Pensions Bill

moved Amendments Nos. 66 and 67: 66: After Clause 18, insert the following new Clause— ““Retirement income fund (1) The Finance Act 2004 (c. 12) is amended as follows. (2) After section 152 (meaning of ““arrangement””), insert— ““152A Meaning of ““retirement income fund”” (1) In this Part a retirement income fund means a scheme for the reinvestment of savings in retirement which— (a) is operated by or on behalf of a person authorised to operate a registered pension scheme, (b) is a scheme in which investments are approved by the Inland Revenue, and (c) meets the conditions set out in subsections (2) to (9). (2) The first condition is that, subject to the other conditions in this section, funds held in the retirement income fund may be invested and withdrawn by the member as and when he elects. (3) The second condition is that an authorised retirement income fund provider must set an annual maximum withdrawal allowance for each member, based on an assessment of each member’s life expectancy, and a member’s withdrawals from the fund in any one year must not exceed that allowance. (4) The third condition is that, in setting annual maximum withdrawal allowances, an authorised provider must ensure that no member’s total future annual income falls below the minimum retirement income level, as set under section (Minimum retirement income) of the Pensions Act 2007, except in the circumstances provided for in the sixth condition. (5) The fourth condition is that an authorised provider must set an annual minimum withdrawal allowance so that each member’s total income is at least equivalent to the minimum retirement income level, except in the circumstances provided for in the sixth condition. (6) The fifth condition is that where a member chooses not to declare his total annual income to the authorised provider he must withdraw funds equivalent to the level of the minimum retirement income level or his annual maximum withdrawal allowance, whichever is the lower. (7) The sixth condition is that, where there are insufficient funds to enable the annual minimum withdrawal allowance to be set so that a member’s total income is at least equivalent to the minimum retirement income level, the allowance should be set at the highest level consistent with the assessment of the member’s life expectancy. (8) The seventh condition is that the maximum and minimum withdrawal allowances must be set at the same level wherea member’s total annual income, including his maximum withdrawal allowance, is lower than the minimum retirement income level. (9) The eighth condition is that a retirement income fund, and any income derived from it, must not be capable of assignment or surrender by the member.”””” 67: After Clause 18, insert the following new Clause— ““Withdrawal from a retirement income fund (1) Section 165 of the Finance Act 2004 (c. 12) (pension rules) is amended as follows. (2) In subsection (1) (which sets out the pension rules)— (a) in Pension rule 4, after paragraph (a), insert— ““(aa) a withdrawal from a retirement income fund,””; (b) in Pension rule 4, after the second appearance of the words ““scheme pension””, insert the words ““a withdrawal from a retirement income fund””; (c) in Pension rule 6, after paragraph (a), insert— ““(aa) a withdrawal from a retirement income fund,””; (d) in Pension rule 6, after the second appearance of the words ““scheme pension””, insert the words ““a withdrawal from a retirement income fund””.”” On Question, amendments agreed to.