Overview

This bill makes various amendments to the Pension Schemes Bill, primarily clarifying definitions, updating existing legislation to align with current practices, and improving the process for transferring pension benefits. These changes aim to enhance clarity and efficiency within the pension system.

Description

The Lords Amendments to the Pension Schemes Bill focus on several key areas:

Clarification of Terminology:

The amendments replace instances of "scheme rule" with "provision of a scheme" for greater consistency and precision throughout the bill.

Extension of Provisions to Survivors:

The amendments explicitly include survivors of pension scheme members in several clauses, ensuring they receive equal consideration in benefit transfers and other processes.

Independent Financial Advice:

Amendments define "appropriate independent advice" and "authorised independent adviser," ensuring members receive suitable guidance when making significant financial decisions related to their pensions.

Inclusion of New Pension Types:

The bill includes "nominees' drawdown pension" and "successors' drawdown pension," broadening the scope of pension types covered under existing legislation.

Consequential Amendments:

Numerous consequential amendments are made to the Pension Schemes Act 1993, Pensions Act 1995, Pensions Act 2004, and related legislation in both England & Wales and Northern Ireland to incorporate the changes introduced by the bill.

Regulations:

The amendments grant the Secretary of State and the Department for Social Development in Northern Ireland increased powers to make regulations clarifying specific aspects of the legislation. These regulations are subject to varying levels of parliamentary scrutiny, depending on the specific provision being covered.

Public Service Pension Schemes:

An amendment clarifies the definition of "existing scheme" within the Public Service Pensions Act 2013, excluding schemes related to the Secret Intelligence Service or Security Service.

Amendments to Specific Acts:

The bill amends multiple existing Acts, including the Judicial Pensions Act 1981 and the Scottish Parliamentary Pensions Act 2009, to reflect the changes in terminology and processes.

Government Spending

The bill does not directly specify any new government spending. However, the administrative costs associated with implementing the changes and producing the necessary regulations could have a potential effect on existing government budgets, although no figures are provided.

Groups Affected

• Pension Scheme Members: These individuals will benefit from clarifications regarding their rights and the processes involved in transferring or accessing their pension benefits. The amendments may affect how they receive advice and manage their benefits, especially in the case of survivors.
• Pension Scheme Trustees and Managers: They will need to adapt their procedures and practices to reflect the changes introduced by the bill, particularly concerning the updated definitions, regulations, and processes for benefit transfers.
• Independent Financial Advisers: These professionals will need to ensure they meet the updated requirements for providing advice and guidance to pension scheme members.
• Government Departments: The Department for Work and Pensions and the Department for Social Development in Northern Ireland will be responsible for implementing the new legislation and regulations, potentially requiring additional resources.

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