Interpretation of Part 1

Part of Pension Schemes Bill [Lords] – in a Public Bill Committee at 12:15 pm on 9 February 2017.

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Amendments made: 19, in clause 40, page 28, line 15, at end insert—

“‘pension scheme’ has the meaning given by section 1(5) of the Pension Schemes Act 1993;”.

This amendment defines “pension scheme” where it is used in Part 1 without further qualification. The definition in section 1(5) of the Pension Schemes Act 1993 catches both personal and occupational pension schemes.

Amendment 20, in clause 40, page 28, line 35, at end insert “, and—

‘(2A) The reference in section 11(3) to activities that relate directly to Master Trust schemes is, in its application to a Master Trust scheme which provides money purchase benefits in conjunction with other benefits, to be read as a reference to activities that relate directly to the scheme as a whole.’”.—

Where a Master Trust scheme is a “mixed benefits” scheme (providing money purchase benefits and other benefits), clause 1(2) provides for Part 1 to apply only to the “money purchase benefits” aspect of the scheme. This produces an unintended effect for clause 11(3), as it would require the scheme funder’s activities to relate only to the money purchase benefits aspect of each of the Master Trust schemes referred to which is a mixed benefit scheme. This amendment prevents that effect from arising, by saying that even for mixed benefit schemes, a “scheme” in clause 11(3) means the scheme as a whole.