24B—(1) On granting a decree of divorce, a decree of nullity of marriage or a decree of judicial separation or at any time thereafter (whether, in the case of a decree of divorce or of nullity of marriage, before or after the decree is made absolute), the court may make a pensions adjustment order (referred to in this section as "an order") for the benefit of a party to the marriage.
(2) An order shall where the court so determines bind a person who is not a party to the marriage but who is liable to pay any benefit under a pension scheme to a party to the marriage or any successor to such a person.
(3) An order is an order adjusting the rights and benefits to which either party to the marriage is or may become entitled to under any pension scheme and in particular the court may by such an order require—
- (a) either party to the marriage to pay to the other such lump sum or sums as may be specified in the order (without prejudice to any other order which may be made under section 23(1) or (3)); or
- (b) the administrator of a pension scheme to treat the party to the marriage in favour of whom the order is to be made as a member of the pension scheme in relation to such benefits as may be specified in the order which were acquired by the other party to the marriage before the decree of divorce or nullity was made absolute or before the decree of judicial separation, or
- (c) the administrator of a pension scheme to make such payment or payments as may be specified in the order into such other pension schemes as may be nominated by the party to the marriage in favour of whom the order is made, or
- (d) the administrator of a pension scheme to pay such part of any pension as may be specified in the order to the party in favour of whom the order is made for such term as may be specified not extending beyond the death of either party to the marriage, or
- (e) the administrator of a pension scheme to pay such part of any dependant's pension as may be specified in the order to the party in favour of whom the order is made for such term as may be specified beginning with the death of the other party to the marriage and not extending beyond the death of the party in whose favour the order is made, or
- (f) either party to the marriage to pay such administrative costs incurred by the administrator of the pension scheme in responding to any application for an order or in implementing an order.
§ (4) An order shall not be made—
- (a) under subsection (3)(b) above unless the administrator of the pension scheme consents to membership of the pension scheme for the party to the marriage who is not already a member of the pension scheme, or
- (b) under subsection (3)(c) above unless the court is satisfied that the administrator of the pension scheme nominated by the party in whose favour the order may be made has agreed to accept such payment or payments, and in the event of the administrator being unwilling to accept such payment or payments he may be required to notify the parties to the marriage and the court.
(5) It shall be the duty of the court in deciding whether to exercise its powers under this section and, if so, in what manner to have regard in particular to—
- (a) the matters referred to in section 25 save for the words "in the foreseeable future" in section 25(2)(a), (b) and (f), and
- (b) the effect that child care or other domestic responsibilities have had or will have on the ability of each of the parties to the marriage to make provision for his retirement, and
207 - (c) any administrative complexity or cost to the administrator of the pension scheme.
(6) The Secretary of State in agreement with the Lord Chancellor shall by regulations provide for the date and method of valuation to be applied by the court to rights under a pension scheme when making an order and to provide for notice of any application for an order to be given to the administrator of the pension scheme.
(7) The Secretary of State may by regulations make such provision as may be appropriate to meet the special circumstances of unfunded public sector schemes by varying or excluding the powers of the court under this section.
(8) Nothing in the provisions mentioned in subsection (9) below applies to a court exercising its powers under this section.
(9) The provisions referred to in subsection (8) are—
- (a) section 203(1) and (2) of the Army Act 1955, section 203(1) and (2) of the Air Force Act 1955, section 128G(1) and (2) of the Naval Discipline Act 1957 or section 159(4) of the Pension Schemes Act 1993 (which prevent assignment or orders being made restraining a person from receiving anything which he is prevented from assigning);
- (b) section 84 of the Pensions Act 1995;
- (c) any provision for any enactment corresponding to any of the enactments mentioned in paragraphs (a) and (b); and
- (d) any provision of the pension scheme in question.
(10) the making of an order shall in no circumstances form the basis of any decision made by the Commissioners of Inland Revenue to remove the exempt approved status or to alter the tax status of a pension scheme provided that—
- (a) the party to the marriage in whose favour an order has been made shall be treated for the purpose of retention of benefits as the member; and
- (b) the maximum benefits payable to and in respect of the party to the marriage whose rights have been varied by the order shall be limited to the benefits that would have been payable if the order had not been made.
(11) No order or orders shall be made which shall have the effect of increasing the liabilities of any pension scheme beyond those which might have been incurred had the parties to the marriage remained married until the death of the party against whom the order is to be made.
(12) After paragraphs (2)(f) of section 31 there shall be inserted:
"(g) any order made under section 24B(3)(d) or (e) above"
§
(13) After subparagraph (ii) in section 35(2) there shall be inserted:
or (iii) by adjusting the rights and benefits to which either party to the marriage is or may become entitled under any pension scheme.
§ (14) Nothing in this section shall affect any proceedings commenced before the commencement of this section.
(15) In this section—
"administrator" means the trustees of an occupational pension scheme or the administrators or managers of such a scheme in the absence of trustees or the administrators or managers of a personal pension plan;
"member" means a member of an occupational pension scheme or a person having a personal pension plan or retirement benefit plan or other similar arrangement; and
"pension scheme" means an occupational pension scheme or personal pension scheme or retirement benefit plan or other similar arrangement.'.—[Mr. Dewar.]
§ Brought up, and read the First time.
§ Motion made, and Question put, That the clause be read a Second time:—
§ The House divided: Ayes 247, Noes 292.
211| Division No. 193] | [7.30 pm |
| AYES | |
| Abbott, Ms Diane | Fatchett, Derek |
| Adams, Mrs Irene | Faulds, Andrew |
| Ainger, Nick | Field, Frank (Birkenhead) |
| Ainsworth, Robert (Cov'try NE) | Flynn, Paul |
| Alton, David | Forsythe, Clifford (S Antrim) |
| Armstrong, Hilary | Foster, Rt Hon Derek |
| Ashton, Joe | Foster, Don (Bath) |
| Banks, Tony (Newham NW) | Foulkes, George |
| Barnes, Harry | Fraser, John |
| Barron, Kevin | Fyfe, Maria |
| Battle, John | Galloway, George |
| Bayley, Hugh | Garrett, John |
| Beckett, Rt Hon Margaret | Gerrard, Neil |
| Beggs, Roy | Godman, Dr Norman A |
| Bell, Stuart | Godsiff, Roger |
| Benn, Rt Hon Tony | Golding, Mrs Llin |
| Bennett, Andrew F | Gordon, Mildred |
| Bermingham, Gerald | Graham, Thomas |
| Berry, Roger | Grant, Bernie (Tottenham) |
| Betts, Clive | Griffiths, Win (Bridgend) |
| Blunkett, David | Grocott, Bruce |
| Boateng, Paul | Gunnell, John |
| Bray, Dr Jeremy | Hain, Peter |
| Brown, N (N'c'tle upon Tyne E) | Hall, Mike |
| Bruce, Malcolm (Gordon) | Harman, Ms Harriet |
| Burden, Richard | Hattersley, Rt Hon Roy |
| Byers, Stephen | Henderson, Doug |
| Caborn, Richard | Hill, Keith (Streatham) |
| Callaghan, Jim | Hinchliffe, David |
| Campbell, Mrs Anne (C'bridge) | Hodge, Margaret |
| Campbell, Ronnie (Blyth V) | Hoey, Kate |
| Campbell-Savours, D N | Hogg, Norman (Cumbernauld) |
| Cann, Jamie | Home Robertson, John |
| Carlile, Alexander (Montgomery) | Hood, Jimmy |
| Chidgey, David | Hoon, Geoffrey |
| Chisholm, Malcolm | Howarth, George (Knowsley North) |
| Church, Judith | Howells, Dr. Kim (Pontypridd) |
| Clapham, Michael | Hoyle, Doug |
| Clark, Dr David (South Shields) | Hughes, Kevin (Doncaster N) |
| Clarke, Tom (Monkands W) | Hughes, Robert (Aberdeen N) |
| Clelland, David | Hughes, Roy (Newport E) |
| Clwyd, Mrs Ann | Hutton, John |
| Coffey, Ann | Illsley, Eric |
| Cohen, Harry | Ingram, Adam |
| Connarty, Michael | Jackson, Glenda (H'stead) |
| Corbett, Robin | Jackson, Helen (Shef'ld, H) |
| Corbyn, Jeremy | Jamieson, David |
| Corston, Jean | Janner, Greville |
| Cousins, Jim | Johnston, Sir Russell |
| Cummings, John | Jones, Barry (Alyn and D'side) |
| Cunliffe, Lawrence | Jones, leuan Wyn (Ynys Môn) |
| Cunningham, Jim(Covy SE) | Jones, Lynne (B'ham S O) |
| Cunningham, Roseanna | Jones, Martyn (Clwyd, SW) |
| Dalyell, Tam | Jones, Nigel (Cheltenham) |
| Darling, Alistair | Jowell, Tessa |
| Davidson, Ian | Keen, Alan |
| Davies, Bryan (Oldham C'tral) | Kennedy, Jane (L'pool Br'dg'n) |
| Davies, Rt Hon Denzil (Llanelli) | Khabra, Piara S |
| Davies, Ron (Caerphilly) | Kilfoyle, Peter |
| Davis, Terry (B'ham, H'dge H'l) | Kirkwood, Archy |
| Denham, John | Lestor, Joan (Eccles) |
| Dewar, Donald | Lewis, Terry |
| Dixon, Don | Liddell, Mrs Helen |
| Dobson, Frank | Litherland, Robert |
| Donohoe, Brian H | Livingstone, Ken |
| Dowd, Jim | Lloyd, Tony (Stretford) |
| Dunnachie, Jimmy | Llwyd, Elfyn |
| Dunwoody, Mrs Gwyneth | Loyden, Eddie |
| Eagle, Ms Angela | Lynne, Ms Liz |
| Eastham, Ken | McAllion, John |
| Etherington, Bill | McAvoy, Thomas |
| Evans, John (St Helens N) | McCartney, Robert |
| Ewing, Mrs Margaret | Macdonald, Calum |
| McFall, John | Robertson, George (Hamilton) |
| McKelvey, William | Robinson, Geoffrey (Co'try NW) |
| Mackinlay, Andrew | Roche, Mrs Barbara |
| McLeish, Henry | Rogers, Allan |
| Maclennan, Robert | Rooker, Jeff |
| McMaster, Gordon | Rooney, Terry |
| McNamara, Kevin | Ross, Ernie (Dundee W) |
| MacShane, Denis | Ross, William (E Londonderry) |
| McWilliam, John | Ruddock, Joan |
| Madden, Max | Salmond, Alex |
| Mandelson, Peter | Sedgemore, Brian |
| Marek, Dr John | Sheerman, Barry |
| Marshall, David (Shettleston) | Sheldon, Rt Hon Robert |
| Marshall, Jim (Leicester, S) | Short, Clare |
| Martin, Michael J (Springburn) | Simpson, Alan |
| Martlew, Eric | Skinner, Dennis |
| Maxton, John | Smith, Andrew (Oxford E) |
| Meale, Alan | Smith, Llew (Blaenau Gwent) |
| Michie, Bill (Sheffield Heeley) | Smyth, The Reverend Martin |
| Michie, Mrs Ray (Argyll & Bute) | Snape, Peter |
| Milburn, Alan | Spearing, Nigel |
| Miller, Andrew | Spellar, John |
| Molyneaux, Rt Hon James | Squire, Rachel (Dunfermline W) |
| Morgan, Rhodri | Steel, Rt Hon Sir David |
| Morris, Rt Hon Alfred (Wy'nshawe) | Steinberg, Gerry |
| Morris, Estelle (B'ham Yardley) | Stevenson, George |
| Mowlam, Marjorie | Taylor, Mrs Ann (Dewsbury) |
| Mudie, George | Taylor, Matthew (Truro) |
| Mullin, Chris | Timmis, Stephen |
| Murphy, Paul | Tipping, Paddy |
| O'Brien, Mike (N W'kshire) | Touhig, Don |
| O'Brien, William (Normanton) | Turner, Dennis |
| Olner, Bill | Tyler, Paul |
| O'Neill, Martin | Walker, Rt Hon Sir Harold |
| Orme, Rt Hon Stanley | Wallace, James |
| Parry, Robert | Walley, Joan |
| Pearson, Ian | Wardell, Gareth (Gower) |
| Pickthall, Colin | Watson, Mike |
| Pike, Peter L | Welsh, Andrew |
| Pope, Greg | Williams, Rt Hon Alan (Sw'n W) |
| Powell, Ray (Ogmore) | Williams, Alan W (Carmarthen) |
| Prentice, Bridget (Lew'm E) | Wilson, Brian |
| Prentice, Gordon (Pendle) | Winnick, David |
| Prescott, Rt Hon John | Wise, Audrey |
| Primarolo, Dawn | Worthington, Tony |
| Purchase, Ken | Wray, Jimmy |
| Quin, Ms Joyce | Wright, Dr Tony |
| Radice, Giles | Young, David (Bolton SE) |
| Randall, Stuart | |
| Raynsford, Nick | Tellers for the Ayes: |
| Reid, Dr John | Mr. Jon Owen Jones and Mr. Eric Clarke. |
| Rendel, David |
| NOES | |
| Ainsworth, Peter (East Surrey) | Beresford, Sir Paul |
| Aitken, Rt Hon Jonathan | Biffen, Rt Hon John |
| Alexander, Richard | Bonsor, Sir Nicholas |
| Alison, Rt Hon Michael (Selby) | Booth, Hartley |
| Allason, Rupert (Torbay) | Bottomley, Peter (Eltham) |
| Amess, David | Bottomley, Rt Hon Virginia |
| Ancram, Michael | Bowden, Sir Andrew |
| Arbuthnot, James | Bowis, John |
| Arnold, Jacques (Gravesham) | Boyson, Rt Hon Sir Rhodes |
| Arnold, Sir Thomas (Hazel Grv) | Brandreth, Gyles |
| Ashby, David | Brazier, Julian |
| Atkins, Rt Hon Robert | Bright, Sir Graham |
| Atkinson, David (Bour'mouth E) | Brown, M (Brigg & Cl'thorpes) |
| Atkinson, Peter (Hexham) | Browning, Mrs Angela |
| Baker, Nicholas (North Dorset) | Bruce, Ian (Dorset) |
| Baldry, Tony | Budgen, Nicholas |
| Banks, Matthew (Southport) | Burns, Simon |
| Bates, Michael | Burt, Alistair |
| Batiste, Spencer | Butcher, John |
| Bellingham, Henry | Butler, Peter |
| Bendall, Vivian | Butterfill, John |
| Carlisle, John (Luton North) | Hawksley, Warren |
| Carlisle, Sir Kenneth (Lincoln) | Hayes, Jerry |
| Carrington, Matthew | Heald, Oliver |
| Carttiss, Michael | Heath, Rt Hon Sir Edward |
| Cash, William | Heathcoat-Amory, David |
| Channon, Rt Hon Paul | Hendry, Charles |
| Churchill, Mr | Heseltine, Rt Hon Michael |
| Clappison, James | Hicks, Robert |
| Clark, Dr Michael (Rochford) | Higgins, Rt Hon Sir Terence |
| Clarke, Rt Hon Kenneth (Ru'clif) | Hogg, Rt Hon Douglas (G'tham) |
| Clifton-Brown, Geoffrey | Horam, John |
| Coe, Sebastian | Hordern, Rt Hon Sir Peter |
| Colvin Michael | Howard, Rt Hon Michael |
| Conway, Derek | Howarth, Alan (Strat'rd-on-A) |
| Coombs, Anthony (Wyre For'st) | Howell, Sir Ralph (N Norfolk) |
| Cope, Rt Hon Sir John | Hughes, Robert G (Harrow W) |
| Cormack, Sir Patrick | Hunt, Sir John (Ravensbourne) |
| Couchman, James | Hunter, Andrew |
| Cran, James | Jack, Michael |
| Currie, Mrs Edwina (S D'by'ire) | Jackson, Robert (Wantage) |
| Curry, David (Skipton & Ripon) | Jenkin, Bernard |
| Davies, Quentin (Stamford) | Jessel, Toby |
| Davis, David (Boothferry) | Johnson Smith, Sir Geoffrey |
| Day, Stephen | Jones, Gwilym (Cardiff N) |
| Deva, Nirj Joseph | Jones, Robert B (W Hertfdshr) |
| Devlin, Tim | Kellett-Bowman, Dame Elaine |
| Dicks, Terry | Key, Robert |
| Dorrell, Rt Hon Stephen | King, Rt Hon Tom |
| Douglas-Hamilton, Lord James | Kirkhope, Timothy |
| Dover, Den | Knapman, Roger |
| Duncan, Alan | Knight, Mrs Angela (Erewash) |
| Duncan-Smith, Iain | Knight, Greg (Derby N) |
| Dunn, Bob | Knight, Dame Jill (Bir'm E'st'n) |
| Durant, Sir Anthony | Knox, Sir David |
| Dykes, Hugh | Kynoch, George (Kincardine) |
| Eggar, Rt Hon Tim | Lait, Mrs Jacqui |
| Elletson, Harold | Lang, Rt Hon Ian |
| Evans, David (Welwyn Hatfield) | Lawrence, Sir Ivan |
| Evans, Jonathan (Brecon) | Legg, Barry |
| Evans, Nigel (Ribbte Valley) | Leigh, Edward |
| Evans, Roger (Monmouth) | Lennox-Boyd, Sir Mark |
| Evennett, David | Lidington, David |
| Faber, David | Lightbown, David |
| Fabricant, Michael | Lilley, Rt Hon Peter |
| Fenner, Dame Peggy | Lloyd, Rt Hon Sir Peter (Fareham) |
| Field, Barry (Isle of Wight) | Lord, Michael |
| Fishburn, Dudley | Luff, Peter |
| Forman, Nigel | Lyell, Rt Hon Sir Nicholas |
| Forsyth, Rt Hon Michael (Stirling) | MacGregor, Rt Hon John |
| Forth, Eric | MacKay, Andrew |
| Fowler, Rt Hon Sir Norman | Maclean, Rt Hon David |
| Fox, Sir Marcus (Shipley) | McLoughlin, Patrick |
| Freeman, Rt Hon Roger | McNair-Wilson, Sir Patrick |
| French, Douglas | Madel, Sir David |
| Gale, Roger | Maitland, Lady Olga |
| Gallie, Phil | Major, Rt Hon John |
| Gardiner, Sir George | Malone, Gerald |
| Garel-Jones, Rt Hon Tristan | Mans, Keith |
| Garnier, Edward | Marland, Paul |
| Gillan, Cheryl | Marlow, Tony |
| Goodson-Wickes, Dr Charles | Marshall, John (Hendon S) |
| Gorst, Sir John | Martin, David (Portsmouth S) |
| Grant, Sir A (SW Cambs) | Mayhew, Rt Hon Sir Patrick |
| Greenway, Harry (Ealing N) | Merchant, Piers |
| Greenway, John (Ryedale) | Mills, Iain |
| Griffiths, Peter (Portsmouth, N) | Mitchell, Andrew (Gedling) |
| Gummer, Rt Hon John Selwyn | Mitchell, Sir David (NW Hants) |
| Hague, William | Moate, Sir Roger |
| Hamilton, Rt Hon Sir Archibald | Monro, Sir Hector |
| Hamilton, Neil (Tatton) | Montgomery, Sir Fergus |
| Hampson, Dr Keith | Moss, Malcolm |
| Hanley, Rt Hon Jeremy | Nelson, Anthony |
| Hannam, Sir John | Neubert, Sir Michael |
| Hargreaves, Andrew | Newton, Rt Hon Tony |
| Haselhurst, Sir Alan | Nicholls, Patrick |
| Hawkins, Nick | Nicholson, David (Taunton) |
| Nicholson, Emma (Devon West) | Stephen, Michael |
| Norris, Steve | Stern, Michael |
| Onslow, Rt Hon Sir Cranley | Stewart, Allan |
| Oppenheim, Phillip | Streeter, Gary |
| Ottaway, Richard | Sumberg, David |
| Page, Richard | Sweeney, Walter |
| Paice, James | Sykes, John |
| Patnick, Sir Irvine | Tapsell, Sir Peter |
| Patten, Rt Hon John | Taylor, Ian (Esher) |
| Pattie, Rt Hon Sir Geoffrey | Taylor, John M (Solihull) |
| Pawsey, James | Taylor, Sir Teddy (Southend, E) |
| Peacock, Mrs Elizabeth | Thomason, Roy |
| Pickles, Eric | Thompson, Sir Donald (C'er V) |
| Porter, Barry (Wirral S) | Thompson, Patrick (Norwich N) |
| Porter, David (Waveney) | Thornton, Sir Malcolm |
| Portillo, Rt Hon Michael | Thurnham, Peter |
| Powell, William (Corby) | Townend, John (Bridlington) |
| Rathbone, Tim | Townsend, Cyril D (Bexl'yh'th) |
| Redwood, Rt Hon John | Tracey, Richard |
| Renton, Rt Hon Tim | Tredinnick, David |
| Richards, Rod | Trend, Michael |
| Riddick, Graham | Trotter, Neville |
| Rifkind, Rt Hon Malcolm | Twinn, Dr Ian |
| Robathan, Andrew | Vaughan, Sir Gerard |
| Roberts, Rt Hon Sir Wyn | Viggers, Peter |
| Robertson, Raymond (Ab'd'n S) | Waldegrave, Rt Hon William |
| Robinson, Mark (Somerton) | Walker, Bill (N Tayside) |
| Roe, Mrs Marion (Broxbourne) | Waller, Gary |
| Rowe, Andrew (Mid Kent) | Ward, John |
| Rumbold, Rt Hon Dame Angela | Wardle, Charles (Bexhill) |
| Ryder, Rt Hon Richard | Waterson, Nigel |
| Sackville, Tom | Watts, John |
| Sainsbury, Rt Hon Sir Timothy | Wells, Bowen |
| Scott, Rt Hon Sir Nicholas | Wheeler, Rt Hon Sir John |
| Shaw, David (Dover) | Whitney, Ray |
| Shaw, Sir Giles (Pudsey) | Whittingdale, John |
| Shephard, Rt Hon Gillian | Widdecombe, Ann |
| Shepherd, Colin (Hereford) | Wiggin, Sir Jerry |
| Shepherd, Richard (Aldridge) | Wilkinson, John |
| Shersby, Sir Michael | Willetts, David |
| Sims, Roger | Wilshire, David |
| Smith, Tim (Beaconsfield) | Winterton, Mrs Ann (Congleton) |
| Soames, Nicholas | Winterton, Nicholas (Macclesfield) |
| Spencer, Sir Derek | Wolfson, Mark |
| Spicer, Sir James (W Dorset) | Wood, Timothy |
| Spicer, Michael (S Worcs) | Yeo, Tim |
| Spink, Dr Robert | Young, Rt Hon Sir George |
| Spring, Richard | |
| Sproat, Iain | Tellers for the Noes: |
| Squire, Robin (Hornchurch) | Mr. Sydney Chapman and Dr. Liam Fox. |
| Steen, Anthony |
§ Question accordingly negatived.