Welfare Reform and Pensions Bill — Extent — 20 May 1999

Amendments made: No. 42, in page 2, line 41, leave out from 'of' to 'if' in line 42 and insert

'a pension scheme which is or has been registered under this section, and section 10 of that Act applies to any person prescribed in relation to such a scheme,'.

No. 43, in page 2, line 44, after 'scheme' insert

'or (as the case may be) while the scheme was so registered he failed to take all such steps as were reasonable to secure that each of those conditions was so fulfilled'.-- [Mr. Kevin Hughes.]

Amendment made: No. 44, in page 7, line 34, at end insert--

'( ) If--

(a) subsection (6) or (7) is not complied with, and

(b) the scheme--

(i) is established under a trust, and

(ii) is or has been registered under section 2 of the Welfare Reform and Pensions Act 1999 (stakeholder schemes),

section 3 of the Pensions Act 1995 (power of the Regulatory Authority to remove trustees) applies to any trustee of the scheme who has failed to take all such steps as are reasonable to secure compliance.'.-- [Mr. Kevin Hughes.]

Amendment made: No. 28, in page 10, line 36, at end insert--

'( ) If in any case subsection (9)(b) is not complied with--

(a) section 3 applies to any trustee who has failed to take all such steps as are reasonable to secure compliance; and

(b) section 10 applies to any trustee or manager who has failed to take all such steps.'.-- [Mr. Kevin Hughes.]

Amendments made: No. 29, in page 12, line 25, leave out

'in good faith by the trustees or managers of the scheme in question before'

and insert

'by the trustees or managers of the scheme in question--

(a) in good faith, and

(b) without notice of'.

No. 53, in page 12, line 44, at end insert--

'(12) For the purposes of this section a person shall be treated as having a right under an approved pension arrangement where--

(a) he is entitled to a credit under section 23(1)(b) as against the person responsible for the arrangement (within the meaning of Chapter I of Part IV), and

(b) the person so responsible has not discharged his liability in respect of the credit.'.-- [Mr. Kevin Hughes.]

No. 55, in page 13, line 1, leave out from 'under' to 'future' in line 4 and insert

'this section may, in particular, make provision--

(a) for rights under an unapproved pension arrangement to be excluded from a person's estate--

(i) by an order made on his application by a prescribed court, or

(ii) in accordance with a qualifying agreement made between him and his trustee in bankruptcy;

(b) for the court's decision whether to make such an order in relation to a person to be made by reference to--

(i)''.

No. 56, in page 13, line 5, leave out

'(b) the extent to which any pension and other benefits'

and insert

'(ii) whether any benefits (by way of a pension or otherwise) are'.

No. 57, in page 13, line 6, at end insert

'and (if so) the extent to which they'.

No. 58, in page 13, line 7, at end insert--

'(c) for the prescribed persons in the case of any pension arrangement to provide a person or his trustee in bankruptcy on request with information reasonably required by that person or trustee for, or in connection with, the making of such applications and agreements as are mentioned in paragraph (a).'.

No. 59, in page 13, line 8, after 'section' insert--

' "prescribed" means prescribed by regulations under this section;

"qualifying agreement" means an agreement entered into in such circumstances, and satisfying such requirements, as may be prescribed;'.

No. 60, in page 13, line 12, leave out from 'a' to end of line 13 and insert 'prescribed description.'.

No. 61, in page 13, line 13, at end insert--

'(4) For the purposes of this section a person shall be treated as having a right under an unapproved pension arrangement where--

(a) he is entitled to a credit under section 23(1)(b) as against the person responsible for the arrangement (within the meaning of Chapter I of Part IV), and

(b) the person so responsible has not discharged his liability in respect of the credit.'.-- [Mr. Kevin Hughes.]

Amendment made: No. 62, in page 13, line 41, after 'section' insert--

'(a) a person shall be treated as having a right under a personal pension scheme where--

(i) he is entitled to a credit under section 23(1)(b) of the Welfare Reform and Pensions Act 1999 (sharing of rights on divorce etc.),

(ii) he is so entitled as against the person responsible for the scheme (within the meaning of Chapter I of Part IV of that Act), and

(iii) the person so responsible has not discharged his liability in respect of the credit; and

(b)''. -- [Mr. Kevin Hughes.]

Amendments made: No. 66, in page 72, line 28, at end insert--

'Income payments orders against pension payments

1YA. In section 32(2) of the Bankruptcy (Scotland) Act 1985 (vesting of estate, and dealings of debtor, after sequestration), at the beginning insert "Notwithstanding anything in section 11 or 12 of the Welfare Reform and Pensions Act 1999,".

1ZA. In section 310(7) of the Insolvency Act 1986 (bankrupt's income against which income payments orders may be made includes certain payments under pension schemes), after "employment and" insert "(despite anything in section 11 or 12 of the Welfare Reform and Pensions Act 1999)".'.

No. 67, in page 73, line 22, at end insert--

'Effect of certain orders on guaranteed minimum pensions

. In section 47 of the Pension Schemes Act 1993 (entitlement to guaranteed minimum pension for the purposes of the relationship with social security benefits), after subsection (6) (which is inserted by section 26(4) of this Act) add--

"(7) For the purposes of section 46, a person shall be treated as entitled to any guaranteed minimum pension to which he would have been entitled but for any order under section 342A of the Insolvency Act 1986 (recovery of excessive pension contributions) or under section 36A of the Bankruptcy (Scotland) Act 1985."'.

No. 46, in page 74, line 31, at end insert--

'5A. In section 3(2)(b) of the Pensions Act 1995 (power of Authority to remove pension scheme trustee to whom section 3 applies by virtue of any other provision of Part I of the Act), for "this Part" substitute "this or any other Act".'.

No. 32, in page 76, line 10, at end insert--

'Diligence against pensions: Scotland

12A. In section 94(3) of the Pensions Act 1995 (application of sections 91 and 92 to Scotland), at the end insert--

"(f) after subsection 91(4) there is inserted--

"(4A) Subject to section 73(3)(d) of the Debtors (Scotland) Act 1987, nothing in this section prevents any diligence mentioned in section 46 of that Act being done against a pension under an occupational pension scheme."" '.-- [Mr. Kevin Hughes.]

Amendments made: No. 33, in page 79, line 8, leave out 'rules' and insert 'regulations'.

No. 34, in page 79, line 9, leave out 'rules' and insert 'regulations'.

No. 35, in page 79, line 37, leave out 'rules' and insert 'regulations'.

No. 36, in page 80, line 5, leave out 'rules' and insert 'regulations'.

No. 37, in page 80, line 28, at end insert--

'( ) In determining for the purposes of subsection (2) or (3) above whether a person has acted to his detriment in reliance on the taking effect of the order, the appeal court may disregard any detriment which in its opinion is insignificant.'.-- [Mr. Kevin Hughes.]

Amendments made: No. 38, in page 82, line 8, leave out 'second' and insert 'new'.

No. 39, in page 83, line 4, leave out from 'to' to end of line 5 and insert

'any of the court's powers under this Part of this Act,'.-- [Mr. Kevin Hughes.]

Amendment made: No. 13, in page 19, line 11, leave out paragraph (b) and insert--

'(b) such information relating to the transferor and transferee as the Secretary of State may prescribe by regulations under section 28(1)(b)(ii).'.-- [Mr. Kevin Hughes.]

Amendment made: No. 15, in page 36, line 24, at end insert

', including subordinate legislation which provides for calculation of the value of rights in accordance with guidance from time to time prepared by a person specified in the subordinate legislation.'.-- [Mr. Kevin Hughes.]

Amendment made: No. 14, in page 40, line 11, leave out paragraph (b) and insert--

'(b) such information relating to the transferor and transferee as the Secretary of State may prescribe by regulations under section 28(1)(b)(ii).'.-- [Mr. Kevin Hughes.]

Amendments made: No. 63, in page 46, line 23, leave out

'time of the spouse's death'

and insert 'relevant time'.

No. 64, in page 46, line 29, at end insert--

'(8A) In subsection (8) above "the relevant time" means--

(a) where the pensioner became entitled to a widowed parent's allowance in consequence of the death of the spouse, the time when the pensioner's entitlement to that allowance ended; and

(b) otherwise, the time of the spouse's death.'.

No. 65, in page 46, line 31, leave out '(8)' and insert '(8A)'.-- [Mr. Kevin Hughes.]

Amendments made: No. 16, in page 49, leave out lines 20 to 22 and insert--

'(b) a person providing services to the Secretary of State,

(c) a local authority,

(d) a person providing services to, or authorised to exercise any function of, any such authority;'.

No. 17, in page 49, line 23, leave out '(6))' and insert '(7))'.

No. 78, in page 49, line 34, at end insert--

'and the purposes which may be so specified include purposes connected with a person's existing or future employment or training prospects or needs, and (in particular) assisting or encouraging a person to enhance his employment prospects.'.-- [Mr. Kevin Hughes.]

No. 100, in page 94, line 32, at end insert--

'(4A) Where the amount payable in accordance with subsection (3) is the couple's personal rate, subsection (2A) shall apply as it applies in a case where the amount payable in accordance with subsection (1) is that rate.'.

No. 101, in page 94, line 38, leave out 'satisfies the contribution-based conditions,' and insert

'is entitled to a contribution-based jobseeker's allowance,'.

No. 102, in page 94, line 39, leave out 'a contribution-based jobseeker's' and insert 'such an'.

No. 103, in page 94, line 41, leave out 'satisfies those conditions,' and insert

'is entitled to a contribution-based jobseeker's allowance,'.

No. 104, in page 94, line 51, leave out 'satisfies the contribution-based conditions,' and insert

'is entitled to a contribution-based jobseeker's allowance,'.

No. 105, in page 95, line 1, leave out 'satisfies those conditions,' and insert

'is entitled to such an allowance,'.

No. 40, in page 95, line 2, at end insert--

'6A.--(1) Section 8 (power to make regulations requiring attendance etc.) is amended as follows.

(2) In subsection (1), after "claimant" insert "(other than a joint-claim couple claiming a joint-claim jobseeker's allowance)".

(3) After subsection (1) insert--

"(1A) Regulations may make provision--

(a) for requiring each member of a joint-claim couple claiming a joint-claim jobseeker's allowance to attend at such place and such time as the Secretary of State may specify;

(b) for requiring a member of such a couple to provide information and such evidence as may be prescribed as to his circumstances, his availability for employment and the extent to which he is actively seeking employment;

(c) for requiring such a couple to jointly provide information and such evidence as may be prescribed as to the circumstances of each or either member of the couple, the availability for employment of each or either member of the couple and the extent to which each or either member of the couple is actively seeking employment;

(d) where any requirement to provide information or evidence is imposed on such a couple by virtue of paragraph (c), for the joint obligation of the couple to be capable of being discharged by the provision of the information or evidence by one member of the couple."

(4) In subsection (2), after "Regulations under subsection (1)" insert "or (1A)".

(5) In subsection (2)(a) (cases where entitlement to allowance may cease on account of non-compliance), after "in the case of a claimant who" insert ", or (as the case may be) a joint-claim couple claiming a joint-claim jobseeker's allowance a member of which,".

(6) In subsection (2)(b) (cases where entitlement to allowance may cease by reference to the time expired since the claimant's last attendance)--

(a) after "he" insert "or, as the case may be, a member of the joint-claim couple"; and

(b) after "subsection (1)(a)" insert "or (1A)(a)".

(7) For paragraph (c) of subsection (2) (provision for entitlement not to cease where good cause shown) substitute--

"(c) provide for entitlement not to cease if the claimant or (as the case may be) either member of the joint-claim couple shows, within a prescribed period of the failure to comply on the part of the claimant or (as the

case may be) a member of the couple, that the claimant or (as the case may be) the defaulting member of the couple had good cause for that failure; and".'.

No. 91, in page 99, line 21, at end insert--

'( ) After paragraph 9 insert--

"Continuity of claims and awards: persons ceasing to be a joint-claim couple

9A.--(1) Regulations may make provision about the entitlement to a jobseeker's allowance of persons ("ex-members") who cease to be members of a joint-claim couple.

(2) Regulations under this paragraph may, in particular, provide--

(a) for treating each or either of the ex-members as having made any claim made by the couple or, alternatively, for any such claim to lapse;

(b) for any award made in respect of the couple to be replaced by an award (a "replacement award") in respect of each or either of the ex-members of the couple or, alternatively, for any such award to lapse.

Continuity of claims and awards: persons again becoming a joint-claim couple

9B.--(1) Regulations may make provision about the entitlement to a jobseeker's allowance of persons ("ex-members") who, having ceased to be members of a joint-claim couple, again become the members of a joint-claim couple.

(2) Regulations under this paragraph may, in particular, provide--

(a) for any claim made by the ex-members when they were previously a joint-claim couple to be revived or otherwise given effect as a claim made by the couple;

(b) for any award made in respect of the ex-members when they were previously a joint-claim couple to be restored;

(c) for any such award, or any replacement award (within the meaning of paragraph 9A) made in respect of either of them, to be replaced by an award (a "new award") in respect of the couple.

Continuity of claims and awards: couple becoming a joint-claim couple

9C.--(1) Regulations may make provision about the entitlement to a jobseeker's allowance of persons who become members of a joint-claim couple as a result of the married or unmarried couple of which they are members becoming a joint-claim couple.

(2) Regulations under this paragraph may, in particular, provide--

(a) for any claim made by either member of the couple before the couple became a joint-claim couple to be given effect as a claim made by the couple;

(b) for any award, or any replacement award (within the meaning of paragraph 9A), made in respect of either member of the couple before the couple became a joint-claim couple to be replaced by an award (a "new award") in respect of the couple.

Paragraphs 9A to 9C: supplementary

9D.--(1) Regulations may provide, in relation to any replacement award (within the meaning of paragraph 9A) or new award (within the meaning of paragraph 9B or 9C), for--

(a) the award to be of an amount determined in a prescribed manner;

(b) entitlement to the award to be subject to compliance with prescribed requirements as to the provision of information and evidence.

(2) In paragraphs 9A to 9C and this paragraph--

"award" means an award of a jobseeker's allowance;

"claim" means a claim for a jobseeker's allowance."'.-- [Mr. Kevin Hughes.]

Amendment made: No. 30, in page 51, line 13, at end insert--

'(6A) The power of the Secretary of State to make an order under section 26 of the Employment Act 1988 (status of trainees etc.) shall include power to make, in relation to--

(a) persons participating in any scheme, and

(b) payments received by them by virtue of subsection (5) above,

provision corresponding to any provision which (by virtue of subsection (1) or (2) of that section) may be made in relation to persons using such facilities, and to such payments received by them, as are mentioned in subsection (1) of that section.'.-- [Mr. Kevin Hughes.]

Amendment made: No. 47, in page 56, line 36, leave out

'or section 30(2)(a) or (b)'

and insert

', 30(2)(a) or (b) or 35(1)(a) or (b)'.-- [Mr. Kevin Hughes.]

Amendments made: No. 106, in page 105, line 4, at end insert--

'( ) In section 4 (amount payable by way of a jobseeker's allowance), in each of subsections (6) and (8) (amount payable where claimant satisfies the contribution-based, and the income-based, conditions)--

(a) for "satisfies both the contribution-based conditions and the income-based conditions" substitute "is entitled to both a contribution-based jobseeker's allowance and an income-based jobseeker's allowance"; and

(b) after "the amount payable" insert "by way of a jobseeker's allowance".'.

No. 9, in page 105, line 12, at end insert--

'Part VA

Maternity allowance

Social Security Contributions and Benefits Act 1992 (c.4)

29A. The Contributions and Benefits Act has effect subject to the following amendments.

29B.--(1) Section 21 (contribution conditions) is amended as follows.

(2) In subsection (1), after "30A below" insert ", maternity allowance under section 35 below".

(3) In subsection (2), omit the entry relating to maternity allowance.

(4) In subsection (4), omit ", other than maternity allowance,".

29C. In section 176(1)(c) (parliamentary control), after "section 28(2)" insert--

"section 35A(7);".'.

No. 41, in page 105, line 27, after 'sections' insert '51,'.-- [Mr. Kevin Hughes.]

Amendment made: No. 48, in page 60, line 16, at end insert

', ( Optional work-focused interviews ),'.-- [Mr. Kevin Hughes.]

Amendments made: No. 68, in page 130, line 11, at end insert--

'Insolvency Act 1986 (c.45)

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--

(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

(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--

(a) to be something (namely a transfer of the appropriate amount to the transferee) done by the transferor; and

(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")--

(a) which the transferor has at any time made on his own behalf, or

(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.

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--

(a) in sub-paragraph (5), for "section 155A" substitute "section 4A, 155A"; and

(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.]

Amendment made: No. 18, in page 67, line 17, leave out subsection (9) and insert--

'(9) Where an action of divorce or an action for declarator of nullity has been brought before the day on which section 18 comes into force--

(a) no pension-sharing order may be made under section 8(1) of the Family Law (Scotland) Act 1985, and

(b) neither paragraph (f) of section 22(1) nor paragraph (f) of section 42(1) shall apply,

in relation to that divorce or declarator.'.-- [Mr. Kevin Hughes.]

Amendments made: No. 70, in page 131, leave out lines 31 to 35.

No. 71, in page 132, line 24, column 3, at end insert--

'Section 95.'.

No. 10, in page 135, line 11, column 3, at end insert--

'In section 21, in subsection (2) the entry relating to maternity allowance, and in subsection (4) the words ", other than maternity allowance,".

In Schedule 3, in Part I, paragraph 3.

In Schedule 4, in Part I, the entry relating to maternity allowance.'.

No. 11, in page 135, line 14, at end insert--

'S.I. 1994/1230. Maternity Allowance and Statutory Maternity Pay Regulations 1994. Regulations 2(1), (2) and (4) and 6(2).'.

-- [Mr. Kevin Hughes.]

No. 51, in page 68, line 14, at end insert--

'( ) section ( Optional work-focused interviews );'.

No. 50, in page 68, line 18, at end insert--

'( ) section 73(1) so far as relating to paragraph 68A of Schedule 12;'.-- [Mr. Kevin Hughes.]

Amendments made: No. 72, in page 68, line 30, at end insert--

'( ) section ( Excessive pension contributions made by persons who have become insolvent );'.

No. 73, in page 68, line 30, at end insert--

'( ) paragraph 1ZA of Schedule 2, and section 16 so far as relating thereto;'.

No. 74, in page 68, line 32, after '5' insert 'and 62A to 62C'.

No. 75, in page 68, line 36, after & 13' insert

'and ( Excessive pension contributions made by persons who have become insolvent: Scotland );'.

No. 76, in page 68, line 36, leave out 'and' and insert--

'( ) paragraph 1YA of Schedule 2, and section 16 so far as relating thereto;

( ) section'.

No. 77, in page 69, line 3, after 'paragraphs' insert '1YA, 1ZA,'.

No. 107, in page 69, line 8, after '64', insert

', ( Earnings of workers supplied by service companies etc. )'.

No. 52, in page 69, line 12, leave out '68' and insert '68A'.

No. 110, in page 69, line 33, after '65', insert

', ( Earnings of workers supplied by service companies etc: Northern Ireland )'.-- [Mr. Kevin Hughes.]

Order for Third Reading read.--[Queen's consent, on behalf of the Crown, signified.]

Motion made, and Question put , That the Bill be now read the Third time.-- [Mr. Robert Ainsworth.]

The House proceeded to a Division--

Historical Hansard | Online Hansard |