave out from ("(1)") to ("issued") in line 48 and insert ("for paragraph (a) there is substituted—
"(a) in the case of a contracting-out certificate—
(i) on any change of circumstances affecting the treatment of an employment as contracted-out employment, or
(ii) where the scheme is a salary related contracted-out scheme and the certificate was").
Page 119, line 7, leave out ("subsection (7) is") and insert ("subsections (6) and (7) are").
Page 119, line 34, leave out ("41") and insert ("42").

The noble Lord said: I have already spoken to these amendments. I beg to move.

On Question, amendments agreed to.

Lord Lucas moved Amendment No. 187G:


Page 120, line 16, leave out sub-paragraph (c) and insert:
("( ) in subsection (5), for "55(2) (ii)" there is substituted "55(2A) (c)", and
( ) subsections (6) to (10) are omitted.").

The noble Lord said: In moving Amendment No. 187G, I should like to speak also to Amendments Nos. 187H, 187J, 187K, 188 and 189.

The effect of Amendment No. 187G is to retain Section 60(5) of the Pension Schemes Act 1993, amending the cross-reference to Section 55 from subsection (2) (ii) to subsection (2A) (c). This is to ensure that accrued rights are extinguished in all the circumstances in which a contributions equivalent payment is paid. It also repeals subsections (6) to (10) of Section 55, which are no longer relevant as they refer to Section 55(3), which is itself repealed.

Amendment No. 187H clarifies the cross-reference in Section 63(1) (b) of the Pension Schemes Act 1993. It identifies Section 58 as the relevant section.

21 Feb 1995 : Column 1066

Amendments Nos. 187J and 187K expand the scope of Sections 155 and 165 respectively of the Pension Schemes Act 1993 to include contracted-out money purchase pension schemes. The provisions will make it possible for the Secretary of State to require information from contracted-out salary-related and appropriate schemes.

Amendment No. 188 removes the reference to the Occupational Pensions Board from Section 176 of the Pension Schemes Act 1993. It replaces paragraph 42 of Schedule 5.

Amendment No. 189 corrects a duplication in the Bill as currently drafted. I beg to move.

Baroness Hollis of Heigham: I do not want to sound churlish, but is it not remarkable to have 22 government amendments following each other in an attempt to correct the drafting of the Government's own Bill? Obviously such corrections may occasionally be needed due to typing mistakes or occasional cross-references, but we are talking about 22 government amendments. The number of regulations in the Bill—200—is paralleled only by the number of the Government's amendments to their own drafting. I thought that the noble Lord might like to be made aware of that fact, if he was not already conscious of it.

On Question, amendment agreed to.

Lord Lucas moved Amendments Nos. 187H to 189:


Page 120, line 37, at end insert ("and, in subsection (1) (b), for "that section" there is substituted "section 58"").
Page 121, line 7, leave out sub-paragraph (c) and insert:
("( ) for the words from "sections 7" to "premiums)" there is substituted "Part III"").
Page 121, line 23, at end insert:
(". In section 165 (application of certain provisions to case with foreign element), in subsection (2) (a), for the words from "sections 7" to "premiums)" there is substituted "Part III"").
Page 121, leave out line 34 and insert:
(". In section 176 (fees), for "either by the Secretary of State or by the Board on his behalf" there is substituted "by the Secretary of State".").
Page 121, line 43, leave out from ("omitted") to end of line 46.

On Question, amendments agreed to.

Lord Lucas moved Amendments Nos. 190 and 191:


Page 122, line 8, after ("(1)") insert ("for the words from the beginning to "make" there is substituted "Subject to subsection (2), before the Secretary of State makes" ").
Page 122, line 9, at end insert:
("( ) in subsection (2), at the end of paragraph (c) there is added—
"(d) regulations in the case of which the Secretary of State considers consultation inexpedient because of urgency, or
(e) regulations which—
(i) state that they are consequential upon a specified enactment, and
(ii) are made before the end of the period of six months beginning with the coming into force of that enactment."").

The noble Lord said: I have already spoken to these amendments with Amendment No. 171. I beg to move.

21 Feb 1995 : Column 1067

On Question, amendments agreed to.

Lord Lucas moved Amendment No. 191A:


Page 122, line 28, leave out paragraph 54 and insert:
(". In Schedule 6 (transitional provisions and savings), paragraph 11 is omitted.
. In Schedule 9 (transitory modifications)—
(a) in paragraph 1—
(i) in the Table in sub-paragraph (1), entries (iii) to (v) are omitted,
(ii) in sub-paragraph (3), in paragraph (a) (i) of the definition of "appointed day", for "to (v)" there is substituted "and (ii)", and
(iii) in sub-paragraph (5), "or (4)" is omitted, and
(b) paragraph 4 is omitted.").

The noble Lord said: This amendment is consequential on the Government's decision not to require contracted-out salary-related occupational pension schemes to provide guaranteed minimum pensions for married women and widows who have elected to pay national insurance contributions at the reduced rate. Such women are otherwise known as "reduced rate optants". These provisions would be inappropriate under the new contracting-out arrangements and the Government signalled their intention to repeal the provisions in the White Paper Security, Equality, Choice: The Future for Pensions published last June.

Paragraph 54 of Schedule 5 to the Bill identified references in Schedule 9 to the Pension Schemes Act 1993 which needed to be omitted in the light of that decision. This amendment will remove further redundant material. I beg to move.

On Question, amendment agreed to.

Schedule 5, as amended, agreed to.


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