Clause 132 - Discharge of liabilities in respect of money purchase benefits

Pensions Bill – in a Public Bill Committee at 5:15 pm on 30th March 2004.

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Amendments made: No. 386, in

clause 132, page 80, line 38, leave out

'have accrued rights under the scheme'

and insert

'are entitled, or have accrued rights, under the scheme rules'.

No. 387, in

clause 132, page 81, line 1, after 'section' insert—

' ''accrued rights'', under the scheme rules of a scheme, include pension credit rights within the meaning of section 124(1) of the Pensions Act 1995 (c.26);'.

No. 388, in

clause 132, page 81, line 3, at end insert—

' ''scheme rules'' has the meaning given by section 120(5).'.—[Mr. Pond.]

Question proposed, That the clause, as amended, stand part of the Bill.

Photo of Nigel Waterson Nigel Waterson Conservative, Eastbourne

I am sure that it is my fault and a failing of my limited intellect, but I cannot work out why we are suddenly into money purchase schemes—defined contribution schemes—in this clause. The hon. Member for Northavon dealt with that as one of a legion of possible objections to my previous amendment No. 352. If the Minister could explain where money purchase benefits come into this part of the Bill, it would satisfy me inordinately.

Photo of Mr Chris Pond Mr Chris Pond Parliamentary Under-Secretary, Department for Work and Pensions

Regulations have to make provision to deal with cases where the board assumes responsibility for an eligible scheme under which one or more members have accrued rights to money purchase benefits. The regulations will enable the board to discharge such liabilities in a prescribed manner. I hope that the hon. Gentleman understands that the clause has to be included because the money purchase elements have to be taken into account by the board when it considers the appropriate level of compensation.

Question put and agreed to.

Clause 132, as amended, ordered to stand part of the Bill.