'(1) There shall be established as soon as reasonably practicable a Pension Protection Lifeboat Fund ("the Lifeboat Fund") which shall be administered by the Board of the Pension Protection Fund ("the Board").
(2) The purpose of the Lifeboat Fund shall be to make supplementary payments to persons who are qualifying members of qualifying schemes as defined by the Financial Assistance Scheme Regulations 2005 (S.I. 2006/1986) (or who would be qualifying members if the qualifying age for the Financial Assistance Scheme were set at the level of the qualifying scheme retirement age), in addition to the sums payable in any event under those regulations.
(3) The supplementary payments made to any person in accordance with subsection (2) shall equal the amount that, taken together with any amounts payable to that person under the Financial Assistance Scheme and amounts payable to that person as scheme benefits under the qualifying pension scheme in respect of which he is a qualifying member of the Financial Assistance Scheme (or would be a qualifying member if the qualifying age for the Financial Assistance Scheme were set at the level of the qualifying scheme retirement age), is the amount that would be payable to that person if that qualifying pension scheme was accepted into the Pension Protection Fund.
(4) The Secretary of State shall make such loans to the Lifeboat Fund as are necessary to allow the discharge of its functions and in particular its obligation to make supplementary payments under subsection (2).
(5) The Secretary of State shall make such loans from time to time having regard to—
(a) requests for such loans received from the Board;
(b) the amount of assets transferred or to be transferred to the Lifeboat Fund under the Scheme (as defined in section [Transfer of unclaimed assets] ("the Scheme"));
(c) the level of any claims on the Lifeboat Fund in respect of assets transferred to it under the Scheme.
(6) Loans made in accordance with this section must be repaid to the Secretary of State as soon as, in the reasonable opinion of the Board, it is prudent to do so having regard to—
(a) the obligations of the Lifeboat Fund;
(b) the amount of assets transferred or to be transferred to the Lifeboat Fund under the Scheme; and
(c) the level of claims on the Lifeboat Fund in respect of assets transferred to it under the Scheme.
(7) Loans made under this section shall be interest free.
(8) The assets of the Lifeboat Fund shall be held separately from the assets of any other fund under the control of the Board.
(9) The Secretary of State may by regulations make further provision in connection with the Lifeboat Fund.
(10) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of either House of Parliament.'.— [Mr. Hammond.]
Brought up, and read the First time.
Question put, That the clause be read a Second time:—
The House proceeded to a Division.