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Session 1999-2000
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Amendments to the Transport Bill

Transport Bill -
Amendments to be debated in the House of Lords

Here you can browse the Marshalled List of Motions to be moved on consideration of Commons Reasons in the House of Lords.

  
Clause 40
 
  
LORDS AMENDMENT NO. 27
 
     Page 27, line 5, at end insert--
 
    ("(  )  No direction to make a transfer scheme shall be given under subsection (1) before the first Session of the next Parliament after that in which this Act is passed.")
 
    The Commons disagree to this Amendment for the following Reason--
 
27A     Because the effect of the Amendment would be to delay unjustifiably the setting up of a public-private partnership in respect of air traffic services. 
27B     The Lord Brabazon of Tara to move, as an amendment to the motion that the House do not insist on its Amendment No. 27 to which the Commons have disagreed for their Reason No. 27A, leave out "not". 
  
Clause 41
 
  
LORDS AMENDMENT NO. 28
 
     Page 27, line 25, at end insert--
 
    ("(  )  No approval of a transfer scheme shall be made under subsection (2) before the first Session of the next Parliament after that in which this Act is passed.")
 
    The Commons disagree to this Amendment for the following Reason--
 
28A     Because the effect of the Amendment would be to delay unjustifiably the setting up of a public-private partnership in respect of air traffic services. 
28B     The Lord Brabazon of Tara to move, as an amendment to the motion that the House do not insist on its Amendment No. 28 to which the Commons have disagreed for their Reason No. 28A, leave out "not". 
  
Clause 42
 
  
LORDS AMENDMENT NO. 29
 
     Page 27, line 38, at end insert--
 
    ("(  )  No transfer scheme shall be made under subsection (2) before the first Session of the next Parliament after that in which this Act is passed.")
 
    The Commons disagree to this Amendment for the following Reason--
 
29A     Because the effect of the Amendment would be to delay unjustifiably the setting up of a public-private partnership in respect of air traffic services. 
29B     The Lord Brabazon of Tara to move, as an amendment to the motion that the House do not insist on its Amendment No. 29 to which the Commons have disagreed for their Reason No. 29A, leave out "not". 
  
After Clause 61
 
  
LORDS AMENDMENT NO. 31
 
     Insert the following new Clause-- 
     ("  .--(1)  In this section--
    NATS employer" includes NATS, any designated company which succeeds to the business of NATS and any employer other than a designated company which succeeds to or acquires any part of the business of NATS;
    NATS" is National Air Traffic Services Ltd whose air traffic services are to be transferred under the provisions of this Act;
    protected beneficiary" includes--
          (a)  any person who, on the transfer date, is employed by NATS and is an active member of the Scheme;
          (b)  any person who is employed by NATS on the transfer date, but is then too young to join the Scheme, and who subsequently joins;
          (c)  any person who is not an active member of the Scheme on the transfer date but who is subsequently entitled to rejoin as a NATS employee without a break in their continuity of employment;
          (d)  any person who is not an active member of the Scheme on the transfer date, but who is entitled to accrued pension rights under the Scheme at that date; and
          (e)  any person who is prospectively or contingently entitled to benefit under the Scheme on the death of a person covered under (a) to (d) above;
    relevant scheme" means the Scheme or any other scheme of a NATS employer that covers protected beneficiaries, and that provides benefits in respect of the protected beneficiaries which are at least equivalent in value to those applicable to the protected beneficiaries as at the transfer date;
    Scheme" means the Civil Aviation Authority Pension Scheme;
    transfer date" means the date of the transfer of NATS to the public-private partnership.
    (2)  NATS (or, if appropriate, the designated company) shall, subject to the consent of the Pension Schemes Office of the Inland Revenue, participate in the Scheme as a non-associated employer.
 
    (3)  If NATS (or the designated company) does participate in the Scheme as a non-associated employer, a proportion of the total assets of the Scheme shall be segregated for the benefit of the protected beneficiaries and the share of assets so segregated shall be equal in proportion to the proportion that the Scheme's liabilities in respect of the protected beneficiaries bears to the Scheme's liabilities as a whole.
 
    (4)  If NATS (or the designated company) is unable to participate in the Scheme, that NATS employer shall instead make available a relevant scheme for the benefit of the protected beneficiaries.
 
    (5)  If the shares or business of NATS (or the designated company), or any part of that business, is transferred to a NATS employer other than NATS or a designated company, that NATS employer shall become a non-associated employer in the Scheme and if that is not possible that NATS employer shall instead make available a relevant scheme for the benefit of the protected beneficiaries.
 
    (6)  For the purposes of subsections (4) and (5), if a NATS employer is to make available a relevant scheme other than the Scheme, a share of the assets of the Scheme (or of the previous relevant scheme if not the Scheme) shall be transferred to the receiving relevant scheme, calculated on the basis described in subsection (3).
 
    (7)  If a protected beneficiary transfers to the employment of another employer that also participates in the Scheme but which is not a NATS employer, that beneficiary shall remain a protected beneficiary for the purposes of the benefits to be provided to and in respect of him under the relevant scheme and if that beneficiary subsequently transfers back to the employment of a NATS employer he shall still remain a protected beneficiary.
 
    (8)  For so long as a NATS employer remains as a participating employer of the Scheme in respect of protected beneficiaries, one trustee of the Scheme shall be a member representative selected from amongst the protected beneficiaries, and one trustee of the Scheme shall be an employer representative of the NATS employer.
 
    (9)  The NATS employer shall contribute to the relevant scheme at no less than the rate recommended by that scheme's actuary as being sufficient to secure the accrued rights from time to time of the protected beneficiaries in full by the purchase of annuities and the NATS employer shall not be entitled unilaterally to suspend or terminate its contributions to the relevant scheme except upon its insolvency.
 
    (10)  On the full winding-up of a relevant scheme, or on a partial winding-up which involves protected beneficiaries, any shortfall in the assets required to buy out the accrued rights at that time of the protected beneficiaries shall be met in full by the relevant NATS employer and shall be treated as a debt on the employer.
 
    (11)  If, on the full or partial winding-up of a relevant scheme, as described in subsection (10), the trustees wish, rather than securing benefits by the purchase of annuities, to pay a bulk transfer to another scheme, that other scheme shall be a relevant scheme and the transfer value payable in respect of the protected beneficiaries shall be sufficient to secure a buy out of their accrued rights if the receiving scheme were to be wound up immediately following the transfer.
 
    (12)  The NATS employer shall provide future benefits in the relevant scheme which, in respect of the protected beneficiaries, are at least equivalent in value to those available under the Scheme at the transfer date.
 
    (13)  No amendment may be made to a relevant scheme which would result in a reduction of the accrued or future rights of protected beneficiaries, nor in an increase in the contributions payable by protected beneficiaries who are active members.")
 
    The Commons disagree to this Amendment for the following Reason--
 
31A     Because all necessary protections in respect of pensions arising by virtue of employment with National Air Traffic Services Limited, or any subsidiary of that company, can be put in place without this Amendment.
 
    The Lord Macdonald of Tradeston to move, That this House do not insist on its Amendment No. 31 to which the Commons have disagreed for their Reason No. 31A, but do propose the following amendments in lieu thereof --
Pension entitlement of present and former employees of NATS.
  
After Clause 88
 
31B     Insert the following new Clause-- 
     ("  .--(1)  The Secretary of State may by order make provision for the allocation of assets, rights, liabilities or obligations between different sections of the Civil Aviation Authority Pension Scheme.
 
    (2)  An order under this section may include provision for or in connection with--
    (a)  securing that the Scheme continues to be approved for the purposes of the relevant enactments;
    (b)  the amendment of the Scheme;
    (c)  the manner in which questions arising under the order are to be determined.
    (3)  The reference in subsection (2) to the amendment of the Scheme includes a reference to the amendment of--
    (a)  the trust deed of the Scheme;
    (b)  the rules of the Scheme;
    (c)  any other instrument relating to the constitution, management or operation of the Scheme.
    (4)  An order under this section may be made so as to have effect from a date falling before the making of the order.
 
    (5)  In making an order under this section the Secretary of State must secure that each person falling within subsection (6) is overall in materially at least as good a position, as respects pension arrangements, as a result of the order.
 
    (6)  A person falls within this subsection if--
    (a)  he is or has at any time been a contributing member of the Scheme, or
    (b)  he is or may become entitled to benefits in respect of a person falling within paragraph (a).
    (7)  A contributing member of the Scheme is a member who makes, and whose employer makes in respect of him, contributions under the Scheme.
 
    (8)  The relevant enactments are--
Civil Aviation Authority Pension Scheme.
 
    (a)  Chapter I of Part XIV of the Income and Corporation Taxes Act 1988 (retirement benefit schemes);
1988 c. 1.
 
    (b)  Part III of the Pension Schemes Act 1993, so far as relating to occupational pension schemes.")
1993 c. 48.
  
Clause 95
 
31C     Page 60, line 6, at end insert--
 
    ("(11A)  The power to make an order under section (Civil Aviation Authority Pension Scheme) is exercisable only after consultation with the trustees of the Civil Aviation Authority Pension Scheme.")
 
 
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Prepared 27 November 2000