Clause 19
Pensions Bill
10:30 am
Roger Gale (North Thanet, Conservative)
With this it will be convenient to discuss the following:
Amendment No. 84, in clause 19, page 21, line 2, leave out from ‘State’ to ‘which’ in line 3.
Amendment No. 20, in clause 19, page 21, line 11, at end insert—
‘(2A) It shall be the duty of the Authority to carry out their functions under subsection (1) in such manner as—
(a) appears to them to ensure, so far as they are facilitating the implementation of any such proposals, thatthere is effective co-operation in relation to the implementation of the proposals between themselves, the Pensions Regulator, the Financial Services Authority and the Secretary of State; and
(b) does not interfere with the existing provision of personal or occupational schemes.’.
Amendment No. 40, in clause 19, page 21, line 11, at end insert—
‘(2A) In discharging its functions under this Part, the Authority shall publish a report on how it can ensure that individuals who have money invested in Personal Accounts and those considering doing so in future will have access to generic financial advice.’.
Amendment No. 86, in clause 19, page 21, line 26, leave out subsection (5).
Amendment No. 21, in clause 19, page 21, line 27, at end insert—
‘(5A) In discharging its function under this section, the Authority shall ensure that its actions and advice support the following objectives for the scheme—
(a) ensuring that the overall outcome, taking account of the impact on the existing market, is an increase in the number of people saving and the overall amount being saved;
(b) optimising levels of participation and contribution among the target group;
(c) setting an investment strategy in the best interests of members;
(d) minimising burdens on employers;
(e) minimising the impact on other high-quality pension provision;
(f) assuring security of administration;
(g) governing in the best interests of members and beneficiaries;
(h) ensuring that the board acts impartially, prudently, responsibly and honestly;
(i) delivering appropriate levels of choice;
(j) achieving charges that are fair and reasonable;
(k) ensuring the funds are invested in the best interests of the members.
(5B) Her Majesty may from time to time by Order in Council make provision for amending the objectives set out in subsection (5A).
(5C) No recommendation shall be made to Her Majesty to make an Order in Council under subsection (5B) above unless a draft of the Order has been approved by resolution of each House of Parliament.’.
Amendment No. 22, in clause 19, page 21, line 27, at end insert—
‘(5A) In making preparations and giving advice, the Authority shall seek to ensure that the full costs of setting up and operating the scheme are covered by charges to be made either to employers or to members and not met from other sources.’.
Amendment No. 87, in clause 19, page 21, line 29, at end insert—
‘, and such guidance must be reported to Parliament by an oral statement made by the Secretary of State.’.
Amendment No. 23, in clause 19, page 21, line 31, at end insert—
‘(7A) Before issuing guidance under subsection (6) the Secretary of State shall consult—
(a) the Authority;
(b) organisations appearing to him to be representative of consumers;
(c) organisations appearing to him to be representative of employees;
(d) organisations appearing to him to be representative of employers;
(e) organisations appearing to him to be representative of the financial services industry;
(f) such other persons as the Secretary of State considers it appropriate to consult in relation to the guidance.
(7B) A draft of any guidance proposed to be issued under this section shall be laid before each House of Parliament.
(7C) Guidance shall not be issued under this section until after the period of forty days beginning with—
(a) the day on which the draft is laid before each House of Parliament; or
(b) if the draft is laid before the House of Lords on one day and the House of Commons on another, the later of those two days.
(7D) If, before the end of that period, either House resolves that the guidance should not be issued, the Secretary of State must not issue it.
(7E) In reckoning any period of forty days for the purposes of subsection (5) or (6), no account shall be taken of any time during which—
(a) Parliament is dissolved or prorogued, or
(b) both Houses are adjourned for more than four days.
(7F) The Secretary of State shall arrange for any guidance issued under this section to published in such manner as he considers appropriate.’.
Amendment No. 38, in clause 19, page 21, line 32, at end add—
‘(9) Prior to Parliament’s approval of proposals the Authority must evaluate the effect of means testing on levels of saving in personal accounts and its impact on returns in personal accounts and thereafter conduct and publish evaluations annually.’.
Amendment No. 39, in clause 19, page 21, line 32, at end insert—
‘(9) The Authority shall carry out a gender impact assessment of relevant proposals regarding saving in personal accounts as specified in subsection (2).’.
Amendment No. 65, in clause 19, page 21, line 32, at end add—
‘(9) The Authority shall, no later than 1st April 2008, publish a strategy for maximising participation in the new system of personal accounts in which it shall—
(a) set out and give full explanation of targets for participation in personal accounts;
(b) identify at-risk groups where auto-enrolment might risk very low rates or return;
(c) outline contingency plans for coping with the workload if participation is higher than expected;
(d) outline its strategy for maximising the participation among employees in small businesses.’.
Amendment No. 66, in clause 19, page 21, line 32, at end add—
‘(9) The Authority shall prepare and publish a report, no later than 1st April 2008, on measures it proposes to take to monitor the impact of the new personal accounts scheme on existing occupational pensions provision and to guard against levelling down.’.
Amendment No. 67, in clause 19, page 21, line 32, at end add—
‘(9) The Authority shall prepare and publish a report, no later than 1st April 2008, on how it plans to establish and develop any necessary IT system and reduce risks of IT problems with personal accounts.’.
Amendment No. 68, in clause 19, page 21, line 32, at end add—
‘(9) The Authority shall prepare and publish a report, no later than 1st April 2008, on the percentage of the target audience of personal accounts expected to accrue returns from saving in personal account pension schemes of—
(a) more than 100 per cent,
(b) 0-100 per cent, and
(c) less than 0 per cent.’.
Clause stand part.