The House of Lords Grand Committee has completed its detailed examination of the Pensions Bill. An updated version is now available as Bill 116. Thirteen new clauses have been added, taking the total length from 317 to 375 pages. The new material concerns the following:
1. "Pensions liberation": new clauses 19 - 22
2. Insolvency: (a) status of scheme: approval of notices issued under section 120: new clause 121;
(b) Board’s duties: binding notices confirming status of scheme: new clause 123
3. PPF: Refusal to assume responsibility: withdrawal following issue of section 120 (4) notice: new clause 146
4. Categories of pension scheme: meaning of "employer" in Part 1 of PA 95: new clause 238
5. Winding up: new clauses 268 - 270
6. Cross-border activities: (a) Power of Regulator to require ring-fencing of assets: new clause 290;
(b) Assistance for other European regulators: stopping disposal of assets of institutions administered in other member States; new clause 292
7. Modification of pensions legislation that refers to employers: new clause 306.
This still isn't the end of it, though. The Bill now proceeds to the Report stage in the Lords, at which the Government will introduce further amendments concerning (at least)
(a) survivors' benefits under the PPF; and
(b) to enable the required proportion of MNTs on the board of trustees to be raised from one-third to one-half.
Royal Assent is expected on or shortly before 22 November. We await with some trepidation the deluge of draft Regs, none of which have yet appeared.
Update 29 October 2004
Among many further amendments to the Bill to be moved on Report in the House of Lords on 1 November, the Government has tabled three more new clauses:
- Section 39 contribution notices: clearance statements
- Financial support directions: clearance statements
- Sections 39 to 55: partnerships and limited liability partnerships
These arise out of widespread concerns, shared over the summer, about the 'moral hazard' clauses. The DWP has published a substantial report for the House of Lords Grand Committee on this consultation exercise.
