HC Deb 11 June 1975 vol 893 cc587-8

Amendments made:

No. 15, in page 21, line 19, leave out from 'in' to ';or' in line 21 and insert 'contracted-out employment by reference to the scheme'.

No. 16, in line 25, at end insert— '(2A) Where it is a condition of the scheme that the earner shall complete a specified minimum period of service before qualifying for requisite benefits in excess of guaranteed minimum pensions, the scheme's rules need not provide as in subsection (2) above for an earner whose service is terminated before completion of that minimum period'.—[Mr. O'Malley.]

12.15 a.m.

Mr. O'Malley

I beg to move Amendment No. 17, in page 21, line 28, leave out from 'salary' to 'by' in line 31 and insert:

  1. '(a) the method of computing average annual salary must be approved by the Occupational Pensions Board; and
  2. (b) the scheme must provide that earnings for any period falling within any tax year shall, for the purposes of the calculation, be treated as increased by the same percentage as that prescribed for the increase of earnings factors for that year.

(3A) In subsection (3)(b) above, "prescribed" means prescribed'.

Mr. Deputy Speaker

With this amendment, it will be convenient to discuss Government Amendments Nos. 18, 19 and 20.

Mr. O'Malley

The four amendments are linked.

The amendments to Clause 33(3) are to provide that the method of calculating average annual salary in an average salary revalued scheme must be approved by the Occupational Pensions Board, and that full earnings in any tax year must be revalued by the same percentage as that prescribed for the increase of earnings factors in that year.

The amendments are designed to ensure consistency by providing that the OPB will have a similar oversight of the method of computing average annual salary as it has over the method of ascertaining final salary in Clause 33(4).

The amendments to Clause 33(4) are drafting amendments.

Amendment agreed to.

Amendments made:

No. 18, in page 21, line 33, leave out 'he' and insert 'the earner'.

No. 19, in line 38, leave out from beginning to first 'the' in line 40 and insert:

  1. '(a) the method of ascertaining final salary; and
  2. (b) the scheme's provisions for calculating the rate of pension by reference to it, must be approved by the Board.

(4A) In deciding whether or not to give their approval under subsection (4)(b) above'.

No. 20, in line 43, leave out 'that' and insert 'final'.—[Mr. O'Malley.]

Mr. Alec Jones

I beg to move Amendment No. 21, in page 22, line 22, leave out 'not' and insert 'would not exceed'.

This again is a drafting amendment. It is an amendment to the revision of the subsection which was accepted in Committee, and is aimed at putting right a technical error in that amendment. As it stands, the effect of the subsection would be that only earnings over one and a half times the upper earnings limit would be excluded from the scheme's definition of "salary", whereas the intention is that any earnings over the limit may be excluded. The amendment corrects this.

Amendment agreed to.

Mr. O'Malley

I beg to move, That further consideration of the Bill, as amended, be now adjourned.

We have made substantial progress in our deliberations on the Bill today. Members of the Committee, but also other hon. Members, have made valuable contributions to our discussions. It is reasonable that, having gone past midnight, we should adjourn until a more sensible hour consideration of some important amendments which still have to be discussed. I hope, therefore, that this motion will be generally acceptable to the House.

Question put and agreed to.

Bill, as amended (in the Standing Committee, and on recommittal), to be further considered this day.