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Pensions

New clause 1 – in the House of Commons at 6:15 pm on 4th July 1995.

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24B—(1) On granting a decree of divorce, a decree of nullity of marriage or a decree of judicial separation or at any time thereafter (whether, in the case of a decree of divorce or of nullity of marriage, before or after the decree is made absolute), the court may make a pensions adjustment order (referred to in this section as "an order") for the benefit of a party to the marriage.
(2) An order shall where the court so determines bind a person who is not a party to the marriage but who is liable to pay any benefit under a pension scheme to a party to the marriage or any successor to such a person.
(3) An order is an order adjusting the rights and benefits to which either party to the marriage is or may become entitled to under any pension scheme and in particular the court may by such an order require—
  1. (a) either party to the marriage to pay to the other such lump sum or sums as may be specified in the order (without prejudice to any other order which may be made under section 23(1) or (3)); or
  2. (b) the administrator of a pension scheme to treat the party to the marriage in favour of whom the order is to be made as a member of the pension scheme in relation to such benefits as may be specified in the order which were acquired by the other party to the marriage before the decree of divorce or nullity was made absolute or before the decree of judicial separation, or
  3. (c) the administrator of a pension scheme to make such payment or payments as may be specified in the order into such other pension schemes as may be nominated by the party to the marriage in favour of whom the order is made, or
  4. (d) the administrator of a pension scheme to pay such part of any pension as may be specified in the order to the party in favour of whom the order is made for such term as may be specified not extending beyond the death of either party to the marriage, or
  5. (e) the administrator of a pension scheme to pay such part of any dependant's pension as may be specified in the order to the party in favour of whom the order is made for such term as may be specified beginning with the death of the other party to the marriage and not extending beyond the death of the party in whose favour the order is made, or
  6. (f) either party to the marriage to pay such administrative costs incurred by the administrator of the pension scheme in responding to any application for an order or in implementing an order.

(4) An order shall not be made—

  1. (a) under subsection (3)(b) above unless the administrator of the pension scheme consents to membership of the pension scheme for the party to the marriage who is not already a member of the pension scheme, or
  2. (b) under subsection (3)(c) above unless the court is satisfied that the administrator of the pension scheme nominated by the party in whose favour the order may be made has agreed to accept such payment or payments, and in the event of the administrator being unwilling to accept such payment or payments he may be required to notify the parties to the marriage and the court.

(5) It shall be the duty of the court in deciding whether to exercise its powers under this section and, if so, in what manner to have regard in particular to—
  1. (a) the matters referred to in section 25 save for the words "in the foreseeable future" in section 25(2)(a), (b) and (f), and
  2. (b) the effect that child care or other domestic responsibilities have had or will have on the ability of each of the parties to the marriage to make provision for his retirement, and
  3. (c) any administrative complexity or cost to the administrator of the pension scheme.
(6) The Secretary of State in agreement with the Lord Chancellor shall by regulations provide for the date and method of valuation to be applied by the court to rights under a pension scheme when making an order and to provide for notice of any application for an order to be given to the administrator of the pension scheme.
(7) The Secretary of State may by regulations make such provision as may be appropriate to meet the special circumstances of unfunded public sector schemes by varying or excluding the powers of the court under this section.
(8) Nothing in the provisions mentioned in subsection (9) below applies to a court exercising its powers under this section.
(9) The provisions referred to in subsection (8) are—
  1. (a) section 203(1) and (2) of the Army Act 1955, section 203(1) and (2) of the Air Force Act 1955, section 128G(1) and (2) of the Naval Discipline Act 1957 or section 159(4) of the Pension Schemes Act 1993 (which prevent assignment or orders being made restraining a person from receiving anything which he is prevented from assigning);
  2. (b) section 84 of the Pensions Act 1995;
  3. (c) any provision for any enactment corresponding to any of the enactments mentioned in paragraphs (a) and (b); and
  4. (d) any provision of the pension scheme in question.
(10) the making of an order shall in no circumstances form the basis of any decision made by the Commissioners of Inland Revenue to remove the exempt approved status or to alter the tax status of a pension scheme provided that—
  1. (a) the party to the marriage in whose favour an order has been made shall be treated for the purpose of retention of benefits as the member; and
  2. (b) the maximum benefits payable to and in respect of the party to the marriage whose rights have been varied by the order shall be limited to the benefits that would have been payable if the order had not been made.
(11) No order or orders shall be made which shall have the effect of increasing the liabilities of any pension scheme beyond those which might have been incurred had the parties to the marriage remained married until the death of the party against whom the order is to be made.
(12) After paragraphs (2)(f) of section 31 there shall be inserted:
"(g) any order made under section 24B(3)(d) or (e) above"

(13) After subparagraph (ii) in section 35(2) there shall be inserted:or (iii) by adjusting the rights and benefits to which either party to the marriage is or may become entitled under any pension scheme.

(14) Nothing in this section shall affect any proceedings commenced before the commencement of this section.

(15) In this section—
"administrator" means the trustees of an occupational pension scheme or the administrators or managers of such a scheme in the absence of trustees or the administrators or managers of a personal pension plan;
"member" means a member of an occupational pension scheme or a person having a personal pension plan or retirement benefit plan or other similar arrangement; and
"pension scheme" means an occupational pension scheme or personal pension scheme or retirement benefit plan or other similar arrangement.'.—[Mr. Dewar.]

Brought up, and read the First time.

Motion made, and Question put, That the clause be read a Second time:—

The House divided: Ayes 247, Noes 292.

Division No. 193][7.30 pm
AYES
Abbott, Ms DianeFatchett, Derek
Adams, Mrs IreneFaulds, Andrew
Ainger, NickField, Frank (Birkenhead)
Ainsworth, Robert (Cov'try NE)Flynn, Paul
Alton, DavidForsythe, Clifford (S Antrim)
Armstrong, HilaryFoster, Rt Hon Derek
Ashton, JoeFoster, Don (Bath)
Banks, Tony (Newham NW)Foulkes, George
Barnes, HarryFraser, John
Barron, KevinFyfe, Maria
Battle, JohnGalloway, George
Bayley, HughGarrett, John
Beckett, Rt Hon MargaretGerrard, Neil
Beggs, RoyGodman, Dr Norman A
Bell, StuartGodsiff, Roger
Benn, Rt Hon TonyGolding, Mrs Llin
Bennett, Andrew FGordon, Mildred
Bermingham, GeraldGraham, Thomas
Berry, RogerGrant, Bernie (Tottenham)
Betts, CliveGriffiths, Win (Bridgend)
Blunkett, DavidGrocott, Bruce
Boateng, PaulGunnell, John
Bray, Dr JeremyHain, Peter
Brown, N (N'c'tle upon Tyne E)Hall, Mike
Bruce, Malcolm (Gordon)Harman, Ms Harriet
Burden, RichardHattersley, Rt Hon Roy
Byers, StephenHenderson, Doug
Caborn, RichardHill, Keith (Streatham)
Callaghan, JimHinchliffe, David
Campbell, Mrs Anne (C'bridge)Hodge, Margaret
Campbell, Ronnie (Blyth V)Hoey, Kate
Campbell-Savours, D NHogg, Norman (Cumbernauld)
Cann, JamieHome Robertson, John
Carlile, Alexander (Montgomery)Hood, Jimmy
Chidgey, DavidHoon, Geoffrey
Chisholm, MalcolmHowarth, George (Knowsley North)
Church, JudithHowells, Dr. Kim (Pontypridd)
Clapham, MichaelHoyle, Doug
Clark, Dr David (South Shields)Hughes, Kevin (Doncaster N)
Clarke, Tom (Monkands W)Hughes, Robert (Aberdeen N)
Clelland, DavidHughes, Roy (Newport E)
Clwyd, Mrs AnnHutton, John
Coffey, AnnIllsley, Eric
Cohen, HarryIngram, Adam
Connarty, MichaelJackson, Glenda (H'stead)
Corbett, RobinJackson, Helen (Shef'ld, H)
Corbyn, JeremyJamieson, David
Corston, JeanJanner, Greville
Cousins, JimJohnston, Sir Russell
Cummings, JohnJones, Barry (Alyn and D'side)
Cunliffe, LawrenceJones, leuan Wyn (Ynys Môn)
Cunningham, Jim(Covy SE)Jones, Lynne (B'ham S O)
Cunningham, RoseannaJones, Martyn (Clwyd, SW)
Dalyell, TamJones, Nigel (Cheltenham)
Darling, AlistairJowell, Tessa
Davidson, IanKeen, Alan
Davies, Bryan (Oldham C'tral)Kennedy, Jane (L'pool Br'dg'n)
Davies, Rt Hon Denzil (Llanelli)Khabra, Piara S
Davies, Ron (Caerphilly)Kilfoyle, Peter
Davis, Terry (B'ham, H'dge H'l)Kirkwood, Archy
Denham, JohnLestor, Joan (Eccles)
Dewar, DonaldLewis, Terry
Dixon, DonLiddell, Mrs Helen
Dobson, FrankLitherland, Robert
Donohoe, Brian HLivingstone, Ken
Dowd, JimLloyd, Tony (Stretford)
Dunnachie, JimmyLlwyd, Elfyn
Dunwoody, Mrs GwynethLoyden, Eddie
Eagle, Ms AngelaLynne, Ms Liz
Eastham, KenMcAllion, John
Etherington, BillMcAvoy, Thomas
Evans, John (St Helens N)McCartney, Robert
Ewing, Mrs MargaretMacdonald, Calum
McFall, JohnRobertson, George (Hamilton)
McKelvey, WilliamRobinson, Geoffrey (Co'try NW)
Mackinlay, AndrewRoche, Mrs Barbara
McLeish, HenryRogers, Allan
Maclennan, RobertRooker, Jeff
McMaster, GordonRooney, Terry
McNamara, KevinRoss, Ernie (Dundee W)
MacShane, DenisRoss, William (E Londonderry)
McWilliam, JohnRuddock, Joan
Madden, MaxSalmond, Alex
Mandelson, PeterSedgemore, Brian
Marek, Dr JohnSheerman, Barry
Marshall, David (Shettleston)Sheldon, Rt Hon Robert
Marshall, Jim (Leicester, S)Short, Clare
Martin, Michael J (Springburn)Simpson, Alan
Martlew, EricSkinner, Dennis
Maxton, JohnSmith, Andrew (Oxford E)
Meale, AlanSmith, Llew (Blaenau Gwent)
Michie, Bill (Sheffield Heeley)Smyth, The Reverend Martin
Michie, Mrs Ray (Argyll & Bute)Snape, Peter
Milburn, AlanSpearing, Nigel
Miller, AndrewSpellar, John
Molyneaux, Rt Hon JamesSquire, Rachel (Dunfermline W)
Morgan, RhodriSteel, Rt Hon Sir David
Morris, Rt Hon Alfred (Wy'nshawe)Steinberg, Gerry
Morris, Estelle (B'ham Yardley)Stevenson, George
Mowlam, MarjorieTaylor, Mrs Ann (Dewsbury)
Mudie, GeorgeTaylor, Matthew (Truro)
Mullin, ChrisTimmis, Stephen
Murphy, PaulTipping, Paddy
O'Brien, Mike (N W'kshire)Touhig, Don
O'Brien, William (Normanton)Turner, Dennis
Olner, BillTyler, Paul
O'Neill, MartinWalker, Rt Hon Sir Harold
Orme, Rt Hon StanleyWallace, James
Parry, RobertWalley, Joan
Pearson, IanWardell, Gareth (Gower)
Pickthall, ColinWatson, Mike
Pike, Peter LWelsh, Andrew
Pope, GregWilliams, Rt Hon Alan (Sw'n W)
Powell, Ray (Ogmore)Williams, Alan W (Carmarthen)
Prentice, Bridget (Lew'm E)Wilson, Brian
Prentice, Gordon (Pendle)Winnick, David
Prescott, Rt Hon JohnWise, Audrey
Primarolo, DawnWorthington, Tony
Purchase, KenWray, Jimmy
Quin, Ms JoyceWright, Dr Tony
Radice, GilesYoung, David (Bolton SE)
Randall, Stuart
Raynsford, NickTellers for the Ayes:
Reid, Dr JohnMr. Jon Owen Jones and Mr. Eric Clarke.
Rendel, David
NOES
Ainsworth, Peter (East Surrey)Beresford, Sir Paul
Aitken, Rt Hon JonathanBiffen, Rt Hon John
Alexander, RichardBonsor, Sir Nicholas
Alison, Rt Hon Michael (Selby)Booth, Hartley
Allason, Rupert (Torbay)Bottomley, Peter (Eltham)
Amess, DavidBottomley, Rt Hon Virginia
Ancram, MichaelBowden, Sir Andrew
Arbuthnot, JamesBowis, John
Arnold, Jacques (Gravesham)Boyson, Rt Hon Sir Rhodes
Arnold, Sir Thomas (Hazel Grv)Brandreth, Gyles
Ashby, DavidBrazier, Julian
Atkins, Rt Hon RobertBright, Sir Graham
Atkinson, David (Bour'mouth E)Brown, M (Brigg & Cl'thorpes)
Atkinson, Peter (Hexham)Browning, Mrs Angela
Baker, Nicholas (North Dorset)Bruce, Ian (Dorset)
Baldry, TonyBudgen, Nicholas
Banks, Matthew (Southport)Burns, Simon
Bates, MichaelBurt, Alistair
Batiste, SpencerButcher, John
Bellingham, HenryButler, Peter
Bendall, VivianButterfill, John
Carlisle, John (Luton North)Hawksley, Warren
Carlisle, Sir Kenneth (Lincoln)Hayes, Jerry
Carrington, MatthewHeald, Oliver
Carttiss, MichaelHeath, Rt Hon Sir Edward
Cash, WilliamHeathcoat-Amory, David
Channon, Rt Hon PaulHendry, Charles
Churchill, MrHeseltine, Rt Hon Michael
Clappison, JamesHicks, Robert
Clark, Dr Michael (Rochford)Higgins, Rt Hon Sir Terence
Clarke, Rt Hon Kenneth (Ru'clif)Hogg, Rt Hon Douglas (G'tham)
Clifton-Brown, GeoffreyHoram, John
Coe, SebastianHordern, Rt Hon Sir Peter
Colvin MichaelHoward, Rt Hon Michael
Conway, DerekHowarth, Alan (Strat'rd-on-A)
Coombs, Anthony (Wyre For'st)Howell, Sir Ralph (N Norfolk)
Cope, Rt Hon Sir JohnHughes, Robert G (Harrow W)
Cormack, Sir PatrickHunt, Sir John (Ravensbourne)
Couchman, JamesHunter, Andrew
Cran, JamesJack, Michael
Currie, Mrs Edwina (S D'by'ire)Jackson, Robert (Wantage)
Curry, David (Skipton & Ripon)Jenkin, Bernard
Davies, Quentin (Stamford)Jessel, Toby
Davis, David (Boothferry)Johnson Smith, Sir Geoffrey
Day, StephenJones, Gwilym (Cardiff N)
Deva, Nirj JosephJones, Robert B (W Hertfdshr)
Devlin, TimKellett-Bowman, Dame Elaine
Dicks, TerryKey, Robert
Dorrell, Rt Hon StephenKing, Rt Hon Tom
Douglas-Hamilton, Lord JamesKirkhope, Timothy
Dover, DenKnapman, Roger
Duncan, AlanKnight, Mrs Angela (Erewash)
Duncan-Smith, IainKnight, Greg (Derby N)
Dunn, BobKnight, Dame Jill (Bir'm E'st'n)
Durant, Sir AnthonyKnox, Sir David
Dykes, HughKynoch, George (Kincardine)
Eggar, Rt Hon TimLait, Mrs Jacqui
Elletson, HaroldLang, Rt Hon Ian
Evans, David (Welwyn Hatfield)Lawrence, Sir Ivan
Evans, Jonathan (Brecon)Legg, Barry
Evans, Nigel (Ribbte Valley)Leigh, Edward
Evans, Roger (Monmouth)Lennox-Boyd, Sir Mark
Evennett, DavidLidington, David
Faber, DavidLightbown, David
Fabricant, MichaelLilley, Rt Hon Peter
Fenner, Dame PeggyLloyd, Rt Hon Sir Peter (Fareham)
Field, Barry (Isle of Wight)Lord, Michael
Fishburn, DudleyLuff, Peter
Forman, NigelLyell, Rt Hon Sir Nicholas
Forsyth, Rt Hon Michael (Stirling)MacGregor, Rt Hon John
Forth, EricMacKay, Andrew
Fowler, Rt Hon Sir NormanMaclean, Rt Hon David
Fox, Sir Marcus (Shipley)McLoughlin, Patrick
Freeman, Rt Hon RogerMcNair-Wilson, Sir Patrick
French, DouglasMadel, Sir David
Gale, RogerMaitland, Lady Olga
Gallie, PhilMajor, Rt Hon John
Gardiner, Sir GeorgeMalone, Gerald
Garel-Jones, Rt Hon TristanMans, Keith
Garnier, EdwardMarland, Paul
Gillan, CherylMarlow, Tony
Goodson-Wickes, Dr CharlesMarshall, John (Hendon S)
Gorst, Sir JohnMartin, David (Portsmouth S)
Grant, Sir A (SW Cambs)Mayhew, Rt Hon Sir Patrick
Greenway, Harry (Ealing N)Merchant, Piers
Greenway, John (Ryedale)Mills, Iain
Griffiths, Peter (Portsmouth, N)Mitchell, Andrew (Gedling)
Gummer, Rt Hon John SelwynMitchell, Sir David (NW Hants)
Hague, WilliamMoate, Sir Roger
Hamilton, Rt Hon Sir ArchibaldMonro, Sir Hector
Hamilton, Neil (Tatton)Montgomery, Sir Fergus
Hampson, Dr KeithMoss, Malcolm
Hanley, Rt Hon JeremyNelson, Anthony
Hannam, Sir JohnNeubert, Sir Michael
Hargreaves, AndrewNewton, Rt Hon Tony
Haselhurst, Sir AlanNicholls, Patrick
Hawkins, NickNicholson, David (Taunton)
Nicholson, Emma (Devon West)Stephen, Michael
Norris, SteveStern, Michael
Onslow, Rt Hon Sir CranleyStewart, Allan
Oppenheim, PhillipStreeter, Gary
Ottaway, RichardSumberg, David
Page, RichardSweeney, Walter
Paice, JamesSykes, John
Patnick, Sir IrvineTapsell, Sir Peter
Patten, Rt Hon JohnTaylor, Ian (Esher)
Pattie, Rt Hon Sir GeoffreyTaylor, John M (Solihull)
Pawsey, JamesTaylor, Sir Teddy (Southend, E)
Peacock, Mrs ElizabethThomason, Roy
Pickles, EricThompson, Sir Donald (C'er V)
Porter, Barry (Wirral S)Thompson, Patrick (Norwich N)
Porter, David (Waveney)Thornton, Sir Malcolm
Portillo, Rt Hon MichaelThurnham, Peter
Powell, William (Corby)Townend, John (Bridlington)
Rathbone, TimTownsend, Cyril D (Bexl'yh'th)
Redwood, Rt Hon JohnTracey, Richard
Renton, Rt Hon TimTredinnick, David
Richards, RodTrend, Michael
Riddick, GrahamTrotter, Neville
Rifkind, Rt Hon MalcolmTwinn, Dr Ian
Robathan, AndrewVaughan, Sir Gerard
Roberts, Rt Hon Sir WynViggers, Peter
Robertson, Raymond (Ab'd'n S)Waldegrave, Rt Hon William
Robinson, Mark (Somerton)Walker, Bill (N Tayside)
Roe, Mrs Marion (Broxbourne)Waller, Gary
Rowe, Andrew (Mid Kent)Ward, John
Rumbold, Rt Hon Dame AngelaWardle, Charles (Bexhill)
Ryder, Rt Hon RichardWaterson, Nigel
Sackville, TomWatts, John
Sainsbury, Rt Hon Sir TimothyWells, Bowen
Scott, Rt Hon Sir NicholasWheeler, Rt Hon Sir John
Shaw, David (Dover)Whitney, Ray
Shaw, Sir Giles (Pudsey)Whittingdale, John
Shephard, Rt Hon GillianWiddecombe, Ann
Shepherd, Colin (Hereford)Wiggin, Sir Jerry
Shepherd, Richard (Aldridge)Wilkinson, John
Shersby, Sir MichaelWilletts, David
Sims, RogerWilshire, David
Smith, Tim (Beaconsfield)Winterton, Mrs Ann (Congleton)
Soames, NicholasWinterton, Nicholas (Macclesfield)
Spencer, Sir DerekWolfson, Mark
Spicer, Sir James (W Dorset)Wood, Timothy
Spicer, Michael (S Worcs)Yeo, Tim
Spink, Dr RobertYoung, Rt Hon Sir George
Spring, Richard
Sproat, IainTellers for the Noes:
Squire, Robin (Hornchurch)Mr. Sydney Chapman and Dr. Liam Fox.
Steen, Anthony

Question accordingly negatived.