Welfare Reform and Pensions Bill — Excessive pension contributions made by persons who have become insolvent — 17 May 1999

Clause added to the Bill.

otherwise than by virtue of paragraph (a) shall be treated as excessive contributions before any which are so represented by virtue of that paragraph.

(5) In subsections (2) to (4) "relevant contributions" means contributions to the arrangement or any other pension arrangement--

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

(b) which have at any time been made on his behalf.

(6) The court shall, in determining whether it is satisfied under subsection (2)(b), consider in particular--

(a) whether any of the contributions were made for the purpose of putting assets beyond the reach of the individual's creditors or any of them, and

(b) whether the total amount of any contributions--

(i) made by or on behalf of the individual to pension arrangements, and

(ii) represented (whether directly or indirectly) by rights under approved pension arrangements or excluded rights under unapproved pension arrangements,

is an amount which is excessive in view of the individual's circumstances when those contributions were made.

(7) For the purposes of this section and sections 342B and 342C ("the recovery provisions"), rights of an individual under an unapproved pension arrangement are excluded rights if they are rights which are excluded from his estate by virtue of regulations under section 12 of the Welfare Reform and Pensions Act 1999.

(8) In the recovery provisions--

"approved pension arrangement" has the same meaning as in section 11 of the Welfare Reform and Pensions Act 1999;

"unapproved pension arrangement" has the same meaning as in section 12 of that Act.

Orders under section 342A

342B.--(1) Without prejudice to the generality of section 342A(2), an order under section 342A may include provision--

(a) requiring the person responsible for the arrangement to pay an amount to the individual's trustee in bankruptcy,

(b) adjusting the liabilities of the arrangement in respect of the individual,

(c) adjusting any liabilities of the arrangement in respect of any other person that derive, directly or indirectly, from rights of the individual under the arrangement,

(d) for the recovery by the person responsible for the arrangement (whether by deduction from any amount which that person is ordered to pay or otherwise) of costs incurred by that person in complying in the bankrupt's case with any requirement under section 342C(1) or in giving effect to the order.

(2) In subsection (1), references to adjusting the liabilities of the arrangement in respect of a person include (in particular) reducing the amount of any benefit or future benefit to which that person is entitled under the arrangement.

(3) In subsection (1)(c), the reference to liabilities of the arrangement does not include liabilities in respect of a person which result from giving effect to an order or provision falling within section 22(1) of the Welfare Reform and Pensions Act 1999 (pension sharing orders and agreements).

(4) The maximum amount which the person responsible for an arrangement may be required to pay by an order under section 342A is the lesser of--

(a) the amount of the excessive contributions, and

(b) the value of the individual's rights under the arrangement (if the arrangement is an approved pension arrangement) or of his excluded rights under the arrangement (if the arrangement is an unapproved pension arrangement).

(5) An order under section 342A which requires the person responsible for an arrangement to pay an amount("the restoration amount") to the individual's trustee in bankruptcy must provide for the liabilities of the arrangement to be correspondingly reduced.

(6) For the purposes of subsection (5), liabilities are correspondingly reduced if the difference between--

(a) the amount of the liabilities immediately before the reduction, and

(b) the amount of the liabilities immediately after the reduction,

is equal to the restoration amount.

(7) An order under section 342A in respect of an arrangement--

(a) shall be binding on the person responsible for the arrangement, and

(b) overrides provisions of the arrangement to the extent that they conflict with the provisions of the order.

Orders under section 342A: supplementary

342C.--(1) The person responsible for--

(a) an approved pension arrangement under which a bankrupt has rights,

(b) an unapproved pension arrangement under which a bankrupt has excluded rights, or

(c) a pension arrangement under which a bankrupt has at any time had rights,

shall, on the bankrupt's trustee in bankruptcy making a written request, provide the trustee with such information about the arrangement and rights as the trustee may reasonably require for, or in connection with, the making of applications under section 342A.

(2) Nothing in--

(a) any provision of section 159 of the Pension Schemes Act 1993 or section 91 of the Pensions Act 1995 (which prevent assignment and the making of orders which restrain a person from receiving anything which he is prevented from assigning),

(b) any provision of any enactment (whether passed or made before or after the passing of the Welfare Reform and Pensions Act 1999) corresponding to any of the provisions mentioned in paragraph (a), or

(c) any provision of the arrangement in question corresponding to any of those provisions,

applies to a court exercising its powers under section 342A.

(3) Where any sum is required by an order under section 342A to be paid to the trustee in bankruptcy, that sum shall be comprised in the bankrupt's estate.

(4) Regulations may, for the purposes of the recovery provisions, make provision about the calculation and verification of--

(a) any such value as is mentioned in section 342B(4)(b);

(b) any such amounts as are mentioned in section 342B(6)(a) and (b).

(5) The power conferred by subsection (4) includes power to provide for calculation or verification--

(a) in such manner as may, in the particular case, be approved by a prescribed person; or

(b) in accordance with guidance--

(i) from time to time prepared by a prescribed person, and

(ii) approved by the Secretary of State.

(6) References in the recovery provisions to the person responsible for a pension arrangement are to--

(a) the trustees, managers or provider of the arrangement, or

(b) the person having functions in relation to the arrangement corresponding to those of a trustee, manager or provider.

(7) In this section and sections 342A and 342B--

"prescribed" means prescribed by regulations;

"the recovery provisions" means this section and sections 342A and 342B;

"regulations" means regulations made by the Secretary of State.

(8) Regulations under the recovery provisions may--

(a) make different provision for different cases;

(b) contain such incidental, supplemental and transitional provisions as appear to the Secretary of State necessary or expedient.

(9) Regulations under the recovery provisions shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament."'.-- [Mr. Timms.]

Brought up, and read the First time.

I beg to move, That the clause be read a Second time.

Mr. Deputy Speaker (Mr. Michael Lord):

With this, it will be convenient to discuss the following: Government new clause 12-- Excessive pension contributions made by persons who have become insolvent: Scotland .

Question put, That the clause be read a Second time:--

The House divided: Ayes 415, Noes 138.

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Jim FitzpatrickPoplar and Canning TownLabaye
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Paul FlynnNewport WestLabaye
Barbara FollettStevenageLabaye
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Mrs Maria FyfeGlasgow MaryhillLabaye
Mike GapesIlford SouthLabaye
Barry GardinerBrent NorthLab (minister)aye
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Neil GerrardWalthamstowLabaye
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Paul GogginsWythenshawe and Sale EastLabaye
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Patrick HallBedfordLabaye
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Sylvia HealHalesowen and Rowley Regiswhilst Labaye
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Doug HendersonNewcastle upon Tyne NorthLab (minister)aye
Mr Ivan HendersonHarwichLabaye
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Kate HoeyVauxhallLab (minister)aye
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Phil HopeCorbyLabaye
Kelvin HopkinsLuton NorthLabaye
Mr Alan HowarthNewport EastLab (minister)aye
George HowarthKnowsley North and Sefton EastLab (minister)aye
Kim HowellsPontypriddLab (minister)aye
Lindsay HoyleChorleyLab (minister)aye
Beverley HughesStretford and UrmstonLabaye
Mr Kevin HughesDoncaster NorthLab (minister)aye
Joan HumbleBlackpool North and FleetwoodLabaye
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John HuttonBarrow and FurnessLab (minister)aye
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Eric IllsleyBarnsley CentralLabaye
Adam IngramEast KilbrideLab (minister)aye
Glenda JacksonHampstead and HighgateLab (minister)aye
Mrs Helen JacksonSheffield, HillsboroughLabaye
Mr David JamiesonPlymouth, DevonportLab (minister)tellaye
Brian JenkinsTamworthLabaye
Alan JohnsonKingston upon Hull West and HessleLabaye
Miss Melanie JohnsonWelwyn HatfieldLabaye
Mr Barry JonesAlyn and DeesideLabaye
Fiona JonesNewarkLabaye
Helen JonesWarrington NorthLab (minister)aye
Ms Jenny JonesWolverhampton South WestLabaye
Mr Jon Owen JonesCardiff CentralLab (minister)aye
Lynne JonesBirmingham, Selly OakLabaye
Martyn JonesClwyd SouthLabaye
Tessa JowellDulwich and West NorwoodLab (minister)aye
Gerald KaufmanManchester, GortonLab (minister)aye
Sally KeebleNorthampton NorthLabaye
Alan KeenFeltham and HestonLabaye
Ann KeenBrentford and IsleworthLabaye
Ruth KellyBolton WestLabaye
Fraser KempHoughton and Washington EastLabaye
Jane KennedyLiverpool, WavertreeLab (minister)tellaye
Piara S KhabraEaling, SouthallLabaye
David KidneyStaffordLabaye
Peter KilfoyleLiverpool, WaltonLab (minister)aye
Mr Andy KingRugby and KenilworthLabaye
Ms Oona KingBethnal Green and BowLab (minister)aye
Ms Tess KinghamGloucesterLabaye
Ashok KumarMiddlesbrough South and East ClevelandLabaye
Stephen LadymanSouth ThanetLabaye
Mrs Jackie LawrencePreseli PembrokeshireLabaye
Bob LaxtonDerby NorthLabaye
David LepperBrighton, PavilionLabaye
Chris LeslieShipleyLabaye
Tom LevittHigh PeakLabaye
Ivan LewisBury SouthLab (minister)aye
Mr Terry LewisWorsleyLabaye
Mrs Helen LiddellAirdrie and ShottsLab (minister)aye
Martin LintonBatterseaLabaye
Tony LloydManchester CentralLab (minister)aye
Mr David LockWyre ForestLabaye
Andrew LoveEdmontonLab (minister)aye
Mr Calum MacDonaldNa h-Eileanan an IarLab (minister)aye
Andrew MacKinlayThurrockLabaye
Denis MacShaneRotherhamLabaye
Fiona MactaggartSloughLabaye
Mrs Alice MahonHalifaxLabaye
Judy MallaberAmber ValleyLabaye
Mr Peter MandelsonHartlepoolLabaye
Gordon MarsdenBlackpool SouthLab (minister)aye
Mr Paul MarsdenShrewsbury and AtchamLabaye
David MarshallGlasgow ShettlestonLabaye
Robert Marshall-AndrewsMedwayLabaye
Eric MartlewCarlisleLabaye
Mr John MaxtonGlasgow CathcartLabaye
John McAllionDundee EastLabaye
Thomas McAvoyGlasgow RutherglenLab (minister)aye
Steve McCabeBirmingham, Hall GreenLab (minister)aye
Chris McCaffertyCalder ValleyLabaye
Ian McCartneyMakerfieldLab (minister)aye
Siobhain McDonaghMitcham and MordenLabaye
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John McFallDumbartonLab (minister)aye
Anne McGuireStirlingLab (minister)aye
Shona McIsaacCleethorpesLabaye
Rosemary McKennaCumbernauld and KilsythLabaye
Mr Kevin McNamaraKingston upon Hull NorthLabaye
Tony McNultyHarrow EastLabaye
Mr Tony McWalterHemel HempsteadLabaye
Michael MeacherOldham West and RoytonLab (minister)aye
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Gillian MerronLincolnLabaye
Alun MichaelCardiff South and PenarthLab (minister)aye
Mr Bill MichieSheffield, HeeleyLabaye
Alan MilburnDarlingtonLab (minister)aye
Andrew MillerEllesmere Port and NestonLabaye
Austin MitchellGreat GrimsbyLab (minister)aye
Laura MoffattCrawleyLabaye
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Margaret MoranLuton SouthLabaye
Julie MorganCardiff NorthLabaye
Elliot MorleyScunthorpeLab (minister)aye
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Sir John MorrisAberavonLab (minister)aye
Kali MountfordColne ValleyLabaye
Dr Mo MowlamRedcarLab (minister)aye
George MudieLeeds EastLab (minister)aye
Chris MullinSunderland SouthLabaye
Denis MurphyWansbeckLabaye
Jim MurphyEast RenfrewshireLabaye
Doug NaysmithBristol North WestLabaye
Dan NorrisWansdykeLabaye
Mr Bill O'BrienNormantonLabaye
Edward O'HaraKnowsley SouthLabaye
Mr Martin O'NeillOchilLab (minister)aye
Bill OlnerNuneatonLabaye
Mrs Diana OrganForest of DeanLabaye
Sandra OsborneAyrLab (minister)aye
Ian PearsonDudley SouthLabaye
Mr Tom PendryStalybridge and HydeLabaye
Ms Linda PerhamIlford NorthLabaye
Mr Colin PickthallWest LancashireLabaye
Mr Peter PikeBurnleyLabaye
James PlaskittWarwick and LeamingtonLabaye
Mr Kerry PollardSt AlbansLabaye
Mr Chris PondGraveshamLabaye
Greg PopeHyndburnLab (minister)aye
Steve PoundEaling NorthLab (minister)aye
Mr Raymond PowellOgmoreLabaye
Bridget PrenticeLewisham EastLabaye
Gordon PrenticePendleLabaye
Dawn PrimaroloBristol SouthLab (minister)aye
Gwyn ProsserDoverLabaye
Ken PurchaseWolverhampton North EastLabaye
Mr Lawrie QuinnScarborough and WhitbyLabaye
Mr Giles RadiceNorth DurhamLab (minister)aye
Bill RammellHarlowLabaye
Mr Syd RapsonPortsmouth NorthLabaye
Nick RaynsfordGreenwich and WoolwichLab (minister)aye
John ReidHamilton North and BellshillLab (minister)aye
Mr George RobertsonHamilton SouthLab (minister)aye
Geoffrey RobinsonCoventry North WestLabaye
Mrs Barbara RocheHornsey and Wood GreenLab (minister)aye
Mr Jeff RookerBirmingham, Perry BarrLab (minister)aye
Terry RooneyBradford NorthLabaye
Mr Ernie RossDundee WestLabaye
Mr Ted RowlandsMerthyr Tydfil and RhymneyLab (minister)aye
Frank RoyMotherwell and WishawLabaye
Chris RuaneVale of ClwydLab (minister)aye
Joan RuddockLewisham, DeptfordLabaye
Christine RussellCity of ChesterLabaye
Joan RyanEnfield NorthLabaye
Martin SalterReading WestLabaye
Mohammad SarwarGlasgow GovanLabaye
Mr Malcolm SavidgeAberdeen NorthLabaye
Mr Phil SawfordKetteringLabaye
Mr Brian SedgemoreHackney South and ShoreditchLabaye
Jonathan R ShawChatham and AylesfordLabaye
Mr Robert SheldonAshton-under-LyneLab (minister)aye
Clare ShortBirmingham, LadywoodLab (minister)aye
Alan SimpsonNottingham SouthLabaye
Marsha SinghBradford WestLabaye
Dennis SkinnerBolsoverLabaye
Andrew SmithOxford EastLab (minister)aye
Angela SmithBasildonLabaye
Mr Chris SmithIslington South and FinsburyLab (minister)aye
Geraldine SmithMorecambe and LunesdaleLabaye
Jacqui SmithRedditchLab (minister)aye
John SmithVale of GlamorganLabaye
Mr Llew SmithBlaenau GwentLabaye
Mr Peter SnapeWest Bromwich EastLabaye
Mr Clive SoleyEaling, Acton and Shepherd's BushLab (minister)aye
Helen SouthworthWarrington SouthLabaye
John SpellarWarleyLab (minister)aye
Rachel SquireDunfermline WestLabaye
Phyllis StarkeyMilton Keynes South WestLabaye
Mr Gerry SteinbergCity of DurhamLabaye
Mr George StevensonStoke-on-Trent SouthLabaye
Mr David StewartInverness East, Nairn and LochaberLabaye
Mr Paul StinchcombeWellingboroughLabaye
Howard StoateDartfordLabaye
Mr Roger StottWiganLabaye
Gavin StrangEdinburgh East and MusselburghLabaye
Jack StrawBlackburnLab (minister)aye
Graham StringerManchester, BlackleyLab (minister)aye
Gisela StuartBirmingham, EdgbastonLabaye
Gerry SutcliffeBradford SouthLabaye
Mrs Ann TaylorDewsburyLab (minister)aye
Dari TaylorStockton SouthLabaye
Mr Peter Temple-MorrisLeominsterwhilst Labaye
Mr Gareth ThomasClwyd WestLabaye
Gareth ThomasHarrow WestLab (minister)aye
Stephen TimmsEast HamLab (minister)aye
Paddy TippingSherwoodLab (minister)aye
Mark ToddSouth DerbyshireLabaye
Don TouhigIslwynLabaye
Jon TrickettHemsworthLabaye
Paul TruswellPudseyLabaye
Mr Dennis TurnerWolverhampton South EastLab (minister)aye
Desmond TurnerBrighton, KemptownLabaye
Dr George TurnerNorth West NorfolkLabaye
Derek TwiggHaltonLab (minister)aye
Stephen TwiggEnfield, SouthgateLabaye
Keith VazLeicester EastLab (minister)aye
Rudi VisFinchley and Golders GreenLabaye
Joan WalleyStoke-on-Trent NorthLab (minister)aye
Claire WardWatfordLabaye
Robert WareingLiverpool, West DerbyLabaye
Dave WattsSt Helens NorthLab (minister)aye
Mr Brian WhiteNorth East Milton KeynesLabaye
Alan WhiteheadSouthampton, TestLab (minister)aye
Malcolm WicksCroydon NorthLabaye
Dr Alan WilliamsCarmarthen East and DinefwrLabaye
Alan WilliamsSwansea WestLabaye
Betty WilliamsConwyLabaye
Michael WillsNorth SwindonLab (minister)aye
Mr Brian WilsonCunninghame NorthLab (minister)aye
David WinnickWalsall NorthLab (minister)aye
Rosie WintertonDoncaster CentralLabaye
Ms Audrey WisePrestonLabaye
Mike WoodBatley and SpenLabaye
Phil WoolasOldham East and SaddleworthLabaye
Mr Tony WorthingtonClydebank and MilngavieLabaye
Anthony D WrightGreat YarmouthLabaye
Tony WrightCannock ChaseLabaye
Derek WyattSittingbourne and SheppeyLabaye
Mr Richard AllanSheffield, HallamLDem (front bench)aye
Mr Paddy AshdownYeovilLDem (front bench)aye
Mrs Jackie BallardTauntonLDemaye
Alan BeithBerwick-upon-TweedLDem (front bench)aye
Tom BrakeCarshalton and WallingtonLDem (front bench)aye
Colin BreedSouth East CornwallLDemaye
Mr John BurnettTorridge and West DevonLDemaye
Paul BurstowSutton and CheamLDem (front bench)aye
Vincent CableTwickenhamLDem (front bench)aye
Menzies CampbellNorth East FifeLDem (front bench)aye
Mr Brian CotterWeston-Super-MareLDem (front bench)aye
Don FosterBathLDemaye
Andrew GeorgeSt IvesLDem (front bench)aye
Donald GorrieEdinburgh WestLDemaye
Mike HancockPortsmouth SouthLDem (front bench)aye
Nick HarveyNorth DevonLDemaye
David HeathSomerton and FromeLDem (front bench)aye
Mr Nigel JonesCheltenhamLDem (front bench)aye
Paul KeetchHerefordLDemaye
Mr Archy KirkwoodRoxburgh and BerwickshireLDem (front bench)aye
Mr Richard LivseyBrecon and RadnorshireLDem (front bench)aye
Mr Robert MaclennanCaithness, Sutherland and Easter RossLDem (front bench)aye
Mrs Ray MichieArgyll and ButeLDemaye
Michael MooreTweeddale, Ettrick and LauderdaleLDem (front bench)aye
Mark OatenWinchesterLDemaye
Lembit ÖpikMontgomeryshireLDemaye
Mr David RendelNewburyLDemaye
Bob RussellColchesterLDem (front bench)aye
Adrian SandersTorbayLDem (front bench)aye
Robert SmithWest Aberdeenshire and KincardineLDemaye
Andrew StunellHazel GroveLDem (front bench)aye
Matthew TaylorTruro and St AustellLDem (front bench)aye
Mr Paul TylerNorth CornwallLDem (front bench)aye
Steve WebbNorthavonLDem (front bench)aye
Phil WillisHarrogate and KnaresboroughLDem (front bench)aye
Mr Cynog DafisCeredigionPCaye
Mr Ieuan Wyn JonesYnys MônPCaye
Elfyn LlwydMeirionnydd Nant ConwyPC (front bench)aye
Mr Dafydd WigleyCaernarfonPC (front bench)aye
Roseanna CunninghamPerthSNPaye
Margaret EwingMoraySNPaye
Alasdair MorganGalloway and Upper NithsdaleSNPaye
John SwinneyNorth TaysideSNPaye
Mr Roy BeggsEast AntrimUUPno
Jeffrey M. DonaldsonLagan ValleyUUP (front bench)no
Mr Clifford ForsytheSouth AntrimUUPno
Martin SmythBelfast SouthUUPno
John TaylorStrangfordUUPno
Mr William ThompsonWest TyroneUUPno
Rt Hon David TrimbleUpper BannUUP (front bench)no

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