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V983 – Fully Funded Pensions Bill 2016 (Second Reading) watch

  • View Poll Results: Should this bill be passed into law?
    As many are of the opinion, Aye
    On the contrary, No

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    V983 – Fully Funded Pensions Bill 2016 (Second Reading), The Rt Hon. Nigel Farage MEP MP
    Fully Funded Pensions Bill 2016
    Replace pay-as-you-go pension schemes for state workers with a more sustainable fully funded system.

    BE IT ENACTED by The Queen's most Excellent Majesty, by and with the advice and consent of the Commons in this present Parliament assembled, in accordance with the provisions of the Parliament Acts 1911 and 1949, and by the authority of the same, as follows:-

    1 Repeals

    The Old Age Pensions Act 1980; Widows', Orphans' and Old Age Contributory Pensions Act 1925, Old Age and Widows' Pension Act 1940, Pensions Act 1995, State Pension Credit Act 2002, Pensions Act 2004, Pensions Act 2008, Pensions Act 2011, Public Services Pensions Act 2013, and Pensions Act 2015 shall all be repealed on the 31st March 2052.

    2 Pensions Fund

    1) A pensions fund will be created by the Department for Work and Pensions.
    2) The pension fund shall be maintained by a board of investment managers with one nominated government minister in a non-voting position.

    3 Pension Fund Investment

    1) A pensions fund shall be started with an initial £15bn investment by the government in year 1.
    2) A £15bn investment in the pension fund shall be made by the government in year 2.
    3) An annual investment of £5bn will be made by the government in each year following. year 2.
    a. the £5bn annual investment increases with inflation.
    4) An annual contribution of 1.5% of total annual income by each state sector work will be paid to the pension fund.
    5) There will be no restrictions on investments that can be made by the management board.

    4 Membership

    1) All new state sector employees from the commencement of this Act shall be required to join the pension scheme.
    2) Existing state sector employees below the age of 35 shall be mandated to join the scheme on the commencement of this Act.

    5 Receiving Pensions

    1) On the 1st April 2052 pensions shall be paid out to members over the age of 70 in accordance with this Act.
    2) Payouts shall be in a tax-free lump-sum amount at the start of every financial year.

    6 Payout Amount

    1) A base rate of £400 shall be set which increases with inflation each year.
    2) The annual amount received by each member shall be the base rate divided by the reciprocal of the number of years the member has been working in the state sector.

    7 Management Pay

    1) The pension fund managers shall receive a base rate salary of £100000 increasing with inflation.
    2) Pension fund managers will receive a bonus of 1% of the annual rate of growth of the pension fund.

    8 Cashing-in assets

    1) From 2051 the pension fund shall cash-in assets equal to the pension bill faced.
    2) Assets being cashed in shall not exceed the assets acquired by the pension fund in any given year.

    9 Non-state employees

    1) Workers not employed in the state sector may sign up to this pension scheme.
    2) Workers will contribute 3% of their annual salary to the scheme, unless;
    a. their annual income is below £14000

    9 Commencement, short title and extent

    (1) This Act shall come into force on the 1st April 2017.
    (2) This Act may be cited as the Pensions Act 2016.


    Worked example

    At the base rate of £400, an employee who has worked in the state sector their whole life from graduating university at age 21 to the retirement age of 70 will receive [400 / (1/the number of years working in the state sector)] which is [400 / (1/49) which equals £19600. As the £400 base rate is adjusted for inflation each year going forward from the implementation of this Act, the value today, and in 2051 will be higher than the average pension in Britain.

    Britain is facing an unsustainable pension bombshell as the baby bloomers start to retire, it is not possible to prevent this pension bombshell in the short-term, however, it is possible to prevent this pension bombshell in the long-term by replacing pay-as-you-go-pension, paid for through general taxation, with fully funded pensions that rely on investment plans. The aim of this bill is to set up a pension fund that will be worth £200bn in government contributions by 2051, plus the appreciation assets acquired by the pension fund, plus the investments made in the plan by individual members.

    The Act allows members to receive a pension higher than today's value in real terms while reducing the government's annual contribution to £5bn in today's money just for inflation. The scheme aims to replace state pensions with a scheme that costs a fraction of the value of the current system

    The implementation date of 2051 is to give the pension fund 35 years to appreciate, and the age of 35 where state sector employees must join the scheme is to allow all 70 year-old state sector employees in 2051 to retire with a sustainable, large pension.

    The cost of this Act passing will be an initial £15bn to provide a starter amount to acquire assets, and the £5bn annual top-up is to quickly grow the pension fund to acquire more assets. The pension fund could be a constantly-appreciating trillion pound scheme by 2051 providing retirement security for pensioners whose great-grandparents have not been born.


    Wording has been cleared up, and a new section added to allow non-state sector employees to join the fully funded scheme.


    Nay. A vile attempt to essentially kill off the unfortunate.

    Nay. This is attempting to just brush the elderly and the pension pot out of sight.
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    One No has been removed due to a duplicate vote by seat 45.
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    Ayes to the right: 8
    Noes to the left: 25
    Abstentions: 17

    The Noes have it! The Noes have it! Unlock!

    Turnout: 100% – congratulations!
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