HC Deb 20 May 1999 vol 331 cc1334-6

62A. The Insolvency Act 1986 is amended as follows.

62B. After section 342C there is inserted—

"Recovery of excessive contributions in pensionsharing cases

342D.—(1) For the purposes of sections 339, 341 and 342, a pension—sharing transaction shall be taken—

  1. (a) to be a transaction, entered into by the transferor with the transferee, by which the appropriate amount is transferred by the transferor to the transferee; and
  2. (b) to be capable of being a transaction entered into at an undervalue only so far as it is a transfer of so much of the appropriate amount as represents excessive contributions.

(2) For the purposes of sections 340 to 342, a pension-sharing transaction shall be taken—

  1. (a) to be something (namely a transfer of the appropriate amount to the transferee) done by the transferor; and
  2. (b) to be capable of being a preference given to the transferee only so far as it is a transfer of so much of the appropriate amount as represents excessive contributions.

(3) If on an application under section 339 or 340 any question arises as to whether, or the extent to which, the appropriate amount in the case of a pension-sharing transaction represents excessive contributions, the question shall be determined in accordance with subsections (4) to (8).

(4) The court shall first determine the extent (if any) to which the transferor's rights under the shared arrangement at the time of the transaction appear to have been (whether directly or indirectly) the fruits of contributions ("personal contributions")—

  1. (a) which the transferor has at any time made on his own behalf, or
  2. (b) which have at any time been made on the transferor's behalf, to the shared arrangement or any other pension arrangement.

(5) Where it appears that those rights were to any extent the fruits of personal contributions, the court shall then determine the extent (if any) to which those rights appear to have been the fruits of personal contributions whose making has unfairly prejudiced the transferor's creditors ("unfair contributions").

(6) If it appears to the court that the extent to which those rights were the fruits of unfair contributions is such that the transfer of the appropriate amount could have been made out of rights under the shared arrangement which were not the fruits of unfair contributions, then the appropriate amount does not represent excessive contributions.

(7) If it appears to the court that the transfer could not have been wholly so made, then the appropriate amount represents excessive contributions to the extent to which it appears to the court that the transfer could not have been so made.

(8) In making the determination mentioned in subsection (5) the court shall consider in particular the matters specified in paragraphs (a) and (b) of section 342A(6).

(9) In this section—

"appropriate amount", in relation to a pension-sharing transaction, means the appropriate amount in relation to that transaction for the purposes of section 23(1) of the Welfare Reform and Pensions Act 1999 (creation of pension credits and debits);

"pension-sharing transaction" means an order or provision falling within section 22(1) of the Welfare Reform and Pensions Act 1999 (orders and agreements which activate pension-sharing);

"shared arrangement", in relation to a pension-sharing transaction, means the pension arrangement to which the transaction relates;

"transferee", in relation to a pension-sharing transaction, means the person for whose benefit the transaction is made;

"transferor", in relation to a pension-sharing transaction, means the person to whose rights the transaction relates."'.

No. 69, in page 130, line 11, at end insert—

'62C. In section 384(1) (meaning of "prescribed" in the second Group of Parts), after "Subject to the next subsection" insert "and section 342C(7) in Chapter V of Part IX".'.

No. 108, in page 130, line 33, leave out 'as follows' and insert

`in accordance with sub-paragraphs (2) to (5)'.

No. 49, in page 130, line 45, at end insert—

'Social Security Administration Act 1992 (c.5)

68A. After section 140E of the Administration Act insert—

"Financing of other expenditure

140EE.—(1) The Secretary of State may make to a local authority such payments as he thinks fit in respect of expenses incurred by the authority in connection with the carrying out of any relevant function—

  1. (a) by the authority,
  2. (b) by any person providing services to the authority, or
  3. (c) by any person authorised by the authority to carry out that function.

(2) In subsection (1) "relevant function" means any function conferred by virtue of section 2A, 2C or 7A above.

(3) The following provisions, namely—

  1. (a) in section 140B, subsections (1), (3), (4), (5)(b), (7)(b) and (8), and
  2. (b) section 140C,

apply in relation to a payment under this section as in relation to a payment of subsidy.

(4) The Secretary of State may (without prejudice to the generality of his powers in relation to the amount of subsidy) take into account the fact that an amount has been paid under this section in respect of costs falling within section 140B(4A)(a) above." '.

No. 109, in page 130, line 45, at end insert—

'(6) In paragraph 6 of that Schedule—

  1. (a) in sub-paragraph (5), for "section 159A" substitute "section 4A, 159A"; and
  2. (b) in sub-paragraph (6), after "relating" insert "to relevant payments or benefits within the meaning of section 4A above or (as the case may be).'.

No. 111, in page 131, line 13, leave out 'as follows' and insert

`in accordance with sub-paragraphs (2) to (5)'.

No. 112, in page 131, line 25, at end insert—

'(6) In paragraph 6 of that Schedule—

  1. (a) in sub-paragraph (5), for "section 155A" substitute "section 4A, 155A"; and
  2. (b) in sub-paragraph (6), after "relating" insert "to relevant payments or benefits within the meaning of section 4A above or (as the case may be).'.—[Mr. Kevin Hughes.]

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