Clause 3 - Short title and commencement
Retirement Income Reform Bill
3:45 pm
Mr John Healey (Economic Secretary, HM Treasury; Wentworth, Labour)
I beg to move amendment No. 43, in
clause 3, page 3, line 6, leave out from '6th April 2005' and insert
'such day as the Chancellor the Exchequer may by order made by statutory instrument appoint'.
I shall briefly explain the reason for the amendment, which may be more significant than it first appears to be.
Members of the Committee will know that there is a transitional measure in clause 1 for scheme members who receive scheme benefits by way of income withdrawal when the proposed Act comes into force. The terms of clause 1 give significant scope for avoidance. There is therefore no good reason for fixing the effective date in the Bill. The amendment removes the specified commencement date of 6 April 2005 and instead gives the Chancellor of the Exchequer the power to appoint a commencement date to avoid that danger. I hope that hon. Members will accept the amendment.