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703EClause 233, page 129, line 6, at end insert--
("(-) Subsections (2) to (4) above do not apply in relation to an abolished function to the extent that the repeal or revocation of the statutory provision by which the function was conferred or imposed comes into force on terms which provide otherwise.").

Lord Whitty: My Lords, I beg to move that the House do agree en bloc with the Commons in their Amendments Nos. 703A to 703D as amendments to Lords Amendment No. 703 and in their consequential amendment No. 703E.

These are technical and consequential changes to the detail of new Schedule 12 to the Bill as it was introduced into the Bill through Amendment No. 703.

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The amendments are needed to clarify some minor points within the schedule and to make one necessary consequential amendment.

It may be helpful if I were to clarify the effect of these five amendments. Amendment No. 703A extends the scope of the TfL transfer schemes and provides that rights and liabilities under enactments may be included in them. For example, this provision might be needed to allow rights or liabilities held by TfL--such as a right under a local Act--to be transferred over to a PPP company.

Amendments Nos. 703B and 703C are needed to bring in a provision on TfL transfers in line with the provisions in the Bill on the transfer of assets to the new authority when it is established. The amendments should remove from the new schedule a reference to instruments or agreements in connection with a transfer scheme. These amendments are vital to ensure consistency of interpretation.

Amendment No. 703D relates to the operation of the TfL transfer schemes to provide that different transfers under a particular scheme may have effect at different times on the same day. This flexibility may be needed to allow tax neutrality in these transfers where it is appropriate.

Amendment No. 703E is consequential to Amendment No. 703. It relates to provisions in the Bill which deal with the continuity of repeal or revoked functions. The amendment is required to bring this provision into line with changes which have been made in the new Schedule 12 and elsewhere in the Bill. It provides a mechanism for disapplying the continuity provisions if specified in the statute or in statutory instrument which brings the revocation into force. This amendment will ensure consistent interpretation of transfer provisions across the Bill.

Moved, That the House do agree with the Commons in their Amendments Nos. 703A to 703D as amendments to Lords Amendment No. 703 and in their consequential Amendment No. 703E.--(Lord Whitty.)

Baroness Blatch: My Lords, as far as concerns Amendment No. 703E, can the Minister give an example of an abolished function and say what it is consequential upon?

Lord Whitty: My Lords, Amendment No. 703E is consequential on Amendment No. 703. As it stands, Amendment No. 703 abolishes a number of functions of London Transport, which will either be transferred or suspended in relation to the transfer to TfL. Amendment No. 703E simply reflects those functions in the other part of the clause; in other words, it is not a new provision. The other four amendments are minor

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new provisions. Amendment No. 703E is simply consequential on an amendment already passed by this House.

Baroness Blatch: My Lords, perhaps I may repeat my question: can the Minister give an example of an abolished function?

Lord Whitty: My Lords, perhaps I may draw attention to Amendment No. 703 as it stands--which is not the easiest thing in the world. In regard to that issue, Amendment No. 703 means that all functions of London Regional Transport will be wound up as a consequence of the Bill--they will, in a certain sense, be transferred to other authorities. For example, the biggest function of London Regional Transport is to provide public transport. That function will be wound up because London Regional Transport will be wound up. This amendment is consequential upon that.

On Question, Motion agreed to.


LORDS AMENDMENT
793After Schedule 26, insert the following new schedule--

("SCHEDULE
London Regional Transport pension etc schemes
Interpretation

1. (1) In this Schedule--
"employment" means employment under a contract of service or apprenticeship (whether express or implied and, if express, whether oral or in writing) and related expressions shall be construed accordingly;
"LRT pension scheme" means any occupational pension scheme for the provision of pensions for or in respect of persons with service in the employment of London Regional Transport or a subsidiary of London Regional Transport (whether or not pensions may also be provided under the scheme for or in respect of persons without such service);
"LRT welfare scheme" means a scheme (other than a pension scheme) for the provision, whether directly or indirectly, of benefits for or in respect of persons with service in the employment of London Regional Transport or a subsidiary of London Regional Transport (whether or not benefits may also be provided under the scheme for or in respect of persons without such service);
"occupational pension scheme" has the meaning given in section 1 of the Pension Schemes Act 1993;
"order" means an order made by the Secretary of State under section 322(1) of this Act;
"prescribed" means specified in, or determined in accordance with, an order.
(2) Subject to sub-paragraph (1) above, expressions used in this Schedule and in section 322 of this Act have the same meaning in this Schedule as they have in that section.Amendment of LRT pension schemes
2.--(1) In the case of any LRT pension scheme, the provision that may be made by order under section 322(1) of this Act includes provision for or in connection with-
(a) the allocation of assets, rights, liabilities or obligations between different sections of the scheme;
(b) securing that the scheme continues to be approved for the purposes of the relevant enactments, notwithstanding any transfers made by or under this Act.

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(2) In sub-paragraph (1) above "the relevant enactments" means--
(a) Chapter I of Part XIV of the Income and Corporation Taxes Act 1988 (retirement benefit schemes); and
(b) Part III of the Pension Schemes Act 1993, so far as relating to occupational pension schemes. Protection of pension arrangements of transferred employees
3.--(1) For the purposes of this paragraph, a "protected person" is a person--
(a) who, as a result of any prescribed relevant transaction, becomes, or since 20th March 1998 has become, an employee of a private sector company; and
(b) who, immediately before becoming such an employee, was an employee of London Regional Transport or a subsidiary of London Regional Transport.
(2) The Secretary of State may by order make provision for the purpose of securing that no protected person (and, accordingly, no person who is or may become entitled to a pension in respect of a protected person) ceases to be overall in materially at least as good a position, as respects pension arrangements, as a result of--
(a) the relevant transaction by reason of which the protected person is such a person; or
(b) any pensions order made in connection with that relevant transaction.
(3) The provision that may be made by virtue of sub-paragraph (2) above is provision for the purpose of securing that a protected person has the right--
(a) for so long as the appropriate conditions are satisfied, to continue to participate as a contributing member in any prescribed LRT pension scheme in which he was participating as such a member immediately before the relevant transaction, and
(b) for so long as his period of continuous employment is not broken, to participate as a contributing member in a pension scheme under which the benefits to be provided to or in respect of him are overall materially at least as good as those provided under any prescribed LRT scheme in which he was participating as a contributing member immediately before the relevant transaction,subject to any provision made by virtue of sub-paragraph (6) below.
(4) For the purposes of sub-paragraph (3)(a) above, "the appropriate conditions" are--
(a) that the protected person continues to be a person employed in the London underground railway industry (whether or not with the same employer); and
(b) that any prescribed conditions with respect to continuity of employment are satisfied in his case.
(5) The provision that may be made by virtue of sub-paragraph (2) above includes provision for or in connection with the level of funding which is to be maintained in the case of any pension scheme of a prescribed description so far as relating to protected persons.
(6) An order made by virtue of sub-paragraph (2) above may make provision for such orders to cease to have effect in the case of any protected person if-
(a) he voluntarily withdraws from an occupational pension scheme, or

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(b) he requests that his pension rights be transferred from an occupational pension scheme,
except in such circumstances or to such extent as may be prescribed.
(7) Circumstances may be prescribed in which--
(a) a break in the continuity of a person's period of employment,
(b) a person's ceasing to be a person employed in the London underground railway industry, or
(c) a person's voluntary withdrawal from an occupational pension scheme,
shall be disregarded for prescribed purposes of this paragraph.
(8) Chapter I of Part XIV of the Employment Rights Act 1996 (continuous employment) shall apply for the purposes of this paragraph as it applies for the purposes of that Act.
(9) For the purposes of this paragraph--
(a) the persons who are to be regarded as "employed in the London underground railway industry" are those who are employed to carry on activities of a class or description specified for the purposes of this sub-paragraph in an order made by the Secretary of State; and
(b) the Secretary of State may so specify any class or description of activity which, in his opinion, falls within, or is related to or connected with, the London underground railway industry.
(10) In this paragraph--
"contributing member", in the case of any pension scheme, means a member who makes, and whose employer makes in respect of him, contributions under the scheme;
"pensions order" means an order made otherwise than by virtue of this paragraph;
"private sector company" means any company other than a public sector operator, within the meaning of Chapter VI of Part IV of this Act;
"relevant transaction" means--
(a) a transfer of shares in a subsidiary of London Regional Transport to a private sector company; or
(b) a transfer of rights and liabilities under a contract of employment.
Power to dispense with consent of trustees
4. If the Secretary of State makes provision under this Act for or in connection with--
(a) enabling employees of Transport for London, or of a subsidiary of Transport for London, to participate in an LRT pension scheme, or
(b) enabling Transport for London or a subsidiary of Transport for London to participate as an employer in such a scheme,he may by order make provision requiring the trustees of the scheme or any other person whose approval or consent is necessary in connection with the doing of anything required to be done by virtue of the order to give that approval or consent.
LRT welfare schemes

5.--(1) The provision that may be made by order under section 322(1) of this Act includes provision with respect to

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the provision, under an LRT welfare scheme, of benefits for or in respect of persons who are or have been employees of--
(a) London Regional Transport or any subsidiary of London Regional Transport; or
(b) Transport for London or any subsidiary of Transport for London.
(2) For the purposes of sub-paragraph (1) above, the provisions of section 322 of this Act, and of the other paragraphs of this Schedule, shall apply in relation to an LRT welfare scheme as they apply in relation to a pension scheme, but taking references in those provisions to pensions as references to benefits and construing references to pension rights accordingly.
(3) The Secretary of State may by order amend the memorandum and articles of any company which is the trustee of an LRT welfare scheme for or in connection with permitting directors or shareholders of the company to be persons who are officers or servants of Transport for London or a subsidiary of Transport for London.
In this sub-paragraph "company", "memorandum" and "articles" have the same meaning as in the Companies Act 1985.
(4) Any powers--
(a) which were vested in the London Transport Board in relation to an LRT welfare scheme, and
(b) which have not become vested in London Regional Transport by virtue of a transfer under section 16(1) of the Transport (London) Act 1969 or otherwise,
shall be deemed to be vested in London Regional Transport by virtue of such a transfer.
(5) Anything done at any time by or in relation to London Regional Transport--
(a) before the coming into force of sub-paragraph (4) above, and
(b) in reliance on any power deemed by that sub-paragraph to be vested in London Regional Transport,
shall be as valid and effective as if the power had at that time been vested in London Regional Transport.")
The Commons agreed to this amendment with the following amendments--
793ALine 39, at the end of paragraph 2(1)(b), insert ("or any qualifying transaction").
793BLine 40, in paragraph 2(2), after ("above") insert--
(""qualifying transaction" means any relevant transaction, within the meaning of paragraph 3 below, as a result of which a person is or becomes a protected person for the purposes of that paragraph;").
793CLine 129, in paragraph 4(a), after second ("London,") insert ("or of a private sector company (within the meaning of paragraph 3 above)").
793DLine 130, in paragraph 4(b), leave out ("or").
793ELine 131, in paragraph 4(b), after second ("London") insert ("or such a company").
793FLine 170, at the end of the Schedule, insert--
("Former employees of predecessors of London Regional Transport

6. In the application of section 322 of this Act in a case where the body or person falling within paragraph (b) of subsection (1) of that section is London Regional Transport or a subsidiary of London Regional Transport,

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paragraph (c) of that subsection shall have effect with the insertion, after "falling within paragraph (b) above", of "or this paragraph".").

Lord Whitty: My Lords, I beg to move that the House do agree en bloc with the Commons in their Amendments Nos. 793A to 793F to Lords Amendment No. 793.

These amendments relate to pensions. The schedule to which these amendments refer relates to the framework within which the implementation of assurances which were given by the Deputy Prime Minister in another place will take effect. Those assurances related to the right of London Underground staff who would transfer as a result of the public private partnership to retain their membership of the London Regional Transport pension fund and the benefits which go with it.

Noble Lords will recall that I explained at Third Reading how the Government intended that this assurance would be implemented by secondary legislation. These amendments do not introduce a new policy but clarify and tidy up the existing provisions.

Amendments Nos. 793A and 793B make clear that an LRT pension scheme may be amended for the purpose of protecting the pensions of those staff transferred to the private sector as a result of PFI deals since 20th March 1998, as well as of those staff who will transfer as a result of the London Underground PPP deal.

Amendments Nos. 793C, 793D and 793E extend the Secretary of State's power to require the trustees of the LRT pension fund to give consent to changes, including ensuring that employees of private sector companies are able to participate in the LRT funds, as well as employees of TfL.

Amendment No. 793F extends the Secretary of State's powers to make amendments to the LRTPF affecting people who were employees of any predecessor body of LRT, rather than simply of its immediate predecessor. This is intended to eliminate a possible anomaly where a member of the LRTPF scheme whose employment ceased before the establishment of the LRT's immediate predecessor would fall out of the meaning of the schedule as it currently stands. I commend the amendments to the House.

Moved, That this House do agree with the Commons in their Amendments Nos. 793A to 793F as amendments to Lords Amendment No. 793.--(Lord Whitty.)


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