Overview

This bill makes various amendments to the Pension Schemes Bill, primarily clarifying definitions, updating references to existing legislation, and improving the process for transferring pension benefits. The changes aim to streamline pension scheme regulations and ensure consistency across different acts and jurisdictions.

Description

The Lords Amendments to the Pension Schemes Bill make numerous changes across several clauses and schedules. Key changes include:

• Clarification of Terminology: Replacing instances of "scheme rule" with "provision of a scheme" for greater clarity and consistency.
• Inclusion of Policies: Adding "or have a policy" to clauses related to required documentation, acknowledging that pension scheme information may be held in various forms.
• Expansion of "Legislative Provision": Broadening the definition of "legislative provision" to include scheme provisions and other instruments.
• Refinement of Benefit Rights: Amending clauses to specify "a right or entitlement to collective benefits" and clarifying the treatment of lump sum payments, particularly "uncrystallised funds pension lump sum".
• Independent Advice Requirements: Defining "appropriate independent advice" and "authorised independent adviser" more precisely, specifying requirements for such advisors, and identifying responsible authorities (Secretary of State or the Department for Social Development in Northern Ireland).
• Inclusion of Drawdown Pensions: Adding "nominees' drawdown pension" and "successors' drawdown pension" to relevant sections.
• Consequential Amendments: Introducing new clauses to amend existing sections of the Pension Schemes Act 1993, the Pensions Act 1995, and the Pensions Act 2004, to ensure consistency with the changes made by this bill.
• Public Service Pension Schemes: Excluding schemes relating to the Secret Intelligence Service or Security Service from certain provisions within the Public Service Pensions Act 2013.
• Regulations: Clarifying the process for making and approving regulations, differentiating between the powers of the Secretary of State, the Treasury, and the Department for Social Development in Northern Ireland, and setting out the use of statutory rules for regulations made in Northern Ireland. This includes provisions for affirmative resolution procedures for some regulations.
• Schedule Amendments: Significant amendments to Schedules 2, 3, 4 and 5, covering various aspects of pension schemes, including definitions, transfer of benefits, and regulatory provisions.

Government Spending

The bill doesn't directly specify a cost. The impact on government spending is likely to be indirect and depend on the implementation of new regulations and their consequences for pension scheme administration.

Groups Affected

The bill affects several groups:

• Pension Scheme Members: Changes to benefit transfer processes and definitions could influence their entitlements and access to advice.
• Pension Scheme Trustees and Managers: New responsibilities and administrative requirements are likely to arise from the amendments.
• Independent Financial Advisors: The bill introduces more precise criteria for authorised independent advisors.
• Government Departments: The bill clarifies regulatory responsibilities and processes for making regulations.
• The Secret Intelligence Service and Security Service: The bill specifically excludes their schemes from certain provisions.

Powered by nyModel