HL Deb 12 July 1995 vol 565 cc1764-8

234 After Clause 132, insert the following clause:

Discharge of protected rights on winding up: insurance Policies '.—(1) After section 32 of the Pension Schemes Act 1993 there is inserted—

"Discharge of protected rights on winding up: insurance policies.

32A.—(1) Where an occupational pension scheme is being wound up and such conditions as may be prescribed are satisfied, effect may be given to the protected rights of a member of the scheme (in spite of section 28) by—

  1. (a) taking out an appropriate policy of insurance, or a number of such policies, under which the member is the beneficiary, or
    2. 1765
  2. (b) assuring the benefits of a policy of insurance, or a number of such policies, to the member, where the policy assured is an appropriate policy.

(2) A policy of insurance is appropriate for the purposes of this section if—

  1. (a) the insurance company with which it is or was taken out or entered into—
    1. (i) is, or was at the time when the policy was taken out or (as the case may be) the benefit of it was assured, carrying on ordinary long-term insurance business (within the meaning of the Insurance Companies Act 1982) in the United Kingdom or any other member State, and
    2. (ii) satisfies, or at that time satisfied, prescribed requirements, and
  2. (b) it may not be assigned or surrendered except on conditions which satisfy such requirements as may be prescribed, and
  3. (c) it contains or is endorsed with terms whose effect is that the amount secured by it may not be commuted except on conditions which satisfy such requirements as may be prescribed, and
  4. (d) it satisfies such other requirements as may be prescribed".

(2) At the end of section 28 of that Act, as amended by this Act, (ways of giving effect to protected rights) there is inserted— (9) This section is subject to section 32A".'.

235 After Clause 132, page 90, line 4, leave out 'the' and insert 'an'.

236 After Clause 133, insert the following clause:—

Earner employed in more than one employment

'.—(1) Paragraph 1 of Schedule 1 to the Social Security Contributions and Benefits Act 1992 (Class 1 contributions where earner in more than one employment) is amended as follows.

(2) For sub-paragraph (3) there is substituted— (3) The amount of the primary Class 1 contribution shall be the aggregate of the amounts determined under the following paragraphs (applying earlier paragraphs before later ones)—

  1. (a) if the aggregated earnings are paid to or for the benefit of an earner in respect of whom minimum contributions are payable under section 43(1) of the Pension Schemes Act 1993 (contributions to personal pension schemes), the amount obtained by applying the rate of primary Class 1 contributions that would apply if all the aggregated earnings were attributable to employments which are not contracted-out to such part of the aggregated earnings so attributable as does not exceed the current upper earnings limit (referred to in this paragraph as "the APPS earnings"),
  2. (b) if some of the aggregated earnings are attributable to COMPS service, the amount obtained by applying the rate of primary Class 1 contributions that would apply if all the aggregated earnings were attributable to COMPS service—
    1. (i) to such part of the aggregated earnings attributable to COMPS service as does not exceed the current upper earnings limit, or
      2. 1766
    2. (ii) if paragraph (a) applies, to such part of the earnings attributable to COMPS service as, when added to the APPS earnings, does not exceed the current upper earnings limit,
  3. (c) if some of the aggregated earnings are attributable to COSRS service, the amount obtained by applying the rate of primary Class 1 contributions that would apply if all the aggregated earnings were attributable to COSRS service—
    1. (i) to such part of the aggregated earnings attributable to COSRS service as does not exceed the current upper earnings limit, or
    2. (ii) if paragraph (a) or (b) applies, to such part of the earnings attributable to COSRS service as, when added to the APPS earnings or the part attributable to COMPS service (or both), does not exceed the current upper earnings limit,
  4. (d) the amount obtained by applying the rate of primary Class I contributions that would apply if all the aggregated earnings were attributable to employments which are not contracted-out to such part of the aggregated earnings as, when added to the part or parts attributable to COMPS or COSRS service, does not exceed the current upper earnings limit".

(3) For sub-paragraph (6) there is substituted— (6) The amount of the secondary Class I contribution shall be the aggregate of the amounts determined under the following paragraphs (applying earlier paragraphs before later ones)—

  1. (a) if the aggregated earnings are paid to or for the benefit of an earner in respect of whom minimum contributions are payable under section 43(1) of the Pension Schemes Act 1993, the amount obtained by applying the rate of secondary Class 1 contributions that would apply if all the aggregated earnings were attributable to employments which are not contracted-out to the APPS earnings,
  2. (b) if some of the aggregated earnings are attributable to COMPS service, the amount obtained by applying the rate of secondary Class 1 contributions that would apply if all the aggregated earnings were attributable to COMPS service to the part of the aggregated earnings attributable to such service,
  3. (c) if some of the aggregated earnings are attributable to COSRS service, the amount obtained by applying the rate of secondary Class 1 contributions that would apply if all the aggregated earnings were attributable to COSRS service to the part of the aggregated earnings attributable to such service,
  4. (d) the amount obtained by applying the rate of secondary Class 1 contributions that would apply if all the aggregated earnings were attributable to employments which are not contracted-out to the remainder of the aggregated earnings".

(4) At the end of that paragraph there is added— (9) In this paragraph— COMPS service" means service in employment in respect of which minimum payments are made to a money purchase contracted-out scheme, COSRS service" means service in employment which qualifies the earner for a pension provided by a salary related contracted-out scheme".

(5) Until the principal appointed day, that paragraph, as amended by this section, shall have effect as if—

  1. (a) for sub-paragraph (3) (b) there were substituted—
  2. "(b) if some of the aggregated earnings are attributable to service in contracted-out employment, the amount obtained by applying the rate of primary Class 1 contributions that would apply if all the aggregated earnings were attributable to such service—
    1. (i) to such part of the aggregated earnings attributable to such service as does not exceed the current upper earnings limit, or
    2. (ii) if paragraph (a) applies, to such part of the earnings attributable to such service as, when added to the APPS earnings, does not exceed the current upper earnings limit",
  3. (b) sub-paragraph (3) (c) were omitted,
  4. (c) in sub-paragraph (3) (d), for "COMPS or COSRS service" there were substituted "service in contracted-out employment",
  5. (d) for sub-paragraph (6) (b) there were substituted—
  6. "(b) if some of the aggregated earnings are attributable to service in contracted-out employment, the amount obtained by applying the rate of secondary Class 1 contributions that would apply if all the aggregated earnings were attributable to such service to the part of the aggregated earnings attributable to such service",
  7. (e) sub-paragraph (6) (c) were omitted, and
  8. (f) in sub-paragraph (9) the definitions of "COMPS service" and "COSRS service" were omitted.'.

237 After Clause 133, insert the following clause:

Hybrid occupational pension schemes

'.—(1) In spite of anything in sections 9 and 12 of the Pension Schemes Act 1993 (requirements for certification and determination of basis on which scheme is contracted-out), the Secretary of State may by regulations provide, where the pensions provided by an occupational pension scheme include both—

  1. (a) such pensions that, if the scheme provided only those pensions, it would satisfy section 9(2) of that Act, and
  2. (b) such other pensions that, if the scheme provided only those other pensions, it would satisfy section 9(3) of that Act,

for Part III of that Act to have effect as if the scheme were two separate schemes providing, respectively, the pensions referred to in paragraphs (a) and (b).

(2) Regulations made by the Secretary of State may, in connection with any provision made by virtue of subsection (1), make such modifications of the following Acts, and the instruments made or having effect as if made under them, as appear to the Secretary of State desirable: the Social Security Contributions and Benefits Act 1992, the Pension Schemes Act 1993 and Part I of this Act.'.

238 Clause 139, page 93, line 12, leave out 'a prescribed amount' and insert 'an amount specified in the regulations; and the regulations must specify different amounts in the case of individuals from those specified in other cases and any amount so specified may not exceed the amount for the time being specified in the case of individuals or, as the case may be, others in section 10(1A) (a) of the Pensions Act 1995. () Regulations made by virtue of subsection (4) do not affect the amount of any penalty recoverable under that subsection by reason of an act or omission occurring before the regulations are made.'.

Lord Mackay of Ardbrecknish

My Lords, I beg to move that this House do agree with the Commons in their Amendments Nos. 234 to 238. I have already spoken to these amendments. I beg to move.

Moved, That the House do agree with the Commons in their Amendments Nos. 234 to 238.—(Lord Mackay of Ardbrecknish.)

On Question, Motion agreed to.