Clause 11 (Hansard, 19 May 1986)

§ Mr. Newton

I beg to move amendment No. 51, in page 14, line 21 leave out from 'prescribed,' to end of line 26 and insert `and except so far as is necessary to ensure that a personal or occupational pension scheme has, or may be expected to qualify for, tax-exemption or tax-approval, the rules of the scheme— (a) must not impose, or allow any person to impose, any upper or lower limit on the contributions which may be paid by a member and which are additional to the contributions that must be paid as a condition of membership of the scheme;'. 99 This is a drafting amendment which replaces some of the opening words of clause 11. The Inland Revenue applies limits to the total amount of benefit a person can receive from a pension scheme, as well as to the contributions he can make to it. It is therefore necessary to allow both these kinds of limit to constrain the otherwise unlimited "additional voluntary contribution" facility which schemes will now be required to provide. As currently drafted, clause 11 would allow only the Revenue contribution limits to be observed.

The amendment also improves the drafting of clause 11(1)(a) to achieve the intended effect that, apart from complying with Revenue requirements, the rules of a pension scheme must not impose, or allow anyone to impose, an upper or lower limit on the additional voluntary contributions which may be paid.