V1123 - Abolition of Triple Lock Pensions Bill 2017 (Second reading)

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Poll: Should this bill be passed into law?
As many are of the opinion, Aye (29)
60.42%
On the contrary, No (9)
18.75%
Abstain (10)
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adam9317
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Abolition of Triple Lock Pensions Bill 2017 (Second Reading), TSR Conservative & Unionist Party



A

BILL

TO

Make provision for the abolition of Triple-Lock Pensions




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 Exemption from pension replacement allowance
(1) No person with a final salary of £60,000 or above within ten years of retirement shall receive the pension replacement allowance.

2 Workplace pension scheme amendments
(1) The minimum contribution into a private pension is increased to 6% of an individual's qualifying earnings.
(2) The minimum contribution for employers is increased to 6% of an individual's qualifying earnings.

3 Amendments to V801 (Pension Replacement and Elderly Care Act 2015)
(1) Section 3.1.vii is hereby repealed and replaced with the following provisions:
aaa(i) State contributions to occupational pension schemes will hereby cease.
aaa(ii) State contributions to Personal and Self Employed pension schemes are hereby restored to the level at which they were set on 31st March 2016.
aaa(iii) State contributions to the investment income of pension trusts are hereby restored to the level at which they were set on 31st March 2016.
(2) Section 3.2 is hereby repealed and replaced with the following provision:
aaa(i) Employee contributions to the workplace pension scheme will be 'opt-out' and considered by default to be set at the levels outlined in section 2 of this bill.

4 Extent, short title and commencement
(1) This Act extends to the United Kingdom.
(2) The provisions of this Act come into force on the dates listed below:
aaa(i) Sections 1 and 3 will come into force on April 1st 2017.
aaa(ii) Section 2 will come into force on April 1st 2019.
(3) This Act may be referred to as the Triple Lock Pensions Abolition Act 2017.

Notes:
Spoiler:
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Changes for Second Reading
- Abolition of Section 1 and Replacement
- Section 2 replaced with a revised former section 3
- Section 3 created
- Section 4.2 added

https://www.parliament.uk/business/c...blished-16-17/
https://www.ft.com/content/e344e79c-...e-690fdae72044
http://www.telegraph.co.uk/news/2016...k-2020-philip/
http://www.reform.uk/wp-content/uplo...er-system1.pdf

Pension Replacement Allowance Withdrawal
The Conservative Party believe that anyone earning over £60,000 is wealthy (it puts you in approximately the top 11% of earners) and therefore, should not receive tax payers money.

Contributions to occupational pension schemes
Income tax relief on occupational schemes cost the tax payer £20.6bn last year. The Conservative Party believe that people should take control of their own pensions and the minimum contribution for the employer and the individual should be increased to 6%. This Bill will be enacted in 2019 so it gives employers and individuals time to prepare for the increased minimum contribution. Currently the government provides only 0.2% of your qualified income and this is tiny, however adds up to a colossal £20.6bn. This is scheduled to go up to 1% by 2019 so the cost could be even more.

https://www.gov.uk/government/upload...ublication.pdf

Amendments to V801
After examination of V801 it is clear to the Conservative Party that it was a flawed bill and we seek to correct some of those flaws.

In section 3.1 we address the issue that V801 withdrew state pension support for the self employed and investment allowances. Other than being illogical, the way that provision was phrased no doubt did terrible damage to pension funds and possibly the wider equity markets.

In section 3.2 we believe that V801 also is contrary to our aims in that it makes occupational pension contributions voluntary. The Conservative Party believes that a superior solution is to make the system opt-out and presume consent.

http://www.thestudentroom.co.uk/show....php?t=3420419

Costing
Abolition of government tax relief to the occupational pension scheme from April 1st 2019 is expected to save ~£22.2bn.

Abolition of state pension for those earning £60k+ within a decade of retirement is expected to save ~£2.4bn.

Total saving: £24.6bn per year starting in the 2019-2020 financial year.
Total Saving: £2.4bn in the 2017-2018 and 2018-2019 financial years
On top of the savings, people will have a greater amount of money in their pensions.




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Jammy Duel
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Misleading name much?
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TheDefiniteArticle
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You've convinced me. Aye.
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3121
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I think they should at least receive a tax relief on sole of the 75% of their penision they pay income tax on? So they get 25% tax free, £11,000 personal allowance on the 75% and then some extra sort of relief? Maybe change it to 30% tax free + £11,000 of 70%? For those between 60,000 and 100,000. I appreciate the separation of wealthy and not, but there's no appreciation for the levels of wealth here, disappointed I didn't catch this bill during the debate procedure
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Rakas21
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(Original post by zayn008)
I think they should at least receive a tax relief on sole of the 75% of their penision they pay income tax on? So they get 25% tax free, £11,000 personal allowance on the 75% and then some extra sort of relief? Maybe change it to 30% tax free + £11,000 of 70%? For those between 60,000 and 100,000. I appreciate the separation of wealthy and not, but there's no appreciation for the levels of wealth here, disappointed I didn't catch this bill during the debate procedure
I considered such an approach however i concluded that so few people would just make it over the line in their later years that it would not be worth it given that the majority effected by that clause would spending 10-30 years on such a salary which is more than enough to make significant savings/investments. It was not worth the added beaurocracy.

Also V801 (see link in notes) made pensions tax free (well, it's replacement).

.........

Good to see that this bill will pass, i do wish Mobbsy had kept the royal symbol though.
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ToastyBread
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No. I am not going to stand for a bill that abolishes pensions for anyone, this is not the way to save money, we need to instead introduce a bill that caps the state pension for these people highlighted in this bill.
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Rakas21
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I commend the House for its decision today, you have voted for one of the fiscally conservative acts to grace this House.
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cranbrook_aspie
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adam9317 Unown Uzer RayApparently Same two errors as with V1131 - Owain5 voted aye and britboy3456 voted abstain, whereas JoeL1994 voted aye and DanE1998 voted abstain
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adam9317
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(Original post by cranbrook_aspie)
adam9317 Unown Uzer RayApparently Same two errors as with V1131 - Owain5 voted aye and britboy3456 voted abstain, whereas JoeL1994 voted aye and DanE1998 voted abstain
I shall remove the proxier vote where applicable [One abstain] and the newer perm MP where applicable [One aye]
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adam9317
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Ayes to the right: 29
Noes to the left: 9
Abstentions: 10
The Ayes have it! The Ayes have it! Unlock!
Turnout: 96%
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