SCHEMES BECOMING CONTRACTED-OUT BETWEEN 1986 AND 1993

HC Deb 23 July 1986 vol 102 cc389-91

Lords amendment: No. 11, in page 8, line 24, leave out to the trustees or managers of the scheme".

Mr. Major

I beg to move, That this House doth agree with the Lords in the said amendment.

Mr. Deputy Speaker

With this it will be convenient to take the following Lords amendments: No. 12, in page 8, line 34, at end insert— (1A) The Secretary of State shall make a payment under this section to the trustees or managers of the scheme except that in such circumstances as may be prescribed he shall make such a payment to a prescribed person. No. 13, in clause 8, page 10, line 10, at end insert— and except to that extent shall be treated for the purposes of section 50 of that Act (requirement of consent of Occupational Pensions Board to alterations of rules of schemes) as if it had never existed". No. 14, in clause 9, page 12, line 10, at end insert "(h) section 52D," No. 15, in page 12, line 15, after "earner" insert— in any case where he is entitled to a widower's invalidity pension, but that reference shall be so constructed where he is entitled to any other benefit No. 16, in page 13, leave out lines 36 to 40 and insert— (8) Except as permitted by subsection (13), (14) or (14A) below, the trustees or managers of a scheme may not make an increase in a person's pension which is required by virtue of this section out of money which would otherwise fall to be used for the payment of benefits under the scheme to or in respect of that person unless—

1. (a) the payment is to an earner in respect of the tax year in which he attains pensionable age and the increase is the one required to be made in the following year; or
2. (b) the payment is to a person as the widow or widower of an earner who died before attaining pensionable age in respect of the tax year in which the person 390 became a widow or widower and the increase is the one required to be made in the next following tax year."

No. 17, in page 14, line 42, at end insert— (14A) Where in any tax year subsequent to 1989–90 the trustees or managers of a scheme make an increase which is partly made otherwise than in pursuance of this section, they may deduct the part of the increase made otherwise than in pursuance of this section from any increase which, but for this subsection, they would be required to make under this section in the next following year. No. 18, in line 43, leave out "or (14)" and insert ",(14) or (14A)" No. 19, in page 15, line 2, at end insert— (16) Where by virtue of any of those subsections guaranteed minimum pensions are required to be increased in pursuance of this section by an amount less than they otherwise would be, their amount shall be calculated for any purpose as if they had been increased by that full amount.". No. 20, in line 5, leave out "or (14)" and insert", (14) or (14A)' No. 21, after clause 10, insert the following new clause— . The following shall be inserted after section 56N of the Social Security Pensions Act 1975—

"Auditors Regulations as to auditors 56P. The Secretary of State may by regulations make provision as to—

1. (a) the appointment, resignation and removal of auditors of occupational pension schemes;
2. (b) the duty of employers and auditors of employers to disclose information to the trustees or managers of occupational pension schemes and the auditors of such schemes;
3. (c) the duty of trustees or managers of an occupational pension scheme to disclose information and to make available documents to the auditors of the scheme."

No. 100, in schedule, 2, page 91, line 18, after "section" insert— and sections 16(2B), 28(7A) and 59(1A) of the principal Act". No.101, in page 93, line 35, leave out from "to" end of line 39 and insert— minimum contributions there shall be substituted references to minimum payments and any payments by the Secretary of State under section 7 of the Social Security Act 1986; No. 102, in line 49, leave out from "rights" to "pension" in page 94, line 1 and insert— (within the meaning of the Social Security Pensions Act 1975) under another occupational pension scheme or protected rights under a personal". No. 103, in page 94, line 4, leave out for the reference in paragraph 9 and insert— in paragraph 9—

1. (i) for the reference to an occupational pension scheme there shall be substituted a reference to a personal pension scheme; and
2. (ii) for the reference"

No. 104, in line 13, leave out "trustees or managers" and insert "employers". No. 105, in page 95, line leave out "improve" and insert "approve". No. 106, in page 96, line 1, after "29" insert "(2)". No. 107, in line 3, leave out from beginning to "were" in line 13 and insert. to that person and a widow or widower of that person as if any guaranteed minimum pension to which that person or any such widow or widower is treated as entitled under those provisions, and which derives from the minimum payments, minimum contributions (within the meaning of the Social Security Act 1986) or transfer payment or payments from which those rights derive No. 108, in page 96, line 37, leave out from "pension" to end of line 39 and insert— such as is mentioned in subsection (8) above. No. 109, in page 98, line 11, leave out after the definition of 'accrued rights' and insert before the definition of 'guaranteed minimum pension' I inform the House that amendment No. 11 involves privilege.

Mr. Major

Many of these amendments make drafting or technical changes. One that perhaps deserves particular mention is amendment No. 16 to clause 9. Apart from making some minor drafting changes, this provides for an exception, but only in the first year following payment of a guaranteed minimum pension, to the general rule that an increase in that GMP may not be provided out of any other part of the person's benefits due under the scheme. This relaxation will effectively simplify the administration of schemes which increase pensions other than at the beginning of a tax year and will mean that they will not have to provide two separate pension increases in the first year.

Amendments Nos. 17 to 20 are technical amendments to protect pensioners. They ensure that, where an occupational pension scheme takes advantage of provisions which allow an increase in the occupational pension to count towards an increase in the GMP, the pensioner does not overall receive less than the required annual increase in the GMP.

Amendments Nos. 11 and 12 allow outstanding incentive payments to be made to the scheme or insurer to which the pension rights of the member concerned have been transferred. Amendment No. 13 relieves the Occupational Pensions Board of the duty to examine scheme rules relating to "requisite benefits" for periods before clause 8 is operative.

Amendment No. 21 introduces a new clause, after clause 10, which enables regulations to be made about the appointment, tenure and powers of auditors of occupational pension schemes in relation to their duties in connection with the disclosure requirements on schemes.

I commend the amendments to the House.

Question put and agreed to.

Subsequent Lords amendments agreed to, one with Special Entry.