Statement by the Delegation of the Russian Federation on the United Nations International Day to End Impunity for Crimes against Journalists, observed on 2 November
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There shall be a body corporate called the Occupational Pensions Regulatory Authority (referred to in this Part as “the Authority”).
The Authority shall consist of not less than seven members appointed by the Secretary of State, one of whom shall be so appointed as chairman.
In addition to the chairman, the Authority shall comprise— and such other member or members as the Secretary of State may appoint.
a member appointed after the Secretary of State has consulted organisations appearing to him to be representative of employers,
a member appointed after the Secretary of State has consulted organisations appearing to him to be representative of employees,
a member who appears to the Secretary of State to be knowledgeable about life assurance business,
a member who appears to the Secretary of State to have experience of, and to have shown capacity in, the management or administration of occupational pension schemes, and
two members who appear to the Secretary of State to be knowledgeable about occupational pension schemes,
Neither the Authority nor any person who is a member or employee of the Authority shall be liable in damages for anything done or omitted in the discharge or purported discharge of the functions of the Authority under this Part or the Pension Schemes Act 1993, or any provisions in force in Northern Ireland corresponding to either of them, unless it is shown that the act or omission was in bad faith.
Schedule 1 (constitution, procedure, etc. of the Authority) shall have effect.
In this section, “life assurance business” means the issue of, or the undertaking of liability under, policies of assurance upon human life, or the granting of annuities upon human life.
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The Authority must prepare a report for the first twelve months of their existence, and a report for each succeeding period of twelve months, and must send each report to the Secretary of State as soon as practicable after the end of the period for which it is prepared.
A report prepared under this section for any period must deal with the activities of the Authority in the period.
The Secretary of State must lay before each House of Parliament a copy of every report received by him under this section.
The Authority may by order prohibit a person from being a trustee of— if they are satisfied that he is not a fit and proper person to be a trustee of the scheme or schemes to which the order relates.
a particular trust scheme,
a particular description of trust schemes, or
trust schemes in general,
Where a prohibition order is made under subsection (1) against a person in respect of one or more schemes of which he is a trustee, the order has the effect of removing him.
that the Authority are satisfied that while being a trustee of the scheme the person has been in serious or persistent breach of any of his duties under—
this Part, other than the following provisions: sections 51 to 54, 62 to 65 and 110 to 112, or
the following provisions of the Pension Schemes Act 1993: section 6 (registration), Chapter IV of Part IV (transfer values), section 113 (information) and section 175 (levy),
that the Authority are satisfied that, while being a trustee of the scheme, this section has applied to the person by virtue of any other provision of this Part,
that the person is a company and any director of the company is prohibited under this section from being a trustee of the scheme,
that the person is a Scottish partnership and any of the partners is prohibited under this section from being a trustee of the scheme, or
that the person is a director of a company which, by reason of circumstances falling within paragraph (a) or (b), is prohibited under this section from being a trustee of the scheme and the Authority are satisfied that the acts or defaults giving rise to those circumstances were committed with the consent or connivance of, or attributable to any neglect on the part of, the director;
The Authority may, on the application of any person prohibited under this section, by order revoke the order either generally or in relation to a particular scheme or description of schemes.
An application under subsection (3) may not be made—
during the period within which the determination to exercise the power to make the prohibition order may be referred to a tribunal under section 96(3) or 99(7) of the Pensions Act 2004, and
if the determination is so referred, until the reference, and any appeal against the determination of the tribunal concerned, has been finally disposed of.
A revocation made at any time under this section cannot affect anything done before that time.
The Authority must prepare and publish a statement of the policies they intend to adopt in relation to the exercise of their powers under this section.
The Authority may revise any statement published under subsection (6) and must publish any revised statement.
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The Authority may by order suspend a trustee of a trust scheme—
pending consideration being given to the making of an order against him under section 3(1),
where proceedings have been instituted against him for an offence involving dishonesty or deception and have not been concluded,
pending consideration being given to the institution of proceedings against him for an offence involving dishonesty or deception,
where a petition has been presented to the court for an order adjudging him bankrupt, or for the sequestration of his estate, and proceedings on the petition have not been concluded or an application has been made by him for a debt relief order (under Part 7A of the Insolvency Act 1986) and the application has not been determined,
where the trustee is a company, if a petition for the winding up of the company has been presented to the court and proceedings on the petition have not been concluded,
where an application has been made under section 263H of the Insolvency Act 1986 for an order making him bankrupt and the application has not been determined,
where an application has been made to the court for a disqualification order against him under the Company Directors Disqualification Act 1986 or under the Company Directors Disqualification (Northern Ireland) Order 2002 and proceedings on the application have not been concluded, or
where the trustee is a company or Scottish partnership and, if any director or, as the case may be, partner were a trustee, the Authority would have power to suspend him under paragraph (aa), (b), (c) or (e).
An order under subsection (1)— but the Authority may by order extend the initial period referred to in paragraph (a) for a further period of twelve months, and any order suspending a person under subsection (1) ceases to have effect in relation to a trust scheme if an order is made against that person under section 3(1) in relation to that scheme.
if made by virtue of paragraph (a) or (aa) or, in a case where the Authority would have power to suspend a director or partner under paragraph (aa), by virtue of paragraph (f), has effect for an initial period not exceeding twelve months, and
in any other case, has effect until the proceedings in question are concluded or, in the case of an application for a debt relief order, the application is determined;
An order under subsection (1) has the effect of prohibiting the person suspended, during the period of his suspension, from exercising any functions as trustee of any trust scheme to which the order applies; and the order may apply to a particular trust scheme, a particular description of trust schemes or trust schemes in general.
An order under subsection (1) may be made on one of the grounds in paragraphs (b) to (e) whether or not the proceedings were instituted, petition presented or application made (as the case may be) before or after the coming into force of that subsection.
The Authority may, on the application of any person suspended under subsection (1), by order revoke the order, either generally or in relation to a particular scheme or a particular description of schemes; but a revocation made at any time cannot affect anything done before that time.
An order under this section may make provision as respects the period of the trustee’s suspension for matters arising out of it, and in particular for enabling any person to execute any instrument in his name or otherwise act for him and for adjusting any rules governing the proceedings of the trustees to take account of the reduction in the number capable of acting.
An application under subsection (5) may not be made—
during the period within which the determination to exercise the power to make an order under subsection (1) may be referred to a tribunal under section 96(3) or 99(7) of the Pensions Act 2004, and
if the determination is so referred, until the reference, and any appeal against the determination of the tribunal concerned, has been finally disposed of.
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A company or Scottish partnership is prohibited from being a trustee of a trust scheme at any time when an individual who is a director of the company or a partner in the partnership is prohibited from being a trustee of the scheme by an order under section 3.
Where a company or partnership which is a trustee of a trust scheme becomes prohibited under subsection (1) in relation to the scheme, that subsection has the effect of removing the company or partnership as a trustee.
The Authority may, on the application of a company or Scottish partnership, give notice in writing to the applicant waiving the prohibition under subsection (1)—
in relation to an individual against whom an order under section 3 has been made, and
either generally or in relation to a particular scheme or particular description of schemes.
A notice may be given under subsection (3) only if the Authority is satisfied that the applicant would be a fit and proper person to be a trustee of the scheme or schemes to which the notice relates despite the individual being, or even if the individual were to become, a director of or partner in the applicant.
A notice given at any time under subsection (3) cannot affect anything done before that time.
An application under subsection (3) may not be made—
during the period within which the determination to exercise the power to make the order against the individual may be referred to the Tribunal under section 96(3) or 99(7) of the Pensions Act 2004 (whether by a company or partnership which became prohibited under subsection (1) on the making of the order or by another person), and
if the determination is so referred, until the reference, and any appeal against the Tribunal's determination, has been finally disposed of.
The Authority must prepare and publish a statement of the policies they intend to adopt in relation to the exercise of their powers under this section.
The Authority may revise any statement published under subsection (7) and must publish any revised statement.
References in this section to an order under section 3 are to an order under that section made on or after the date on which section 46(2) of the Pensions Act 2014 comes fully into force.
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Before the Authority make an order under section 3 against a person without his consent, the Authority must, unless he cannot be found or has no known address, give him not less than one month’s notice of their proposal, inviting representations to be made to them within a time specified in the notice.
Where any such notice is given, the Authority must take into consideration any representations made to them about the proposals within the time specified in the notice.
Before making an order under section 3 against a person, the Authority must give notice of their intention to do so to each of the trustees of the scheme, except that person (if he is a trustee) and any trustee who cannot be found or has no known address.
Where the Authority make an order under section 4 against a person, they must—
immediately give notice of that fact to that person, and
as soon as reasonably practicable, give notice of that fact to the other trustees of any trust scheme to which the order applies, except any trustee who cannot be found or has no known address.
Any notice to be given to any person under this section may be given by delivering it to him or by leaving it at his proper address or by sending it to him by post; and, for the purposes of this subsection and section 7 of the Interpretation Act 1978 in its application to this subsection, the proper address of any person is his latest address known to the Authority.
A person who purports to act as trustee of a trust scheme while prohibited from being a trustee of the scheme under section 3 or 3A or suspended in relation to the scheme under section 4 is guilty of an offence and liable—
on summary conviction, to a fine not exceeding the statutory maximum, and
on conviction on indictment, to a fine or imprisonment or both.
An offence under subsection (1) may be charged by reference to any day or longer period of time; and a person may be convicted of a second or subsequent offence under that subsection by reference to any period of time following the preceding conviction of the offence.
Things done by a person purporting to act as trustee of a trust scheme while prohibited from being a trustee of the scheme under section 3 or 3A or suspended in relation to the scheme under section 4 are not invalid merely because of that prohibition or suspension.
Nothing in section 3 , 3A or 4 or this section affects the liability of any person for things done, or omitted to be done, by him while purporting to act as trustee of a trust scheme.
Where a trustee of a trust scheme is removed by an order under section 3, by section 3A or ... by reason of his disqualification, the Authority may by order appoint another trustee in his place.
Where a trustee appointed under subsection (1) is appointed to replace a trustee appointed under section 23(1), sections 22 to 26 shall apply to the replacement trustee as they apply to a trustee appointed under section 23(1).
The Authority may also by order appoint a trustee of a trust scheme where they are satisfied that it is reasonable to do so in order—
to secure that the trustees as a whole have, or exercise, the necessary knowledge and skill for the proper administration of the scheme,
to secure that the number of trustees is sufficient for the proper administration of the scheme, ...
where subsection (3A) or (3B) applies, to secure that the trustees as a whole have the skills and knowledge necessary for ensuring that the scheme, or an arrangement under it, improves its performance as regards the provision of value for money;
to secure the proper use or application of the assets of the scheme , ...
to secure compliance with the duties of trustees under Chapter 6 of Part 2 of the Pension Schemes Act 2026, or
otherwise to protect the interests of the generality of the members of the scheme.
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This subsection applies where—
the trust scheme is a regulated VFM scheme (as defined in section 11(1)(a) of the Pension Schemes Act 2026), and
the most recent rating assigned to the scheme under section 15(1) of that Act was an intermediate or “not delivering” rating.
The power to appoint a trustee by an order under this section includes power by such an order—
to determine the appropriate number of trustees for the proper administration of the scheme,
to require a trustee appointed by the order to be paid fees and expenses out of the scheme’s resources,
to provide for the removal or replacement of such a trustee.
This subsection applies where—
an arrangement under the trust scheme is a regulated VFM arrangement, and
the most recent rating assigned to the arrangement under section 15(1) of that Act was an intermediate or “not delivering” rating.
Regulations may make provision about the descriptions of persons who may or may not be appointed trustees under this section.
An application may be made to the Authority in relation to a trust scheme by— for the appointment of a trustee of the scheme under subsection (3)(a) or (c).
the trustees of the scheme,
the employer, or
any member of the scheme,
In this section “regulated VFM arrangement” and “regulated VFM scheme” are to be interpreted in accordance with section 21 of the Pension Schemes Act 2026.
An order under section 7 appointing a trustee may provide for any fees and expenses of trustees appointed under the order to be paid—
by the employer,
out of the resources of the scheme, or
partly by the employer and partly out of those resources.
Such an order may also provide that an amount equal to the amount (if any) paid out of the resources of the scheme by virtue of subsection (1)(b) or (c) is to be treated for all purposes as a debt due from the employer to the trustees of the scheme.
Subject to subsection (4), a trustee appointed under that section shall, unless he is the independent trustee and section 22 applies in relation to the scheme, have the same powers and duties as the other trustees.
Such an order may make provision—
for restricting the powers or duties of a trustee so appointed, ...
for powers or duties to be exercisable by a trustee so appointed to the exclusion of other trustees.
Where the Authority have power under this Part to appoint or remove a trustee or a trustee is removed under section 3A, they may exercise by order the same jurisdiction and powers as are exercisable by the High Court or, in relation to a trust scheme subject to the law of Scotland, the Court of Session for vesting any property in, or transferring any property to, trustees in consequence of the appointment or of the removal.
Where the Authority are satisfied that by reason of any act or omission this section applies to any person, they may by notice in writing require him to pay, within a prescribed period, a penalty in respect of that act or omission not exceeding the maximum amount.
In this section “the maximum amount” means— and the Secretary of State may by order amend paragraph (a) by substituting higher amounts for the amounts for the time being specified in that paragraph.
£5,000 in the case of an individual and £50,000 in any other case, or
such lower amount as may be prescribed in the case of an individual or in any other case,
Regulations made by virtue of this Part may provide for any person who has contravened any provision of such regulations to pay, within a prescribed period, a penalty under this section not exceeding an amount specified in the regulations; and the regulations must specify different amounts in the case of individuals from those specified in other cases and any amount so specified may not exceed the amount for the time being specified in the case of individuals or, as the case may be, others in subsection (2)(a).
An order made under subsection (2) or regulations made by virtue of subsection (3) do not affect the amount of any penalty recoverable under this section by reason of an act or omission occurring before the order or, as the case may be, regulations are made.
Where— this section applies to each of those persons who consented to or connived in the act or omission or to whose neglect the act or omission was attributable.
apart from this subsection, a penalty under this section is recoverable from a body corporate or Scottish partnership by reason of any act or omission of the body or partnership ... , and
the act or omission was done with the consent or connivance of, or is attributable to any neglect on the part of, any persons mentioned in subsection (6),
The persons referred to in subsection (5)(b)—
in relation to a body corporate, are—
any director, manager, secretary, or other similar officer of the body, or a person purporting to act in any such capacity, and
where the affairs of a body corporate are managed by its members, any member in connection with his functions of management, and
in relation to a Scottish partnership, are the partners.
Where the Authority requires any person to pay a penalty by virtue of subsection (5), they may not also require the body corporate, or Scottish partnership, in question to pay a penalty in respect of the same act or omission.
A penalty under this section is recoverable by the Authority.
The Authority must pay to the Secretary of State any penalty recovered under this section.
Any penalty recoverable under this section—
shall, if the county court so orders, be recoverable under section 85 of the County Courts Act 1984 or otherwise as if it were payable under an order of that court; and
may be enforced as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff court of any sheriffdom in Scotland.
The Authority may not require a person to pay a penalty under this section in respect of an act or omission if the Authority have issued a notice to the person under section 88A of the Pensions Act 2004 (financial penalties) in respect of the same act or omission.
Subject to the following provisions of this section, the Authority may by order direct or authorise an occupational pension scheme to be wound up if they are satisfied that—
the scheme, or any part of it, ought to be replaced by a different scheme,
the scheme is no longer required, ...
it is necessary in order to protect the interests of the generality of the members of the scheme that it be wound up.
the scheme is a regulated VFM scheme and—
the rating most recently assigned to the scheme under section 15(1) of the Pension Schemes Act 2026 is “not delivering”, and
the Authority are satisfied that the scheme is not capable of providing value for money, or
the following conditions are met in relation to a regulated VFM arrangement (“A”) under the scheme—
that the rating most recently assigned to A under section 15(1) of the Pension Schemes Act 2026 is “not delivering”, and
the Authority are satisfied that A is not capable of providing value for money.
The Authority may not make an order under this section on either of the grounds referred to in subsection (1)(a) or (b) unless they are satisfied that the winding up of the scheme— and that it is reasonable in all the circumstances to make the order.
cannot be achieved otherwise than by means of such an order, or
can only be achieved in accordance with a procedure which—
is liable to be unduly complex or protracted, or
involves the obtaining of consents which cannot be obtained, or can only be obtained with undue delay or difficulty,
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the trustees or managers of the scheme,
any person other than the trustees or managers who has power to alter any of the rules of the scheme, or
the employer.
An order under this section authorising a scheme to be wound up must include such directions with respect to the manner and timing of the winding up as the Authority think appropriate having regard to the purposes of the order. This subsection is subject to sections 28, 135 and 219 of the Pensions Act 2004 (winding up order made when freezing order has effect in relation to scheme, during assessment period under Part 2 of that Act etc).
The Authority may, during an assessment period (within the meaning of section 132 of the Pensions Act 2004 (meaning of “assessment period” for the purposes of Part 2 of that Act)) in relation to an occupational pension scheme, by order direct the scheme to be wound up if they are satisfied that it is necessary to do so in order—
to ensure that the scheme’s protected liabilities do not exceed its assets, or
if those liabilities do exceed its assets, to keep the excess to a minimum.
The winding up of a scheme in pursuance of an order of the Authority under this section is as effective in law as if it had been made under powers conferred by or under the scheme.
In subsection (3A)—
“protected liabilities” has the meaning given by section 131 of the Pensions Act 2004, and
references to the assets of the scheme are references to those assets excluding any assets representing the value of any rights in respect of money purchase benefits (within the meaning of that Act) under the scheme.
An order under this section may be made and complied with in relation to a scheme—
in spite of any enactment or rule of law, or any rule of the scheme, which would otherwise operate to prevent the winding up, or
except for the purpose of the Authority determining whether or not they are satisfied as mentioned in subsection (2), without regard to any such enactment, rule of law or rule of the scheme as would otherwise require, or might otherwise be taken to require, the implementation of any procedure or the obtaining of any consent, with a view to the winding up.
In the case of a public service pension scheme—
an order under subsection (1) directing or authorising the scheme to be wound up may only be made on the grounds referred to in paragraph (c), and
such an order may, as the Authority think appropriate, adapt, amend or repeal any enactment (including the Scottish Parliamentary Pensions Act 2009 (asp 1)) in which the scheme is contained or under which it is made.
Subsection (6) does not have effect to authorise the Authority to make an order as mentioned in paragraph (a) or (b) of that subsection, if their doing so would be unlawful as a result of section 6(1) of the Human Rights Act 1998 (unlawful for public authority to act in contravention of a Convention right).
In subsection (1)—
“regulated VFM arrangement” and “regulated VFM scheme” have the same meaning as in Chapter 1 of Part 2 of the Pension Schemes Act 2026 (see section 21 of that Act);
the reference to the provision of value for money is to be interpreted in accordance with that Chapter.
The appropriate authority may by order direct a public service pension scheme to be wound up if they are satisfied that—
the scheme, or any part of it, ought to be replaced by a different scheme, or
the scheme is no longer required.
Subsection (2) of section 11 applies for the purposes of this section as it applies for the purposes of that, but as if references to the Authority were to the appropriate authority.
In this section “the appropriate authority”, in relation to a scheme, means such Minister of the Crown or government department as may be designated by the Treasury as having responsibility for the particular scheme.
An order under this section must include such directions with respect to the manner and timing of the winding up as that authority think appropriate.
Such an order may, as that authority think appropriate, adapt, amend or repeal any enactment in which the scheme is contained or under which it is made.
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If, on the application of the Authority, the court is satisfied that— the court may grant an injunction restraining him from doing so or, in Scotland, an interdict prohibiting him from doing so.
there is a reasonable likelihood that a particular person will do any act which constitutes a misuse or misappropriation of assets of an occupational pension scheme, or
that a particular person has done any such act and that there is a reasonable likelihood that he will continue or repeat the act in question or do a similar act,
The jurisdiction conferred by this section is exercisable by the High Court or the Court of Session.
If, on the application of the Authority, the court is satisfied— the court may order the employer and any other person who appears to the court to have been knowingly concerned in the contravention to take such steps as the court may direct for restoring the parties to the position in which they were before the payment or distribution was made, or the act or omission occurred.
that a power to make a payment, or distribute any assets, to the employer, has been exercised in contravention of section 37, 76 or 77, or
that any act or omission of the trustees or managers of an occupational pension scheme was in contravention of section 40,
The jurisdiction conferred by this section is exercisable by the High Court or the Court of Session.
The Authority may, where in the case of any trust scheme the employer fails to comply with any requirement included in regulations by virtue of section 49(5), direct the trustees to make arrangements for the payment to the members of the benefit to which the requirement relates.
The Authority may—
where in the case of any trust scheme an annual report is published, direct the trustees to include a statement prepared by the Authority in the report, and
in the case of any trust scheme, direct the trustees to send to the members a copy of a statement prepared by the Authority.
A direction under this section must be given in writing.
Where a direction under this section is not complied with, section 10 applies to any trustee who has failed to take all such steps as are reasonable to secure compliance.
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The trustees of a trust scheme must (subject to section 17) secure—
that such arrangements for persons selected by members of the scheme to be trustees of the scheme as are required by this section are made, and
that those arrangements, and the appropriate rules, are implemented.
Persons who become trustees under the arrangements required by subsection (1) are referred to in this Part as “member-nominated trustees”.
The arrangements must provide—
for any person who has been nominated and selected in accordance with the appropriate rules to become a trustee by virtue of his selection, and
for the removal of such a person to require the agreement of all the other trustees.
Where a vacancy for a member-nominated trustee is not filled because insufficient nominations are received, the arrangements must provide for the filling of the vacancy, or for the vacancy to remain, until the expiry of the next period in which persons may be nominated and selected in accordance with the appropriate rules.
The arrangements must provide for the selection of a person as a member-nominated trustee to have effect for a period of not less than three nor more than six years.
The arrangements must provide for the number of member-nominated trustees to be— but the arrangements must not provide for a greater number of member-nominated trustees than that required to satisfy that minimum unless the employer has given his approval to the greater number.
at least two or (if the scheme comprises less than 100 members) at least one, and
at least one-third of the total number of trustees;
The arrangements must not provide for the functions of member-nominated trustees to differ from those of any other trustee but, for the purposes of this subsection— shall be disregarded.
any provision made by an order under section 8(4), and
section 25(2),
The arrangements must provide that, if a member-nominated trustee who was a member of the scheme when he was appointed ceases to be a member of the scheme, he ceases to be a trustee by virtue of that fact.
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Section 16 does not apply to a trust scheme if—
a proposal has been made by the employer for the continuation of existing arrangements, or the adoption of new arrangements, for selecting the trustees of the scheme,
the arrangements referred to in the proposal are for the time being approved under the statutory consultation procedure, and
such other requirements as may be prescribed are satisfied.
Where— the trustees shall secure that the proposed arrangements are made and implemented.
by virtue of subsection (1), section 16 does not apply to a trust scheme, and
the employer’s proposal was for the adoption of new arrangements which, in consequence of subsection (1)(b), are adopted,
For the purposes of this section, the arrangements for selecting the trustees of a scheme include all matters relating to the continuation in office of the existing trustees, the selection or appointment of new trustees and the terms of their appointments and any special rules for decisions to be made by particular trustees.
Section 16 does not apply to a trust scheme if—
the trustees of the scheme consist of all the members, or
it falls within a prescribed class.
Section 10 applies to any employer who—
makes such a proposal as is referred to in subsection (1)(a), but
fails to give effect to the statutory consultation procedure.
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Where a company is a trustee of a trust scheme and the employer is connected with the company or prescribed conditions are satisfied, the company must, subject to section 19, secure—
that such arrangements for persons selected by the members of the scheme to be directors of the company as are required by this section are made, and
that those arrangements, and the appropriate rules, are implemented.
Persons who become directors under the arrangements required by subsection (1) are referred to in this Part as “member-nominated directors”.
The arrangements must provide—
for any person who has been nominated and selected in accordance with the appropriate rules to become a director by virtue of his selection, and
for the removal of such a person to require the agreement of all the other directors.
Where a vacancy for a member-nominated director is not filled because insufficient nominations are received, the arrangements must provide for the filling of the vacancy, or for the vacancy to remain, until the expiry of the next period in which persons may be nominated and selected in accordance with the appropriate rules.
The arrangements must provide for the selection of a person as a member-nominated director to have effect for a period of not less than three nor more than six years.
The arrangements must provide for the number of member-nominated directors to be— but the arrangements must not provide for a greater number of member-nominated directors than that required to satisfy that minimum unless the employer has given his approval to the greater number.
at least two or (if the scheme comprises less than 100 members) at least one, and
at least one-third of the total number of directors;
The arrangements must provide that, if a member-nominated director who was a member of the scheme when he was appointed ceases to be a member of the scheme, he ceases to be a director by virtue of that fact.
Where this section applies to a company which is— the following provisions apply as if those schemes were a single scheme and the members of each of the schemes were members of that scheme, that is: the preceding provisions of this section, section 20 and section 21(8).
a trustee of two or more trust schemes, and
a wholly-owned subsidiary (within the meaning of section 736 of the Companies Act 1985) of a company which is the employer in relation to those schemes,
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Section 18 does not apply to a company which is a trustee of a trust scheme if—
a proposal has been made by the employer for the continuation of existing arrangements, or the adoption of new arrangements, for selecting the directors of the company,
the arrangements referred to in the proposal are for the time being approved under the statutory consultation procedure, and
such other requirements as may be prescribed are satisfied.
Where— the company must secure that the proposed arrangements are made and implemented.
by virtue of subsection (1), section 18 does not apply to a company which is a trustee of a trust scheme, and
the employer’s proposal was for the adoption of new arrangements which, in consequence of subsection (1)(b), are adopted,
For the purposes of this section, the arrangements for selecting the directors of a company include all matters relating to the continuation in office of the existing directors, the selection or appointment of new directors and the terms of their appointments and any special rules for decisions to be made by particular directors.
Section 18 does not apply to a company which is a trustee of a trust scheme if the scheme falls within a prescribed class.
Section 10 applies to any employer who—
makes such a proposal as is referred to in subsection (1)(a), but
fails to give effect to the statutory consultation procedure.
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For the purposes of sections 16 to 21, the appropriate rules are rules which— and the arrangements required by section 16 or 18 to be made must not make any provision which is required or authorised to be made by the rules.
make the provision required or authorised by this section, and no other provision, and
are for the time being approved under the statutory consultation procedure or, if no rules are for the time being so approved, are prescribed rules;
The appropriate rules—
must determine the procedure for the nomination and selection of a person to fill a vacancy as a member-nominated trustee, and
may determine, or provide for the determination of, the conditions required of a person for filling such a vacancy.
The appropriate rules must provide for a member-nominated trustee to be eligible for re-selection at the end of his period of service.
Where a vacancy for a member-nominated trustee is not filled because insufficient nominations are received, the appropriate rules must provide for determining the next period in which persons may be nominated and selected in accordance with the rules, being a period ending at a prescribed time.
The appropriate rules must provide that, where the employer so requires, a person who is not a member of the scheme must have the employer’s approval to qualify for selection as a member-nominated trustee.
Where section 18 applies to a trust scheme, references in this section to a member-nominated trustee include a member-nominated director.
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If, in the case of a trust scheme— sections 3 and 10 apply to any trustee who has failed to take all such steps as are reasonable to secure compliance.
such arrangements as are required by section 16(1) or 17(2) to be made have not been made, or
arrangements required by section 16(1) or 17(2) to be implemented, or the appropriate rules, are not being implemented,
If, in the case of a company which is a trustee of a trust scheme— sections 3 and 10 apply to the company.
such arrangements as are required by section 18(1) or 19(2) to be made have not been made, or
arrangements required by section 18(1) or 19(2) to be implemented, or the appropriate rules, are not being implemented,
No such arrangements or rules as are required by section 16(1) or 17(2), or any corresponding provisions in force in Northern Ireland, to be made or implemented shall be treated as effecting an alteration to the scheme in question for the purposes of section 591B of the Taxes Act 1988.
Regulations may make provision for determining the time by which—
such arrangements (or further arrangements) as are referred to in section 16(1), 17(2), 18(1) or 19(2) are required to be made, and
trustees or directors are required to be selected in pursuance of the appropriate rules.
Regulations may make provision for determining when any approval under the statutory consultation procedure— is to cease to have effect.
of the appropriate rules, or
of arrangements for selecting the trustees of a scheme, or the directors of a company, given on a proposal by the employer,
The Secretary of State may by regulations modify sections 16 to 20 and this section in their application to prescribed cases.
In sections 16 to 20 and this section, “the statutory consultation procedure” means the prescribed procedure for obtaining the views of members of schemes.
For the purposes of this and those sections—
approval of the appropriate rules, or of arrangements, under the statutory consultation procedure must be given by— taken as a whole, and
the active and pensioner members of the scheme, and
if the trustees so determine, such deferred members of the scheme as the trustees may determine,
references to the approval of the appropriate rules, or of arrangements under section 17 or 19, by any persons under the statutory consultation procedure are to prescribed conditions in respect of those rules or, as the case may be, arrangements being satisfied in the case of those persons in pursuance of the procedure, and those conditions may relate to the extent to which those persons have either endorsed, or not objected to, the rules or, as the case may be, arrangements.
This section applies in relation to a trust scheme—
if a person (referred to in this section and sections 23 to 26 as “the practitioner”) begins to act as an insolvency practitioner in relation to a company which, or an individual who, is the employer in relation to the scheme, or
if the official receiver becomes—
the liquidator or provisional liquidator of a company which is the employer in relation to the scheme, ...
the receiver and the manager, or the trustee, of the estate of a bankrupt who is the employer in relation to the scheme.
the interim receiver of the property of a person who is the employer in relation to the scheme, or
Where this section applies in relation to a scheme by virtue of subsection (1), it ceases to do so— but this subsection does not affect the application of this section in relation to the scheme on any subsequent occasion when the conditions specified in subsection (1)(a) or (b) are satisfied in relation to it.
if some person other than the employer mentioned in subsection (1) becomes the employer, or
if at any time neither the practitioner nor the official receiver is acting in relation to the employer;
In this section and sections 23 to 26— “acting as an insolvency practitioner” and “official receiver” shall be construed in accordance with sections 388 and 399 of the Insolvency Act 1986, “bankrupt” has the meaning given by section 381 of the Insolvency Act 1986, “company” means a company as defined in section 1(1) of the Companies Act 2006 or a company which may be wound up under Part V of the Insolvency Act 1986 (unregistered companies), ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“acting as an insolvency practitioner” and “official receiver” shall be construed in accordance with sections 388 and 399 of the Insolvency Act 1986,
“the Taxes Act 1988” means the Income and Corporation Taxes Act 1988,
where the liability is to a member of the scheme, the cost of securing benefits for or in respect of the member corresponding to the compensation which would be payable to or in respect of the member in accordance with the pension compensation provisions if the Board of the Pension Protection Fund assumed responsibility for the scheme in accordance with Chapter 3 of Part 2 of the Pensions Act 2004 (pension protection), and
shares or other securities issued by the employer or by any person who is connected with, or an associate of, the employer,
land which is occupied or used by, or subject to a lease in favour of, the employer or any such person,
land which is occupied or used by, or subject to a lease in favour of, the employer or any such person,
Section 1.
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pay to persons attending meetings of the Authority at the request of the Authority such travelling and other allowances (including compensation for loss of remunerative time) as the Secretary of State may determine, and
pay to persons from whom the Authority may decide to seek advice, as being persons considered by the Authority to be specially qualified to advise them on particular matters, such fees as the Secretary of State may determine.
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Section 78.
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giving guarantees or indemnities in favour of any person, or
making any other agreement or arrangement with or for the benefit of any person.
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Section 122.
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In section 310 of the Insolvency Act 1986 (income payments orders)—
in subsection (2), after “income of the bankrupt” there is inserted “ when taken together with any payments to which subsection (8) applies ”, and
at the end of subsection (7), there is added—and any payment under a pension scheme but excluding any payment to which subsection (8) applies.
In section 53(15) of the Building Societies Act 1986, after paragraph (b) there is added—or , and accordingly the “ or ” after paragraph (a) is omitted.
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The Occupational Pensions Regulatory Authority. Functions under the Pension Schemes Act 1993 or the Pensions Act 1995 or any enactment in force in Northern Ireland corresponding to either of them.
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in section 7(2) (concurrence required for removal of tribunal members), after “(e)” there is inserted “(g) or (h)”,
in section 10 (reasons to be given on request), at the end of subsection (5) there is added—,
in section 14 (restricted application of the Act in relation to certain tribunals), after subsection (1) there is inserted—, and
in paragraph 35 of Schedule 1 (tribunals under the direct supervision of the Council on Tribunals: pensions), after paragraph (f) there is inserted—.
The Pension Schemes Act 1993 is amended as follows.
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after subsection (5) there is inserted—, and
in subsection (7), for “(5)” there is substituted “(5A)”.
Sections 77 to 80 (assignment, forfeiture etc. of short service benefit) are repealed.
Sections 102 to 108 (annual increase in pensions in payment) are repealed.
Section 112 (restriction on investment in employer-related assets) is repealed.
Section 114 (documents for members etc.) is repealed.
Section 116 (regulations as to auditors) is repealed.
Section 118 (equal access) is repealed.
Sections 119 to 122 (independent trustees) are repealed.
In section 129 (overriding requirements)—
in subsection (1), “ Chapter I of Part V ”, “ sections 119 to 122 ”, “ under Chapter I of Part V or ” and “ or sections 119 to 122 ” are omitted,
in subsection (2), for the words from “Chapter III” to “section 108)” there is substituted “ and Chapter III of that Part ”, and
subsection (3)(a) is omitted.
In section 132 (conformity of schemes with requirements), “ the equal access requirements ” is omitted.
In section 133(1) (advice of the Board), “ the equal access requirements ” is omitted.
In section 134 (determination of questions)—
in subsection (3), “ the equal access requirements ”, and
in subsection (4), “ or the equal access requirements ” and “ or , as the case may be, section 118(1) ”,are omitted.
In section 136(2)(e)(iv) (applications to modify schemes), “ or the equal access requirements ” is omitted.
In section 139(2) (functions of the Board), “ the equal access requirements ” is omitted.
In section 140(4) (effect of orders), paragraph (c) and the “ and ” immediately preceding it are omitted.
Section 144 (deficiencies in assets on winding up) is repealed.
In section 153 (power to modify Act)—
in subsection (1), the words from “ and Chapter I ” to “ section 108) ” are omitted,
subsections (3) and (4) are omitted,
in subsection (5), “ Chapter I of Part VII ” is omitted, at the end of paragraph (b) there is inserted “ or ”, and paragraph (d) and the preceding “ or ” are omitted, and
subsections (6) and (7) are omitted.
In section 154(1) (application of provisions to personal pension schemes), after “provision of this Act” there is inserted “ or of sections 22 to 26 and 40 of the Pensions Act 1995 ”.
In section 159 (inalienability of certain pensions), after subsection (4) there is inserted—
In section 170 (determination of questions by Secretary of State), subsections (5) and (6) are omitted.
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In section 181 (general interpretation)—
in subsection (1)—
the definition of “ equal access requirements ” is omitted, and
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in subsection (2), for the words from “160” to “requirements” there is substituted “ and 160 ”.
In section 183 (sub-delegation), in subsection (3)—
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the words from “or, in the case of” to “determined” are omitted, and
the words following paragraph (b) are omitted.
In section 185(1) (consultation about regulations), “ I or ” is omitted.
In Schedule 7 (re-enactment or amendment of certain provisions not in force), paragraphs 1 and 3 are omitted.
Section 126.
The following rules apply for the purposes of the enactments relating to social security, that is, the following Acts and the instruments made, or having effect as if made, under them: the Social Security Contributions and Benefits Act 1992, the Social Security Administration Act 1992 , the Pension Schemes Act 1993 (c. 48) , the State Pension Credit Act 2002 , Part 1 of the Welfare Reform Act 2007 and the Pensions Act 2014.
and subsection (10) of section 73 applies as it applies for the purposes of that section.
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For sections 49 and 50 of the Social Security Contributions and Benefits Act 1992 (Category B retirement pensions for women) there is substituted—. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In paragraph 5 of Schedule 3 to the Social Security Contributions and Benefits Act 1992 (contribution conditions for entitlement to retirement pension), in sub-paragraph (7)(a) (condition that contributor must have paid or been credited with contributions of the relevant class for not less than the requisite number of years modified in the case of those precluded from regular employment by responsibilities at home), “ (or at least 20 of them, if that is less than half) ” is omitted. This paragraph shall have effect in relation to any person attaining pensionable age on or after 6th April 2010.
In section 46(2) of the Social Security Contributions and Benefits Act 1992 (benefits calculated by reference to Category A retirement pension), for the words following “45(4)(b) above-” there is substituted—”N ”= .
In section 54(1) of the Social Security Contributions and Benefits Act 1992 (election to defer right to pension), in paragraph (a), the words from “but” to “70” are omitted. In Schedule 5 to that Act— In paragraph 2(3) of that Schedule, for “1/7th per cent.” there is substituted “ 1/5th per cent. ” In paragraph 8 of that Schedule, sub-paragraphs (1) and (2) are omitted. The preceding sub-paragraphs shall come into force as follows—
In section 62(1) of the Social Security Contributions and Benefits Act 1992 (graduated retirement benefit continued in force by regulations)—
in paragraph (a), for “replacing section 36(4) of the National Insurance Act 1965” there is substituted “ amending section 36(2) of the National Insurance Act 1965 (value of unit of graduated contributions) so that the value is the same for women as it is for men and for replacing section 36(4) of that Act ”, and
at the end of paragraph (b) there is added “ and for that section (except subsection (5)) so to apply as it applies to women and their late husbands ”.
In section 149(4) of that Act (Christmas bonus: supplementary), for “70 in the case of a man or 65 in the case of a woman” there is substituted “ 65 ”.
In section 50 of the London Regional Transport Act 1984 (travel concessions), for subsection (7)(a) there is substituted—.
In section 93 of the Transport Act 1985 (travel concessions), for subsection (7)(a) there is substituted—.
In section 73B(2)(b)(ii) of the Housing (Scotland) Act 1987 (rent loan scheme), for “of the Social Security Act 1975” there is substituted “ given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995) ”.
In the Income and Corporation Taxes Act 1988—
in section 187(2) (interpretation), the definition of “pensionable age” is omitted,
in the words following paragraph (d) of paragraph 2 of Schedule 10 (retention of shares in connection with profit sharing schemes), for “to pensionable age” there is substituted “ in the case of a man, to the age of 65, and in the case of a woman, to the age of 60 ”.
in sub-paragraph (2) of paragraph 3A of that Schedule, for “pensionable age” there is substituted—, and
in sub-paragraph (4) of that paragraph, for “pensionable age” there is substituted “ in the case of a man, 65, and in the case of a woman, 60. ”
In the Social Security Contributions and Benefits Act 1992—
“pensionable age” has the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995
“pensionable age” has the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995
“pensionable age” has the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995
In section 58 of the Trade Union and Labour Relations (Consolidation) Act 1992 (exemption from requirement for election), in subsection (3)(b), for the words following “pensionable age” there is substituted “ (within the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995) ”.
For section 49 of the Pension Schemes Act 1993 (married women and widows), including the cross heading preceding it, there is substituted—.
“pensionable age”—
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in section 25(6)(c) (unemployment benefit), for “83” there is substituted “83A”,
in section 30B(3) (incapacity benefit: rate, inserted by the Social Security (Incapacity for Work) Act 1994), for “83” there is substituted “83A”,
in section 78(4)(d) (benefits for the aged), for “83” there is substituted “83A”,
in section 85(4) (pension increase: care of children), for “83(3)” there is substituted “83A(3)”,
in section 88 (pension increase: supplementary), for “83” there is substituted “83A”,
in section 114(4) (persons maintaining dependants, etc.), for “84” there is substituted “83A”, and
in section 149(3)(b) (Christmas bonus), for “83(2) or (3)” there is substituted “83A(2) or (3)”.
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In section 20(1)(f) of the Social Security Contributions and Benefits Act 1992 (general description of benefits), for sub-paragraph (ii) there is substituted—. In section 25(6) of that Act, in paragraph (b), for “(for married women) under section 53(2)” there is substituted “ (for married people) under section 51A(2) ”. In section 30B of that Act (incapacity benefit), in paragraph (a) of the proviso to subsection (3), for “(for married women) under section 53(2)” there is substituted “ (for married people) under section 51A(2) ”. In section 41(5)(a) of that Act (long-term incapacity benefit for widowers), for “section 51 below” there is substituted “ the contributions of his wife ”. In section 46(2) of that Act (calculation of additional pension in certain benefits), for “50(3)” there is substituted “ 48A(4) or 48B(2) ”. After section 51 of that Act there is inserted—, and section 53 of that Act (special provision for married women) is omitted. In section 52 of that Act (special provision for surviving spouses), for subsection (1)(b) there is substituted—. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . In section 60 of that Act (complete or partial failure to satisfy contribution conditions)— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . In Schedule 4 to that Act (rates of benefit, etc.), in paragraph 5 of Part I, for “section 50(1)(a)(i)” there is substituted “ section 48A(3) ”. In Schedule 5 to that Act (increased pension where entitlement deferred), in paragraph 2(5)(a), for “5 or 6” there is substituted “ 5, 5A or 6 ”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For paragraphs 5 and 6 of that Schedule there is substituted—. Paragraph 5(1) of that Schedule (inserted by sub-paragraph (15) above) shall have effect, where W is a man who attained pensionable age before 6th April 2010, as if paragraph (a) also required him to have been over pensionable age when S died. In paragraph 7 of that Schedule— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 46 of the Pension Schemes Act 1993 (effect of entitlement to guaranteed minimum pension on payment of benefits), in subsection (6)(b)(iii), for “section 49” there is substituted “ section 48A or 48B ”.
Section 151.
In Schedule 1 to the Public Records Act 1958 (definition of “Public Record”), in the Table—
in Part I, the entry relating to the Occupational Pensions Board is omitted, and
in Part II—
Occupational Pensions Regulatory Authority.
after the entry relating to the Office of the Director General of Fair Trading, there is inserted— Pensions Compensation Board.
In Schedule 4 to the Administration of Justice Act 1970 (taxes, social insurance contributions, etc. subject to special enforcement provisions), in paragraph 3, for “State scheme premiums” there is substituted “ Contributions equivalent premiums ”.
In Schedule 2 to the Attachment of Earnings Act 1971 (taxes, social security contributions, etc. relevant for purposes of section 3(6)), in paragraph 3, for “State scheme premiums” there is substituted “ Contributions equivalent premiums ”.
In Part II of Schedule 1 to the House of Commons Disqualification Act 1975 (bodies of which all members are disqualified), the entry relating to the Occupational Pensions Board is omitted.
In Part II of Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 (bodies of which all members are disqualified), the entry relating to the Occupational Pensions Board is omitted.
In section 61 of the Social Security Pensions Act 1975 (consultation about regulations) for the words from “refer the proposals” in subsection (2) to the end of subsection (3) there is substituted “ consult such persons as he may consider appropriate ”. In section 61B(1) of that Act (orders and regulations: general provisions), “ except any power of the Occupational Pensions Board to make orders ” is omitted. In section 64(3) of that Act (expenses and receipts), for “state scheme premium” there is substituted “ contributions equivalent premium ”.
In section 6(4) of the European Parliament (Pay and Pensions) Act 1979 (provision for payment of block transfer value into another pension scheme), “ and the Occupational Pensions Board ” is omitted.
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In section 14A(2) of the Judicial Pensions Act 1981 (modifications of that Act in relation to personal pensions), in the definition of “personal pension scheme”, for the words from “by” to the end there is substituted “ in accordance with section 7 of the Pension Schemes Act 1993; ”.
In the Table in paragraph 3(1) of Schedule 2B to the Insurance Companies Act 1982 (restriction on disclosure of information), the entry relating to the Occupational Pensions Board is omitted.
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Section 29(7) of the Social Security Act 1989 (regulations and orders) is omitted. In Schedule 5 to that Act (equal treatment in employment related schemes for pensions etc.), paragraph 4 is omitted.
In Schedule 1 to the Social Security Contributions and Benefits Act 1992 (supplementary provisions), in paragraph 8(1)(g), for “state scheme premium” there is substituted “ contributions equivalent premium ”.
The Social Security Administration Act 1992 is amended as follows. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . In section 120 (proof of previous offences), in subsections (3) and (4), for “state scheme premiums” there is substituted “ contributions equivalent premiums ”. In Schedule 4 (persons employed in social security administration etc.), the entries in Part I relating to the Occupational Pensions Board are omitted.
The Tribunals and Inquiries Act 1992 is amended as follows. In section 7(2) (concurrence needed for removal of members of certain tribunals), “ (d) or ” is omitted. In section 10(5) (reasons to be given for decisions of tribunals and Ministers), paragraph (c) is omitted. In section 13(5)(a) (power to amend), “ and (d) ” is omitted. In section 14 (restricted application of Act in relation to certain tribunals), subsection (2) is omitted. In Schedule 1 (Tribunals under the direct supervision of the Council on Tribunals), paragraph 35(d) is omitted.
In section 13(9) of the Judicial Pensions and Retirement Act 1993 (election for personal pension), in the definition of “personal pension scheme”, “ by the Occupational Pensions Board ” is omitted.
The Pension Schemes Act 1993 is amended as follows.
Sections 2 to 5 (constitution, membership etc. of the Board) are repealed.
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In the provisions listed in the first column of the table—
in each place where the word appears, for “Board” there is substituted “ Secretary of State ”, and
the additional amendments listed in the second column of the table in relation to those provisions shall have effect. Provision Additional amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section 163 (rule against perpetuities). In subsection (6), for “consider” there is substituted “considers”.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
in subsections (1) and (6), for “Board” there is substituted “Secretary of State”, and
in subsection (4), “by the Board” is omitted.
In section 8 (definition of terms)—
in subsection (2), for the words following the definition of “minimum payment” there is substituted— “ and for the purposes of this subsection “rebate percentage” means the appropriate flat rate percentage for the purposes of section 42A(2) ”, and
subsection (5) is omitted
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 10 (protected rights), in subsection (2)(a), after “minimum payments” there is inserted “ and payments under section 42A(3) ”.
In section 13 (minimum pensions for earners), in subsection (2)(a), the words from “and does” to the end are omitted.
In section 14 (earner’s guaranteed minimum)—
subsection (3) is omitted,
in subsection (8) after “1978-79” there is inserted “ or later than the tax year ending immediately before the principal appointed day ”.
In section 16 (revaluation of earnings factors)—
in subsection (3), for the words following “at least” there is substituted “ the prescribed percentage for each relevant year after the last service tax year; and the provisions included by virtue of this subsection may also conform with such additional requirements as may be prescribed ”, and
“final relevant year” means the last tax year in the earner’s working life
In section 17 (minimum pensions for widows and widowers), at the end of subsection (7) there is added “ or widows ”.
Section 22 (financing of benefits) is repealed.
In section 23 (securing of benefits)– and subsections (2) and (3) of that section do not apply where the winding up is begun on or after the principal appointed day and for the purposes of this paragraph the time when a scheme begins to be wound up shall be determined in accordance with regulation 2 of the Occupational Pension Schemes (Winding Up) Regulations 1996.
subsections (1) and (5) are omitted,
in subsection (4), for “(1) to (3)” there is substituted “ (2) and (3) ”;
Section 24 (sufficiency of resources) is repealed.
In section 25 (conditions as to investments, etc.)—
subsections (1) and (3) are repealed, and
for subsection (2) there is substituted—.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
in subsection (4)(d), for “a manner satisfactory to the Board” there is substituted “the prescribed manner”, and
subsection (7) is omitted.
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
subsection (1) is omitted,
in subsection (3)(a), after “minimum payments” there is inserted “and payments under section 42A(3)”, and
at the end of that section there is added—.
In section 34 (cancellation, etc. of certificates)—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
subsection (6) is omitted, and
for subsection (7) there is substituted—.
Sections 35 (surrender, etc. issue of further certificates) and 36 (surrender etc. cancellation of further certificates) are repealed.
For section 37 (alteration of rules of contracted-out schemes) there is substituted—
In section 38 (alteration of rules of appropriate schemes)—
in subsection (1), the words from “unless” to the end are omitted,
in subsection (3), the words from “if” to the end are omitted,
in subsection (4), for the words from the beginning to “direct” there is substituted “ Regulations made by virtue of subsection (2) may ”, and
subsection (7) is omitted.
In section 42 (review of reduced rates of contributions), in subsection (3), for “41(1)(a)” there is substituted “ 41(1A)(a) ”.
In section 43 (payment of minimum contributions), in subsection (1), after “circumstances” there is inserted “ or in respect of such periods ”.
In section 45 (minimum contributions towards personal pension schemes), subsection (3)(d) is omitted.
In section 46(1) (effect of entitlement to guaranteed minimum pensions on payment of social security benefits), for sub-paragraph (i) there is substituted—.
In section 50 (powers to approve arrangements for scheme ceasing to be certified)—
in subsection (1)(a)—
at the end of sub-paragraph (i) there is inserted “ or accrued rights to pensions under the scheme attributable to their service on or after the principal appointed day ”, and
in sub-paragraph (ii), for “guaranteed minimum pensions under the scheme” there is substituted “ such pensions ”,
after subsection (1) there is inserted—, and
subsection (7) is omitted.
In section 51 (calculation of GMPs preserved under approved arrangements), in subsection (1)(a), for “are subject to approved arrangements” there is substituted “ satisfy prescribed conditions ”.
In section 52 (supervision of schemes which have ceased to be certified)—
in subsection (2), for paragraphs (a) and (b) there is substituted—,
in subsection (3), for paragraphs (a) and (b) there is substituted—, and
subsections (4) to (6) are omitted.
In section 53 (supervision: former contracted-out schemes)—
for subsection (1) there is substituted—,
subsection (2) is omitted,
for subsection (3) there is substituted—, and
subsections (4) and (5) are omitted.
In section 54 (supervision: former appropriate personal pension schemes)—
for subsections (1) and (2) there is substituted—, and
subsection (3) is omitted.
In section 55 (state scheme premiums), subsections (1) and (3) to (6) are omitted.
In section 56 (provisions supplementary to section 55)—
subsection (1), in subsection (2) the words following “the prescribed period” and subsection (3) are omitted, and
for subsections (5) and (6) there is substituted—.
In section 58 (amount of premiums under section 55), subsections (1) to (3), (5) and (6) are omitted.
Section 59 (alternative basis for revaluation) is repealed.
In section 60 (effect of payment of premiums on rights)—
subsections (1) to (3) are omitted,
in subsection (4)—
for “55(2)(i)” there is substituted “ 55(2A)(a) and (b), (d) and (e) ”, and
at the end there is added “ or (in relation to service on or after the principal appointed day) rights to pensions under the scheme so far as attributable to the amount of the premium ”, and
in subsection (5), for “55(2)(ii)” there is substituted “ 55(2A)(c) ”, and after “widow” there is added “ or widower ”, and
subsections (6) to (10) are omitted.
In section 61 (deduction of contributions equivalent premium from refund of scheme contributions)—
in subsection (1), for paragraph (a) there is substituted—,
in subsection (8)—
for paragraph (a) there is substituted—, and
for “termination” there is substituted “ cessation ”, and
in subsection (9), for “termination” (in both places) there is substituted “ cessation ”.
In section 62 (no recovery of premiums from earners)—
in subsection (1), for “state scheme” there is substituted “ contributions equivalent ”, and
subsection (2) is omitted.
In section 63 (further provisions concerning calculations relating to premiums)—
in subsection (1)—
paragraph (a) is omitted,
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paragraph (c) is omitted,
subsection (2) is omitted,
in subsection (3)—
paragraph (a) is omitted,
in paragraph (b), for “subsection (4) of that section” there is substituted “ section 58(4) ”, and
the words following sub-paragraph (ii) are omitted, and
subsection (4) is omitted.
Section 64 (actuarial tables) is repealed.
Section 65 (former and future earners) is repealed.
Section 66 (widowers) is repealed.
In sections 67 and 68 (non-payment of state scheme premiums), for “state scheme premium” (in each place) there is substituted “ contributions equivalent premium ”.
In section 84(5), paragraph (b) and the preceding “or” are omitted.
In section 96 (right to cash equivalent: exercise of options)—
in subsection (2)(a), after “guaranteed minimum pensions” there is inserted “ his accrued rights so far as attributable to service in contracted-out employment on or after the principal appointed day ”, and
in subsection (3)(a), for “guaranteed minimum pensions” there is substituted “ pensions, being guaranteed minimum pensions or pensions so far as attributable to service in contracted-out employment on or after the principal appointed day ”.
Sections 133 to 135 (advice and determinations as to conformity of schemes with requirements) are repealed.
In section 155 (requirement to give information to the Secretary of State or the Board)—
“ or the Board ” is omitted,
for “or they require” there is substituted “ requires ”, and
for the words from “sections 7” to “premiums” there is substituted “ Part III ”.
In section 158 (disclosure of information between government departments)—
subsections (2) and (3) are omitted,
in subsection (6), “(2) or (3)”, paragraph (d) and the “or” immediately preceding it are omitted,
in subsection (7)—
for “the Inland Revenue and the Board”, there is substituted “ and the Inland Revenue ”,
after paragraph (a), there is inserted “ or ”, and
paragraph (c) and the “or” immediately preceding it are omitted, and
subsection (8) is omitted.
In section 164(1)(b)(i) (Crown employment), “2 to 5”, “172, 173” and “and Schedule 1” are omitted.
In section 165 (application of certain provisions to case with foreign element), in subsection (2)(a), for the words from “sections 7” to “premiums)” there is substituted “ Part III ”.
In section 166(5) (reciprocity with other countries), “sections 2 to 5”, “172, 173” and “and Schedule 1” are omitted.
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in subsection (1)—
in paragraph (b) for “state scheme premium” (in both places) there is substituted “contributions equivalent premium”,
the “and” at the end of paragraph (c) is omitted, and
for the words following paragraph (d) there is substituted and,
subsections (3) and (4) are omitted, and
at the end of that section there is added—.
In section 171 (questions arising in proceedings), in subsection (1)(b), for “state scheme premium” there is substituted “ contributions equivalent premium ”.
Sections 172 and 173 (reviews and appeals) are repealed.
In section 174 (grants), for “Board” (in both places) there is substituted “ Regulatory Authority ”.
In section 176 (fees), for “either by the Secretary of State or by the Board on his behalf” there is substituted “ by the Secretary of State ”.
In section 177 (general financial arrangements)—
in subsection (3)(b)—
in sub-paragraph (i), “sections 2 to 5”, “172, 173” and “and Schedule 1” are omitted, and
in sub-paragraph (ii), the words from “sections 55” to “premiums)” are omitted, and
subsection (7)(b) is omitted.
In section 178(b) (meaning of “trustee” and “manager”), “sections 2 to 5”, “172, 173” and “and Schedule 1” are omitted.
In section 181 (general interpretation)—
in subsection (1)—
the definitions of “accrued rights premium”, “the Board”, “contracted-out protected rights premium”, “limited revaluation premium”, “pensioner’s rights premium”, “personal pension protected rights premium”, “state scheme premium” and “transfer premium” are omitted, and
in the definition of “contributions equivalent premium”, for “section 55(6)(e)” there is substituted “ section 55(2) ”,
in subsection (3), for “sections 2 to” there is substituted “ section ”, and “ 172, 173 ” and “ and Schedule 1 ” are omitted, and
in subsection (7), “ and Schedule 1 ” is omitted.
In section 182(1) (orders and regulations), “ the Board or ” is omitted.
In section 183 (sub-delegation), in subsection (1), “sections 2 to 5”, “172, 173” and “or Schedule 1”, and subsection (2) are omitted.
In section 185 (consultation about regulations)—
in subsection (1), for the words from the beginning to “make” there is substituted “ Subject to subsection (2), before the Secretary of State makes ”, and for the words from “refer the proposals” to the end there is substituted “ consult such persons as he may consider appropriate ”,
in subsection (2), at the end of paragraph (c) there is added—
subsections (3) and (4) are omitted,
in subsection (5), for “subsections (1) to (4)” there is substituted “ subsection (1) ”,
subsection (6) is omitted, and
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In section 186(5) (Parliamentary control of regulations and orders), “ or section 185(4) ” is omitted.
In section 192(2) (extent), for “sections 1 to 5” there is substituted “ section 1 ” and “ section 172(4) and (5) ” is omitted.
Schedule 1 (the Occupational Pensions Board) is repealed.
In Schedule 2 (certification regulations)—
in paragraph 2(1), for “the Board” there is substituted “ the Secretary of State ”,
in paragraph 4(3), for the words from “does not cease” to the end there is substituted “ which, apart from the regulations, would not be contracted-out employment is treated as contracted-out employment where any benefits provided under the scheme are attributable to a period when the scheme was contracted-out ”,
in paragraph 5(1)—
“ or the Board ” and “ or, as the case may be, the Board ” are omitted, and
for “65” there is substituted “ 63 ”,
in paragraph 5(2), “ to 65 ” is omitted, and
(2A) Sub-paragraphs (3) and (4) shall be omitted
In Schedule 4 (priority in bankruptcy), in paragraph 3(1), for “state scheme premium” there is substituted “ contributions equivalent premium ”.
In Schedule 6 (transitional provisions and savings), paragraph 11 is omitted.
Section 177.
Pensions Ombudsman.
The Pension Schemes Act 1993 is amended as follows.
In section 95(1) (ways of taking right to cash equivalent), for “this Chapter” there is substituted “ paragraph (a), (aa) or (b) of section 94(1) ”.
In section 97 (calculation of cash equivalents)—
in subsection (2)(a) after “cash equivalents” there is inserted “ except guaranteed cash equivalents ”,
in subsection (3)(b), for the words from “the date” to the end there is substituted “ the appropriate date ”, and
after that subsection there is inserted—
In section 98 (variation and loss of rights to cash equivalents)—
in subsection (1), after “occupational pension scheme” there is inserted “ other than a salary related scheme ”,
after that subsection there is inserted—,
in subsection (2), after “(1)” there is inserted “ or (1A) ”, and
in subsection (3)—
in paragraph (a), after “occupational pension scheme” there is inserted “ other than a salary related scheme ”, and
and his employment terminates at least one year before normal pension age
In section 99 (trustee’s duties after exercise of an option under section 95)—
in subsection (2), for paragraphs (a) and (b) there is substituted-,
after subsection (3) there is inserted—,
for subsections (4) and (5) there is substituted—,
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after that subsection there is added—
In section 145 (Pensions Ombudsman), in subsection (5) “ with the approval of the Treasury ” is omitted.
In section 151(5)(b) (enforcement in Scotland of Pensions Ombudsman’s determinations), for the words from “Scotland,” to the end there is substituted “ in like manner as an extract registered decree arbitral bearing warrant for execution issued by the sheriff court of any sheriffdom in Scotland. ”.
After section 158 there is inserted—.
In section 164(1)(b)(i) (Crown employment), the words from “136” to “143” are omitted.
In section 166(5) (reciprocity with other countries), the words from “136” to “143” are omitted.
In section 177 (general financial arrangements), in subsection (3)(b)(i), the words from “136” to “143” are omitted.
In section 178 (meaning of “trustee” and “manager”), in paragraph (b), the words from “136” to “143” are omitted.
In section 181 (general interpretation), in subsection (3), the words from “136” to “143” are omitted.
In section 183 (sub-delegation)—
in subsection (1), the words from “136” to “143” are omitted, and
in subsection (3)(b), after “prepared” there is inserted “ and from time to time revised ”.
Schedule 9 (transitory modifications) is amended as follows. In paragraph 1— Paragraphs 3 and 4 are omitted.
Section 177.
Chapter Short title Extent of repeal . . . . . . . . . 1986 c. 53. The Building Societies Act 1986. In section 53(15), the “or” after paragraph (a). . . . . . . . . . 1989 c. 24. The Social Security Act 1989. In Schedule 5, paragraph 14. 1993 c. 48. The Pension Schemes Act 1993. Sections 77 to 80. Sections 102 to 108. In section 110, subsections (2) to (4). Section 112. Section 114. Section 116. Section 118. Sections 119 to 122. In section 129, in subsection (1), “Chapter I of Part V”, “sections 119 to 122”, “under Chapter I of Part V or” and “or sections 119 to 122”, and subsection (3)(a). In section 132, “the equal access requirements”. In section 133(1), “the equal access requirements”. In section 134, in subsection (3), “the equal access requirements” and, in subsection (4), “or the equal access requirements” and “or, as the case may be, section 118(1)”. In section 136(2)(e)(iv), “or the equal access requirements”. In section 139(2), “the equal access requirements”. In section 140(4), paragraph (c) and the “and” immediately preceding it. Section 144. In section 153, in subsection (1), the words from “and Chapter I” to “section 108)”, subsections (3) and (4), in subsection (5), “Chapter I of Part VII”, paragraph (d) and the preceding “or”, and subsections (6) and (7). In section 170, subsections (5) and (6). In section 178, in paragraph (a), the second “or”. In section 181(1), the definition of “equal access requirements”. In section 183, in subsection (3), the words from “or, in the case of” to “determined” and the words following paragraph (b). In section 185, in subsection (1), “I or”. In Schedule 7, paragraphs 1 and 3. In Schedule 8, paragraph 3.
Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 187, in subsection (2), the definition of “pensionable age”. 1992 c. 4. The Social Security Contributions and Benefits Act 1992. Section 53. In section 54, in subsection (1)(a), the words from “but” to “70”, and subsection (4). In Schedule 3, in paragraph 5(7)(a), “(or at least 20 of them, if that is less than half”. In Schedule 5, in paragraph 2(2), the definition of “period of enhancement” and the previous “and”, and in paragraph 8, sub-paragraphs (1) and (2). 1994 c.18. The Social Security (Incapacity for Work) Act 1994. In Schedule 1, paragraphs 20 and 21. These repeals have effect in accordance with Schedule 4 to this Act.
Chapter> Short title Extent of repeal 1958 c. 51. The Public Records Act 1958. In Schedule 1, in the Table, the entry relating to the Occupational Pensions Board. 1975 c. 24. The House of Commons Disqualification Act 1975. In Part II of Schedule 1, the entry relating to the Occupational Pensions Board. 1975 c. 25. The Northern Ireland Assembly Disqualification Act 1975. In Part II of Schedule 1, the entry relating to the Occupational Pensions Board. 1975 c. 60. The Social Security Pensions Act 1975. In section 61B(1), “except any power of the Occupational Pensions Board to make orders”. 1979 c. 50. The European Parliament (Pay and Pensions) Act 1979. In section 6(4), “and the Occupational Pensions Board”. . . . . . . . . . 1989 c. 24. The Social Security Act 1989. Section 29(7). In Schedule 5, paragraph 4. 1992 c. 5. The Social Security Administration Act 1992. In Schedule 4, the entries in Part I relating to the Occupational Pensions Board. 1992 c. 53. The Tribunals and Inquiries Act 1992. In section 7(2), “(d) or”. In section 10(5), paragraph (c). In section 13(5)(a), “and (d)”. In section 14, subsection (2). In Schedule 1, paragraph 35(d). 1993 c. 8. The Judicial Pensions and Retirement Act 1993. In section 13(9), in the definition of “personal pension scheme”, “by the Occupational Pensions Board”. 1993 c. 48. The Pension Schemes Act 1993. Sections 2 to 5. In section 7(4), “by the Board”. Section 8(5). In section 9(3), “22 and”. In section 13(2)(a), the words from “and does” to the end. In section 14, subsection (3). Section 22. In section 23, subsections (1) and (5). Section 24. In section 25, subsections (1) and (3). Section 28(7). Section 31(1). Section 34(6). Sections 35 and 36. In section 38, in subsection (1), the words from “unless” to the end, in subsection (3), the words from “if” to the end, and subsection (7). In section 45, subsection (2) and, in subsection (3), paragraph (d) and, in paragraph (e), the words following “prescribed period”. In section 48(2), paragraph (b) and, in paragraph (c), “if the earner dies before reaching pensionable age”. Section 50(7). In section 52, subsections (4) to (6). In section 53, subsections (2), (4) and (5). Section 54(3). In section 55, subsection (1) and subsections (3) to (6). In section 56, subsection (1), in subsection (2), the words following “the prescribed period”, and subsection (3). In section 58, subsections (1) to (3), (5) and (6). Section 59. In section 60, subsections (1) to (3) and (6) to (10). In section 62, subsection (2). In section 63, in subsection (1), paragraphs (a) and (c), subsection (2), in subsection (3), paragraph (a) and the words following sub-paragraph (ii), and subsection (4). Sections 64 to 66. In section 84, in subsection (5), paragraph (b) and the preceding “or”. Sections 133 to 135. In section 155, “or the Board”. In section 158, subsections (2) and (3), in subsection (6), “(2) or (3)”, paragraph (d) (and the “or” immediately preceding it), in subsection (7), paragraph (c) (and the “or” immediately preceding it) and subsection (8). In section 164(1)(b)(i), “2 to 5”, “172,173” and “and Schedule 1”. In section 166(5), “sections 2 to 5”, “172, 173” and “and Schedule 1”. In section 170, in subsection (1), the “and” at the end of paragraph (c) and subsections (3) and (4). Sections 172 and 173. In section 177, in subsection 3(b)(i), “sections 2 to 5”, “172, 173” and “and Schedule 1” in subsection (3)(b)(ii), the words from “sections 55” to “premiums)”, and in subsection (7), paragraph (b). In section 178, in paragraph (b), “sections 2 to 5”, “172, 173” and “and Schedule 1”. In section 181, in subsection (1), the definitions of “accrued rights premium,”, “the Board”, “contracted-out protected rights premium”, “limited revaluation premium”, “pensioner’s rights premium”, “personal pension protected rights premium”, “state scheme premium” and “transfer premium”, in subsection (3) “172, 173” and “and Schedule 1”, and in subsection (7) “and Schedule 1”. In section 182(1), “the Board or”. In section 183, in subsection (1), “sections 2 to 5”, “172, 173”, and “or Schedule 1” and subsection (2). In section 185, subsections (3), (4) and (6). In section 186(5), “or section 185(4)”. In section 192(2), “section 172(4) and (5)”. Schedule 1. In Schedule 2, in paragraph 5, in sub-paragraph (1), “or the Board” and “or, as the case may be, the Board”, in sub-paragraph (2), “to 65”, in sub-paragraph (3), “in relation to state scheme premiums” and paragraph (b), and sub-paragraph (5). In Schedule 6, paragraph 11. In Schedule 8, paragraph 44(a) and (b)(i) and the “and” immediately following it.
Chapter> Short title Extent of repeal 1971 c. 56. The Pensions (Increase) Act 1971. In section 3, in subsection (2)(c), “is a woman who”. 1993 c. 48. The Pension Schemes Act 1993. Sections 136 to 143. In section 145, “with the approval of the Treasury”. In section 149, in subsection (3), at the end of paragraph (a), “and”. In section 164(1)(b)(i), the words from “136” to “143”. In section 166(5), the words from “136” to “143”. Section 172(1)(b). In section 177, in subsection (3)(b)(i), the words from “136” to “143”. In section 178, in paragraph (b), the words from “136” to “143”. In section 181, in subsection (3), the words from “136” to “143”. In section 183, in subsection (1), the words from “136” to “143”. In Schedule 9, in paragraph 1, in sub-paragraph (1), sub-paragraphs (ii) to (v), and sub-paragraph (5), and paragraphs 3 and 4. The repeal in the Pensions (Increase) Act 1971 shall come into force on the day this Act is passed.
To the extent that it does not already apply by virtue of subsection (1), this section also applies in relation to a trust scheme—
at any time during an assessment period (within the meaning of section 132 of the Pensions Act 2004) in relation to the scheme, and
at any time, not within paragraph (a), when the scheme is authorised under section 153 of that Act (closed schemes) to continue as a closed scheme.
The responsible person must, as soon as reasonably practicable, give notice of an event within subsection (2C) to—
the Authority,
the Board of the Pension Protection Fund, and
the trustees of the scheme.
The events are—
the practitioner beginning to act as mentioned in subsection (1)(a), if immediately before he does so this section does not apply in relation to the scheme;
the practitioner ceasing to so act, if immediately after he does so this section does not apply in relation to the scheme;
the official receiver beginning to act in a capacity mentioned in subsection (1)(b)(i), (ia) or (ii), if immediately before he does so this section does not apply in relation to the scheme;
the official receiver ceasing to act in such a capacity, if immediately after he does so this section does not apply in relation to the scheme.
For the purposes of subsection (2B) “the responsible person” means—
in the case of an event within subsection (2C)(a) or (b) the practitioner, and
in the case of an event within subsection (2C)(c) or (d), the official receiver.
Regulations may require prescribed persons in prescribed circumstances where this section begins or ceases to apply in relation to a trust scheme by virtue of subsection (2A) to give a notice to that effect to—
the Authority,
the Board of the Pension Protection Fund, and
the trustees of the scheme.
A notice under subsection (2B), or regulations under subsection (2E), must be in writing and contain such information as may be prescribed.
While section 22 applies in relation to a scheme, the practitioner or official receiver must—
satisfy himself that at all times at least one of the trustees of the scheme is an independent person, and
if at any time he is not so satisfied, appoint under this paragraph, or secure the appointment of, an independent person as a trustee of the scheme.
While section 22 applies in relation to a trust scheme, the Authority may by order appoint as a trustee of the scheme a person who—
is an independent person in relation to the scheme, and
is registered in the register maintained by the Authority in accordance with regulations under subsection (4).
The duty under subsection (1)(b) must be performed as soon as reasonably practicable and, if a period is prescribed for the purposes of that subsection, within that period.
In relation to a particular trust scheme, no more than one trustee may at any time be an independent trustee appointed under subsection (1).
For the purposes of subsection (1) a person is independent only if— and any reference in this Part to an independent trustee shall be construed accordingly.
he has no interest in the assets of the employer or of the scheme, otherwise than as trustee of the scheme,
he is neither connected with, nor an associate of—
the employer,
any person for the time being acting as an insolvency practitioner in relation to the employer, or
the official receiver, acting in any of the capacities mentioned in section 22(1)(b) in relation to the employer, and
he satisfies any prescribed requirements;
For the purposes of this section a person is independent in relation to a trust scheme only if— and any reference in this Part to an independent trustee is to be construed accordingly.
he has no interest in the assets of the employer or of the scheme otherwise than as trustee of the scheme,
he is neither connected with, nor an associate of—
the employer,
any person for the time being acting as an insolvency practitioner in relation to the employer, or
the official receiver acting in any of the capacities mentioned in section 22(1)(b) in relation to the employer, and
he satisfies any prescribed requirements;
Where, apart from this subsection, the duties imposed by subsection (1) in relation to a scheme would fall to be discharged at the same time by two or more persons acting in different capacities, those duties shall be discharged—
if the employer is a company, by the person or persons acting as the company’s liquidator, provisional liquidator or administrator, or
if the employer is an individual, by the person or persons acting as his trustee in bankruptcy or interim receiver of his property or as permanent or interim trustee in the sequestration of his estate.
Regulations must provide for the Authority to compile and maintain a register of persons who satisfy the prescribed conditions for registration.
References in this section to an individual include, except where the context otherwise requires, references to a partnership and to any debtor within the meaning of the Bankruptcy (Scotland) Act 1985.
Regulations under subsection (4) may provide—
for copies of the register or of extracts from it to be provided to prescribed persons in prescribed circumstances;
for the inspection of the register by prescribed persons in prescribed circumstances.
The circumstances which may be prescribed under subsection (5)(a) or (b) include the payment by the person to whom the copy is to be provided, or by whom the register is to be inspected, of such reasonable fee as may be determined by the Authority.
This section is without prejudice to the powers conferred by section 7.
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If— any member of the scheme may apply to the appropriate court for an order requiring him to discharge his duties under section 23(1).
section 22 applies in relation to a trust scheme, but
the practitioner or official receiver neglects or refuses to discharge any duty imposed on him by section 23(1) in relation to the scheme,
In subsection (1) “the appropriate court” means—
if the employer in question is a company—
where a winding-up order has been made or a provisional liquidator appointed, the court which made the order or appointed the liquidator,
in any other case, any court having jurisdiction to wind up the company, and
in any other case—
in England and Wales, the court (as defined in section 385 of the Insolvency Act 1986), or
in Scotland, where a sequestration has been awarded or, by virtue of the proviso to section 13(1) of the Bankruptcy (Scotland) Act 1985 (petition presented by creditor or trustee acting under trust deed) an interim trustee has been appointed, the court which made the award or appointment and, if no such award or appointment has been made, any court having jurisdiction under section 9 of that Act.
If, immediately before the appointment of an independent trustee under section 23(1), there is no trustee of the scheme other than the employer, the employer shall cease to be a trustee upon the appointment of the independent trustee.
While section 22 applies in relation to a scheme and there is an independent trustee of the scheme appointed under section 23(1)— ...
any power vested in the trustees of the scheme and exercisable at their discretion may be exercised only by the independent trustee, and
any power— may be exercised only by the independent trustee.
which the scheme confers on the employer (otherwise than as trustee of the scheme), and
which is exercisable by him at his discretion but only as trustee of the power,
While section 22 applies in relation to a scheme and there is an independent trustee of the scheme appointed under section 23(1), the independent trustee may not be removed from being a trustee by virtue only of any provision of the scheme.
If a trustee appointed under section 23(1) ceases to be an independent person (within the meaning of section 23(3)), then—
he must as soon as reasonably practicable give written notice of that fact to the Authority, and
subject to subsection (5), he shall cease to be a trustee of the scheme.
If, in a case where subsection (4) applies, there is no other trustee of the scheme than the former independent trustee, he shall not cease by virtue of that subsection to be a trustee until such time as another trustee is appointed.
An order under section 23(1) may provide for any fees and expenses of the trustee appointed under the order to be paid—
by the employer,
out of the resources of the scheme, or
partly by the employer and partly out of those resources.
Section 10 applies to any person who, without reasonable excuse, fails to comply with subsection (4)(a).
Such an order may also provide that an amount equal to the amount (if any) paid out of the resources of the scheme by virtue of subsection (6)(b) or (c) is to be treated for all purposes as a debt due from the employer to the trustees of the scheme.
Where, by virtue of subsection (6)(b) or (c), an order makes provision for any fees or expenses of the trustee appointed under the order to be paid out of the resources of the scheme, the trustee is entitled to be so paid in priority to all other claims falling to be met out of the scheme’s resources.
Notwithstanding anything in section 155 of the Insolvency Act 1986 (court orders for inspection etc.), while section 22 applies in relation to a scheme by virtue of subsection (1) of that section, the practitioner or official receiver must provide the trustees of the scheme, as soon as practicable after the receipt of a request, with any information which the trustees may reasonably require for the purposes of the scheme.
Any expenses incurred by the practitioner or official receiver in complying with a request under subsection (1) are recoverable by him as part of the expenses incurred by him in discharge of his duties.
The practitioner or official receiver is not required under subsection (1) to take any action which involves expenses that cannot be so recovered, unless the trustees of the scheme undertake to meet them.
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A trustee of a trust scheme, and any person who is connected with, or an associate of, such a trustee, is ineligible to act as an auditor or actuary of the scheme.
Subsection (1) does not make a person who is a director, partner or employee of a firm of actuaries ineligible to act as an actuary of a trust scheme merely because another director, partner or employee of the firm is a trustee of the scheme.
Subsection (1) does not make a person who falls within a prescribed class or description ineligible to act as an auditor or actuary of a trust scheme.
A person must not act as an auditor or actuary of a trust scheme if he is ineligible under this section to do so.
In this section and section 28 references to a trustee of a trust scheme do not include— falling within a prescribed class or description.
a trustee, or
a trustee of a scheme,
Any person who acts as an auditor or actuary of a trust scheme in contravention of section 27(4) is guilty of an offence and liable—
on summary conviction, to a fine not exceeding the statutory maximum, and
on conviction on indictment, to imprisonment or a fine, or both.
An offence under subsection (1) may be charged by reference to any day or longer period of time; and a person may be convicted of a second or subsequent offence under that subsection by reference to any period of time following the preceding conviction of the offence.
Acts done as an auditor or actuary of a trust scheme by a person who is ineligible under section 27 to do so are not invalid merely because of that fact.
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a trustee of a trust scheme acts as auditor or actuary of the scheme, or
a person acts as auditor or actuary of a trust scheme when he is ineligible under section 27 to do so by reason of being connected with, or an associate of, a trustee of the scheme,
Subject to subsection (5), a person is disqualified for being a trustee of any trust scheme if—
he has been convicted of any offence involving dishonesty or deception,
he has been made bankrupt or sequestration of his estate has been awarded and (in either case) he has not been discharged or he is the subject of a bankruptcy restrictions order or an interim bankruptcy restrictions order,
where the person is a company, if any director of the company is disqualified under this section,
a moratorium period under a debt relief order (under Part 7A of the Insolvency Act 1986) applies in relation to him or he is the subject of a debt relief restrictions order or an interim debt relief restrictions order (under Schedule 4ZB of the Insolvency Act 1986),
where the person is a Scottish partnership, if any partner is disqualified under this section,
he has made a composition contract or an arrangement with, or granted a trust deed for the behoof of, his creditors and has not been discharged in respect of it, or
he is subject to a disqualification order or disqualification undertaking under the Company Directors Disqualification Act 1986 or the Company Directors Disqualification (Northern Ireland) Order 2002 or to an order made under section 429(2)(b) of the Insolvency Act 1986 (failure to pay under county court administration order).
In subsection (1)—
paragraph (a) applies whether the conviction occurred before or after the coming into force of that subsection, but does not apply in relation to any conviction which is a spent conviction for the purposes of the Rehabilitation of Offenders Act 1974,
paragraph (b) applies whether the adjudication of bankruptcy or the sequestration or the making of the bankruptcy restrictions order or an interim order occurred before or after the coming into force of that subsection,
paragraph (e) applies whether the composition contract or arrangement was made, or the trust deed was granted, before or after the coming into force of that subsection, and
paragraph (f) applies in relation to orders made before or after the coming into force of that subsection.
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is prohibited from being a trustee of a trust scheme by an order under section 3, or
has been removed as a trustee of a trust scheme by an order made (whether before or after the coming into force of this subsection) by the High Court or the Court of Session on the grounds of misconduct or mismanagement in the administration of the scheme for which he was responsible or to which he was privy, or which he by his conduct contributed to or facilitated,
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in their opinion he is incapable of acting as such a trustee by reason of mental disorder (within the meaning of the Mental Health Act 1983 or, as respects Scotland, the Mental Health (Scotland) Act 1984), or
the person is a company which has gone into liquidation (within the meaning of section 247(2) of the Insolvency Act 1986).
The Authority may, on the application of any person disqualified under this section— either generally or in relation to a particular scheme or particular description of schemes.
give notice in writing to him waiving his disqualification,
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A notice given... at any time by virtue of subsection (5) cannot affect anything done before that time.
Where a person who is a trustee of a trust scheme becomes disqualified under section 29 in relation to the scheme, his becoming so disqualified has the effect of removing him as a trustee.
Where— the Authority may exercise by order the same jurisdiction and powers as are exercisable by the High Court or, in relation to a trust scheme subject to the law of Scotland, the Court of Session for vesting any property in, or transferring any property to, the trustees.
a trustee of a trust scheme becomes disqualified under section 29, ...
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A person who purports to act as a trustee of a trust scheme while he is disqualified under section 29 is guilty of an offence and liable—
on summary conviction to a fine not exceeding the statutory maximum, and
on conviction on indictment, to a fine or imprisonment or both.
An offence under subsection (3) may be charged by reference to any day or longer period of time; and a person may be convicted of a second or subsequent offence under that subsection by reference to any period of time following the preceding conviction of the offence.
Things done by a person disqualified under section 29 while purporting to act as trustee of a trust scheme are not invalid merely because of that disqualification.
Nothing in section 29 or this section affects the liability of any person for things done, or omitted to be done, by him while purporting to act as trustee of a trust scheme.
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No amount may be paid out of the assets of a trust scheme for the purpose of reimbursing, or providing for the reimbursement of, any trustee of the scheme in respect of—
a fine imposed by way of penalty for an offence of which he is convicted, or
a penalty which he is required to pay under section 10 or under section 168(4) of the Pension Schemes Act 1993.
For the purposes of subsection (1), providing for the reimbursement of a trustee in respect of a fine or penalty includes (among other things) providing for the payment of premiums in respect of a policy of insurance where the risk is or includes the imposition of such a fine or the requirement to pay such a penalty.
Where any amount is paid out of the assets of a trust scheme in contravention of this section, sections 3 and 10 apply to any trustee who fails to take all such steps as are reasonable to secure compliance.
Where a trustee of a trust scheme— then, unless he has taken all such steps as are reasonable to secure that he is not so reimbursed, he is guilty of an offence.
is reimbursed, out of the assets of the scheme or in consequence of provision for his reimbursement made out of those assets, in respect of any of the matters referred to in subsection (1)(a) or (b), and
knows, or has reasonable grounds to believe, that he has been reimbursed as mentioned in paragraph (a),
A person guilty of an offence under subsection (4) is liable—
on summary conviction, to a fine not exceeding the statutory maximum, and
on conviction on indictment, to imprisonment, or a fine, or both.
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Decisions of the trustees of a trust scheme may, unless the scheme provides otherwise, be taken by agreement of a majority of the trustees.
Where decisions of the trustees of a trust scheme may be taken by agreement of a majority of the trustees—
the trustees may, unless the scheme provides otherwise, by a determination under this subsection require not less than the number of trustees specified in the determination to be present when any decision is so taken, and
notice of any occasions at which decisions may be so taken must, unless the occasion falls within a prescribed class or description, be given to each trustee to whom it is reasonably practicable to give such notice.
Notice under subsection (2)(b) must be given in a prescribed manner and not later than the beginning of a prescribed period.
This section is subject to sections 8(4)(b) and 25(2) of this Act and section 241(6) of the Pensions Act 2004.
If subsection (2)(b) is not complied with, section 10 applies to any trustee who has failed to take all such steps as are reasonable to secure compliance.
Liability for breach of an obligation under any rule of law to take care or exercise skill in the performance of any investment functions, where the function is exercisable— cannot be excluded or restricted by any instrument or agreement.
by a trustee of a trust scheme, or
by a person to whom the function has been delegated under section 34,
In this section, references to excluding or restricting liability include—
making the liability or its enforcement subject to restrictive or onerous conditions,
excluding or restricting any right or remedy in respect of the liability, or subjecting a person to any prejudice in consequence of his pursuing any such right or remedy, or
excluding or restricting rules of evidence or procedure.
This section does not apply—
to a scheme falling within any prescribed class or description, or
to any prescribed description of exclusion or restriction.
The trustees of a trust scheme have, subject to section 36(1) and to any restriction imposed by the scheme, the same power to make an investment of any kind as if they were absolutely entitled to the assets of the scheme.
Any discretion of the trustees of a trust scheme to make any decision about investments—
may be delegated by or on behalf of the trustees to a fund manager to whom subsection (3) applies to be exercised in accordance with section 36, but
may not otherwise be delegated except under section 25 of the Trustee Act 1925 (delegation of trusts during absence abroadfor period not exceeding twelve months) or subsection (5) below.
This subsection applies to a fund manager who, in relation to the investments, may take the decisions in question without contravening the prohibition imposed by section 19 of the Financial Services and Markets Act 2000 (prohibition on carrying on regulated activities unless authorised or exempt).
The trustees are not responsible for the act or default of any fund manager in the exercise of any discretion delegated to him under subsection (2)(a) if they have taken all such steps as are reasonable to satisfy themselves or the person who made the delegation on their behalf has taken all such steps as are reasonable to satisfy himself—
that the fund manager has the appropriate knowledge and experience for managing the investments of the scheme, and
that he is carrying out his work competently and complying with section 36.
Subject to any restriction imposed by a trust scheme— but in either case the trustees are liable for any acts or defaults in the exercise of the discretion if they would be so liable if they were the acts or defaults of the trustees as a whole.
the trustees may authorise two or more of their number to exercise on their behalf any discretion to make any decision about investments, and
any such discretion may, where giving effect to the decision would not constitute the carrying on, in the United Kingdom, of a regulated activity (within the meaning of the Financial Services and Markets Act 2000), be delegated by or on behalf of the trustees to a fund manager to whom subsection (3) does not apply to be exercised in accordance with section 36;
Section 33 does not prevent the exclusion or restriction of any liability of the trustees of a trust scheme for the acts or defaults of a fund manager in the exercise of a discretion delegated to him under subsection (5)(b) where the trustees have taken all such steps as are reasonable to satisfy themselves, or the person who made the delegation on their behalf has taken all such steps as are reasonable to satisfy himself— and subsection (2) of section 33 applies for the purposes of this subsection as it applies for the purposes of that section.
that the fund manager has the appropriate knowledge and experience for managing the investments of the scheme, and
that he is carrying out his work competently and complying with section 36;
The provisions of this section override any restriction inconsistent with the provisions imposed by any rule of law or by or under any enactment, other than an enactment contained in, or made under, this Part or the Pension Schemes Act 1993.
The trustees of a trust scheme must secure that there is prepared, maintained and from time to time revised a written statement of the principles governing decisions about investments for the purposes of the scheme.
The trustees of a trust scheme must secure—
that a statement of investment principles is prepared and maintained for the scheme, and
that the statement is reviewed at such intervals, and on such occasions, as may be prescribed and, if necessary, revised.
The statement must cover, among other things—
the trustees' policy for securing compliance with sections 36 and 56, and
their policy about the following matters.
In this section “statement of investment principles”, in relation to a trust scheme, means a written statement of the investment principles governing decisions about investments for the purposes of the scheme.
Those matters are—
the kinds of investments to be held,
the balance between different kinds of investments,
risk,
the expected return on investments,
the realisation of investments, and
such other matters as may be prescribed.
Before preparing or revising a statement of investment principles, the trustees of a trust scheme must comply with any prescribed requirements.
Neither the trust scheme nor the statement may impose restrictions (however expressed) on any power to make investments by reference to the consent of the employer.
A statement of investment principles must be in the prescribed form and cover, amongst other things, the prescribed matters.
The trustees of a trust scheme must, before a statement under this section is prepared or revised—
obtain and consider the written advice of a person who is reasonably believed by the trustees to be qualified by his ability in and practical experience of financial matters and to have the appropriate knowledge and experience of the management of the investments of such schemes, and
consult the employer.
Neither a trust scheme nor a statement of investment principles may impose restrictions (however expressed) on any power to make investments by reference to the consent of the employer.
If in the case of any trust scheme— sections 3 and 10 apply to any trustee who has failed to take all such steps as are reasonable to secure compliance.
a statement under this section has not been prepared or is not being maintained, or
the trustees have not obtained and considered advice in accordance with subsection (5),
If in the case of a trust scheme— section 10 applies to any trustee who has failed to take all reasonable steps to secure compliance.
a statement of investment principles has not been prepared, is not being maintained or has not been reviewed or revised, as required by this section, or
the trustees have not complied with the obligation imposed on them by subsection (3),
This section does not apply to any scheme which falls within a prescribed class or description.
Regulations may provide that this section is not to apply to any scheme which is of a prescribed description.
The trustees of a trust scheme must exercise their powers of investment in accordance with regulations and in accordance with subsections (3) and (4), and any fund manager to whom any discretion has been delegated under section 34 must exercise the discretion in accordance with regulations.
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to the need for diversification of investments, in so far as appropriate to the circumstances of the scheme, and
to the suitability to the scheme of investments of the description of investment proposed and of the investment proposed as an investment of that description.
Regulations under subsection (1) may, in particular—
specify criteria to be applied in choosing investments, and
require diversification of investments.
Before investing in any manner (other than in a manner mentioned in Part I of Schedule 1 to the Trustee Investments Act 1961) the trustees must obtain and consider proper advice on the question whether the investment is satisfactory having regard to the requirements of regulations under subsection (1), so far as relating to the suitability of investments, and to the principles contained in the statement under section 35.
Trustees retaining any investment must—
determine at what intervals the circumstances, and in particular the nature of the investment, make it desirable to obtain such advice as is mentioned in subsection (3), and
obtain and consider such advice accordingly.
The trustees, or the fund manager to whom any discretion has been delegated under section 34, must exercise their powers of investment with a view to giving effect to the principles contained in the statement under section 35, so far as reasonably practicable.
For the purposes of this section “proper advice” means—
if the giving of the advice constitutes the carrying on, in the United Kingdom, of a regulated activity (within the meaning of the Financial Services and Markets Act 2000), advice given by a person who may give it without contravening the prohibition imposed by section 19 of that Act (prohibition on carrying on regulated activities unless authorised or exempt);
given by a person authorised under Chapter III of Part I of that Act,
given by a person exempted under Chapter IV of that Part who, in giving the advice, is acting in the course of the business in respect of which he is exempt,
given by a person where, by virtue of paragraph 27 of Schedule 1 to that Act, paragraph 15 of that Schedule does not apply to giving the advice, or
given by a person who, by virtue of regulation 5 of the Banking Coordination (Second Council Directive) Regulations 1992, may give the advice though not authorised as mentioned in sub-paragraph (i) above.
in any other case, the advice of a person who is reasonably believed by the trustees to be qualified by his ability in and practical experience of financial matters and to have the appropriate knowledge and experience of the management of the investments of trust schemes.
Trustees shall not be treated as having complied with subsection (3) or (4) unless the advice was given or has subsequently been confirmed in writing.
If the trustees of a trust scheme— section 10 applies to any trustee who has failed to take all reasonable steps to secure compliance.
fail to comply with regulations under subsection (1), or
do not obtain and consider advice in accordance with this section,
Regulations may exclude the application of any of the preceding provisions of this section to any scheme which is of a prescribed description.
This section applies to a trust scheme if—
apart from this section, power is conferred on any person (including the employer) to make payments to the employer out of funds which are held for the purposes of the scheme,
the scheme is one to which Schedule 22 to the Taxes Act 1988 (reduction of pension fund surpluses in certain exempt approved schemes) applies, and
the scheme is not being wound up.
This section applies to a trust scheme if—
apart from this section power is conferred on the employer or any other person to make payments to the employer out of funds held for the purposes of the scheme, and
the scheme is not being wound up.
Where the power referred to in subsection (1)(a) is conferred by the scheme on a person other than the trustees, it cannot be exercised by that person but may be exercised instead by the trustees; and any restriction imposed by the scheme on the exercise of the power shall, so far as capable of doing so, apply to its exercise by the trustees.
But this section does not apply in the case of any of the payments listed in paragraphs (c) to (f) of section 175 of the Finance Act 2004 (authorised employer payments other than public service scheme payments or authorised surplus payments).
The power referred to in subsection (1)(a) cannot be exercised unless the requirements of subsection (4) and (in prescribed circumstances) (5), and any prescribed requirements, are satisfied.
Where the power referred to in subsection (1)(a) is conferred by the scheme on a person other than the trustees—
it cannot be exercised by that person but may instead be exercised by the trustees, and
any restriction imposed by the scheme on the exercise of the power shall, so far as capable of doing so, apply to its exercise by the trustees.
The requirements of this subsection are that—
the power is exercised in pursuance of proposals approved under paragraph 6(1) of Schedule 22 to the Taxes Act 1988,
the trustees are satisfied that it is in the interests of the members that the power be exercised in the manner so proposed,
where the power is conferred by the scheme on the employer, the employer has asked for the power to be exercised, or consented to it being exercised, in the manner so proposed,
the annual rates of the pensions under the scheme which commence or have commenced are increased by the appropriate percentage, and
notice has been given in accordance with prescribed requirements to the members of the scheme of the proposal to exercise the power.
The power referred to in subsection (1)(a) may be exercised only so far as permitted by, and only in accordance with, regulations.
The requirements of this subsection are that the Authority are of the opinion that—
any requirements prescribed by virtue of subsection (3) are satisfied, and
the requirements of subsection (4) are satisfied.
Regulations must be made under subsection (2A)—
prohibiting the making of a payment unless an actuary of a prescribed description (“the relevant actuary”) is satisfied that prescribed conditions are met in relation to the value of the scheme’s assets and the amount of its liabilities,
making provision about the basis (or bases) on which the value of the scheme’s assets and the amount of its liabilities are to be determined for that purpose,
requiring the relevant actuary to give a certificate before a payment is made, and
requiring members of the scheme to be notified in relation to a payment before it is made.
In subsection (4)—
“annual rate” and “appropriate percentage” have the same meaning as in section 54, and
“pension” does not include—
any guaranteed minimum pension (as defined in section 8(2) of the Pension Schemes Act 1993) or any increase in such a pension under section 109 of that Act, or
any money purchase benefit (as defined in section 181(1) of that Act).
The provision that may be made by regulations under subsection (2A) includes provision—
about other conditions that must be met in order for the making of a payment to be permitted;
about the giving of certificates by the relevant actuary, including about the form and content of a certificate;
prohibiting the making of a payment without the employer’s consent;
in relation to a superfund scheme (within the meaning of Part 3 of the Pension Schemes Act 2026)—
prohibiting the making of a payment in all circumstances;
prohibiting the making of a payment without the Authority’s consent.
This section does not apply to any payment to which, by virtue of section 601(3) of the Taxes Act 1988, section 601(2) of that Act does not apply.
The power referred to in subsection (1)(a) may not be exercised if there is a freezing order in force in relation to the scheme under section 23 of the Pensions Act 2004.
If, where this section applies to any trust scheme, the trustees purport to exercise the power referred to in subsection (1)(a) by making a payment to which this section applies without complying with the requirements of this section, sections 3 and 10 apply to any trustee who has failed to take all such steps as are reasonable to secure compliance.
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If, where this section applies to any trust scheme, any person, other than the trustees, purports to exercise the power referred to in subsection (1)(a) by making a payment to which this section applies, section 10 applies to him.
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Regulations may provide that, in prescribed circumstances, this section does not apply to schemes falling within a prescribed class or description, or applies to them with prescribed modifications.
The trustees must also comply with any other prescribed requirements in connection with the making of a payment under this section.
If the trustees— section 10 applies to any of them who has failed to take all reasonable steps to secure compliance.
purport to exercise the power referred to in subsection (1)(a) without complying with subsection (2A), or
fail to comply with any requirement of regulations under subsection (5),
If a person other than the trustees purports to exercise the power referred to in subsection (1)(a), section 10 applies to him.
Regulations may provide that ... this section does not apply, or applies with prescribed modifications, in prescribed circumstances or to schemes of a prescribed description.
Regulations may prohibit the trustees of a trust scheme, or the fund manager to whom any discretion has been delegated under section 34, from borrowing money or acting as a guarantor, except in prescribed cases.
If, apart from this section, the rules of a trust scheme would require the scheme to be wound up, the trustees may determine—
that the scheme is not for the time being to be wound up but that no new members are to be admitted to it, or
that the scheme is not for the time being to be wound up but that no new members, except pension credit members, are to be admitted to it.
Where the trustees make a determination under subsection (1), they may also determine— ...
that no further contributions are to be paid towards the scheme (other than those due to be paid before the determination is made), or
that no ...benefits are to accrue to, or in respect of, members of the scheme;
This section does not apply to—
a money purchase scheme, or
a scheme falling within a prescribed class or description.
Subsection (2) does not authorise the trustees to determine—
where there are accrued rights or pension credit rights to any benefit, that the benefit is not to be increased, or
where the power conferred by that subsection is exercisable by virtue of a determination under subsection (1)(b), that members of the scheme may not acquire pension credit rights under it.
This section also does not apply in relation to a trust scheme where the trustees are required to wind up, or continue the winding up, of the scheme under section 154(1) of the Pensions Act 2004 (requirement to wind up certain schemes with sufficient assets to meet protected liabilities).
The trustees of a trust scheme may by resolution modify the scheme in accordance with subsection (2) or (3).
Where no power is conferred on any person to make payments to the employer out of funds held for the purposes of the scheme, the resolution may confer a power to do so on the trustees, subject to any restrictions specified in the resolution.
Where a power is exercisable by the trustees (whether or not by virtue of subsection (2)) to make payments to the employer out of funds held for the purposes of the scheme, the resolution may remove or relax any restriction imposed by the scheme on the exercise of the power.
This section does not apply to a scheme that is being wound up.
Any power to distribute assets to the employer on a winding up is to be disregarded for the purposes of subsections (2) and (3); and a resolution under subsection (2) may not confer such a power.
The reference in subsection (3) to a restriction imposed by the scheme includes a restriction imposed by virtue of a resolution under section 251 of the Pensions Act 2004 (which was repealed by section 9(2) of the Pension Schemes Act 2026) or this section.
Regulations may provide that this section does not apply, or applies with prescribed modifications, in prescribed circumstances or to schemes of a prescribed description.
See also section 37 (which limits the circumstances in which a power to make payments of surplus may be exercised).
No rule of law that a trustee may not exercise the powers vested in him so as to give rise to a conflict between his personal interest and his duties to the beneficiaries shall apply to a trustee of a trust scheme, who is also a member of the scheme, exercising the powers vested in him in any manner, merely because their exercise in that manner benefits, or may benefit, him as a member of the scheme.
The trustees or managers of an occupational pension scheme must secure that the scheme complies with any prescribed restrictions with respect to the proportion of its resources that may at any time be invested in, or in any description of, employer-related investments.
In this section—
To the extent (if any) that sums due and payable by a person to the trustees or managers of an occupational pension scheme remain unpaid—
they shall be regarded for the purposes of this section as loans made to that person by the trustees or managers, and
resources of the scheme shall be regarded as invested accordingly.
In the definition of “employer-related investments” in subsection (2) “securities” means—
shares,
instruments creating or acknowledging indebtedness,
instruments giving entitlements to investments,
certificates representing securities.
If in the case of a trust scheme subsection (1) is not complied with, section 10 applies to any trustee who fails to take all such steps as are reasonable to secure compliance.
Subsection (2A) must be read with—
section 22 of the Financial Services and Markets Act 2000,
any relevant order made under that section, and
Schedule 2 to that Act.
If any resources of an occupational pension scheme are invested in contravention of subsection (1), any trustee or manager who agreed in the determination to make the investment is guilty of an offence and liable—
on summary conviction, to a fine not exceeding the statutory maximum, and
on conviction on indictment, to a fine or imprisonment, or both.
Regulations may require the trustees or managers of an occupational pension scheme—
to obtain at prescribed times the documents mentioned in subsection (2), and
to make copies of them, and of the documents mentioned in subsection (3), available to the persons mentioned in subsection (4).
The documents referred to in subsection (1)(a) are—
the accounts audited by the auditor of the scheme,
the auditor’s statement about contributions under the scheme,
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The documents referred to in subsection (1)(b) are—
any valuation, or certificate, prepared under section 57 or 58 by the actuary of the scheme,
any statement of funding principles prepared or revised under section 223 of the Pensions Act 2004,
any report prepared by the trustees or managers under section 59(3).
any valuation or report prepared by the actuary under section 224 of that Act,
any certificate given by the actuary under section 225 or 227 of that Act.
The persons referred to in subsection (1)(b) are—
members and prospective members of the scheme,
spouses or civil partners of members and of prospective members,
persons within the application of the scheme and qualifying or prospectively qualifying for its benefits,
independent trade unions recognised to any extent for the purposes of collective bargaining in relation to members and prospective members of the scheme.
Regulations may in the case of occupational pension schemes provide for— to act for the purposes of subsection (2) instead of scheme auditors or actuaries.
prescribed persons,
persons with prescribed qualifications or experience, or
persons with prescribed professional qualifications or experience, or
persons approved by the Secretary of State.
persons approved by the Secretary of State,
Regulations shall make provision for referring to an employment tribunal any question whether an organisation is such a trade union as is mentioned in subsection (4)(d) and may make provision as to the form and content of any such document as is referred to in subsection (2).
Regulations may impose duties on the trustees or managers of an occupational pension scheme to disclose information to, and make documents available to, a person acting under subsection (5).
If any duty imposed under subsection (5A) is not complied with, section 10 applies to any trustee, and to any manager, who has failed to take all such steps as are reasonable to secure compliance.
Regulations may impose requirements on the trustees or managers of an occupational pension scheme of a prescribed description with a view to securing that there is effective governance of the scheme with respect to the effects of climate change.
The effects of climate change in relation to which provision may be made under subsection (1) include, in particular—
risks arising from steps taken because of climate change (whether by governments or otherwise), and
opportunities relating to climate change.
The requirements which may be imposed by the regulations include, in particular, requirements about—
reviewing the exposure of the scheme to risks of a prescribed description;
assessing the assets of the scheme in a prescribed manner;
determining, reviewing and (if necessary) revising a strategy for managing the scheme's exposure to risks of a prescribed description;
determining, reviewing and (if necessary) revising targets relating to the scheme's exposure to risks of a prescribed description;
measuring performance against such targets;
preparing documents containing information of a prescribed description.
Regulations under subsection (3)(b) may, in particular, require—
that assets are assessed by reference to their exposure to risks of a prescribed description, and
that an assessment includes determining the contribution of the assets of the scheme to climate change.
The regulations may require the trustees or managers of the scheme to take into account—
different ways in which the climate might change, and
different steps that might be taken because of climate change.
Regulations under subsection (5) may require the trustees or managers of the scheme to adopt prescribed assumptions as to future events, including assumptions about—
the steps that might be taken for the purpose of achieving the Paris Agreement goal or other climate change goal, or
the achievement of the Paris Agreement goal or other climate change goal.
In complying with requirements imposed by the regulations, a trustee or manager must have regard to guidance prepared from time to time by the Secretary of State.
In this section “the Paris Agreement goal” means the goal of holding the increase in the average global temperature to well below 2°C above pre-industrial levels referred to in Article 2(1)(a) of the agreement done at Paris on 12 December 2015.
Regulations may require the trustees or managers of an occupational pension scheme of a prescribed description to publish information of a prescribed description relating to the effects of climate change on the scheme (which may include information about matters to which regulations under section 41A may relate).
Regulations under subsection (1) may, among other things—
require the trustees or managers to publish a document of a prescribed description;
require information or a document to be made available free of charge;
require information or a document to be provided in a form that is or by means that are prescribed or of a prescribed description.
In complying with requirements imposed by the regulations, a trustee or manager must have regard to guidance prepared from time to time by the Secretary of State.
Regulations may make provision with a view to ensuring compliance with a provision of regulations under section 41A or 41B.
The regulations may in particular—
provide for the Authority to issue a notice (a “compliance notice”) to a person with a view to ensuring the person's compliance with a provision of regulations under section 41A or 41B;
provide for the Authority to issue a notice (a “third party compliance notice”) to a person with a view to ensuring another person's compliance with a provision of regulations under section 41A or 41B;
provide for the Authority to issue a notice (a “penalty notice”) imposing a penalty on a person where the Authority are of the opinion that the person—
has failed to comply with a compliance notice or third party compliance notice, or
has contravened a provision of regulations under section 41A or 41B;
provide for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty;
confer other functions on the Authority.
The regulations may make provision for determining the amount, or the maximum amount, of a penalty in respect of a failure or contravention.
But the amount of a penalty imposed under the regulations in respect of a failure or contravention must not exceed—
£5,000, in the case of an individual, and
£50,000, in any other case.
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The employer in relation to a trust scheme must permit any employee of his who is a trustee of the scheme to take time off during his working hours for the purpose of—
performing any of his duties as such a trustee, or
undergoing training relevant to the performance of those duties.
The amount of time off which an employee is to be permitted to take under this section and the purposes for which, the occasions on which and any conditions subject to which time off may be so taken are those that are reasonable in all the circumstances having regard in particular to—
how much time off is required for the performance of the duties of a trustee of the scheme and the undergoing of relevant training, and how much time off is required for performing the particular duty or, as the case may be, for undergoing the particular training, and
the circumstances of the employer’s business and the effect of the employee’s absence on the running of that business.
An employee may present a complaint to an industrial tribunal that his employer has failed to permit him to take time off as required by this section.
For the purposes of this section, the working hours of an employee are any time when in accordance with his contract of employment he is required to be at work.
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An employer who permits an employee to take time off under section 42 must pay him for the time taken off pursuant to the permission.
Where the employee’s remuneration for the work he would ordinarily have been doing during that time does not vary with the amount of work done, he must be paid as if he had worked at that work for the whole of that time.
Where the employee’s remuneration for the work he would ordinarily have been doing during that time varies with the amount of work done, he must be paid an amount calculated by reference to the average hourly earnings for that work.
The average hourly earnings mentioned in subsection (3) are those of the employee concerned or, if no fair estimate can be made of those earnings, the average hourly earnings for work of that description of persons in comparable employment with the same employer or, if there are no such persons, a figure of average hourly earnings which is reasonable in the circumstances.
A right to be paid an amount under this section does not affect any right of an employee in relation to remuneration under his contract of employment, but—
any contractual remuneration paid to an employee in respect of a period of time off to which this section applies shall go towards discharging any liability of the employer under this section in respect of that period, and
any payment under this section in respect of a period shall go towards discharging any liability of the employer to pay contractual remuneration in respect of that period.
An employee may present a complaint to an industrial tribunal that his employer has failed to pay him in accordance with this section.
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within three months of the date when the failure occurred, or
where the tribunal is satisfied that it was not reasonably practicable for the complaint to be presented within that period, within such further period as the tribunal considers reasonable.
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Where the tribunal finds a complaint under section 42 is well-founded, it must make a declaration to that effect and may make an award of compensation to be paid by the employer to the employee.
The amount of the compensation shall be such as the tribunal considers just and equitable in all the circumstances having regard to the employer’s default in failing to permit time off to be taken by the employee and to any loss sustained by the employee which is attributable to the matters complained of.
Where on a complaint under section 43 the tribunal finds that the employer has failed to pay the employee in accordance with that section, it must order him to pay the amount which it finds to be due.
The remedy of an employee for infringement of the rights conferred on him by section 42 or 43 is by way of complaint to an industrial tribunal in accordance with this Part, and not otherwise.
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Subject to subsection (2), an employee has the right not to be subjected to any detriment by any act, or any deliberate failure to act, by his employer done on the ground that, being a trustee of a trust scheme which relates to his employment, the employee performed (or proposed to perform) any functions as such a trustee.
Subsection (1) does not apply where the detriment in question amounts to dismissal, except where an employee is dismissed in circumstances in which, by virtue of section 142 of the EmploymentProtection (Consolidation) Act 1978 (“the 1978 Act”), section 54 of that Act does not apply to the dismissal.
Sections 22B and 22C of the 1978 Act (which relate to proceedings brought by an employee on the grounds that he has been subjected to a detriment in contravention of section 22A of that Act) shall have effect as if the reference in section 22B(1) to section 22A included a reference to subsection (1).
In the following provisions of the 1978 Act— any reference to Part II of that Act includes a reference to subsection (1).
section 129 (remedy for infringement of certain rights),
section 141(2) (employee ordinarily working outside Great Britain), and
section 150 and Schedule 12 (death of employee or employer),
The dismissal of an employee by an employer shall be regarded for the purposes of Part V of the 1978 Act as unfair if the reason (or, if more than one, the principal reason) for it is that, being a trustee of a trust scheme which relates to his employment, the employee performed (or proposed to perform) any functions as such a trustee.
Where the reason or the principal reason for which an employee was selected for dismissal was that he was redundant, but it is shown— then, for the purposes of Part V of the 1978 Act, the dismissal shall be regarded as unfair.
that the circumstances constituting the redundancy applied equally to one or more other employees in the same undertaking who held positions similar to that held by him and who have not been dismissed by the employer, and
that the reason (or, if more than one, the principal reason) for which he was selected for dismissal was that specified in subsection (5),
Section 54 of the 1978 Act (right of employee not to be unfairly dismissed) applies to a dismissal regarded as unfair by virtue of subsection (5) or (6) regardless of the period for which the employee has been employed and of his age; and accordingly section 64(1) of that Act (which provides a qualifying period and an upper age limit) does not apply to such a dismissal.
Any provision in an agreement (whether a contract of employment or not) shall be void in so far as it purports—
to exclude or limit the operation of any provision of this section, or
to preclude any person from presenting a complaint to an industrial tribunal by virtue of any provision of this section.
Subsection (8) does not apply to an agreement to refrain from presenting or continuing with a complaint where—
a conciliation officer has taken action under section 133(2) or (3) of the 1978 Act (general provisions as to conciliation) or under section 134(1), (2) or (3) (conciliation in case of unfair dismissal) of that Act, or
the conditions regulating compromise agreements under the 1978 Act (as set out in section 140(3) of that Act) are satisfied in relation to the agreement.
In this section, “dismissal” has the same meaning as in Part V of the 1978 Act.
Section 153 of the 1978 Act (general interpretation) has effect for the purposes of this section as it has effect for the purposes of that Act.
For every occupational pension scheme there shall be—
an individual, or a firm, appointed by the trustees or managers as auditor (referred to in this Part, in relation to the scheme, as “the auditor”), and
an individual appointed by the trustees or managers as actuary (referred to in this Part, in relation to the scheme, as “the actuary”).
For every occupational pension scheme the assets of which consist of or include investments... there shall be an individual or a firm appointed by or on behalf of the trustees or managers as fund manager.
If in the case of an occupational pension scheme any person— section 10 applies to any trustee, and to any manager, who in exercising any of his functions places reliance on the skill or judgement of that person.
is appointed otherwise than by the trustees or managers as legal adviser or to exercise any prescribed functions in relation to the scheme, or
is appointed otherwise than by or on behalf of the trustees or managers as a fund manager,
References in this section to investments must be read with—
section 22 of the Financial Services and Markets Act 2000;
any relevant order under that section; and
Schedule 2 to that Act.
In this Part, in relation to an occupational pension scheme— are referred to as “professional advisers”.
the auditor, actuary and legal adviser appointed by the trustees or managers,
any fund manager appointed by or on behalf of the trustees or managers, and
any person appointed by the trustees or managers to exercise any of the functions referred to in subsection (3)(a),
This section does not apply to an occupational pension scheme falling within a prescribed class or description and regulations may—
make exceptions to subsections (1) to (3),
specify the qualifications and experience, or approval, required for appointment as a professional adviser.
Regulations may make provision as to—
the manner in which professional advisers may be appointed and removed,
the terms on which professional advisers may be appointed (including the manner in which the professional advisers may resign).
Subject to regulations made by virtue of subsection (6), professional advisers shall be appointed on such terms as the trustees or managers may determine.
If in the case of an occupational pension scheme an auditor, actuary or fund manager is required under this section to be appointed but the appointment has not been made, or not been made in accordance with any requirements imposed under this section, section 10 applies to any trustee, and to any manager, who has failed to take all such steps as are reasonable to secure compliance.
Regulations may in the case of occupational pension schemes—
impose duties on any person who is or has been the employer, and on any person who acts as auditor or actuary to such a person, to disclose information to the trustees or managers and to the scheme’s professional advisers,
impose duties on the trustees or managers to disclose information to, and make documents available to, the scheme’s professional advisers.
If in the case of an occupational pension scheme a person fails to comply with any duty imposed under subsection (9)(a), section 10 applies to him.
If in the case of an occupational pension scheme any duty imposed under subsection (9)(b) is not complied with, section 10 applies to any trustee, and to any manager, who has failed to take all such steps as are reasonable to secure compliance.
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If the auditor or actuary of any occupational pension scheme has reasonable cause to believe that— he must immediately give a written report of the matter to the Authority.
any duty relevant to the administration of the scheme imposed by any enactment or rule of law on the trustees or managers, the employer, any professional adviser or any prescribed person acting in connection with the scheme has not been or is not being complied with, and
the failure to comply is likely to be of material significance in the exercise by the Authority of any of their functions,
The auditor or actuary of any occupational pension scheme must, in any prescribed circumstances, immediately give a written report of any prescribed matter to the Authority.
No duty to which the auditor or actuary of any occupational pension scheme is subject shall be regarded as contravened merely because of any information or opinion contained in a written report under this section.
If in the case of any occupational pension scheme any professional adviser (other than the auditor or actuary), any trustee or manager or any person involved in the administration of the scheme has reasonable cause to believe as mentioned in paragraphs (a) and (b) of subsection (1), he may give a report of the matter to the Authority.
In the case of any such scheme, no duty to which any such adviser, trustee or manager or other person is subject shall be regarded as contravened merely because of any information or opinion contained in a report under this section; but this subsection does not apply to any information disclosed in such a report by the legal adviser of an occupational pension scheme if he would be entitled to refuse to produce a document containing the information in any proceedings in any court on the grounds that it was the subject of legal professional privilege or, in Scotland, that it contained a confidential communication made by or to an advocate or solicitor in that capacity.
Subsections (1) to (5) apply to any occupational pension scheme to which section 47 applies.
Section 10 applies to any auditor or actuary who fails to comply with subsection (1) or (2).
If it appears to the Authority that an auditor or actuary has failed to comply with subsection (1) or (2), the Authority may by order disqualify him for being the auditor or, as the case may be, actuary of any occupational pension scheme specified in the order.
An order under subsection (8) may specify the scheme to which the failure relates, all schemes falling within any class or description of occupational pension scheme or all occupational pension schemes.
The Authority may, on the application of any person disqualified under this section who satisfies the Authority that he will in future comply with those subsections, by order revoke the order disqualifying him; but a revocation made at any time cannot affect anything done before that time.
An auditor or actuary of an occupational pension scheme who becomes disqualified under this section shall, while he is so disqualified, cease to be auditor or, as the case may be, actuary of any scheme specified in the order disqualifying him.
A person who, while he is disqualified under this section, purports to act as auditor or actuary of an occupational pension scheme specified in the order disqualifying him is guilty of an offence and liable—
on summary conviction, to a fine not exceeding the statutory maximum, and
on conviction on indictment, to a fine or imprisonment, or both.
An offence under subsection (12) may be charged by reference to any day or longer period of time; and a person may be convicted of a second or subsequent offence under that subsection by reference to any period of time following the preceding conviction of the offence.
The trustees of any trust scheme must, except in any prescribed circumstances, keep any money received by them in a separate account kept by them with a deposit-taker.
Regulations may require the trustees of any trust scheme to keep—
records of their meetings (including meetings of any of their number), and
books and records relating to any prescribed transaction.
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Regulations may, in the case of any trust scheme, require the employer, and any prescribed person acting in connection with the scheme, to keep books and records relating to any prescribed transaction.
Regulations may require books or records kept under subsection (2) or (3) to be kept in a prescribed form and manner and for a prescribed period.
Regulations must, in cases where payments of benefit to members of trust schemes are made by the employer, require the employer to make into a separate account kept by him with a deposit-taker any payments of benefit which have not been made to the members within any prescribed period.
If in the case of any trust scheme any requirements imposed by or under subsection (1) or (2) are not complied with, section 10 applies to any trustee who has failed to take all such steps as are reasonable to secure compliance.
If in the case of any trust scheme any person fails to comply with any requirement imposed under subsection (3) or (5), section 10 applies to him.
Where on making a payment of any earnings in respect of any employment there is deducted any amount corresponding to any contribution payable on behalf of an active member of an occupational pension scheme, the amount deducted is to be paid, within a prescribed period, to the trustees or managers of the scheme.
on making a payment of any earnings in respect of any employment there is deducted any amount corresponding to any contribution payable on behalf of an active member of an occupational pension scheme, and
the amount deducted is not, within a prescribed period, paid to the trustees or managers of the scheme and there is no reasonable excuse for the failure to do so,
“Deposit taker” means—
a person who has permission under Part 4A of the Financial Services and Markets Act 2000 to accept deposits;
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the Bank of England ... ;
the National Savings Bank; or
a municipal bank, that is to say a company which was, immediately before the repeal of the Banking Act 1987 exempted from the prohibition in section 3 of that Act by virtue of section 4(1) of, and paragraph 4 of Schedule 2 to, that Act.
Paragraphs (a) and (b) of subsection (8A) must be read with—
section 22 of the Financial Services and Markets Act 2000;
any relevant order under that section; and
Schedule 2 to that Act.
If in any case there is a failure to comply with subsection (8)—
section 10 applies to the employer; and
if the trustees or managers have reasonable cause to believe that the failure is likely to be of material significance in the exercise by the Authority of any of their functions, they must, except in prescribed circumstances, give notice of the failure to the Authority and the member within a reasonable period after the end of the prescribed period under subsection (8).
If in any case subsection (9)(b) is not complied with—
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section 10 applies to any trustee or manager who has failed to take all reasonable steps to secure compliance.
If any person is knowingly concerned in the fraudulent evasion of the obligation imposed by subsection (8) in any case, he is guilty of an offence.
A person guilty of an offence under subsection (11) is liable—
on summary conviction, to a fine not exceeding the statutory maximum; and
on conviction on indictment, to imprisonment for a term not exceeding seven years or a fine or both.
A person shall not be required by virtue of subsection (9)(a) above to pay a penalty under section 10 in respect of a failure if in respect of that failure he has been—
required to pay a penalty under that section by virtue of section 3(7) of the Welfare Reform and Pensions Act 1999 (failures in respect of stakeholder pensions), or
convicted of an offence under subsection (11) above.
Except so far as regulations otherwise provide, the trustees or managers of an occupational pension scheme shall keep written records of—
any determination for the winding-up of the scheme in accordance with its rules;
decisions as to the time from which steps for the purposes of the winding-up of the scheme are to be taken;
determinations under section 38;
determinations in accordance with the rules of the scheme to postpone the commencement of a winding-up of the scheme.
For the purpose of this section—
the determinations and decisions of which written records must be kept under this section include determinations and decisions by persons who— and
are not trustees or managers of a scheme, but
are entitled, in accordance with the rules of a scheme, to make a determination for its winding-up;
regulations may, in relation to such determinations or decisions as are mentioned in paragraph (a), impose obligations to keep written records on the persons making the determinations or decisions (as well as, or instead of, on the trustees or managers).
Regulations may provide for the form and content of any records that are required to be kept under this section.
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Section 10 applies to any trustee or manager of a scheme who fails to take all such steps as are reasonable to secure compliance by the trustees or managers of that scheme with those obligations.
The trustees or managers of an occupational pension scheme must secure that dispute resolution arrangements complying with the requirements of this section are made and implemented.
Dispute resolution arrangements are arrangements for the resolution of pension disputes.
provide for a person, on the application of a complainant of a prescribed description, to give a decision on such a disagreement, and
require the trustees or managers, on the application of such a complainant following a decision given in accordance with paragraph (a), to reconsider the matter in question and confirm the decision or give a new decision in its place.
For this purpose a pension dispute is a dispute which—
is between—
the trustees or managers of a scheme, and
one or more persons with an interest in the scheme (see section 50A),
is about matters relating to the scheme, and
is not an exempted dispute (see subsection (9)).
The dispute resolution arrangements must provide a procedure—
for any of the parties to the dispute mentioned in subsection (3)(a)(ii) to make an application for a decision to be taken on the matters in dispute (“an application for the resolution of a pension dispute”), and
for the trustees or managers to take that decision.
Where an application for the resolution of a pension dispute is made in accordance with the dispute resolution arrangements, the trustees or managers must—
take the decision required on the matters in dispute within a reasonable period of the receipt of the application by them, and
notify the applicant of the decision within a reasonable period of it having been taken.
The dispute resolution arrangements may make provision for securing that an application for the resolution of a pension dispute may not be made to the trustees or managers unless— and for enabling the specified person's decision to be confirmed or replaced by the decision taken by the trustees or managers on the application, after reconsidering those matters.
the matters in dispute have been previously referred to a person of a description specified in the arrangements (“the specified person”) in order for him to consider those matters, and
the specified person has given his decision on those matters,
The procedure provided for by the dispute resolution arrangements in pursuance of subsection (4) must include the provision required by section 50B.
Dispute resolution arrangements under subsection (1) must, in the case of existing schemes, have effect on and after the date of commencement of this section in relation to applications made on or after that date.
In a case where a reference is made to the specified person in accordance with provision made under subsection (4A), subsection (5) applies in relation to the specified person as it applies in relation to the trustees or managers in a case where an application for the resolution of a pension dispute is made to them.
This section does not apply in relation to an occupational pension scheme if—
every member of the scheme is a trustee of the scheme,
the scheme has no more than one member, or
the scheme is of a prescribed description.
For the purposes of this section a dispute is an exempted dispute if—
proceedings in respect of it have been commenced in any court or tribunal,
the Pensions Ombudsman has commenced an investigation in respect of it as a result of a complaint made or a dispute referred to him, or
it is of a prescribed description.
If, in the case of an occupational pension scheme, the dispute resolution arrangements required by this section to be made— section 10 applies to any of the trustees or managers who have failed to take all reasonable steps to secure that such arrangements are made or implemented.
have not been made, or
are not being implemented,
For the purposes of section 50 a person is a person with an interest in an occupational pension scheme if—
he is a member of the scheme,
he is a widow, widower , surviving civil partner or surviving dependant of a deceased member of the scheme,
he is a surviving non-dependant beneficiary of a deceased member of the scheme,
he is a prospective member of the scheme,
he has ceased to be within any of the categories of persons referred to in paragraphs (a) to (d), or
he claims to be such a person as is mentioned in paragraphs (a) to (e) and the dispute relates to whether he is such a person.
In subsection (1)(c) a “non-dependant beneficiary”, in relation to a deceased member of an occupational pension scheme, means a person who, on the death of the member, is entitled to the payment of benefits under the scheme.
In subsection (1)(d) a “prospective member” means any person who, under the terms of his contract of service or the rules of the scheme—
is able, at his own option, to become a member of the scheme,
will become so able if he continues in the same employment for a sufficiently long period,
will be admitted to the scheme automatically unless he makes an election not to become a member, or
may be admitted to it subject to the consent of his employer.
The procedure provided for by the dispute resolution arrangements in pursuance of section 50(4) must (in accordance with section 50(6)) include the following provision.
The procedure must provide that an application for the resolution of a pension dispute under section 50(4) may be made or continued on behalf of a person who is a party to the dispute mentioned in section 50(3)(a)(ii)—
where the person dies, by his personal representative,
where the person is a minor or is otherwise incapable of acting for himself, by a member of his family or some other person suitable to represent him, and
in any other case, by a representative nominated by him.
The procedure—
must include provision requiring an application to which subsection (3A) applies to be made by the end of such reasonable period as is specified;
may include provision about the time limits for making such other applications for the resolution of pension disputes as are specified.
This subsection applies to—
any application by a person with an interest in a scheme as mentioned in section 50A(1)(e), and
any application by a person with an interest in a scheme as mentioned in section 50A(1)(f) who is claiming to be such a person as is mentioned in section 50A(1)(e).
The procedure must include provision about—
the manner in which an application for the resolution of a pension dispute is to be made,
the particulars which must be included in such an application, and
the manner in which any decisions required in relation to such an application are to be reached and given.
The provision made under subsection (4)(c) may include provision for decisions of the trustees or managers to be taken on their behalf by one or more of their number.
The procedure must provide that if, after an application for the resolution of a pension dispute has been made, the dispute becomes an exempted dispute within the meaning of section 50(9)(a) or (b), the resolution of the dispute under the procedure ceases.
Subject to subsections (6) and (7) this section applies to a pension under an occupational pension scheme if—
the scheme—
is a registered pension scheme under section 153 of the Finance Act 2004, and
is not a public service pension scheme, and
in the case where the pension becomes a pension in payment on or after the commencement day, is not a money purchase scheme, and
the whole, or any part of, the pension is attributable—
to pensionable service on or after 6 April 1997, or
in the case of money purchase benefits where the pension is in payment before the commencement day, to payments in respect of employment carried on on or after 6 April 1997, and
apart from this section— would not be increased each year by at least the appropriate percentage of that rate.
the annual rate of the pension, or
if only part of the pension is attributable as described in paragraph (b), so much of the annual rate as is attributable to that part,
Subject to sections 51A and 52, where a pension to which this section applies, or any part of it, is attributable to pensionable service on or after 6 April 1997 or, in the case of money purchase benefits where the pension is in payment before the commencement day, to payments in respect of employment carried on on or after 6 April 1997— must be increased annually by at least the appropriate percentage.
the annual rate of the pension, or
if only part of the pension is attributable to pensionable service or, as the case may be, to payments in respect of employment carried on on or after 6 April 1997, so much of the annual rate as is attributable to that part,
Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this section as a separate occupational pension scheme which is a money purchase scheme.
Subsection (2) does not apply to the annual rate of a pension under an occupational pension scheme, or to a part of that rate, if under the rules of the scheme the rate or part is for the time being being increased at intervals of not more than twelve months by at least the relevant percentage.
the annual rate of the pension, or
if only part of the pension is attributable to pensionable service or, as the case may be, to payments in respect of employment carried on on or after the appointed day, so much of the annual rate as is attributable to that part,
For the purposes of subsection (3) the relevant percentage is—
the percentage increase in the consumer prices index for the reference period, being a period determined, in relation to each periodic increase, under the rules, or
if lower, the default percentage for that period.
Regulations may provide that any of the provisions of this section apply in relation to a pension as if so much of it as would not otherwise be attributable to pensionable service or to payments in respect of employment were attributable to pensionable service or, as the case may be, payments in respect of employment—
before 6 April 1997 or the commencement day,
on or after that day, or
partly before and partly on or after that day.
This section does not apply to any pension or part of a pension which is attributable (directly or indirectly) to a pension credit or which, in the opinion of the trustees or managers, is derived from the payment by any member of the scheme of voluntary contributions.
Subsection (2) does not apply to the annual rate of a pension under an occupational pension scheme, or to a part of that rate, if subsection (4ZB) applies to the rate or part.
Subject to subsection (4ZD), this subsection applies to the rate or part if, under the rules of the scheme, the rate or part is for the time being being increased, and since the relevant time has always been increased, at intervals of not more than twelve months by at least—
the percentage increase in the retail prices index for the reference period, being a period determined, in relation to each periodic increase, under the rules, or
if lower, the default percentage for that period.
In subsection (4ZB) “the relevant time” means—
the beginning of 2011 or, if later, the time when the pension became a pension in payment, or
if the pension was transferred to the scheme from another occupational pension scheme as a pension in payment after the beginning of 2011, the time of the transfer.
If the pension was transferred to the scheme as mentioned in subsection (4ZC)(b), subsection (4ZB) does not apply to the rate or part unless, immediately before the transfer, subsection (4ZB) (read with this subsection if relevant) applied to the rate or part by reference to the scheme from which the pension was transferred (or would have applied had subsection (4ZB) been in force immediately before the transfer).
If only part of the pension is attributable to pensionable service or, as the case may be, to payments in respect of employment carried on on or after 6 April 1997, in subsections (3) to (4ZD) references to the annual rate of the pension are references to so much of that rate as is attributable to that part.
For the purposes of subsections (4) and (4ZB) the default percentage for a period is the percentage for that period which corresponds to—
in the case of a category X pension, 5% per annum, and
in the case of a category Y pension, 2.5% per annum.
In subsections (4) and (4ZB)—
“consumer prices index” means—
“trustees or managers”, in relation to an occupational pension scheme, means—
in any other case, the managers of the scheme,
For the purposes of this section, a pension is a category X pension if it is—
a pension which became a pension in payment before the commencement day, or
a pension—
which becomes a pension in payment on or after the commencement day, and
the whole of which is attributable to pensionable service before that day.
For the purposes of this section, a pension is a category Y pension if it is a pension—
which becomes a pension in payment on or after the commencement day, and
the whole of which is attributable to pensionable service on or after the commencement day.
For the purposes of applying this section in the case of a pension— each of those parts of the pension is to be treated as if it were a separate pension.
which becomes a pension in payment on or after the commencement day,
part of which is attributable to pensionable service before the commencement day, and
part of which is attributable to pensionable service on or after that day,
This section does not apply to any pension (or part of a pension) under a relevant occupational pension scheme which—
is a cash balance benefit (see section 51ZB), and
first comes into payment on or after the day on which section 21 of the Pensions Act 2011 comes into force.
An occupational pension scheme is a “relevant occupational pension scheme” if—
it has not, at any time on or after 6 April 1997, been a salary related contracted-out scheme (see section 7B of the Pension Schemes Act 1993), or
it has, at any time on or after 6 April 1997, been a salary related contracted-out scheme but no person is entitled to receive, or has accrued rights to, benefits under the scheme attributable to a period on or after that day when it was such a scheme.
Subject to subsection (2), no increase under section 51 is required to be paid to or for a member of a scheme whose pension is in payment but who has not attained the age of 55 at the time when the increase takes effect.
Subsection (1) does not apply if the member—
is permanently incapacitated by mental or physical infirmity from engaging in regular full-time employment, or
has retired on account of mental or physical infirmity from the employment in respect of which, or on retirement from which, the pension is payable.
The rules of a scheme may provide that if, in a case where a pension has been paid to or for a member under the age of 55 at an increased rate in consequence of subsection (2), the member— any increases subsequently taking effect under section 51 in the annual rate of the pension shall not be paid or shall not be paid in full.
ceases to suffer from the infirmity in question before he attains the age of 55, but
continues to be entitled to the pension,
In any case where— his pension shall then become payable at the annual rate at which it would have been payable apart from subsection (1) or (3).
by virtue only of subsection (1) or (3), increases are not paid to or for a member or are not paid in full, but
the member attains the age of 55 or, in a case falling within subsection (3), again satisfies the condition set out in subsection (2)(a) or (b),
For the purposes of section 51(1)(c) and (2), “the appropriate percentage” in relation to an increase in the whole or part of the annual rate of a pension—
in the case of a category X pension, means the higher revaluation percentage for the latest revaluation period specified in the order under paragraph 2 of Schedule 3 to the Pension Schemes Act 1993 (revaluation of accrued pension benefits) which is in force at the time of the increase, and
in the case of a category Y pension, means the lower revaluation percentage for that period.
In this section “the higher revaluation percentage”, “the lower revaluation percentage” and “the revaluation period” have the same meaning as in paragraph 2 of Schedule 3 to the Pension Schemes Act 1993.
Where in any tax year the trustees or managers of an occupational pension scheme make an increase in a person’s pension, not being an increase required by section 109 of the Pension Schemes Act 1993 or section 51 of this Act, they may deduct the amount of the increase from any increase which, but for this subsection, they would be required to make under either of those sections in the next tax year.
Where in any tax year the trustees or managers of such a scheme make an increase in a person’s pension and part of the increase is not required by section 109 of the Pension Schemes Act 1993 or section 51 of this Act, they may deduct that part of the increase from any increase which, but for this subsection, they would be required to make under either of those sections in the next tax year.
Where by virtue of subsection (1) or (2) any pensions are not required to be increased in pursuance of section 109 of the Pension Schemes Act 1993 or section 51 of this Act, or not by the full amount that they otherwise would be, their amount shall be calculated for any purpose as if they had been increased in pursuance of the section in question or, as the case may be, by that full amount.
In section 110 of the Pension Schemes Act 1993 (resources for annual increase of guaranteed minimum pension)—
subsections (2) to (4) are omitted, and
in subsection (1), for “subsection (2) or (3)” there is substituted “ section 53 of the Pensions Act 1995 ”.
In subsections (1) and (2), the references to a person’s pension do not include any pension which is attributable (directly or indirectly) to a pension credit.
For the purposes of section 51(7)(a), a pension provided to or in respect of a member of an occupational pension scheme is a “cash balance benefit” if conditions 1 and 2 are met.
Condition 1 is that the rate of the pension is calculated by reference to a sum of money (“the available sum”) which is available under the scheme for the provision of benefits to or in respect of the member.
Condition 2 is that under the scheme—
there is a promise about the amount of the available sum, but
there is no promise about the rate or amount of the benefits to be provided.
The promise mentioned in subsection (3)(a) includes in particular a promise about the change in the value of, or the return from, payments made under the scheme by the member or by any other person in respect of the member.
The promise mentioned in subsection (3)(b) includes a promise that—
the amount of the available sum will be sufficient to provide benefits of a particular rate or amount;
the rate or amount of a benefit will represent a particular proportion of the available sum.
But a pension is not prevented from being a cash balance benefit merely because under the scheme there is a promise that—
the rate or amount of a benefit payable in respect of a deceased member will be a particular proportion of the rate or amount of a benefit which was (or would have been) payable to the member;
the amount of a lump sum payable to a member, or in respect of a deceased member, will represent a particular proportion of the available sum.
The first increase required by section 51 in the rate of a pension must take effect not later than the first anniversary of the date on which the pension is first paid; and subsequent increases must take effect at intervals of not more than twelve months.
Where the first such increase is to take effect on a date when the pension has been in payment for a period of less than twelve months, the increase must be of an amount at least equal to one twelfth of the amount of the increase so required (apart from this subsection) for each complete month in that period.
In sections 51 to 53 and this section—
“occupational pension scheme” and “personal pension scheme” have the meaning given by section 1 of the Pension Schemes Act 1993,
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“prescribed” means— in the case of a scheme made under section 1 of the Superannuation Act 1972, prescribed by a scheme made by the Minister for the Civil Service, or in any other case, prescribed by regulations made by the Secretary of State, and
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“active member”, in relation to an occupational pension scheme, has the same meaning as in Part I.
No increase under section 51 is required to be made, at any time on or after the relevant date, of so much of any pension under a money purchase scheme as—
is payable by way of an annuity the amount of which for any year after the first year of payment is determined (whether under the terms of the scheme or under the terms of the annuity contract in pursuance of which it is payable) by reference to fluctuations in the value of, or the return from, particular investments; and
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satisfies such other conditions (if any) as may be prescribed.
For the purposes of this section it shall be immaterial whether the annuity in question is payable out of the funds of the scheme in question or under an annuity contract entered into for the purposes of the scheme.
In this section “the relevant date” means the date appointed for the coming into force of section 51 of the Child Support, Pensions and Social Security Act 2000.
In section 109 of the Pension Schemes Act 1993 (annual increase of guaranteed minimum pensions)—
in subsection (2) (increase in rate of that part of guaranteed minimum pension attributable to earnings factors for tax year 1988-89 and subsequent tax years) for “the tax year 1988-89 and subsequent tax years” there is substituted “ the tax years in the relevant period ”, and
after subsection (3) there is inserted—.
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Every occupational pension scheme to which this section applies is subject to a requirement (referred to in this Part as “the minimum funding requirement”) that the value of the assets of the scheme is not less than the amount of the liabilities of the scheme.
This section applies to an occupational pension scheme other than—
a money purchase scheme, or
a scheme falling within a prescribed class or description.
For the purposes of this section and sections 57 to 61, the liabilities and assets to be taken into account, and their amount or value, shall be determined, calculated and verified by a prescribed person and in the prescribed manner.
In calculating the value of any liabilities for those purposes, a provision of the scheme which limits the amount of its liabilities by reference to the amount of its assets is to be disregarded.
In sections 57 to 61, in relation to any occupational pension scheme to which this section applies—
the amount of the liabilities referred to in subsection (1) is referred to as “the amount of the scheme liabilities”,
the value of the assets referred to in that subsection is referred to as “the value of the scheme assets”,
an “actuarial valuation” means a written valuation prepared and signed by the actuary of the scheme of the assets and liabilities referred to in subsection (1), and
the “effective date” of an actuarial valuation is the date by reference to which the assets and liabilities are valued.
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The trustees or managers of an occupational pension scheme to which section 56 applies must—
obtain, within a prescribed period, an actuarial valuation and afterwards obtain such a valuation before the end of prescribed intervals, and
on prescribed occasions or within prescribed periods, obtain a certificate prepared by the actuary of the scheme—
stating whether or not in his opinion the contributions payable towards the scheme are adequate for the purpose of securing that the minimum funding requirement will continue to be met throughout the prescribed period or, if it appears to him that it is not met, will be met by the end of that period, and
indicating any relevant changes that have occurred since the last actuarial valuation was prepared.
Subject to subsection (3), the trustees or managers must— obtain an actuarial valuation within the period required by subsection (4).
if the actuary states in such a certificate that in his opinion the contributions payable towards the scheme are not adequate for the purpose of securing that the minimum funding requirement will continue to be met throughout the prescribed period or, if it appears to him that it is not met, will be met by the end of that period, or
in prescribed circumstances,
In a case within subsection (2)(a), the trustees or managers are not required to obtain an actuarial valuation if—
in the opinion of the actuary of the scheme, the value of the scheme assets is not less than 90 per cent. of the amount of the scheme liabilities, and
since the date on which the actuary signed the certificate referred to in that subsection, the schedule of contributions for the scheme has been revised under section 58(3)(b).
If the trustees or managers obtain a valuation under subsection (2) they must do so—
in the case of a valuation required by paragraph (a), within the period of six months beginning with the date on which the certificate was signed, and
in any other case, within a prescribed period.
A valuation or certificate obtained under subsection (1) or (2) must be prepared in such manner, give such information and contain such statements as may be prescribed.
The trustees or managers must secure that any valuation or certificate obtained under this section is made available to the employer within seven days of their receiving it.
Where, in the case of an occupational pension scheme to which section 56 applies, subsection (1), (2) or (6) is not complied with—
section 3 applies to any trustee who has failed to take all such steps as are reasonable to secure compliance, and
section 10 applies to any trustee or manager who has failed to take all such steps.
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The trustees or managers of an occupational pension scheme to which section 56 applies must secure that there is prepared, maintained and from time to time revised a schedule (referred to in sections 57 to 59 as a “schedule of contributions”) showing—
the rates of contributions payable towards the scheme by or on behalf of the employer and the active members of the scheme, and
the dates on or before which such contributions are to be paid.
The schedule of contributions for a scheme must satisfy prescribed requirements.
The schedule of contributions for a scheme—
must be prepared before the end of a prescribed period beginning with the signing of the first actuarial valuation for the scheme,
may be revised from time to time where the revisions are previously agreed by the trustees or managers and the employer and any revision in the rates of contributions is certified by the actuary of the scheme, and
must be revised before the end of a prescribed period beginning with the signing of each subsequent actuarial valuation.
The matters shown in the schedule of contributions for a scheme— and the rates of contributions shown in the schedule must be certified by the actuary of the scheme.
must be matters previously agreed by the trustees or managers and the employer, or
if no such agreement has been made as to all the matters shown in the schedule, must be—
rates of contributions determined by the trustees or managers, being such rates as in their opinion are adequate for the purpose of securing that the minimum funding requirement will continue to be met throughout the prescribed period or, if it appears to them that it is not met, will be met by the end of that period, and
other matters determined by the trustees or managers;
An agreement for the purposes of subsection (4)(a) is one which is made by the trustees or managers and the employer during the prescribed period beginning with the signing of the last preceding actuarial valuation for the scheme.
The actuary may not certify the rates of contributions shown in the schedule of contributions—
in a case where on the date he signs the certificate it appears to him that the minimum funding requirement is met, unless he is of the opinion that the rates are adequate for the purpose of securing that the requirement will continue to be met throughout the prescribed period, and
in any other case, unless he is of the opinion that the rates are adequate for the purpose of securing that the requirement will be met by the end of that period.
The Authority may in prescribed circumstances extend (or further extend) the period referred to in subsection (6).
Where, in the case of any occupational pension scheme to which section 56 applies, this section is not complied with—
section 3 applies to any trustee who has failed to take all such steps as are reasonable to secure compliance, and
section 10 applies to any trustee or manager who has failed to take all such steps.
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Except in prescribed circumstances, the trustees or managers of an occupational pension scheme to which section 56 applies must, where any amounts payable by or on behalf of the employer or the active members of the scheme in accordance with the schedule of contributions have not been paid on or before the due date, give notice of that fact, within the prescribed period, to the Authority and to the members of the scheme.
Any such amounts which for the time being remain unpaid after that date (whether payable by the employer or not) shall, if not a debt due from the employer to the trustees or managers apart from this subsection, be treated as such a debt.
If, in the case of an occupational pension scheme to which section 56 applies, it appears to the trustees or managers, at the end of any prescribed period that the minimum funding requirement is not met, they must prepare a report giving the prescribed information about the failure to meet that requirement.
If in the case of any such scheme, subsection (1) or (3) is not complied with—
section 3 applies to any trustee who has failed to take all such steps as are reasonable to secure compliance, and
section 10 applies to any trustee or manager who has failed to take all such steps.
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Subsection (2) applies where, in the case of an occupational pension scheme to which section 56 applies, an actuarial valuation shows that, on the effective date of the valuation, the value of the scheme assets is less than 90 per cent. of the amount of the scheme liabilities (the difference shown in the valuation being referred to in this section as “the shortfall”).
The employer must— secure an increase in the value of the scheme assets which, taken with any contributions paid, is not less than the shortfall.
by making an appropriate payment to the trustees or managers, or
by a prescribed method,
The required increase in that value must be secured—
before the end of a prescribed period beginning with the signing of the valuation, or
if the actuarial valuation was obtained by reason of such a statement in a certificate as is referred to in section 57(2), before the end of a prescribed period beginning with the signing of the certificate.
Except in prescribed circumstances, if the employer fails to secure the required increase in value before the end of the period applicable under subsection (3), the trustees or managers must, within the period of fourteen days (or such longer period as is prescribed) beginning with the end of that period, give written notice of that fact to the Authority and to the members of the scheme.
If the employer fails to secure the required increase in value before the end of the period applicable under subsection (3), then so much of the shortfall as, at any subsequent time, has not been met by an increase in value under subsection (2) made— shall, if not a debt due from the employer to the trustees or managers apart from this subsection, be treated at that time as such a debt.
by making an appropriate payment to the trustees or managers,
by a prescribed method, or
by contributions made before the end of that period,
Where an increase in value is secured by a prescribed method, the increase is to be treated for the purposes of this section as being of an amount determined in accordance with regulations.
The Authority may in prescribed circumstances extend (or further extend) the period applicable under subsection (3).
If subsection (4) is not complied with—
section 3 applies to any trustee who has failed to take all such steps as are reasonable to secure compliance, and
section 10 applies to any trustee or manager who has failed to take all such steps.
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An occupational pension scheme which does not contain an equal treatment rule shall be treated as including one.
An equal treatment rule is a rule which relates to the terms on which—
persons become members of the scheme, and
members of the scheme are treated.
Subject to subsection (6), an equal treatment rule has the effect that where— but (apart from the rule) any of the terms referred to in subsection (2) is or becomes less favourable to the woman than it is to the man, the term shall be treated as so modified as not to be less favourable.
a woman is employed on like work with a man in the same employment,
a woman is employed on work rated as equivalent with that of a man in the same employment, or
a woman is employed on work which, not being work in relation to which paragraph (a) or (b) applies, is, in terms of the demands made on her (for instance under such headings as effort, skill and decision) of equal value to that of a man in the same employment,
An equal treatment rule does not operate in relation to any difference as between a woman and a man in the operation of any of the terms referred to in subsection (2) if the trustees or managers of the scheme prove that the difference is genuinely due to a material factor which—
is not the difference of sex, but
is a material difference between the woman’s case and the man’s case.
References in subsection (4) and sections 63 to 65 to the terms referred to in subsection (2), or the effect of any of those terms, include— and references to the terms on which members of the scheme are treated are to be read accordingly.
a term which confers on the trustees or managers of an occupational pension scheme, or any other person, a discretion which, in a case within any of paragraphs (a) to (c) of subsection (3)—
may be exercised so as to affect the way in which persons become members of the scheme, or members of the scheme are treated, and
may (apart from the equal treatment rule) be so exercised in a way less favourable to the woman than to the man, and
the effect of any exercise of such a discretion;
In the case of a term within subsection (5)(a) the effect of an equal treatment rule is that the term shall be treated as so modified as not to permit the discretion to be exercised in a way less favourable to the woman than to the man.
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The reference in section 62(2) to the terms on which members of a scheme are treated includes those terms as they have effect for the benefit of dependants of members, and the reference in section 62(5) to the way in which members of a scheme are treated includes the way they are treated as it has effect for the benefit of dependants of members.
Where the effect of any of the terms referred to in section 62(2) on persons of the same sex differs according to their family or marital status, the effect of the term is to be compared for the purposes of section 62 with its effect on persons of the other sex who have the same status.
An equal treatment rule has effect subject to paragraphs 5 and 6 of Schedule 5 to the Social Security Act 1989 (employment-related benefit schemes: maternity and family leave provisions).
Section 62 shall be construed as one with section 1 of the Equal Pay Act 1970 (requirement of equal treatment for men and women in the same employment); and sections 2 and 2A of that Act (disputes and enforcement) shall have effect for the purposes of section 62 as if—
references to an equality clause were to an equal treatment rule,
references to employers and employees were to the trustees or managers of the scheme (on the one hand) and the members, or prospective members, of the scheme (on the other),
for section 2(4) there were substituted—, and
references to section 1(2)(c) of the Equal Pay Act 1970 were to section 62(3)(c) of this Act.
Regulations may make provision for the Equal Pay Act 1970 to have effect, in relation to an equal treatment rule, with prescribed modifications; and subsection (4) shall have effect subject to any regulations made by virtue of this subsection.
Section 62, so far as it relates to the terms on which members of a scheme are treated, is to be treated as having had effect in relation to any pensionable service on or after 17th May 1990.
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An equal treatment rule does not operate in relation to any variation as between a woman and a man in the effect of any of the terms referred to in section 62(2) if the variation is permitted by or under any of the provisions of this section.
Where a man and a woman are eligible, in prescribed circumstances, to receive different amounts by way of pension, the variation is permitted by this subsection if, in prescribed circumstances, the differences are attributable only to differences between men and women in the benefits under sections 43 to 55 of the Social Security Contributions and Benefits Act 1992 (State retirement pensions) to which, in prescribed circumstances, they are or would be entitled.
A variation is permitted by this subsection if— and in this subsection “benefits” include any payment or other benefit made to or in respect of a person as a member of the scheme.
the variation consists of the application of actuarial factors which differ for men and women to the calculation of contributions to a scheme by employers, being factors which fall within a prescribed class or description, or
the variation consists of the application of actuarial factors which differ for men and women to the determination of benefits falling within a prescribed class or description;
Regulations may— and regulations made by virtue of this subsection may have effect in relation to pensionable service on or after 17th May 1990 and before the date on which the regulations are made.
permit further variations, or
amend or repeal subsection (2) or (3);
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The trustees or managers of an occupational pension scheme may, if— by resolution make such alterations to the scheme.
they do not (apart from this section) have power to make such alterations to the scheme as may be required to secure conformity with an equal treatment rule, or
they have such power but the procedure for doing so—
is liable to be unduly complex or protracted, or
involves the obtaining of consents which cannot be obtained, or can only be obtained with undue delay or difficulty,
The alterations may have effect in relation to a period before the alterations are made.
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In section 6 of the Equal Pay Act 1970 (exclusions), for subsections (1A) and (2) (exclusion for terms related to death or retirement) there is substituted—.
In section 4(1) of the Sex Discrimination Act 1975 (victimisation of complainants etc.)—
in paragraphs (a), (b) and (c), after “Equal Pay Act 1970” there is inserted “or sections 62 to 65 of the Pensions Act 1995”, and
at the end of paragraph (d) there is added “or under sections 62 to 65 of the Pensions Act 1995”.
In section 6 of the Sex Discrimination Act 1975 (discrimination against applicants and employees), for subsection (4) there is substituted—.
Regulations may make provision—
for the Equal Pay Act 1970 to have effect, in relation to terms of employment relating to membership of, or rights under, an occupational pension scheme with prescribed modifications, and
for imposing requirements on employers as to the payment of contributions and otherwise in case of their failing or having failed to comply with any such terms.
References in subsection (4) to terms of employment include (where the context permits)—
any collective agreement or pay structure, and
an agricultural wages order within section 5 of the Equal Pay Act 1970.
The subsisting rights provisions apply to any power conferred on any person by an occupational pension scheme to modify the scheme, other than a power conferred by—
a public service pension scheme, or
a prescribed scheme or a scheme of a prescribed description.
Any exercise of such a power to make a regulated modification is voidable in accordance with section 67G unless the following are satisfied in respect of the modification—
in the case of each affected member—
if the modification is a protected modification, or the scheme is a collective money purchase scheme within the meaning of Part 1 of the Pension Schemes Act 2021, the consent requirements (see section 67B),
if sub-paragraph (i) does not apply, either the consent requirements or the actuarial equivalence requirements (see section 67C),
the trustee approval requirement (see section 67E), and
the reporting requirement (see section 67F).
Any exercise of such a power to make a prohibited modification is void.
The subsisting rights provisions do not apply in relation to the exercise of a power—
for a purpose connected with debits under section 29(1) of the Welfare Reform and Pensions Act 1999, ...
the certification requirements, or
the requirements for consent,
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References in this section and sections 67A to 67I to “the subsisting rights provisions” are to this section and those sections.
“the certification requirements” means prescribed requirements for the purpose of securing that no power to which this section applies is exercised in any manner which, in the opinion of an actuary, would adversely affect any member of the scheme (without his consent) in respect of his entitlement, or accrued rights, acquired before the power is exercised, and
“the consent requirements” means prescribed requirements for the purpose of obtaining the consent of members of a scheme to the exercise of a power to which this section applies.
Subsection (6) applies in relation to the exercise of a power to which the subsisting rights provisions apply to make a regulated modification where a member of the scheme dies before the requirements mentioned in subsection (2), so far as they apply in his case, have been complied with in respect of the modification if—
before he died he had given his consent to the modification in accordance with section 67B(4)(b), or
before he died, or before the trustees of the scheme had become aware that he had died, the trustees had complied with section 67C(4)(a), (b) and (d) in respect of the modification in his case.
Regulations may provide for cases in which the subsisting rights provisions do not apply.
Any of the requirements mentioned in subsection (2), as it applies in respect of the modification— is to be taken to be satisfied in the case of any survivor of the member in respect of the modification.
which is satisfied in the case of the member, or
which would have been satisfied in his case had he not died before it was satisfied,
The trustees of a trust scheme may by resolution modify the scheme with a view to achieving any of the purposes specified in subsection (2).
The purposes referred to in subsection (1) are—
to extend the class of persons who may receive benefits under the scheme in respect of the death of a member of the scheme,
to enable the scheme to conform with such arrangements as are required by section 241 of the Pensions Act 2004,
to enable the scheme to comply with such terms and conditions as may be imposed by the Board of the Pension Protection Fund in relation to any payment made by it under section 185 or 186 of the Pensions Act 2004,
to enable the scheme to conform with section 37(2), 76(2), 91 or 92,
prescribed purposes.
to enable the scheme to accommodate persons with pension credits or pension credit rights, and
No modification may be made by virtue of subsection (2)(a) without the consent of the employer.
Modifications made by virtue of subsection (2)(b) may include in particular—
modification of any limit on the number of, or of any category of, trustees, or
provision for the transfer or vesting of property.
Nothing done by virtue of subsection (2)(d), or any corresponding provisions in force in Northern Ireland, shall be treated as effecting an alteration to the scheme in question for the purposes of section 591B (cessation of approval) of the Taxes Act 1988.
Regulations may provide that this section does not apply to trust schemes falling within a prescribed class or description.
In the subsisting rights provisions, each of the following expressions has the meaning given to it by the following provisions of this section— “prohibited modification” “regulated modification” “protected modification” “detrimental modification” “affected member” “subsisting right” “scheme rules”.
“Prohibited modification” means a modification of an occupational pension scheme which on taking effect would or might result in any subsisting right of— which is not a right or entitlement to money purchase benefits becoming, or being replaced with, a right or entitlement to collective money purchase benefits under the scheme rules.
a member of the scheme, or
a survivor of a member of the scheme,
“Regulated modification” means a modification which is— or is both.
a protected modification, or
a detrimental modification,
“Protected modification” means a modification , other than a prohibited modification, of an occupational pension scheme which— ...
on taking effect would or might result in a relevant transformation of any subsisting right of a member of the scheme or a survivor of a member of the scheme (see subsection (3A)),
would or might result in a reduction in the prevailing rate of any pension in payment under the scheme rules , other than a pension that is a collective money purchase benefit, or
is of a prescribed description.
For the purposes of subsection (3)(a), there is a relevant transformation of a subsisting right where—
a subsisting right that is not a right or entitlement to money purchase benefits becomes, or is replaced with, a right or entitlement to money purchase benefits under the scheme rules,
a subsisting right that is a right or entitlement to money purchase benefits other than collective money purchase benefits becomes, or is replaced with, a right or entitlement to collective money purchase benefits under the scheme rules, or
a subsisting right that is a right or entitlement to collective money purchase benefits becomes, or is replaced with, a right or entitlement to money purchase benefits other than collective money purchase benefits under the scheme rules.
For the purposes of subsection (3A), the reference in the definition of “money purchase benefits” in section 181(1) of the Pension Schemes Act 1993 to the widow, widower or surviving civil partner of a member of an occupational pension scheme is to be read as including any other survivor of the member.
“Detrimental modification” means a modification , other than a prohibited modification, of an occupational pension scheme which on taking effect would or might adversely affect any subsisting right of—
any member of the scheme, or
any survivor of a member of the scheme.
A person is an “affected member”—
in relation to a protected modification within paragraph (a) or (b) of subsection (3), if, at the time the modification takes effect, he is— and, on taking effect, the modification would or might affect any of his subsisting rights as mentioned in that paragraph,
a member of the scheme, or
a survivor of a member of the scheme,
in relation to a protected modification within paragraph (c) of that subsection, if he is of a prescribed description, and
in relation to a detrimental modification which is not a protected modification if, at the time the modification takes effect, he is— and, on taking effect, the modification would or might adversely affect any of his subsisting rights.
a member of the scheme, or
a survivor of a member of the scheme,
“Subsisting right” means— For this purpose, “right” includes a pension credit right.
in relation to a member of an occupational pension scheme, at any time—
any right which at that time has accrued to or in respect of him to future benefits under the scheme rules, or
any entitlement to the present payment of a pension or other benefit which he has at that time, under the scheme rules, and
in relation to the survivor of a member of an occupational pension scheme, at any time, any entitlement to benefits, or right to future benefits, which he has at that time under the scheme rules in respect of the member.
At any time when the pensionable service of a member of an occupational pension scheme is continuing, his subsisting rights are to be determined as if he had opted, immediately before that time, to terminate that service.
“Scheme rules”, in relation to a scheme, means—
the rules of the scheme, except so far as overridden by a relevant legislative provision,
the relevant legislative provisions, to the extent that they have effect in relation to the scheme and are not reflected in the rules of the scheme, and
any provision which the rules of the scheme do not contain but which the scheme must contain if it is to conform with the requirements of Chapter 1 of Part 4 of the Pension Schemes Act 1993 (preservation of benefit under occupational pension schemes).
For the purposes of subsection (8)—
“relevant legislative provision” means any provision contained in any of the following provisions—
Schedule 5 to the Social Security Act 1989 (equal treatment for men and women);
Chapter 2 or 3 of Part 4 of the Pension Schemes Act 1993 (certain protection for early leavers) or regulations made under either of those Chapters;
Chapter 1 or 2 of Part 4ZA of that Act (transfers and contribution refunds) or regulations made under either of those Chapters;
Part 4A of that Act (requirements relating to pension credit benefit) or regulations made under that Part;
section 110(1) of that Act (requirement as to resources for annual increase of guaranteed minimum pensions);
this Part of this Act (occupational pensions) or subordinate legislation made or having effect as if made under this Part;
section 31 of the Welfare Reform and Pensions Act 1999 (pension debits: reduction of benefit);
any provision mentioned in section 306(2) of the Pensions Act 2004;
section 55 of the Pension Schemes Act 2015;
regulations made under section 56 or 57 of the Pension Schemes Act 2015;
sections 21, 23, 26, 28, 29 and 33 of and Schedule 1 to the Pension Schemes Act 2017;
regulations made under section 18(4) of or paragraph 1(6) of Schedule 2 to the Pension Schemes Act 2021;
sections 31, 34, 39, 41, 42 and 45 of the Pension Schemes Act 2021;
regulations 40 and 56 of the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025 (S.I. 2025/1313);
a relevant legislative provision is to be taken to override any of the provisions of the scheme if, and only if, it does so by virtue of any of the following provisions—
paragraph 3 of Schedule 5 to the Social Security Act 1989;
section 129(1) of the Pension Schemes Act 1993;
section 117(1) of this Act;
section 31(4) of the Welfare Reform and Pensions Act 1999;
section 306(1) of the Pensions Act 2004;
section 55(3) of the Pension Schemes Act 2015;
regulations made under section 56(4) or 57(4) of the Pension Schemes Act 2015;
sections 21(7), 23(7), 26(9), 28(6), 29(2) and 33(5) of and paragraph 1(7) of Schedule 1 to the Pension Schemes Act 2017;
sections 18(7)(b), 31(4A), 34(5), 39(6), 41(6), 42(2) and 45(5) of and paragraph 1(7) of Schedule 2 to the Pension Schemes Act 2021.
regulation 40(1)(b) of the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025.
For the purposes of this section—
“survivor”, in relation to a member of an occupational pension scheme, means a person who—
is the widow or widower of the member, or
has survived the member and has any entitlement to benefit, or right to future benefits, under the scheme rules in respect of the member, and
a modification would or might adversely affect a person’s subsisting right if it would alter the nature or extent of the entitlement or right so that the benefits, or future benefits, to which the entitlement or right relates would or might be less generous.
In the subsisting rights provisions, in relation to— references to “the scheme” are to be read as references to the scheme mentioned in paragraph (a).
the exercise of a power to modify an occupational pension scheme to which the subsisting rights provisions apply, or
a modification made, or to be made, in exercise of such a power,
The Authority may, on an application made to them by the trustees of a registered pension scheme which is being wound up, make an order—
modifying the scheme for the purpose of enabling assets remaining after the liabilities of the scheme have been fully discharged to be distributed to the employer, or
authorising the trustees to modify the scheme for that purpose.
But the Authority may act under subsection (1) only if prescribed requirements in relation to the distribution are satisfied.
Regulations may make provision requiring applications under subsection (1) to meet prescribed requirements.
in the case of a scheme to which Schedule 22 to the Taxes Act 1988 (reduction of pension fund surpluses in certain exempt approved schemes) applies, to reduce or eliminate on any particular occasion any excess in accordance with any proposal submitted under paragraph 3(1) of that Schedule, where any requirements mentioned in section 37(4), and any other prescribed requirements, will be satisfied in relation to the reduction or elimination,
in the case of an exempt approved scheme (within the meaning given by section 592(1) of the Taxes Act 1988) which is being wound up, to enable assets remaining after the liabilities of the scheme have been fully discharged to be distributed to the employer, where prescribed requirements in relation to the distribution are satisfied, or
to enable the scheme to be so treated during a prescribed period that an employment to which the scheme applies may be contracted-out employment by reference to it.
Regulations may provide that in prescribed circumstances this section does not apply to schemes falling within a prescribed class or description or applies to them with prescribed modifications.
in the case of the purposes referred to in paragraph (a) or (b) of subsection (3), the trustees of the scheme, and
in the case of the purposes referred to in paragraph (c) of that subsection—
the trustees or managers of the scheme,
the employer, or
any person other than the trustees or managers who has power to alter the rules of the scheme.
In this section “registered pension scheme” means an occupational pension scheme registered under section 153 of the Finance Act 2004 (other than a public service pension scheme).
if made with a view to achieving either of the purposes referred to in subsection (3)(a) or (b), so as to confer the power of modification on the trustees, and
if made with a view to achieving the purposes referred to in subsection (3)(c), so as to confer the power of modification on such persons (who may include persons who were not parties to the application made to the Authority) as the Authority think appropriate.
Regulations may provide that in prescribed circumstances this section does not apply to occupational pension schemes falling within a prescribed class or description or applies to them with prescribed modifications.
References in the subsisting rights provisions to the consent requirements, in respect of a regulated modification, are to be read in accordance with this section.
The consent requirements apply in the case of an affected member—
if the modification is a protected modification;
if it is not a protected modification, unless the actuarial equivalence requirements apply in his case.
The consent requirements consist of—
the informed consent requirement (see subsection (4)), and
the timing requirement (see subsection (6)).
The informed consent requirement is satisfied in the case of an affected member if before the modification is made—
the trustees have—
given him information in writing adequate to explain the nature of the modification and its effect on him,
notified him in writing that he may make representations to the trustees about the modification,
afforded him a reasonable opportunity to make such representations, and
notified him in writing that the consent requirements apply in his case in respect of the modification, and
after the trustees have complied with paragraph (a)(i), (ii) and (iv), the affected member has given his consent in writing to the modification.
If— the trustees are to be taken to have complied with subsection (4)(a)(iv) in respect of him.
the modification is not a protected modification, and
before the modification is made the trustees notify an affected member in writing that—
if he gives his consent to the modification for the purposes of the consent requirements, those requirements apply in his case in respect of the modification, but
otherwise, the actuarial equivalence requirements apply in his case in respect of the modification,
The timing requirement is satisfied in the case of an affected member if the modification takes effect within a reasonable period after the member has given his consent to the modification in accordance with subsection (4)(b).
The Authority may not make an order under section 69 unless they are satisfied that the purposes for which the application for the order was made—
cannot be achieved otherwise than by means of such an order, or
can only be achieved in accordance with a procedure which—
is liable to be unduly complex or protracted, or
involves the obtaining of consents which cannot be obtained, or can only be obtained with undue delay or difficulty.
The extent of the Authority’s powers to make such an order is not limited, in relation to any purposes for which they are exercisable, to the minimum necessary to achieve those purposes.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
References in the subsisting rights provisions to the actuarial equivalence requirements, in respect of a detrimental modification which is not a protected modification, are to be read in accordance with this section and section 67D.
The actuarial equivalence requirements apply in the case of an affected member only if—
the modification is not a protected modification, and
the trustees of the scheme determine that they are to apply in his case.
The actuarial equivalence requirements consist of—
the information requirement (see subsection (4)),
the actuarial value requirement (see subsection (5)), and
the actuarial equivalence statement requirement (see subsection (6)).
The information requirement is satisfied in the case of an affected member if before the modification is made the trustees have taken all reasonable steps to—
give him information in writing adequate to explain the nature of the modification and its effect on him,
notify him in writing that he may make representations to the trustees about the modification,
afford him a reasonable opportunity to make such representations, and
notify him in writing that the actuarial equivalence requirements apply in his case in respect of the modification.
The actuarial value requirement is satisfied in the case of an affected member if before the modification is made the trustees have made such arrangements, or taken such steps, as are adequate to secure that actuarial value will be maintained.
The actuarial equivalence statement requirement is satisfied in the case of an affected member if the trustees have, within a reasonable period beginning with the date on which the modification takes effect, obtained an actuarial equivalence statement relating to the affected member in respect of the modification.
For the purposes of subsection (6) “actuarial equivalence statement” means a statement in writing which—
is given by—
the actuary appointed in relation to the scheme under section 47(1)(b), or
a person with prescribed qualifications or experience or who is approved by the Secretary of State, and
certifies that actuarial value has been maintained.
For the purposes of subsections (5) and (7) as they apply in relation to an affected member, actuarial value is maintained if the actuarial value, immediately after the time at which the modification takes effect, of the affected member’s subsisting rights is equal to or greater than the actuarial value of his subsisting rights immediately before that time.
An order under paragraph (b) of subsection (1) of section 69 may enable those exercising any power conferred by the order to exercise it retrospectively (whether or not the power could otherwise be so exercised) and an order under paragraph (a) of that subsection may modify a scheme retrospectively.
Any modification of a scheme made in pursuance of an order of the Authority under section 69 is as effective in law as if it had been made under powers conferred by or under the scheme.
An order under section 69 may be made and complied with in relation to a scheme—
in spite of any enactment or rule of law, or any rule of the scheme, which would otherwise operate to prevent the modification being made, or
without regard to any such enactment, rule of law or rule of the scheme as would otherwise require, or might otherwise be taken to require, the implementation of any procedure or the obtaining of any consent, with a view to the making of the modification.
In this section, “retrospectively” means with effect from a date before that on which the power is exercised or, as the case may be, the order is made.
This section applies for the purposes of section 67C.
Where— the information requirement is to be taken to have been satisfied in relation to the revised modification.
the information requirement has been satisfied in the case of an affected member in respect of a proposed modification (“the original modification”),
before the trustees have made a determination, or given their consent, for the purposes of section 67E(1) in relation to the original modification, the original modification has been revised, and
the modification as so revised (“the revised modification”) does not differ from the original modification in any material respect,
The trustees are to be regarded as having taken all reasonable steps to notify an affected member as mentioned in section 67C(4)(d) in respect of a modification if they have taken all reasonable steps to notify him in writing that—
if he gives his consent to the modification for the purposes of the consent requirements, those requirements apply in his case in respect of the modification, but
otherwise, the actuarial equivalence requirements apply in his case in respect of the modification.
Any calculation for the purposes of section 67C of the actuarial value of an affected member’s subsisting rights at any time must conform with such requirements as may be prescribed.
Requirements prescribed by regulations under subsection (4) may include requirements for any such calculation to be made in accordance with guidance that is prepared and from time to time revised by a prescribed body.
Nothing in subsections (6) and (7) of section 67C precludes actuarial equivalence statements relating to— in respect of a modification being given in a single document.
two or more affected members, or
affected members of any particular description,
The appropriate authority may make such provision for the modification of a public service pension scheme as could be made in respect of a scheme other than a public service pension scheme by an order of the Authority under section 69(1)(a).
In this section “the appropriate authority”, in relation to a scheme, means such Minister of the Crown or government department as may be designated by the Treasury as having responsibility for the particular scheme.
The powers of the appropriate authority under this section are exercisable by means of an order—
directly modifying the scheme (without regard, in the case of a scheme contained in or made under powers conferred by an enactment, to the terms of the enactment or any of its restrictions), or
modifying an enactment under which the scheme was made or by virtue of which it has effect.
Any such order may adapt, amend or repeal any such enactment as is referred to in paragraph (a) or (b) of subsection (3) as that authority thinks appropriate.
For the purposes of section 67(2)(b), the trustee approval requirement is satisfied in relation to the exercise of a power to make a regulated modification if— and the making of the determination, or giving of consent, complies with subsections (2) and (3).
the trustees of the scheme have determined to exercise the power to make the modification, or
if the power is exercised by another person, the trustees have consented to the exercise of the power to make the modification,
The trustees must not make a determination, or give their consent, for the purposes of subsection (1) unless, in the case of each affected member—
if the modification is a protected modification, the informed consent requirement is satisfied (within the meaning of section 67B), or
if it is not a protected modification— in respect of the modification.
the informed consent requirement is satisfied, or
the information and actuarial value requirements are satisfied (within the meaning of section 67C),
The trustees must not make a determination, or give their consent, for the purposes of subsection (1) more than a reasonable period after the first consent given by an affected member under section 67B(4)(b) in respect of the modification was given.
For the purposes of section 67(2)(c), the reporting requirement is satisfied in relation to the exercise of a power to which the subsisting rights provisions apply to make a regulated modification if the trustees have, in accordance with subsection (2)— that they have made a determination, or given their consent, for the purposes of section 67E(1) in relation to the exercise of the power to make the modification.
notified each affected member in whose case the consent requirements apply in respect of the modification, and
taken all reasonable steps to notify each affected member in whose case the actuarial equivalence requirements apply in respect of the modification,
The trustees must give (or, where the actuarial equivalence requirements apply, take all reasonable steps to give) the notification—
within a reasonable period beginning with the date of the determination or giving of consent mentioned in subsection (1), and
before the date on which the modification takes effect.
Subsection (2) applies in relation to a regulated modification made in exercise of a power to which the subsisting rights provisions apply which is voidable by virtue of—
section 67(2), or
section 67H(3).
The Authority may make an order declaring that subsection (6) applies in relation to the regulated modification.
An order under subsection (2) relating to a regulated modification may also declare that subsection (6) applies in relation to—
any other modification of the scheme made by the exercise of the power mentioned in subsection (1), or
the grant of any rights under the scheme (whether by virtue of the attribution of notional periods as pensionable service or otherwise) in connection with the regulated modification.
An order under subsection (2) relating to a regulated modification must specify the affected member or affected members or description of affected members in respect of whom subsection (6) applies (“the specified persons”).
An order under subsection (2) relating to a regulated modification may also— This is without prejudice to section 174(3).
require the trustees to take, within the time specified in the order, such steps as are so specified for the purpose of giving effect to the order;
declare that subsection (7) applies in relation to anything done by the trustees after the time at which the modification would, disregarding the order, have taken effect which—
would not have contravened any provision of the scheme rules if the modification had taken effect at that time, but
as a result of the modification being void to any extent by virtue of the order, would (but for that subsection) contravene such a provision.
Where the Authority make an order declaring that this subsection applies in relation to a modification of a scheme, or the grant of any rights under the scheme, the modification or grant is void to the extent specified in the order, and in respect of the specified persons, as from the time when it would, disregarding the order, have taken effect.
Where, by virtue of subsection (5)(b), the Authority make an order under subsection (2) declaring that this subsection applies in relation to anything done by the trustees, that thing is to be taken, for such purposes as are specified in the order, not to have contravened any provision of the trust deed or scheme rules.
An order under subsection (2) relating to a regulated modification, or other modification, of a scheme or the grant of any rights under the scheme may be made before or after the time at which the modification or grant would, disregarding the order, have taken effect.
Subsection (2) applies where the Authority have reasonable grounds to believe that a power to which the subsisting rights provisions apply— to make a regulated modification in circumstances where the modification will be voidable by virtue of section 67(2).
will be exercised, or
has been exercised,
The Authority may by order—
in a case within subsection (1)(a), direct the person on whom the power is conferred not to exercise the power to make the regulated modification;
require the trustees to take, within the time specified in the order, such steps as are so specified for the purpose of securing that any of the requirements mentioned in section 67(2) is satisfied.
A regulated modification made in exercise of a power to which the subsisting rights provisions apply is voidable in accordance with section 67G if—
the exercise of the power contravened an order under paragraph (a) of subsection (2), or
the trustees fail to comply with a requirement imposed by an order under paragraph (b) of that subsection relating to any exercise of the power to make the modification.
Subsections (2) and (3) apply where a regulated modification is voidable by virtue of section 67(2).
Where the modification was made by the exercise of a power— section 10 applies to any trustee who has failed to take all reasonable steps to secure that the modification is not so voidable.
by the trustees of the scheme, or
by any other person in circumstances which do not fall within subsection (3),
Section 10 applies to any person other than the trustees of the scheme who, without reasonable excuse, exercises a power to make the modification if—
the trustees have not given their consent, for the purposes of section 67E(1), to the exercise of the power to make the modification, or
in the case of any affected member, the timing requirement is not satisfied (within the meaning of section 67B) in respect of the modification.
Where the trustees fail to comply with any requirement imposed, by virtue of subsection (5)(a) of section 67G, by an order under subsection (2) of that section, section 10 applies to any trustee who has failed to take all reasonable steps to secure such compliance.
Where a regulated modification is made by the exercise of a power in contravention of an order under section 67H(2)(a)—
if the power is exercised by the trustees, section 10 applies to any trustee who has failed to take all reasonable steps to secure that the order was not contravened;
section 10 applies to any other person who without reasonable excuse exercises the power in contravention of the order.
Where the trustees fail to comply with any requirement specified in an order under section 67H(2)(b), section 10 applies to any trustee who has failed to take all reasonable steps to secure such compliance.
The Authority may at any time while— make an order modifying that scheme with a view to ensuring that it is properly wound up.
an occupational pension scheme is being wound up, and
the employer in relation to the scheme is subject to an insolvency procedure,
The Authority shall not make such an order except on an application made to them, at a time such as is mentioned in subsection (1), by the trustees or managers of the scheme.
Except in so far as regulations otherwise provide, an application for the purposes of this section must be made in writing.
Regulations may make provision—
for the form and manner in which an application for the purposes of this section is to be made to the Authority;
for the matters which are to be contained in such an application;
for the documents which must be attached to an application for the purposes of this section or which must otherwise be delivered to the Authority with or in connection with any such application;
for persons to be required, before an application is made for the purposes of this section, to give such notifications of the making of the application as may be prescribed;
for the matters which are to be contained in a notification of such an application;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The power of the Authority to make an order under this section—
shall be limited to what they consider to be the minimum modification necessary to enable the scheme to be properly wound up; and
shall not include power to make any modification that would have a significant adverse effect on—
the accrued rights of any member of the scheme; or
any person’s entitlement under the scheme to receive any benefit.
A modification of an occupational pension scheme by an order of the Authority under this section shall be as effective in law as if—
it had been made under powers conferred by or under the scheme;
the modification made by the order were capable of being made in exercise of such powers notwithstanding any enactment, rule of law or rule of the scheme that would have prevented their exercise for the making of that modification; and
the exercise of such powers for the making of that modification would not have been subject to any enactment, rule of law or rule of the scheme requiring the implementation of any procedure or the obtaining of any consent in connection with the making of a modification.
Regulations may provide that, in prescribed circumstances, this section—
does not apply in the case of occupational pension schemes of a prescribed class or description; or
in the case of occupational pension schemes of a prescribed class or description applies with prescribed modifications.
The times when an employer in relation to an occupational pension scheme shall be taken for the purposes of this section to be subject to an insolvency procedure are— and for the purposes of this subsection no account shall be taken of modifications or exclusions contained in any regulations under section 118.
in the case of a trust scheme, while section 22 applies in relation to the scheme; and
in the case of a scheme that is not a trust scheme, while section 22 would apply in relation to the scheme if it were a trust scheme;
The Authority shall not be entitled to make an order under this section in relation to a public service pension scheme.
This section applies where an occupational pension scheme contains provisions contravening subsection (2) or (3).
Except so far as regulations otherwise provide, provisions of an occupational pension scheme contravene this subsection to the extent that they would (apart from this section) have an effect with respect to— which would be different according to whether or not a place outside the United Kingdom is specified by that person as the place to which he requires payments of benefits under the scheme to be made to him.
the entitlement of any person to benefits under the scheme, or
the payment to any person of benefits under the scheme,
Except so far as regulations otherwise provide, provisions of an occupational pension scheme contravene this subsection to the extent that they would (apart from this section) have an effect with respect to— which would be different according to whether that person works wholly in the United Kingdom or wholly or partly outside the United Kingdom.
the entitlement of any person to remain a member of the scheme,
the eligibility of any person to remain a person by or in respect of whom contributions are made towards or under the scheme, or
the making by or in respect of any person who is a member of the scheme of any contributions towards or under the scheme,
Provisions contravening subsection (2) shall have effect, in relation to all times after the coming into force of section 55 of the Child Support, Pensions and Social Security Act 2000, as if they made the same provision in relation to a person who requires payments of benefits to be made to a place outside the United Kingdom as they make in relation to a person in whose case all payments of benefits fall to be made to a place in the United Kingdom.
Provisions contravening subsection (3) shall have effect, in relation to all times after the coming into force of section 55 of the Child Support, Pensions and Social Security Act 2000, as if they made the same provision in relation to persons working wholly or partly outside the United Kingdom as they make in relation to persons working wholly in the United Kingdom.
This section—
shall be without prejudice to any enactment under which any amount is to be or may be deducted, or treated as deducted, from amounts payable by way of benefits under the scheme or treated as so payable; and
shall not apply in relation to so much of any provision of a scheme as is required for securing compliance with the conditions of any registration, exemption or relief given or available under the Tax Acts.
“assets” of a scheme to which this section applies do not include any assets representing the value of any rights in respect of money purchase benefits under the scheme rules; “liabilities” of such a scheme do not include any liabilities in respect of money purchase benefits under the scheme rules; “the pension compensation provisions” has the same meaning as in Part 2 of the Pensions Act 2004 (see section 162 of that Act); “scheme rules” has the same meaning as in the Pensions Act 2004 (see section 318 of that Act); “winding up period”, in relation to an occupational pension scheme to which this section applies, means the period which— begins with the day on which the time immediately after the beginning of the winding up of the scheme falls, and ends when the winding up of the scheme is completed.
This section applies where an occupational pension scheme to which this section applies is being wound up to determine the order in which the assets of the scheme are to be applied towards satisfying the liabilities of the scheme in respect of pensions and other benefits.
This section applies to an occupational pension scheme other than a scheme which is—
a money purchase scheme, or
a prescribed scheme or a scheme of a prescribed description.
The assets of the scheme must be applied first towards satisfying the amounts of the liabilities mentioned in subsection (4) and, if the assets are insufficient to satisfy those amounts in full, then—
the assets must be applied first towards satisfying the amounts of the liabilities mentioned in earlier paragraphs of subsection (4) before the amounts of the liabilities mentioned in later paragraphs, and
where the amounts of the liabilities mentioned in one of those paragraphs cannot be satisfied in full, those amounts must be satisfied in the same proportions.
any liability for—
pensions or other benefits which have accrued to or in respect of any members of the scheme (but excluding increases to pensions), or
(in respect of members with less than two years pensionable service) the return of contributions,
any liability for increases to pensions referred to in paragraphs (b) and (c);
The liabilities referred to in subsection (3) are—
where— the liability so secured;
the trustees or managers of the scheme are entitled to benefits under a relevant pre-1997 contract of insurance entered into in relation to the scheme, and
either that contract may not be surrendered or the amount payable on surrender does not exceed the liability secured by the contract,
any liability for pensions or other benefits to the extent that the amount of the liability does not exceed the corresponding PPF liability, other than a liability within paragraph (a);
any liability for pensions or other benefits which, in the opinion of the trustees or managers, are derived from the payment by any member of voluntary contributions, other than a liability within paragraph (a) or (b);
any other liability in respect of pensions or other benefits.
For the purposes of subsection (4)—
For the purposes of this section, when determining the corresponding PPF liability in relation to any liability of a scheme to, or in respect of, a member for pensions or other benefits, the pension compensation provisions apply with such modifications as may be prescribed.
section 3 applies to any trustee who has failed to take all such steps as are reasonable to secure compliance, and
section 10 applies to any trustee or manager who has failed to take all such steps.
Regulations may modify subsection (4).
For the purposes of that subsection—
regulations may prescribe how it is to be determined whether a liability for pensions or other benefits which, in the opinion of the trustees or managers of the scheme, are derived from the payment by any member of voluntary contributions falls within paragraph (a) or (b) of that subsection;
no pension or other benefit which is attributable (directly or indirectly) to a pension credit is to be regarded for the purposes of paragraph (c) of that subsection as derived from the payment of voluntary contributions.
Where, on the commencement of the winding up period, a member becomes a person to whom Chapter 2 of Part 4ZA of the Pension Schemes Act 1993 (early leavers: cash transfer sums and contribution refunds) applies, that Chapter applies in relation to him with such modifications as may be prescribed.
For the purposes of this section—
This section applies where an occupational pension scheme to which section 73 applies is being wound up.
A liability to or in respect of a member of the scheme in respect of pensions or other benefits ... is to be treated as discharged (to the extent that it would not be so treated apart from this section) if the trustees or managers of the scheme have, in accordance with prescribed arrangements, provided for the discharge of the liability in one or more of the ways mentioned in subsection (3).
The ways referred to in subsection (2) are—
by acquiring transfer credits allowed under the rules of another occupational pension scheme which satisfies prescribed requirements and the trustees or managers of which are able and willing to accept payment in respect of the member,
by acquiring rights allowed under the rules of a personal pension scheme which satisfies prescribed requirements and the trustees or managers of which are able and willing to accept payment in respect of the member’s accrued rights or pension credit rights,
by purchasing one or more annuities which satisfy prescribed requirements from one or more insurers, being companies willing to accept payment in respect of the member from the trustees or managers,
by subscribing to other pension arrangements which satisfy prescribed requirements,
by the payment of a cash sum in circumstances where prescribed requirements are met.
If the assets of the scheme are insufficient to satisfy in full the liabilities, as calculated in accordance with the scheme rules, in respect of pensions and other benefits ... , the reference in subsection (2) to providing for the discharge of any liability in one or more of the ways mentioned in subsection (3) is to applying any amount available, in accordance with section 73, in one or more of those ways.
Regulations may provide for this section—
to have effect in relation to so much of any liability as may be determined in accordance with the regulations, ...
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For the purposes of this section— and “scheme rules” has the same meaning as in the Pensions Act 2004 (see section 318 of that Act).
references to assets of the scheme do not include any assets representing the value of any rights in respect of money purchase benefits under the scheme rules, and
references to liabilities of the scheme do not include any liabilities in respect of money purchase benefits under the scheme rules;
This section applies where an occupational pension scheme to which section 73 applies is being wound up.
During the winding up period, the trustees or managers of the scheme—
must secure that any pensions or other benefits (other than money purchase benefits) paid to or in respect of a member are reduced, so far as necessary, to reflect the liabilities of the scheme to or in respect of the member which will be satisfied in accordance with section 73, and
may, for the purposes of paragraph (a), take such steps as they consider appropriate (including steps adjusting future payments) to recover any overpayment or pay any shortfall.
During the winding up period—
no benefits may accrue under the scheme rules to, or in respect of, members of the scheme, and
no new members of any class may be admitted to the scheme.
Subsection (3) does not prevent any increase, in a benefit, which would otherwise accrue in accordance with the scheme or any enactment.
Subsection (3) does not prevent the accrual of money purchase benefits to the extent that they are derived from income or capital gains arising from the investment of payments which are made by, or in respect of, a member of the scheme.
Where a person is entitled to a pension credit derived from another person’s shareable rights under the scheme, subsection (3) does not prevent the trustees or managers of the scheme discharging their liability in respect of the credit under Chapter 1 of Part 4 of the Welfare Reform and Pensions Act 1999 (sharing of rights under pension arrangements) by conferring appropriate rights under the scheme on that person.
During the winding up period no right or entitlement of any member, or of any other person in respect of a member, to a benefit that is not a money purchase benefit is to be converted into, or replaced with, a right or entitlement to a money purchase benefit under the scheme rules.
Regulations may require the trustees or managers of the scheme, in prescribed circumstances—
to adjust the entitlement of a person to a pension or other benefit under the scheme rules where the entitlement arises as a result of a discretionary award which takes effect during the winding up period;
to adjust the entitlement of a person (“the survivor”) to a pension or other benefit under the scheme rules where—
a member of the scheme, or a person who was (or might have become) entitled to a pension or other benefit in respect of a member, dies during the winding up period, and
the survivor’s entitlement is to a pension or other benefit in respect of the member (whether arising on the date of that death or subsequently).
Regulations under subsection (7) may, in particular—
prescribe how the required adjustments to entitlement are to be determined and the manner in which they are to be made;
in a case where the commencement of the winding up of the scheme is backdated (whether in accordance with section 154 of the Pensions Act 2004 (requirement to wind up schemes with sufficient assets to meet protected liabilities) or otherwise), require any adjustment to a person’s entitlement to be made with effect from the time the award takes effect;
without prejudice to sections 10(3) to (9), 73B(2) and 116, make provision about the consequences of breaching the requirements of the regulations.
If the scheme confers power on any person other than the trustees or managers of the scheme to apply the assets of the scheme in respect of pensions or other benefits (including increases in pensions or benefits), it cannot be exercised by that person but may, subject to the provisions made by or by virtue of this section and sections 73 and 73B, be exercised instead by the trustees or managers.
For the purposes of this section—
This section applies in relation to an occupational pension scheme other than a scheme which is—
a money purchase scheme, or
a prescribed scheme or a scheme of a prescribed description.
If— an amount equal to the difference shall be treated as a debt due from the employer to the trustees or managers of the scheme. This is subject to subsection (3).
a relevant insolvency event occurs in relation to the employer, and
at any time which falls— the value of the assets of the scheme is less than the amount at that time of the liabilities of the scheme, and
when a scheme is being wound up, but
before any relevant event in relation to the employer which occurs while the scheme is being wound up,
a debt due from the employer under subsection (1) has not been discharged at the time that event occurs,
the trustees or managers of the scheme designate that time for the purposes of this subsection (before the occurrence of an event within paragraph (a)(ii)),
Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this section as a separate occupational pension scheme which is a money purchase scheme.
Subsection (2) applies only if—
if the scheme is being wound up before a relevant insolvency event occurs in relation to the employer, any time when it is being wound up before such an event occurs, and
either—
no relevant event within subsection (6A)(a) or (b) occurred in relation to the employer during the period beginning with the appointed day and ending with the commencement of the winding up of the scheme, or
during the period— a cessation notice was issued in relation to the scheme and became binding, and
beginning with the occurrence of the last such relevant event which occurred during the period mentioned in sub-paragraph (i), and
ending with the commencement of the winding up of the scheme,
otherwise, immediately before the relevant insolvency event occurs.
no relevant event within subsection (6A)(c) has occurred in relation to the employer during the period mentioned in paragraph (a)(i).
Where— an amount equal to the difference shall be treated as a debt due from the employer to the trustees or managers of the scheme.
in England and Wales—
where the employer is a company, when it goes into liquidation, within the meaning of section 247(2) of the Insolvency Act 1986, or
where the employer is an individual, at the commencement of his bankruptcy, within the meaning of section 278 of that Act, or
immediately before a relevant event (“the current event”) occurs in relation to the employer the value of the assets of the scheme is less than the amount at that time of the liabilities of the scheme,
in Scotland—
where the employer is a company, at the commencement of its winding up, within the meaning of section 129 of that Act, or
where the employer is a debtor within the meaning of the Bankruptcy (Scotland) Act 1985, on the date of sequestration as defined in section 12(4) of that Act.
the current event—
occurred on or after the appointed day, and
did not occur in prescribed circumstances,
if the scheme was being wound up immediately before that event, subsection (2) has not applied in relation to the scheme to treat an amount as a debt due from the employer to the trustees or managers of the scheme,
if the current event is within subsection (6A)(a) or (b), either—
no relevant event within subsection (6A)(a) or (b) occurred in relation to the employer during the period beginning with the appointed day and ending immediately before the current event, or
a cessation event has occurred in relation to the scheme in respect of a cessation notice issued during the period—
beginning with the occurrence of the last such relevant event which occurred during the period mentioned in sub-paragraph (i), and
ending immediately before the current event, and
no relevant event within subsection (6A)(c) has occurred in relation to the employer during the period mentioned in paragraph (d)(i),
For the purposes of subsections (2) and (4), the liabilities and assets to be taken into account, and their amount or value, must be determined, calculated and verified by a prescribed person and in the prescribed manner.
In calculating the value of any liabilities for those purposes, a provision of the scheme rules which limits the amount of its liabilities by reference to the amount of its assets is to be disregarded. In this subsection “scheme rules” has the same meaning as in the Pensions Act 2004 (“the 2004 Act”) (see section 318 of that Act).
Where the current event is within subsection (6A)(a) or (b), the debt under subsection (4) is to be taken, for the purposes of the law relating to insolvency as it applies to the employer, to arise immediately before the occurrence of the current event.
This section does not prejudice any other right or remedy which the trustees or managers may have in respect of a deficiency in the scheme’s assets.
Subsection (4C) applies if, in a case within subsection (4)—
the current event is within subsection (6A)(a) or (b), and
the scheme was not being wound up immediately before that event.
A debt due by virtue only of this section shall not be regarded—
as a preferential debt for the purposes of the Insolvency Act 1986, or
as a preferred debt for the purposes of the Bankruptcy (Scotland) Act 2016.
Where this subsection applies, the debt due from the employer under subsection (4) is contingent upon—
a scheme failure notice being issued in relation to the scheme after the current event and the following conditions being satisfied—
the scheme failure notice is binding,
no relevant event within subsection (6A)(c) has occurred in relation to the employer before the scheme failure notice became binding, and
a cessation event has not occurred in relation to the scheme in respect of a cessation notice issued during the period— and the occurrence of such a cessation event in respect of a cessation notice issued during that period is not a possibility, or
beginning with the occurrence of the current event, and
ending immediately before the issuing of the scheme failure notice,
the commencement of the winding up of the scheme before—
any scheme failure notice or cessation notice issued in relation to the scheme becomes binding, or
any relevant event within subsection (6A)(c) occurs in relation to the employer.
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Regulations may modify this section as it applies in prescribed circumstances.
For the purposes of this section, a relevant event occurs in relation to the employer in relation to an occupational pension scheme if and when—
an insolvency event occurs in relation to the employer,
the trustees or managers of the scheme make an application under subsection (1) of section 129 of the 2004 Act or receive a notice from the Board of the Pension Protection Fund under subsection (5)(a) of that section, or
a resolution is passed for a voluntary winding up of the employer in a case where a declaration of solvency has been made under section 89 of the Insolvency Act 1986 (members' voluntary winding up).
For the purposes of this section—
a “cessation notice”, in the case of a relevant event within subsection (6A)(a), means—
a withdrawal notice issued under section 122(2)(b) of the 2004 Act (scheme rescue has occurred),
a withdrawal notice issued under section 148 of that Act (no insolvency event has occurred or is likely to occur),
a notice issued under section 122(4) of that Act (inability to confirm status of scheme) in a case where the notice has become binding and section 148 of that Act does not apply,
a “cessation notice” in the case of a relevant event within subsection (6A)(b), means a withdrawal notice issued under section 130(3) of the 2004 Act (scheme rescue has occurred),
a cessation event occurs in relation to a scheme when a cessation notice in relation to the scheme becomes binding,
the occurrence of a cessation event in relation to a scheme in respect of a cessation notice issued during a particular period (“the specified period”) is a possibility until each of the following are no longer reviewable—
any cessation notice which has been issued in relation to the scheme during the specified period,
any failure to issue such a cessation notice during the specified period,
any notice which has been issued by the Board under Chapter 2 or 3 of Part 2 of the 2004 Act which is relevant to the issue of a cessation notice in relation to the scheme during the specified period or to such a cessation notice which has been issued during that period becoming binding,
any failure to issue such a notice as is mentioned in sub-paragraph (iii),
the issue or failure to issue a notice is to be regarded as reviewable—
during the period within which it may be reviewed by virtue of Chapter 6 of Part 2 of the 2004 Act, and
if the matter is so reviewed, until— has been finally disposed of, and
the review and any reconsideration,
any reference to the Ombudsman for the Board of the Pension Protection Fund in respect of the matter, and
any appeal against his determination or directions,
a “scheme failure notice” means a scheme failure notice issued under section 122(2)(a) or 130(2) of the 2004 Act (scheme rescue not possible).
For the purposes of this section—
section 121 of the 2004 Act applies for the purposes of determining if and when an insolvency event has occurred in relation to the employer,
“appointed day” means the day appointed under section 126(2) of the 2004 Act (no pension protection under Chapter 3 of Part 2 of that Act if the scheme begins winding up before the day appointed by the Secretary of State),
references to a relevant event in relation to an employer do not include a relevant event which occurred in relation to him before he became the employer in relation to the scheme,
references to a cessation notice becoming binding are to the notice in question mentioned in subsection (6B)(a) or (b) and issued under Part 2 of the 2004 Act becoming binding within the meaning given by that Part of that Act, and
references to a scheme failure notice becoming binding are to the notice in question mentioned in subsection (6B)(f) and issued under Part 2 of the 2004 Act becoming binding within the meaning given by that Part of that Act.
Where— this section has effect as if that resolution had never been passed and any debt which arose under this section by virtue of the passing of that resolution shall be treated as if it had never arisen.
a resolution is passed for a voluntary winding up of the employer in a case where a declaration of solvency has been made under section 89 of the Insolvency Act 1986 (members' voluntary winding up), and
the voluntary winding up of the employer—
is stayed other than in prescribed circumstances, or
becomes a creditors’ voluntary winding up under section 96 of that Act (conversion to creditors’ voluntary winding up),
Any action taken in contravention of section 73A(3) or (6A) is void.
If any provision made by or by virtue of the winding up provisions is not complied with in relation to a scheme to which section 73 applies, section 10 applies to any trustee or manager of the scheme who has failed to take all reasonable steps to secure compliance.
For the purposes of subsection (2), when determining whether section 73A(3) or (6A) has been complied with subsection (1) of this section is to be disregarded.
Regulations may—
prescribe how, for the purposes of the winding up provisions— are to be determined, calculated and verified;
the assets and liabilities of a scheme to which section 73 applies, and
their value or amount,
modify any of the winding up provisions as it applies—
to prescribed schemes or prescribed descriptions of schemes;
in relation to a scheme where only part of the scheme is being wound up;
in relation to a case where any liability of the scheme in respect of a member has been discharged by virtue of regulations under section 135(4) of the Pensions Act 2004 (power to make regulations permitting discharge of scheme’s liabilities during an assessment period).
Without prejudice to the generality of subsection (4), regulations under paragraph (b)(i) of that subsection may, in particular, modify any of the winding up provisions as it applies in relation to a scheme in relation to which there is more than one employer.
The winding up provisions do not apply—
in relation to any liability for an amount by way of pensions or other benefits which a person became entitled to payment of, under the scheme rules, before commencement of the winding up period,
in prescribed circumstances, in relation to any liability in respect of rights of a prescribed description to which a member of the scheme became entitled under the scheme rules by reason of his pensionable service under the scheme terminating before the commencement of the winding up period,
in relation to any liability in respect of rights of prescribed descriptions to which a member of the scheme had become entitled under the scheme rules before the commencement of the winding up period, or
in relation to any liability the discharge of which is validated under section 136 of the Pensions Act 2004 (power to validate actions taken during an assessment period to discharge liabilities of a scheme).
But nothing in subsection (6) prevents the winding up provisions applying in relation to a liability under Chapter 1 of Part 4ZA of the Pension Schemes Act 1993 (transfer values) which—
arose before the commencement of the winding up of the scheme, and
was not discharged before the commencement of the winding up period.
Regulations may provide that, in prescribed circumstances, where— his entitlement to payment of all or part of the benefit is, for the purposes of subsection (6), to be treated as having arisen immediately before the commencement of the winding up period.
an occupational pension scheme to which section 73 applies is being wound up,
a member of the scheme died before the winding up began, and
during the winding up period a person becomes entitled under the scheme rules to a benefit of a prescribed description in respect of the member,
If, immediately before the winding up period in relation to an occupational pension scheme to which section 73 applies, a person is entitled to an amount but has postponed payment of it, he is not, for the purposes of subsection (6), to be regarded as having become entitled to payment of the amount before that period.
For the purposes of this section—
“winding up provisions” means this section and sections 73, 73A and 74, and
subsection (10) of section 73 applies as it applies for the purposes of that section.
This section applies to a trust scheme in any circumstances if—
it is a registered pension scheme under section 153 of the Finance Act 2004,
the scheme is being wound up, and
in those circumstances power is conferred on the employer or the trustees to distribute assets to the employer on a winding up.
The power referred to in subsection (1)(c) cannot be exercised unless the requirements of subsections (3) and (in prescribed circumstances) (4), and any prescribed requirements, are satisfied.
The requirements of this subsection are that—
the liabilities of the scheme have been fully discharged,
where there is any power under the scheme, after the discharge of those liabilities, to distribute assets to any person other than the employer, the power has been exercised or a decision has been made not to exercise it,
... and
notice has been given in accordance with prescribed requirements to the members of the scheme of the proposal to exercise the power.
The requirements of this subsection are that the Authority are of the opinion that—
any requirements prescribed by virtue of subsection (2) are satisfied, and
the requirements of subsection (3) are satisfied.
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“annual rate” and “appropriate percentage” have the same meaning as in section 54, and
“pension” does not include—
any guaranteed minimum pension (as defined in section 8(2) of the Pension Schemes Act 1993) or any increase in such a pension under section 109 of that Act, or
any money purchase benefit (as defined in section 181(1) of that Act).
If, where this section applies to any trust scheme, the trustees purport to exercise the power referred to in subsection (1)(c) without complying with the requirements of this section, section 10 applies to any of them who have failed to take all such steps as are reasonable to secure compliance.
If, where this section applies to any trust scheme, any person other than the trustees purports to exercise the power referred to in subsection (1)(c) without complying with the requirements of this section, section 10 applies to him.
Regulations may provide that this section does not apply, or applies with prescribed modifications, in prescribed circumstances or to schemes of a prescribed description.
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This section applies to a trust scheme in any circumstances if—
it is an exempt approved scheme, within the meaning given by section 592(1) of the Taxes Act 1988,
the scheme is being wound up,
the liabilities of the scheme have been fully discharged,
where there is any power under the scheme, after the discharge of those liabilities, to distribute assets to any person other than the employer, the power has been exercised or a decision has been made not to exercise it,
any assets remain undistributed, and
the scheme prohibits the distribution of assets to the employer in those circumstances.
The annual rates of the pensions under the scheme which commence or have commenced must be increased by the appropriate percentage, so far as the value of the undistributed assets allows.
In subsection (2)—
“annual rate” and “appropriate percentage” have the same meaning as in section 54, and
“pension” does not include—
any guaranteed minimum pension (as defined in section 8(2) of the Pension Schemes Act 1993) or any increase in such a pension under section 109 of that Act, or
any money purchase benefit (as defined in section 181(1) of that Act).
Where any assets remain undistributed after the discharge of the trustees' duty under subsection (2)—
the trustees must use those assets for the purpose of providing additional benefits or increasing the value of any benefits, but subject to prescribed limits, and
the trustees may then distribute those assets (so far as undistributed) to the employer.
If, where this section applies to a trust scheme, the requirements of this section are not complied with, section 3 applies to any trustee who has failed to take all such steps as are reasonable to secure compliance.
Regulations may modify this section as it applies in prescribed circumstances.
section 75(5) (power to prescribe the manner of determining, calculating and verifying assets and liabilities etc), section 75(10) (power to modify section 75 as it applies in prescribed circumstances), section 118(1)(a) (power to modify any provisions of this Part in their application to multi-employer trust schemes), and section 125(3) (power to extend for the purposes of this Part the meaning of “employer”).
Regulations may modify section 75 (deficiencies in the assets) as it applies in relation to multi-employer schemes.
The regulations may in particular provide for the circumstances in which a debt is to be treated as due under section 75 from an employer in relation to a multi-employer scheme (a “multi-employer debt”).
Those circumstances may include circumstances other than those in which the scheme is being wound up or a relevant event occurs (within the meaning of section 75).
For the purposes of regulations under this section, regulations under section 75(5) may prescribe alternative manners for determining, calculating and verifying—
the liabilities and assets of the scheme to be taken into account, and
their amount or value.
The regulations under this section may in particular—
provide for the application of each of the prescribed alternative manners under section 75(5) to depend upon whether prescribed requirements are met;
provide that, where in a particular case a prescribed alternative manner under section 75(5) is applied, the Authority may in prescribed circumstances issue a direction—
that any resulting multi-employer debt is to be unenforceable for such a period as the Authority may specify, and
that the amount of the debt is to be re-calculated applying a different prescribed manner under section 75(5) if prescribed requirements are met within that period.
The prescribed requirements mentioned in subsection (5) may include a requirement that a prescribed arrangement, the details of which are approved in a notice issued by the Authority, is in place.
The regulations may provide that the Authority may not approve the details of such an arrangement unless prescribed conditions are met.
Those prescribed conditions may include a requirement that—
the arrangement identifies one or more persons to whom the Authority may issue a contribution notice under the regulations, and
the Authority are satisfied of prescribed matters in respect of each of those persons.
For the purposes of subsection (8) a “contribution notice” is a notice stating that the person to whom it is issued is under a liability to pay the sum specified in the notice—
to the trustees of the multi-employer scheme in question, or
where the Board of the Pension Protection Fund has assumed responsibility for the scheme in accordance with Chapter 3 of Part 2 of the Pensions Act 2004 (pension protection), to the Board.
The regulations may provide for the Authority to have power to issue a contribution notice to a person identified in an arrangement as mentioned in subsection (8) if—
the arrangement ceases to be in place or the Authority consider that the arrangement is no longer appropriate, and
the Authority are of the opinion that it is reasonable to impose liability on the person to pay the sum specified in the notice.
Where a contribution notice is issued to a person under the regulations as mentioned in subsection (8), the sum specified in the notice is to be treated as a debt due from that person to the person to whom it is to be paid as specified in the notice.
Where the regulations provide for the issuing of a contribution notice by the Authority as mentioned in subsection (8)—
the regulations must—
provide for how the sum specified by the Authority in a contribution notice is to be determined,
provide for the circumstances (if any) in which a person to whom a contribution notice is issued is jointly and severally liable for the debt,
provide for the matters which the notice must contain, and
provide for who may exercise the powers to recover the debt due by virtue of the contribution notice, and
the regulations may apply with or without modifications some or all of the provisions of sections 47 to 51 of the Pensions Act 2004 (contribution notices where non-compliance with financial support direction) in relation to contribution notices issued under the regulations.
In this section “multi-employer scheme” means a trust scheme which applies to earners in employments under different employers.
This section is without prejudice to the powers conferred by—
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There shall be a body corporate called the Pensions Compensation Board (referred to in this Part as “the Compensation Board”).
The Compensation Board shall consist of not less than three members appointed by the Secretary of State, one of whom shall be so appointed as chairman.
In addition to the chairman, the Board shall comprise— and such other member or members as the Secretary of State may appoint after consultation with the chairman.
a member appointed after the Secretary of State has consulted—
organisations appearing to him to be representative of employers, and
the chairman,
a member appointed after the Secretary of State has consulted—
organisations appearing to him to be representative of employees, and
the chairman,
Payments made by the Compensation Board may be made on such terms (including terms requiring repayment in whole or in part) and on such conditions as the Board think appropriate.
The Compensation Board may borrow from an institution authorised under the Banking Act 1987 such sums as they may from time to time require for exercising any of their functions.
The aggregate amount outstanding in respect of the principal of any money borrowed by the Compensation Board under subsection (5) must not exceed the prescribed amount.
Neither the Compensation Board nor any person who is a member or employee of the Compensation Board shall be liable in damages for anything done or omitted in the discharge or purported discharge of the functions of the Compensation Board under this Part, or any corresponding provisions in force in Northern Ireland, unless it is shown that the act or omission was in bad faith.
Schedule 2 (constitution, procedure, etc. of the Compensation Board) shall have effect.
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The Compensation Board must prepare a report for the first twelve months of their existence, and a report for each succeeding period of twelve months, and must send each report to the Secretary of State as soon as practicable after the end of the period for which it is prepared.
A report prepared under this section for any period must deal with the activities of the Compensation Board in the period.
The Secretary of State must lay before each House of Parliament a copy of every report received by him under this section.
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Subject to the following provisions of this section, any determination by the Compensation Board of a question which it is within their functions to determine shall be final.
The Compensation Board may on the application of a person appearing to them to be interested—
at any time review any such determination of theirs as is mentioned in subsection (1) (including a determination given by them on a previous review), if they are satisfied that there has been a relevant change of circumstances since the determination was made, or that the determination was made in ignorance of a material fact or based on a mistake as to a material fact or was erroneous in point of law, and
at any time within a period of three months from the date of the determination, or within such longer period as they may allow in any particular case, review such a determination on any ground.
The Compensation Board’s powers on a review under this section include power— and also include power to make savings and transitional provisions.
to vary or revoke any determination previously made,
to substitute a different determination, and
generally to deal with the matters arising on the review as if they had arisen on the original determination;
Subject to subsection (5), regulations may make provision with respect to the procedure to be adopted on any application for a review under this section, or under any corresponding provision in force in Northern Ireland, and generally with respect to such applications and reviews.
Nothing in subsection (4) shall be taken to prevent such a review being entered upon by the Compensation Board without an application being made.
Where— it shall be the duty of the trustees or managers, in accordance with this section, to make periodic reports in writing to the Authority about the progress of the winding-up.
an occupational pension scheme is being wound up, and
the winding-up is one beginning at a time (whether before or after the passing of this Act) by reference to which regulations provide that it is to be a winding-up to which this section applies,
In the case of each winding-up, the first report to be made under this section shall be made—
except in a case to which paragraph (b) applies— and
after the end of the prescribed period beginning with the day on which the winding-up began; and
before the end of the prescribed period that begins with the end of the period that applies for the purposes of sub-paragraph (i);
in a case where the winding-up began before the coming into force of the regulations which (for the purposes of subsection (1)(b)) prescribe the time by reference to which the winding-up is one to which this section applies, before such date as may be prescribed by those regulations.
Subject to subsection (4), each subsequent report made under this section in the case of a winding-up shall be made no more than twelve months after the date which (apart from any postponement under subsection (4)) was the latest date for the making of the previous report required to be made in the case of that winding-up.
If, in the case of any report required to be made under subsection (3), the Authority consider (whether on an application made for the purpose or otherwise) that it would be appropriate to do so, they may, at any time before the latest time for the making of that report, postpone that latest time by such period as they think fit.
The latest time for making a report shall not be postponed under subsection (4) by more than twelve months.
Subject to the application of the limit specified in subsection (5) to the cumulative period of the postponements, more than one postponement may be made under subsection (4) in the case of the same report.
A report under this section—
must contain such information and statements as may be prescribed; and
must be made in accordance with the prescribed requirements.
Regulations may—
provide that, in prescribed circumstances, there shall be no obligation to make a report that would otherwise fall to be made under this section;
make provision for the period within which, and the manner in which, applications may be made for a postponement under subsection (4); and
modify subsections (3) and (5) by substituting periods of different lengths for the periods for the time being specified in those subsections.
If there is any failure by the trustees or managers of any scheme to comply with their duty to make a report in accordance with the requirements imposed by or under this section—
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section 10 applies (irrespective of the description of scheme involved) to any trustee or manager who has failed to take all such steps.
Subject to the following provisions of this section, the Authority shall have power, at any time after the winding-up of an occupational pension scheme has begun, to give directions under this section if they consider that the giving of the direction is appropriate on any of the grounds set out in subsection (2).
Those grounds are—
that the trustees or managers of the scheme are not taking all the steps in connection with the winding-up that the Authority consider would be being taken if the trustees or managers were acting reasonably;
that steps being taken by the trustees or managers for the purposes of the winding-up involve things being done with what the Authority consider to be unreasonable delay;
that the winding-up is being obstructed or unreasonably delayed by the failure of any person—
to provide information to the trustees or managers;
to provide information to a person involved in the administration of the scheme;
to provide information to a person of a prescribed description; or
to take any step (other than the provision of information) that he has been asked to take by the trustees or managers;
that the winding-up would be likely to be facilitated or accelerated by the taking by any person other than the trustees or managers of any other steps;
that in any prescribed circumstances not falling within paragraphs (a) to (d)— would be likely to facilitate or accelerate the progress of the winding-up.
the provision by any person of any information to the trustees or managers or to any other person, or
the taking of any other step by any person,
Except in prescribed circumstances, the power of the Authority to give a direction under this section in the case of a winding-up shall be exercisable only where—
periodic reports about the progress of the winding-up are required to be made under section 72A; and
the first report that has to be made for the purposes of that section in the case of that winding-up either has been made or should have been made.
Regulations may provide that, in prescribed circumstances, the Authority shall not give a direction on the ground set out in subsection (2)(e) except in response to an application made by the trustees or managers of the scheme for the giving of a direction on that ground.
A direction under this section is a direction in writing given to and imposing requirements on—
any or all of the trustees or managers of the scheme;
a person who is involved in its administration; or
a person of a prescribed description.
The requirements that may be imposed by a direction under this section are any requirement for the person to whom it is given, within such period specified in the direction as the Authority may consider reasonable—
to provide the trustees or managers with all such information as may be specified or described in the direction;
to provide a person involved in the administration of the scheme with all such information as may be so specified or described;
to provide a person who is of a prescribed description with all such information as may be so specified or described;
to take such steps (other than the provision of information) as may be so specified or described.
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Regulations may—
impose limitations on the steps that a person may be required to take by a direction under this section;
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In this section references, in relation to a scheme, to a person involved in the administration of the scheme are (subject to subsection (10)) references to any person who is so involved otherwise than as—
the employer in relation to that scheme;
a trustee or manager of the scheme;
the auditor of the scheme or its actuary;
a legal adviser of the trustees or managers of the scheme;
a fund manager for the scheme;
a person acting on behalf of a person who is involved in the administration of the scheme;
a person providing services to a person so involved;
a person acting in his capacity as an employee of a person so involved;
a person who would fall within any of paragraphs (f) to (h) if persons acting in relation to the scheme in any capacity mentioned in the preceding paragraphs were treated as involved in the administration of a scheme.
In this section references, in relation to a scheme, to a person involved in the administration of the scheme do not include references to persons of a particular description if regulations provide for persons of that description to be excluded from those references.
It shall be the duty of any person to whom a direction is given under section 72B to comply with it.
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Section 10 applies to any trustee or manager of a scheme who fails, without reasonable excuse, to take all such steps as are reasonable to secure compliance by the trustees or managers of that scheme with any direction given to them under section 72B.
Section 10 applies to any person who—
is a person to whom a direction under section 72B is given otherwise than in the capacity of a trustee or manager; and
without reasonable excuse, fails to comply with that direction.
For the purposes of this section it shall not be a reasonable excuse in relation to any failure to provide information in pursuance of a direction under section 72B that the provision of that information would (but for the duty imposed by subsection (1) of this section) involve a breach by any person of a duty owed to another not to disclose that information.
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Subject to subsection (2), this section applies to an application for compensation under section 82 in respect of an occupational pension scheme if all the following conditions are met—
the scheme is a trust scheme,
the employer is insolvent,
the value of the assets of the scheme has been reduced, and there are reasonable grounds for believing that the reduction was attributable to an act or omission constituting a prescribed offence,
in the case of a salary related trust scheme, immediately before the date of the application the value of the assets of the scheme is less than 90 per cent. of the amount of the liabilities of the scheme, and
it is reasonable in all the circumstances that the members of the scheme should be assisted by the Compensation Board paying to the trustees of the scheme, out of funds for the time being held by them, an amount determined in accordance with the compensation provisions.
Subsection (1) does not apply in respect of a trust scheme falling within a prescribed class or description; and paragraph (c) applies only to reductions in value since the appointed day.
In this Part the “compensation provisions” means the provisions of this section and sections 82 to 85; and below in the compensation provisions as they relate to a trust scheme—
“the application date” means the date of the application for compensation under section 82,
“the appointed day” means the day appointed under section 180 for the commencement of this section,
“the insolvency date” means the date on which the employer became insolvent,
“the settlement date” means the date determined by the Compensation Board, after consulting the trustees, to be the date after which further recoveries of value are unlikely to be obtained without disproportionate cost or within a reasonable time,
“the shortfall at the application date” means the amount of the reduction falling within subsection (1)(c) or (if there was more than one such reduction) the aggregate of the reductions, being the amount or aggregate immediately before the application date,
“recovery of value” means any increase in the value of the assets of the scheme, being an increase attributable to any payment received (otherwise than from the Compensation Board) by the trustees of the scheme in respect of any act or omission—
which there are reasonable grounds for believing constituted a prescribed offence, and
to which any reduction in value falling within subsection (1)(c) was attributable.
It is for the Compensation Board to determine whether anything received by the trustees of the scheme is to be treated as a payment received for any such act or omission as is referred to in subsection (3)(f); and in this section “payment” includes any money or money’s worth.
Where this section applies to an application for compensation under section 82, the trustees must obtain any recoveries of value, to the extent that they may do so without disproportionate cost and within a reasonable time.
If subsection (5) is not complied with, section 3 applies to any trustee who has failed to take all such steps as are reasonable to secure compliance.
Section 56(3) and (4) applies for the purposes of the compensation provisions as it applies for the purposes of sections 56 to 61.
Section 123 of the Pension Schemes Act 1993 (meaning of insolvency) applies for the purposes of the compensation provisions as it applies for the purposes of Chapter II of Part VII of that Act (unpaid scheme contributions).
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Compensation may be paid under section 83 only on an application to which section 81 applies made within the qualifying period by a prescribed person.
An application under this section must be made in the manner, and give the information, required by the Compensation Board.
For the purposes of this section the “qualifying period”, subject to subsection (5), is the period expiring with the period of twelve months mentioned in subsection (4).
The period of twelve months referred to in subsection (3) is that beginning with the later of the following times— being, in each case, a time after the appointed day.
the insolvency date,
when the auditor or actuary of the scheme, or the trustees, knew or ought reasonably to have known that a reduction of value falling within section 81(1)(c) had occurred,
The Compensation Board may extend, or further extend, the qualifying period.
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Where in the opinion of the Compensation Board section 81 applies to an application for compensation under section 82 in respect of a trust scheme, and the Board have determined the settlement date, the Board may make a payment or payments to the trustees of the scheme in accordance with this section.
The amount of any payment must be determined in accordance with regulations and must take account of any payment already made under section 84, and the Compensation Board must give written notice of their determination to the person who made the application under section 82 and (if different) to the trustees.
The amount of the payment or (if there is more than one) the aggregate—
must not exceed 90 per cent. of the shortfall at the application date, together with interest at the prescribed rate for the prescribed period on the shortfall or (if the shortfall comprises more than one reduction in value) on each of the reductions, and also,
in the case of a salary related scheme, must not exceed the amount which, on the settlement date, is required to be paid to the trustees of the scheme in order to secure that the value on that date of the assets of the scheme is equal to 90 per cent. of the amount on that date of the liabilities of the scheme.
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The Compensation Board may, on an application for compensation under section 82, make a payment or payments to the trustees of a trust scheme where in their opinion— but the Board have not determined the settlement date.
section 81 applies, or may apply, to the application, and
the trustees would not otherwise be able to meet liabilities falling within a prescribed class,
Amounts payable under this section must be determined in accordance with regulations.
Where any payment is made under this section, the Compensation Board may, except in prescribed circumstances— recover so much of the payment as they consider appropriate.
if they subsequently form the opinion that section 81 does not apply to the application for compensation in respect of the scheme, or
if they subsequently form the opinion that the amount of the payment was excessive,
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If the Secretary of State, after consultation with the Compensation Board, considers that the funds for the time being held by the Board exceed what is reasonably required for the purpose of exercising their functions under this Part, he may by order require them to distribute any of those funds appearing to him to be surplus to their requirements among occupational pension schemes.
A distribution under subsection (1) must be made in the prescribed manner and subject to the prescribed conditions.
The Compensation Board may invest any funds for the time being held by them which appear to them to be surplus to their requirements—
in any investment for the time being falling within Part I, Part II or Part III of Schedule 1 to the Trustee Investments Act 1961, or
in any prescribed investment.
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This section applies to an occupational pension scheme which is a money purchase scheme, other than one falling within a prescribed class or description.
The trustees or managers of every occupational pension scheme to which this section applies must secure that there is prepared, maintained and from time to time revised a schedule (referred to in this section and section 88 as a “payment schedule”) showing—
the rates of contributions payable towards the scheme by or on behalf of the employer and the active members of the scheme,
such other amounts payable towards the scheme as may be prescribed, and
the dates on or before which payments of such contributions or other amounts are to be made (referred to in those sections as “due dates”).
Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this section and section 88 as an occupational pension scheme which is a money purchase scheme.
The payment schedule for a scheme must satisfy prescribed requirements.
The matters shown in the payment schedule for a scheme—
to the extent that the scheme makes provision for their determination, must be so determined, and
otherwise,
must be matters previously agreed between the employer and the trustees or managers of the scheme, or
if no such agreement has been made as to all matters shown in the schedule (other than those for whose determination the scheme makes provision), must be matters determined by the trustees or managers of the scheme.
Where in the case of a scheme this section is not complied with—
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section 10 applies to any trustee or manager who has failed to take all such steps.
Where, in the case of an occupational pension scheme to which section 87 applies— they must, except in prescribed circumstances, give notice of the failure to the Authority and to the members of the scheme within a reasonable period after the due date.
there is a failure to pay on or before the due date any amounts payable in accordance with the payment schedule, and
the trustees or managers have reasonable cause to believe that the failure is likely to be of material significance in the exercise by the Authority of any of their functions,
Any such amounts which for the time being remain unpaid after that date (whether payable by the employer or not) shall, if not a debt due from the employer to the trustees or managers apart from this subsection, be treated as such a debt.
Where any amounts payable in accordance with the payment schedule by or on behalf of the employer on the employer’s own account have not been paid on or before the due date, section 10 applies to the employer.
If, in the case of an occupational pension scheme to which section 87 applies, subsection (1) is not complied with—
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section 10 applies to any trustee or manager who has failed to take all such steps.
In the case of money purchase schemes falling within a prescribed class or description, regulations may— to such extent as may be prescribed.
provide for any of the provisions of Part 3 of the Pensions Act 2004 to apply, or apply with prescribed modifications (in spite of anything in that Part), and
provide for any of the provisions of sections 87 and 88 to apply with prescribed modifications or not to apply,
Regulations may provide for any of the provisions of section 75 to apply, or apply with prescribed modifications, to money purchase schemes to such extent as may be prescribed (in spite of anything in that section), and the power conferred by this subsection includes power to apply section 75 in circumstances other than those in which the scheme is being wound up or a relevant ... event occurs (within the meaning of that section).
Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this section as a separate money purchase scheme.
In section 124 of the Pension Schemes Act 1993 (duty of Secretary of State to pay unpaid contributions to schemes), after subsection (3) there is inserted—, and, accordingly, at the beginning of subsection (3) there is inserted “Subject to subsection (3A),”.
Subject to subsection (5), where a person is entitled to a pension under an occupational pension scheme or has a right to a future pension under such a scheme— and an agreement to effect any of those things is unenforceable.
the entitlement or right cannot be assigned, commuted or surrendered,
the entitlement or right cannot be charged or a lien exercised in respect of it, and
no set-off can be exercised in respect of it,
Where by virtue of this section a person’s entitlement to a pension under an occupational pension scheme, or right to a future pension under such a scheme, cannot, apart from subsection (5), be assigned, no order can be made by any court the effect of which would be that he would be restrained from receiving that pension.
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Subsection (2) does not prevent the making of—
an attachment of earnings order under the Attachment of Earnings Act 1971, or
an income payments order under the Insolvency Act 1986.
In the case of a person (“the person in question”) who is entitled to a pension under an occupational pension scheme, or has a right to a future pension under such a scheme, subsection (1) does not apply to any of the following, or any agreement to effect any of the following—
an assignment in favour of the person in question’s widow, widower , surviving civil partner or dependant,
a surrender, at the option of the person in question, for the purpose of—
providing benefits for that person’s widow, widower , surviving civil partner or dependant, or
acquiring for the person in question entitlement to further benefits under the scheme,
a commutation—
of the person in question’s benefit on or after retirement or in exceptional circumstances of serious ill health,
in prescribed circumstances, of any benefit for that person’s widow, widower , surviving civil partner or dependant, or
in other prescribed circumstances,
subject to subsection (6), a charge or lien on, or set-off against, the person in question’s entitlement, or right, (except to the extent that it includes transfer credits other than prescribed transfer credits) for the purpose of enabling the employer to obtain the discharge by him of some monetary obligation due to the employer and arising out of a criminal, negligent or fraudulent act or omission by him,
subject to subsection (6), except in prescribed circumstances a charge or lien on, or set-off against, the person in question’s entitlement, or right, for the purpose of discharging some monetary obligation due from the person in question to the scheme and—
arising out of a criminal, negligent or fraudulent act or omission by him, or
in the case of a trust scheme of which the person in question is a trustee, arising out of a breach of trust by him,
subject to subsection (6), a charge or lien on, or set-off against, the person in question’s entitlement, or right, for the purpose of discharging some monetary obligation due from the person in question to the scheme arising out of a payment made in error in respect of the pension.
Where a charge, lien or set-off is exercisable by virtue of subsection (5)(d) , (e) or (f) — and where a dispute has arisen as to the amount of the monetary obligation in question, the charge, lien or set-off must not be exercised unless one of the following conditions is met.
its amount must not exceed the amount of the monetary obligation in question, or (if less) the value (determined in the prescribed manner) of the person in question’s entitlement or accrued right, and
the person in question must be given a certificate showing the amount of the charge, lien or set-off and its effect on his benefits under the scheme,
This section is subject to section 159 of the Pension Schemes Act 1993 (inalienability of guaranteed minimum pension ... ).
The conditions mentioned in subsection (6) are—
that the dispute has been resolved by the parties to it;
that the Pensions Ombudsman has made a determination under Part 10 of the Pension Schemes Act 1993 or Part 10 of the Pension Schemes (Northern Ireland) Act 1993 (investigations) as to the amount of the monetary obligation in question;
that the monetary obligation in question has become enforceable—
under an order of a competent court, or
in consequence of an award of an arbitrator or, in Scotland, an arbiter to be appointed (failing agreement between the parties) by the sheriff.
Subject to the provisions of this section and section 93, an entitlement to a pension under an occupational pension scheme or a right to a future pension under such a scheme cannot be forfeited.
Subsection (1) does not prevent forfeiture by reference to— whether or not that event occurred before or after the pension became payable.
a transaction or purported transaction which under section 91 is of no effect, ...
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Where such forfeiture as is mentioned in subsection (2) occurs, any pension which was, or would but for the forfeiture have become, payable may, if the trustees or managers of the scheme so determine, be paid to all or any of the following—
the member of the scheme to or in respect of whom the pension was, or would have become, payable,
the spouse, civil partner, widow, widower or surviving civil partner of the member,
any dependant of the member, and
any other person falling within a prescribed class.
Subsection (1) does not prevent forfeiture by reference to the pensioner, or prospective pensioner, having been convicted of one or more offences—
which are committed before the pension becomes payable, and
which are—
offences of treason,
offences under the Official Secrets Acts 1911 to 1989 for which the person has been sentenced on the same occasion to a term of imprisonment of, or to two or more consecutive terms amounting in the aggregate to, at least 10 years, ...
prescribed offences.
offences under section 18 of, or listed in section 33(3)(a) of, the National Security Act 2023 for which the person has been sentenced on the same occasion to a term of imprisonment of, or to two or more consecutive terms amounting in the aggregate to, at least 10 years, or
Subsection (1) does not prevent forfeiture by reference to a failure by any person to make a claim for pension—
where the forfeiture is in reliance on any enactment relating to the limitation of actions, or
where the claim is not made within six years of the date on which the pension becomes due.
Subsection (1) does not prevent forfeiture in prescribed circumstances.
In this section and section 93, references to forfeiture include any manner of deprivation or suspension.
Subject to subsection (2), section 92(1) does not prevent forfeiture of a person’s entitlement to a pension under an occupational pension scheme or right to a future pension under such a scheme by reference to the person having incurred some monetary obligation due to the employer and arising out of a criminal, negligent or fraudulent act or omission by the person.
A person’s entitlement or right may be forfeited by reason of subsection (1) to the extent only that it does not exceed the amount of the monetary obligation in question, or (if less) the value (determined in the prescribed manner) of the person’s entitlement or right.
Such forfeiture as is mentioned in subsection (1) must not take effect where a dispute has arisen as to the amount of the monetary obligation in question, unless —
the dispute has been resolved by the parties to it,
the Pensions Ombudsman has made a determination under Part 10 of the Pension Schemes Act 1993 or Part 10 of the Pension Schemes (Northern Ireland) Act 1993 (investigations) as to the amount of the monetary obligation in question, or
the monetary obligation in question has become enforceable—
under an order of a competent court, or
in consequence of an award of an arbitrator or, in Scotland, an arbiter to be appointed (failing agreement between the parties) by the sheriff.
Where a person’s entitlement or right is forfeited by reason of subsection (1), the person must be given a certificate showing the amount forfeited and the effect of the forfeiture on his benefits under the scheme.
Where such forfeiture as is mentioned in subsection (1) occurs, an amount not exceeding the amount forfeited may, if the trustees or managers of the scheme so determine, be paid to the employer.
Regulations may—
modify sections 91 to 93 in their application to public service pension schemes or to other schemes falling within a prescribed class or description, or
provide that those sections do not apply in relation to schemes falling within a prescribed class or description.
In those sections, “pension” in relation to an occupational pension scheme, includes any benefit under the scheme and any part of a pension and any payment by way of pension.
In the application of sections 91 and 92 to Scotland—
references to a charge are to be read as references to a right in security or a diligence and “charged” is to be interpreted accordingly,
references to assignment are to be read as references to assignation and “assign” is to be interpreted accordingly,
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the reference to an income payments order under the Insolvency Act 1986 is to be read as a reference to an order under section 90 or 95 of the Bankruptcy (Scotland) Act 2016, ...
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after subsection 91(4) there is inserted—
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After section 342 of the Insolvency Act 1986 (adjustment of certain transactions entered into by individuals subsequently adjudged bankrupt), there is inserted—
After section 36 of the Bankruptcy (Scotland) Act 1985 there is inserted—
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Subject to the following provisions of this section and to section 97, any determination by the Authority of a question which it is within their functions to determine shall be final.
The Authority must, on the application of any person (“the applicant”) at any time within the prescribed period, review any determination of theirs—
to make an order against the applicant under section 3,
to require the applicant to pay a penalty under section 10 of this Act or section 168(4) of the Pension Schemes Act 1993, or
to disqualify the applicant from being a trustee of any trust scheme under section 29(3) or (4).
The Authority may on the application of a person appearing to them to be interested—
at any time review any other such determination of theirs as is mentioned in subsection (1) (including a determination given by them on a previous review), if they are satisfied that there has been a relevant change of circumstances since the determination was made, or that the determination was made in ignorance of a material fact or based on a mistake as to a material fact or was erroneous in point of law,
at any time within a period of six months from the date of the determination, or within such longer period as they may allow in any particular case, review such a determination on any ground.
The Authority’s powers on a review under subsection (2) or (3) include power— and also include power to make savings and transitional provisions.
to vary or revoke any determination or order previously made,
to substitute a different determination or order, and
generally to deal with the matters arising on the review as if they had arisen on the original determination;
Subject to subsection (6), regulations may make provision with respect to the procedure to be adopted on any application for a review under subsection (2) or (3) or under any corresponding provision in force in Northern Ireland and generally with respect to such applications and reviews.
Nothing in subsection (5) shall be taken to prevent such a review being entered upon by the Authority without an application being made.
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Any question of law arising in connection with— may, if the Authority think fit, be referred for decision to the court.
any matter arising under this Part for determination, or
any matter arising on an application to the Authority for a review of a determination, or on a review by them entered upon without an application,
If the Authority determine in accordance with subsection (1) to refer any question of law to the court, they must give notice in writing of their intention to do so—
in a case where the question arises on an application made to the Authority, to the applicant, and
in any case to such persons as appear to them to be concerned with the question.
Any person who is aggrieved— where the determination involves a question of law and that question is not referred by the Authority to the court under subsection (1), may on that question appeal from the determination to the court.
by a determination of the Authority given on a review under section 96, or
by the refusal of the Authority to review a determination,
The Authority is entitled to appear and be heard on any reference or appeal under this section.
The rules of court must include provision for regulating references and appeals to the court under this section and for limiting the time within which such appeals may be brought.
The decision of the court on a reference or appeal under this section is final, and this subsection overrides any other enactment.
On any such reference or appeal the court may order the Authority to pay the costs or, in Scotland, the expenses of any other person, whether or not the decision is in that other person’s favour and whether or not the Authority appear on the reference or appeal.
In this section “the court” means the High Court or the Court of Session.
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In the case of any occupational pension scheme— must, if required to do so by them by notice in writing, produce any document relevant to the discharge of those functions.
a trustee, manager, professional adviser or employer, and
any other person appearing to the Authority to be a person who holds, or is likely to hold, information relevant to the discharge of the Authority’s functions,
To comply with subsection (1) the document must be produced in such a manner, at such a place and within such a period as may be specified in the notice.
In this section and sections 99 to 101, “document” includes information recorded in any form, and any reference to production of a document, in relation to information recorded otherwise than in legible form, is to producing a copy of the information in legible form.
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An inspector may, for the purposes of investigating whether, in the case of any occupational pension scheme, the regulatory provisions are being, or have been, complied with, at any reasonable time enter premises liable to inspection and, while there—
may make such examination and inquiry as may be necessary for such purposes,
may require any person on the premises to produce, or secure the production of, any document relevant to compliance with those provisions for his inspection, and
may, as to any matter relevant to compliance with those provisions, examine, or require to be examined, either alone or in the presence of another person, any person on the premises whom he has reasonable cause to believe to be able to give information relevant to that matter.
In subsection (1), “the regulatory provisions” means provisions made by or under—
the provisions of this Part, other than the following provisions: sections 51 to 54, 62 to 65 and 110 to 112,
the following provisions of the Pension Schemes Act 1993: section 6 (registration), Chapter IV of Part IV (transfer values), section 113 (information) or section 175 (levy), or
any corresponding provisions in force in Northern Ireland.
Premises are liable to inspection for the purposes of this section if the inspector has reasonable grounds to believe that— unless the premises are a private dwelling-house not used by, or by permission of, the occupier for the purposes of a trade or business.
members of the scheme are employed there,
documents relevant to the administration of the scheme are being kept there, or
the administration of the scheme, or work connected with the administration of the scheme, is being carried out there,
An inspector applying for admission to any premises for the purposes of this section must, if so required, produce his certificate of appointment.
In this Part “inspector” means a person appointed by the Authority as an inspector.
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A justice of the peace may issue a warrant under this section if satisfied on information on oath given by or on behalf of the Authority that there are reasonable grounds for believing—
that there are on any premises documents whose production has been required under section 98(1) or 99(1)(b), or any corresponding provisions in force in Northern Ireland, and which have not been produced in compliance with the requirement,
that there are on any premises documents whose production could be so required and that if their production were so required the documents would not be produced but would be removed from the premises, hidden, tampered with or destroyed, or
that— and that there are on any premises documents which relate to whether the offence has been committed, whether the act will be done, or whether the person is so liable, and whose production could be required under section 98(1) or 99(1)(b) or any corresponding provisions in force in Northern Ireland.
an offence has been committed under this Act or the Pension Schemes Act 1993, or any enactment in force in Northern Ireland corresponding to either of them,
a person will do any act which constitutes a misuse or misappropriation of the assets of an occupational pension scheme,
a person is liable to pay a penalty under section 10 of this Act or section 168(4) of the Pension Schemes Act 1993, or any enactment in force in Northern Ireland corresponding to either of them, or
a person is liable to be prohibited from being a trustee of a trust scheme under section 3,
A warrant under this section shall authorise an inspector—
to enter the premises specified in the information, using such force as is reasonably necessary for the purpose,
to search the premises and take possession of any documents appearing to be such documents as are mentioned in subsection (1) or to take in relation to such documents any other steps which appear necessary for preserving them or preventing interference with them,
to take copies of any such documents, or
to require any person named in the warrant to provide an explanation of them or to state where they may be found.
A warrant under this section shall continue in force until the end of the period of one month beginning with the day on which it is issued.
Any documents of which possession is taken by virtue of a warrant under this section may be retained—
for a period of six months, or
if within that period proceedings to which the documents are relevant are commenced against any person for any offence under this Act or the Pension Schemes Act 1993, or any enactment in force in Northern Ireland corresponding to either of them, until the conclusion of those proceedings.
In the application of this section in Scotland—
the reference to a justice of the peace is to be read as a reference to a justice within the meaning of the Criminal Procedure (Scotland) Act 1975, and
the references to information are to be read as references to evidence.
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A person who, without reasonable excuse, neglects or refuses to produce a document when required to do so under section 98 is guilty of an offence.
A person who without reasonable excuse— is guilty of an offence.
intentionally delays or obstructs an inspector exercising any power under section 99,
neglects or refuses to produce, or secure the production of, any document when required to do so under that section, or
neglects or refuses to answer a question or to provide information when so required,
A person guilty of an offence under subsection (1) or (2) is liable on summary conviction to a fine not exceeding level 5 on the standard scale.
An offence under subsection (1) or (2)(b) or (c) may be charged by reference to any day or longer period of time; and a person may be convicted of a second or subsequent offence by reference to any period of time following the preceding conviction of the offence.
Any person who knowingly or recklessly provides the Authority with information which is false or misleading in a material particular is guilty of an offence if the information—
is provided in purported compliance with a requirement under section 99, or
is provided otherwise than as mentioned in paragraph (a) above but in circumstances in which the person providing the information intends, or could reasonably be expected to know, that it would be used by the Authority for the purpose of discharging their functions under this Act.
Any person who intentionally and without reasonable excuse alters, suppresses, conceals or destroys any document which he is or is liable to be required under section 98 or 99 to produce to the Authority is guilty of an offence.
Any person guilty of an offence under subsection (5) or (6) is liable—
on summary conviction, to a fine not exceeding the statutory maximum,
on conviction on indictment, to imprisonment or a fine, or both.
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Nothing in sections 98 to 101 requires a person to answer any question or give any information if to do so would incriminate that person or that person’s spouse.
Nothing in those sections requires any person to produce any document to the Authority, or to any person acting on their behalf, if he would be entitled to refuse to produce the document in any proceedings in any court on the grounds that it was the subject of legal professional privilege or, in Scotland, that it contained a confidential communication made by or to an advocate or solicitor in that capacity.
Where a person claims a lien on a document, its production under section 98 or 99 shall be without prejudice to the lien.
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The Authority may, if they consider it appropriate to do so in any particular case, publish in such form and manner as they think fit a report of any investigation under this Part and of the result of that investigation.
For the purposes of the law of defamation, the publication of any matter by the Authority shall be absolutely privileged.
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Except as provided by sections 106 to 108, restricted information must not be disclosed by the Authority or by any person who receives the information directly or indirectly from them, except with the consent of the person to whom it relates and (if different) the person from whom the Authority obtained it.
For the purposes of this section and sections 105 to 108, “restricted information” means any information obtained by the Authority in the exercise of their functions which relates to the business or other affairs of any person, except for information—
which at the time of the disclosure is or has already been made available to the public from other sources, or
which is in the form of a summary or collection of information so framed as not to enable information relating to any particular person to be ascertained from it.
Any person who discloses information in contravention of this section is guilty of an offence and liable—
on summary conviction, to a fine not exceeding the statutory maximum, and
on conviction on indictment, to a fine or imprisonment, or both.
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Subject to subsection (2), for the purposes of section 104, “restricted information” includes information which has been supplied to the Authority for the purposes of their functions by an authority which exercises functions corresponding to the functions of the Authority in a country or territory outside the United Kingdom.
Sections 106 to 108 do not apply to such information as is mentioned in subsection (1), and such information must not be disclosed except—
as provided in section 104,
for the purpose of enabling or assisting the Authority to discharge their functions, or
with a view to the institution of, or otherwise for the purposes of, criminal proceedings, whether under this Act or otherwise.
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Section 104 does not preclude the disclosure of restricted information in any case in which disclosure is for the purpose of enabling or assisting the Authority to discharge their functions.
If, in order to enable or assist the Authority properly to discharge any of their functions, the Authority consider it necessary to seek advice from any qualified person on any matter of law, accountancy, valuation or other matter requiring the exercise of professional skill, section 104 does not preclude the disclosure by the Authority to that person of such information as appears to the Authority to be necessary to ensure that he is properly informed with respect to the matters on which his advice is sought.
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Section 104 does not preclude the disclosure by the Authority of restricted information to any person specified in the first column of the following Table if the Authority consider that the disclosure would enable or assist that person to discharge the functions specified in relation to him in the second column of that Table. The Secretary of State. Functions under the Insurance Companies Act 1982, Part XIV of the Companies Act 1985, the Insolvency Act 1986, the Financial Services Act 1986, Part III of the Companies Act 1989 or Part III of the Pension Schemes Act 1993. The Treasury. Functions under the Financial Services Act 1986. The Bank of England. Functions under the Banking Act 1987 or any other functions. The Charity Commissioners. Functions under the Charities Act 1993. The Lord Advocate. Functions under Part I of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990. The Pensions Ombudsman and the Registrar of Occupational and Personal Pension Schemes. Functions under the Pension Schemes Act 1993 or the Pension Schemes (Northern Ireland) Act 1993. The Compensation Board. Functions under this Act or any corresponding enactment in force in Northern Ireland. The Policyholders Protection Board. Functions under the Policyholders Protection Act 1975. The Deposit Protection Board. Functions under the Banking Act 1987. The Investor Protection Board. Functions under the Building Societies Act 1986. The Friendly Societies Commission. Functions under the enactments relating to friendly societies. The Building Societies Commission. Functions under the Building Societies Act 1986. The Commissioners of Inland Revenue or their officers. Functions under the Taxes Act 1988 or the Taxation of Chargeable Gains Act 1992. The Official Receiver, or, in Northern Ireland, the Official Receiver for Northern Ireland. Functions under the enactments relating to insolvency. An inspector appointed by the Secretary of State. Functions under Part XIV of the Companies Act 1985 or section 94 or 177 of the Financial Services Act 1986. A person authorised to exercise powers under section 43A or 44 of the Insurance Companies Act 1982, section 447 of the Companies Act 1985, section 106 of the Financial Services Act 1986, Article 440 of the Companies (Northern Ireland) Order 1986, or section 84 of the Companies Act 1989. Functions under those sections or that Article. A designated agency or transferee body or the competent authority (within the meaning of the Financial Services Act 1986). Functions under the Financial Services Act 1986. A recognised self-regulating organisation, recognised professional body, recognised investment exchange or recognised clearing house (within the meaning of the Financial Services Act 1986). Functions in its capacity as an organisation, body, exchange or clearing house recognised under the Financial Services Act 1986. A person administering a scheme for compensating investors under section 54 of the Financial Services Act 1986. Functions under that section. A recognised professional body (within the meaning of section 391 of the Insolvency Act 1986). Functions in its capacity as such a body under that Act. The Department of Economic Development in Northern Ireland. Functions under Part XV of the Companies (Northern Ireland) Order 1986, the Insolvency (Northern Ireland) Order 1989 or Part II of the Companies (No. 2)(Northern Ireland) Order 1990. The Department of Health and Social Services for Northern Ireland. Functions under Part III of the Pension Schemes (Northern Ireland) Act 1993. An inspector appointed by the Department of Economic Development in Northern Ireland. Functions under Part XV of the Companies (Northern Ireland) Order 1986. A recognised professional body within the meaning of Article 350 of the Insolvency (Northern Ireland) Order 1989. Functions in its capacity as such a body under that Order.
The Secretary of State may after consultation with the Authority—
by order amend the Table in subsection (1) by—
adding any person exercising regulatory functions and specifying functions in relation to that person,
removing any person for the time being specified in the Table, or
altering the functions for the time being specified in the Table in relation to any person, or
by order restrict the circumstances in which, or impose conditions subject to which, disclosure may be made to any person for the time being specified in the Table.
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Section 104 does not preclude the disclosure by the Authority of restricted information to— if the disclosure appears to the Authority to be desirable or expedient in the interests of members of occupational pension schemes or in the public interest.
the Secretary of State, or
the Department of Health and Social Services for Northern Ireland,
Section 104 does not preclude the disclosure of restricted information—
with a view to the institution of, or otherwise for the purposes of, criminal proceedings, whether under this Act or otherwise,
in connection with any other proceedings arising out of— or any corresponding enactment in force in Northern Ireland or any proceedings for breach of trust in relation to an occupational pension scheme,
this Act, or
the Pension Schemes Act 1993,
with a view to the institution of, or otherwise for the purposes of, proceedings under section 7 or 8 of the Company Directors Disqualification Act 1986 or Article 10 or 11 of the Companies (Northern Ireland) Order 1989,
in connection with any proceedings under the Insolvency Act 1986 or the Insolvency (Northern Ireland) Order 1989 which the Authority have instituted or in which they have a right to be heard,
with a view to the institution of, or otherwise for the purposes of, any disciplinary proceedings relating to the exercise of his professional duties by a solicitor, an actuary or an accountant,
with a view to the institution of, or otherwise for the purposes of, any disciplinary proceedings relating to the discharge by a public servant of his duties,
for the purpose of enabling or assisting an authority in a country outside the United Kingdom to exercise functions corresponding to those of the Authority under this Act, or
in pursuance of a Community obligation.
Section 104 does not preclude the disclosure by the Authority of information to the Director of Public Prosecutions, the Director of Public Prosecutions for Northern Ireland, the Lord Advocate, a procurator fiscal or a constable.
Section 104 does not preclude the disclosure by any person mentioned in subsection (1) or (3) of information obtained by the person by virtue of that subsection, if the disclosure is made with the consent of the Authority.
Section 104 does not preclude the disclosure by any person specified in the first column of the Table in section 107 of information obtained by the person by virtue of that subsection, if the disclosure is made—
with the consent of the Authority, and
for the purpose of enabling or assisting the person to discharge any functions specified in relation to him in the second column of the Table.
The Authority must, before deciding whether to give their consent to such a disclosure as is mentioned in subsection (4) or (5), take account of any representations made to them by the person seeking to make the disclosure as to the desirability of the disclosure or the necessity for it.
In subsection (2), “public servant” means an officer or servant of the Crown or of any prescribed authority.
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This section applies to information held by any person in the exercise of tax functions about any matter relevant, for the purposes of those functions, to tax or duty in the case of an identifiable person (in this section referred to as “tax information”).
No obligation as to secrecy imposed by section 182 of the Finance Act 1989 or otherwise shall prevent the disclosure of tax information to the Authority for the purpose of enabling or assisting the Authority to discharge their functions.
Where tax information is disclosed to the Authority by virtue of subsection (2), it shall, subject to subsection (4), be treated for the purposes of section 104 as restricted information.
Sections 106 to 108 do not apply to tax information and such information must not be disclosed except—
to, or in accordance with authority duly given by, the Commissioners of Inland Revenue or the Commissioners of Customs and Excise, or
with a view to the institution of, or otherwise for the purposes of, criminal proceedings under this Act or the Pension Schemes Act 1993, or any enactment in force in Northern Ireland corresponding to either of them.
In this section “tax functions” has the same meaning as in section 182 of the Finance Act 1989.
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In the case of any trust scheme— must, if required to do so by the Board by notice in writing, produce any document relevant to the discharge of those functions.
a trustee, professional adviser or employer, and
any other person appearing to the Compensation Board to be a person who holds, or is likely to hold, information relevant to the discharge of the Board’s functions,
To comply with subsection (1) the document must be produced in such a manner, at such a place and within such a period as may be specified in the notice.
In this section and section 111, “document” includes information recorded in any form, and any reference to production of a document, in relation to information recorded otherwise than in legible form, is to producing a copy of the information in legible form.
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A person who without reasonable excuse neglects or refuses to produce a document when required to do so under section 110 is guilty of an offence.
A person guilty of an offence under subsection (1) is liable on summary conviction to a fine not exceeding level 5 on the standard scale.
An offence under subsection (1) may be charged by reference to any day or longer period of time; and a person may be convicted of a second or subsequent offence by reference to any period of time following the preceding conviction of the offence.
Any person who knowingly or recklessly provides the Compensation Board with information which is false or misleading in a material particular is guilty of an offence if the information is provided in circumstances in which the person providing the information intends, or could reasonably be expected to know, that it would be used by the Board for the purpose of discharging their functions under this Act or any corresponding enactment in force in Northern Ireland.
Any person who intentionally and without reasonable excuse alters, suppresses, conceals or destroys any document which he is or is liable to be required under section 110 to produce to the Compensation Board is guilty of an offence.
Any person guilty of an offence under subsection (4) or (5) is liable—
on summary conviction, to a fine not exceeding the statutory maximum,
on conviction on indictment, to imprisonment or a fine, or both.
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to answer any question or give any information if to do so would incriminate that person or that person’s spouse, or
to produce any document if he would be entitled to refuse to produce the document in any proceedings in any court on the grounds that it was the subject of legal professional privilege or, in Scotland, that it contained a confidential communication made by or to an advocate or solicitor in that capacity.
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The Compensation Board may, if they consider it appropriate to do so in any particular case, publish in such form and manner as they think fit a report of any investigation under this Part and of the result of that investigation.
For the purposes of the law of defamation, the publication of any matter by the Compensation Board shall be absolutely privileged.
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A person to whom this section applies may disclose to the Compensation Board any information received by him under or for the purposes of any enactment if the disclosure is made by him for the purpose of enabling or assisting the Board to discharge any of their functions.
In the case of information which a person holds or has held in the exercise of functions— subsection (1) does not authorise any disclosure unless made in accordance with an authorisation given by the Commissioners.
of the Commissioners of Inland Revenue or their officers, and
relating to any tax within the general responsibility of the Commissioners,
Subject to subsection (4), the Compensation Board may disclose to a person to whom this section applies any information received by them under or for the purposes of any enactment, where the disclosure is made by the Board—
for any purpose connected with the discharge of their functions, or
for the purpose of enabling or assisting that person to discharge any of his functions.
Where any information disclosed to the Compensation Board under this section is so disclosed subject to any express restriction on the disclosure of the information by the Board, the Board’s power of disclosure under subsection (3) is, in relation to the information, exercisable by them subject to any such restriction.
In the case of any such information as is mentioned in subsection (2), subsection (3) does not authorise any disclosure of that information by the Compensation Board unless made—
to, or in accordance with authority duly given by, the Commissioners of Inland Revenue or the Commissioners of Customs and Excise, or
with a view to the institution of, or otherwise for the purposes of, criminal proceedings under this Act or the Pension Schemes Act 1993, or any enactment in force in Northern Ireland corresponding to either of them.
Nothing in this section shall be construed as affecting any power of disclosure exercisable apart from this section.
This section applies to the following (and, accordingly, in this section “person” shall be construed as including any of them)—
any department of the Government (including the government of Northern Ireland),
the Director of Public Prosecutions,
the Director of Public Prosecutions for Northern Ireland,
the Lord Advocate,
any constable,
any designated agency or recognised self-regulating organisation (within the meaning of the Financial Services Act 1986),
a recognised professional body (within the meaning of section 391 of the Insolvency Act 1986),
the Pensions Ombudsman,
the Policyholders Protection Board,
the Authority,
the Registrar of Occupational and Personal Pension Schemes,
the Official Receiver, or, in Northern Ireland, the Official Receiver for Northern Ireland, and
such other persons as may be prescribed.
Where an offence under this Part committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, a director, manager, secretary or other similar officer of the body, or a person purporting to act in any such capacity, he as well as the body corporate is guilty of the offence and liable to be proceeded against and punished accordingly.
Where the affairs of a body corporate are managed by its members, subsection (1) applies in relation to the acts and defaults of a member in connection with his functions of management as to a director of a body corporate.
Where an offence under this Part committed by a Scottish partnership is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, a partner, he as well as the partnership is guilty of the offence and liable to be proceeded against and punished accordingly.
Regulations made by virtue of any provision of this Part may provide for the contravention of any provision contained in any such regulations to be an offence under this Part and for the recovery on summary conviction for any such offence of a fine not exceeding level 5 on the standard scale.
An offence under any provision of the regulations may be charged by reference to any day or longer period of time; and a person may be convicted of a second or subsequent offence under such a provision by reference to any period of time following the preceding conviction of the offence.
Where by reason of the contravention of any provision contained in regulations made by virtue of this Part— then, in respect of that contravention, he shall not, in a case within paragraph (a), be liable to pay such a penalty or, in a case within paragraph (b), be convicted of such an offence.
a person is convicted of an offence under this Part, or
a person pays a penalty under section 10 or under provision contained in regulations made by virtue of section 41C,
Where any provision mentioned in subsection (2) conflicts with the provisions of an occupational pension scheme—
the provision mentioned in subsection (2), to the extent that it conflicts, overrides the provisions of the scheme, and
the scheme has effect with such modifications as may be required in consequence of paragraph (a).
The provisions referred to in subsection (1) are those of—
this Part,
any subordinate legislation made or having effect as if made under this Part, ...
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Regulations may modify any provisions of this Part, in their application—
to a trust scheme which applies to earners in employments under different employers,
to a trust scheme of which there are no members who are in pensionable service under the scheme, or
to any case where a partnership is the employer, or one of the employers, in relation to a trust scheme.
Regulations may provide for some or all of the provisions of sections 22 to 26, and section 117 (so far as it applies to those sections), not to apply in relation to a trust scheme falling within a prescribed class or description.
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Regulations made by virtue of section ... 73B(4)(a) or 75 may provide for the values of the assets and the amounts of the liabilities there mentioned to be calculated and verified in accordance with guidance prepared and from time to time revised by a prescribed body.
prepared and from time to time revised by a prescribed body, and
approved by the Secretary of State.
Before the Secretary of State makes any regulations by virtue of this Part, he must consult such persons as he considers appropriate.
Subsection (1) does not apply—
to regulations made for the purpose only of consolidating other regulations revoked by them,
to regulations in the case of which the Secretary of State considers consultation inexpedient because of urgency,
to regulations made before the end of the period of six months beginning with the coming into force of the provision of this Part by virtue of which the regulations are made, or
to regulations which—
state that they are consequential upon a specified enactment, and
are made before the end of the period of six months beginning with the coming into force of that enactment.
This Part applies to an occupational pension scheme managed by or on behalf of the Crown as it applies to other occupational pension schemes; and, accordingly, references in this Part to a person in his capacity as a trustee or manager of an occupational pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity.
References in this Part to a person in his capacity as employer in relation to an occupational pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity.
This section does not apply to any provision made by or under this Part under which a person may be prosecuted for an offence; but such a provision applies to persons in the public service of the Crown as it applies to other persons.
This section does not apply to sections 42 to 46.
Nothing in this Part applies to Her Majesty in Her private capacity (within the meaning of the Crown Proceedings Act 1947).
Schedule 3 (amendments consequential on this Part) shall have effect.
Sections 249 and 435 of the Insolvency Act 1986 (connected and associated persons) shall apply for the purposes of the provisions of this Act listed in subsection (3) as they apply for the purposes of that Act.
Section 229 of the Bankruptcy (Scotland) Act 2016 (meaning of “associate”) shall apply for the purposes of the provisions so listed as it applies for the purposes of that Act.
The provisions referred to in subsections (1) and (2) are— but in the case of section 40 the provisions mentioned in subsections (1) and (2) shall apply for those purposes with any prescribed modifications.
section 23(3)(b),
sections 27 and 28,
section 40,
In this Part—
“trust scheme” means an occupational pension scheme established under a trust.
A man born before 6th December 1953 attains pensionable age when he attains the age of 65 years. A woman born before 6th April 1950 attains pensionable age when she attains the age of 60. A woman born on any day in a period mentioned in column 1 of table 1 attains pensionable age at the commencement of the day shown against that period in column 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Period within which woman’s birthday falls (2) Day pensionable age attained 6th April 1950 to 5th May 1950 6th May 2010 6th May 1950 to 5th June 1950 6th July 2010 6th June 1950 to 5th July 1950 6th September 2010 6th July 1950 to 5th August 1950 6th November 2010 6th August 1950 to 5th September 1950 6th January 2011 6th September 1950 to 5th October 1950 6th March 2011 6th October 1950 to 5th November 1950 6th May 2011 6th November 1950 to 5th December 1950 6th July 2011 6th December 1950 to 5th January 1951 6th September 2011 6th January 1951 to 5th February 1951 6th November 2011 6th February 1951 to 5th March 1951 6th January 2012 6th March 1951 to 5th April 1951 6th March 2012 6th April 1951 to 5th May 1951 6th May 2012 6th May 1951 to 5th June 1951 6th July 2012 6th June 1951 to 5th July 1951 6th September 2012 6th July 1951 to 5th August 1951 6th November 2012 6th August 1951 to 5th September 1951 6th January 2013 6th September 1951 to 5th October 1951 6th March 2013 6th October 1951 to 5th November 1951 6th May 2013 6th November 1951 to 5th December 1951 6th July 2013 6th December 1951 to 5th January 1952 6th September 2013 6th January 1952 to 5th February 1952 6th November 2013 6th February 1952 to 5th March 1952 6th January 2014 6th March 1952 to 5th April 1952 6th March 2014 6th April 1952 to 5th May 1952 6th May 2014 6th May 1952 to 5th June 1952 6th July 2014 6th June 1952 to 5th July 1952 6th September 2014 6th July 1952 to 5th August 1952 6th November 2014 6th August 1952 to 5th September 1952 6th January 2015 6th September 1952 to 5th October 1952 6th March 2015 6th October 1952 to 5th November 1952 6th May 2015 6th November 1952 to 5th December 1952 6th July 2015 6th December 1952 to 5th January 1953 6th September 2015 6th January 1953 to 5th February 1953 6th November 2015 6th February 1953 to 5th March 1953 6th January 2016 6th March 1953 to 5th April 1953 6th March 2016 6th April 1953 to 5th May 1953 6th July 2016 6th May 1953 to 5th June 1953 6th November 2016 6th June 1953 to 5th July 1953 6th March 2017 6th July 1953 to 5th August 1953 6th July 2017 6th August 1953 to 5th September 1953 6th November 2017 6th September 1953 to 5th October 1953 6th March 2018 6th October 1953 to 5th November 1953 6th July 2018 6th November 1953 to 5th December 1953 6th November 2018 A person born on any day in a period mentioned in column 1 of table 2 attains pensionable age at the commencement of the day shown against that period in column 2. (1) (2) Period within which birthday falls Day pensionable age attained 6th December 1953 to 5th January 1954 6th March 2019 6th January 1954 to 5th February 1954 6th May 2019 6th February 1954 to 5th March 1954 6th July 2019 6th March 1954 to 5th April 1954 6th September 2019 6th April 1954 to 5th May 1954 6th November 2019 6th May 1954 to 5th June 1954 6th January 2020 6th June 1954 to 5th July 1954 6th March 2020 6th July 1954 to 5th August 1954 6th May 2020 6th August 1954 to 5th September 1954 6th July 2020 6th September 1954 to 5th October 1954 6th September 2020 A person born after 5th October 1954 but before 6th April 1960 attains pensionable age when the person attains the age of 66. A person born on any day in a period mentioned in column 1 of table 3 attains pensionable age when the person attains the age shown against that period in column 2. (1) (2) Period within which birthday falls Age pensionable age attained 6th April 1960 to 5th May 1960 66 years and 1 month 6th May 1960 to 5th June 1960 66 years and 2 months 6th June 1960 to 5th July 1960 66 years and 3 months 6th July 1960 to 5th August 1960 66 years and 4 months 6th August 1960 to 5th September 1960 66 years and 5 months 6th September 1960 to 5th October 1960 66 years and 6 months 6th October 1960 to 5th November 1960 66 years and 7 months 6th November 1960 to 5th December 1960 66 years and 8 months 6th December 1960 to 5th January 1961 66 years and 9 months 6th January 1961 to 5th February 1961 66 years and 10 months 6th February 1961 to 5th March 1961 66 years and 11 months For the purposes of table 3— a person born on 31st July 1960 is to be taken to attain the age of 66 years and 4 months at the commencement of 30th November 2026; a person born on 31st December 1960 is to be taken to attain the age of 66 years and 9 months at the commencement of 30th September 2027; a person born on 31st January 1961 is to be taken to attain the age of 66 years and 10 months at the commencement of 30th November 2027. A person born after 5th March 1961 but before 6th April 1977 attains pensionable age when the person attains the age of 67. A person born on any day in a period mentioned in column 1 of table 4 attains pensionable age at the commencement of the day shown against that period in column 2. (1) (2) Period within which birthday falls Day pensionable age attained 6th April 1977 to 5th May 1977 6th May 2044 6th May 1977 to 5th June 1977 6th July 2044 6th June 1977 to 5th July 1977 6th September 2044 6th July 1977 to 5th August 1977 6th November 2044 6th August 1977 to 5th September 1977 6th January 2045 6th September 1977 to 5th October 1977 6th March 2045 6th October 1977 to 5th November 1977 6th May 2045 6th November 1977 to 5th December 1977 6th July 2045 6th December 1977 to 5th January 1978 6th September 2045 6th January 1978 to 5th February 1978 6th November 2045 6th February 1978 to 5th March 1978 6th January 2046 6th March 1978 to 5th April 1978 6th March 2046 A person born after 5th April 1978 attains pensionable age when the person attains the age of 68.
“active member”, in relation to an occupational pension scheme, has the same meaning as in Part I.
“Scottish partnership” means a partnership constituted under the law of Scotland,
“the Taxes Act 1988” means the Income and Corporation Taxes Act 1988,
“shareable rights” has the same meaning as in Chapter 1 of Part 4 of the Welfare Reform and Pensions Act 1999 (sharing of rights under pension arrangements);
the general index of retail prices (for all items) published by the Statistics Board, or
“discretionary award” means an award of a prescribed description;
other prescribed investments,
For the purposes of this Part— and references to accrued pension or accrued benefits are to be interpreted accordingly.
the accrued rights of a member of an occupational pension scheme at any time are the rights which have accrued to or in respect of him at that time to future benefits under the scheme, and
at any time when the pensionable service of a member of an occupational pension scheme is continuing, his accrued rights are to be determined as if he had opted, immediately before that time, to terminate that service;
In determining what is “pensionable service” for the purposes of this Part—
service notionally attributable for any purpose of the scheme is to be disregarded, and
no account is to be taken of any rules of the scheme by which a period of service can be treated for any purpose as being longer or shorter than it actually is but, in its application for the purposes of section 51, paragraph (b) does not affect the operation of any rules of the scheme by virtue of which a period of service is to be rounded up or down by a period of less than a month.
In subsection (2)(a), the reference to rights which have accrued to or in respect of the member does not include any rights which are pension credit rights.
In the application of this Part to Scotland, in relation to conviction on indictment, references to imprisonment are to be read as references to imprisonment for a term not exceeding two years.
Subject to the provisions of this Act, expressions used in this Act and in the Pension Schemes Act 1993 have the same meaning in this Act as in that.
In a case of the winding-up of an occupational pension scheme in pursuance of an order of the Authority under section 11 or of an order of a court, the winding-up shall (subject to subsection (3E) and to sections 28, 154 and 219 of the Pensions Act 2004) be taken for the purposes of this Part to begin—
if the order provides for a time to be the time when the winding-up begins, at that time; and
in any other case, at the time when the order comes into force.
In a case of the winding-up of an occupational pension scheme in accordance with a requirement or power contained in the rules of the scheme, the winding-up shall (subject to subsections (3C) to (3E) and to sections 154 and 219 of the Pensions Act 2004) be taken for the purposes of this Part to begin—
at the time (if any) which under those rules is the time when the winding-up begins; and
if paragraph (a) does not apply, at the earliest time which is a time fixed by the trustees or managers as the time from which steps for the purposes of the winding-up are to be taken.
Subsection (3B) shall not require a winding-up of a scheme to be treated as having begun at any time before the end of any period during which effect is being given—
to a determination under section 38 that the scheme is not for the time being to be wound up; or
to a determination in accordance with the rules of the scheme to postpone the commencement of a winding-up.
In subsection (3B)(b) the reference to the trustees or managers of the scheme shall have effect in relation to any scheme the rules of which provide for a determination that the scheme is to be wound up to be made by persons other than the trustees or managers as including a reference to those other persons.
Subsections (3A) to (3D) above do not apply for such purposes as may be prescribed.
For the purposes of this Part, an occupational pension scheme is salary related if— and “salary related trust scheme” is to be read accordingly.
the scheme is not a money purchase scheme, and
the scheme does not fall within a prescribed class or description,
Regulations may apply this Part with prescribed modifications to occupational pension schemes—
which are not money purchase schemes, but
where some of the benefits that may be provided are money purchase benefits.
Regulations may, in relation to occupational pension schemes, extend for the purposes of this Part the meaning of “employer” to include persons who have been the employer in relation to the scheme.
For any of the purposes of this Part, regulations may in relation to occupational pension schemes—
extend or restrict the meaning of “member”,
determine who is to be treated as a prospective member, and
determine the times at which a person is to be treated as becoming, or as ceasing to be, a member or prospective member.
Schedule 4 to this Act, of which— shall have effect.
Part I has effect to equalise pensionable age for men and women and then to increase it,
Part II makes provision for bringing equality for men and women to certain pension and other benefits, and
Part III makes consequential amendments of enactments,
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After section 45 of the Social Security Contributions and Benefits Act 1992 (additional pension in a Category A retirement pension) there is inserted—
Accordingly, in the following provisions of the Social Security Contributions and Benefits Act 1992, for “sections 44 and 45” there is substituted “sections 44 to 45A”: sections 39(1) to (3), 50(3) to (5) and 51(2) and (3).
Subject to subsections (4) and (5) below, this section applies to a person (“the pensioner”) who attains pensionable age after 5th April 1999 and, in relation to such persons, has effect for 1995-96 and subsequent tax years.
Where the pensioner is a woman, this section has effect in the case of additional pension falling to be calculated under sections 44 and 45 of the Social Security Contributions and Benefits Act 1992 by virtue of section 39 of that Act (widowed mother’s allowance and widow’s pension), including Category B retirement pension payable under section 48B(4), if her husband—
dies after 5th April 1999, and
has not attained pensionable age on or before that date.
This section has effect where additional pension falls to be calculated under sections 44 and 45 of the Social Security Contributions and Benefits Act 1992 as applied by sections 48A or 48B(2) of that Act (other Category B retirement pension) if—
the pensioner attains pensionable age after 5th April 1999, and
the pensioner’s spouse has not attained pensionable age on or before that date.
In section 44 of the Social Security Contributions and Benefits Act 1992 (Category A retirement pension), for subsection (5) (surplus on which additional pension is calculated) there is substituted—.
In subsection (6) of that section (calculation of earnings factors), for paragraphs (a)(ii) and (b) there is substituted—
Section 148 of the Social Security Administration Act 1992 (revaluation of earnings factors) shall have effect in relation to surpluses in a person’s earnings factors under section 44(5A) of the Social Security Contributions and Benefits Act 1992 for the purposes of section 45(1) and (2)(a) and (b) of that Act as it has effect in relation to earnings factors.
Subject to subsections (5), (5A) and (6) below, this section has effect in relation to a person (“the pensioner”) who attains pensionable age after 5th April 2000.
Where the pensioner is a woman, this section has effect in the case of additional pension falling to be calculated under sections 44 and 45 of the Social Security Contributions and Benefits Act 1992 by virtue of section 39 of that Act (widowed mother’s allowance and widow’s pension), including Category B retirement pension payable under section 48B(4), if her husband—
dies after 5th April 2000, and
has not attained pensionable age on or before that date.
This section has effect where additional pension falls to be calculated under sections 44 and 45 of the Social Security Contributions and Benefits Act 1992 as applied by section ... 48B(2) or 48BB(5) of that Act (other Category B retirement pension) if—
the pensioner attains pensionable age after 5th April 2000, and
the pensioner’s spouse has not attained pensionable age on or before that date.
This section has effect in the case of additional pension falling to be calculated under sections 44 and 45 of the Social Security Contributions and Benefits Act 1992 by virtue of section 39C(1) of that Act (widowed parent’s allowance), including Category B retirement pension payable under section 48BB(2), if the pensioner’s spouse—
dies after 5th April 2000, and
has not attained pensionable age on or before that date.
In Schedule 3 to the Social Security Contributions and Benefits Act 1992 (contribution conditions), in paragraph 5(3)(a) (conditions for widowed mother’s allowance, widow’s pension and Category A and Category B retirement pension), after “class” there is inserted “ or been credited (in the case of 1987-88 or any subsequent year) with earnings ”.
For section 156 of the Social Security Administration Act 1992 there is substituted—
In section 151(1) of that Act (effect of up-rating orders on additional pensions), after “and shall apply” there is inserted “ subject to section 156 and ”.
In section 62(1) of the Social Security Contributions and Benefits Act 1992 (graduated retirement benefit), after paragraph (a) there is inserted—.
In section 150(11) of the Social Security Administration Act 1992 (application of up-rating provisions to graduated retirement benefit) for the words following “provisions of this section” there is substituted—
In section 155(7) of that Act (effect of alteration of rates of graduated retirement benefit) for the words following “provisions of this section” there is substituted—.
Section 150 of the Social Security Contributions and Benefits Act 1992 (Christmas bonus: interpretation) is amended as follows.
In subsection (1), after paragraph (k) there is inserted—.
In subsection (2)—
“mobility supplement” means a supplement awarded in respect of disablement which affects a person’s ability to walk and for which the person is in receipt of war disablement pension;
in the definition of “retirement pension”, “ if paid periodically ” is omitted,
in paragraph (b) of the definition of “unemployability supplement or allowance”, after sub-paragraph (iv) there is insertedor and accordingly, the “or” immediately following sub-paragraph(iii) is omitted.
After section 61 of the Social Security Contributions and Benefits Act 1992 there is inserted—.
In section 23(1) of the Social Security Contributions and Benefits Act 1992 (contribution conditions: supplemental), for “22(1)(a)” there is substituted “ 22(1) ”.
Section 54(4) of that Act (effect on advance claims for retirement pension of deferral of entitlement) is omitted.
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“working life” has the meaning given by paragraph 5(8) of Schedule 3 to this Act
In paragraph 5(8) of Schedule 3 to that Act (contribution conditions: meaning of “working life”) for “this paragraph” there is substituted “ Parts I to VI of this Act ”.
An order under section 180 of this Act appointing a day for the coming into force of any provisions of this Part, being 6th April in any year, may designate that day as the principal appointed day for the purposes of this Part.
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In section 40 of the Pension Schemes Act 1993 (scope of Chapter II of Part III), in paragraph (b), after “members of” there is inserted “ money purchase contracted-out schemes and members of ”.
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in subsection (1)(a), sub-paragraph (i) and, in sub-paragraph (ii), “any changes since the preparation of the last report under this paragraph in” were omitted,
for subsection (1)(b) there were substituted—,
for subsections (3) and (4) there were substituted—,
in subsection (5), for “alteration” there were substituted “determination”, and
in subsection (6), for “an order making alterations in either or both of those percentages” there were substituted “such an order”.
After that section there is inserted—.
In Schedule 4 to that Act (priority in bankruptcy, etc.), in paragraph 2(3)—
in paragraph (a), for “4.8 per cent.” there is substituted “ the percentage for non-contributing earners ”,
in paragraph (b), for “3 per cent.” there is substituted “ the percentage for contributing earners ”.
In paragraph 2(5) of that Schedule—
“appropriate flat-rate percentage” has the same meaning as in section 42A
after the definition there is inserted—.
Section 45 of the Pension Schemes Act 1993 (minimum contributions to personal pension schemes) is amended as follows.
For subsection (1) there is substituted—.
Subsection (2) is omitted.
In subsection (3)(e), the words following “ prescribed period ” are omitted.
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After section 48 of the Pension Schemes Act 1993 there is inserted—
In section 48 of the Pension Schemes Act 1993 (effect of membership of money purchase contracted-out scheme or appropriate scheme on payment of social security benefits) in subsection (2), paragraph (b) is omitted and, in paragraph (c), “ if the earner dies before reaching pensionable age ” is omitted.
Section 48 of that Act shall cease to have effect in relation to minimum payments made, or minimum contributions paid, on or after the principal appointed day.
In section 55 of the Pension Schemes Act 1993 (payment of state scheme premiums on termination of certified status), for subsection (2) there is substituted—.
In Schedule 2 to that Act, in paragraph 5 (state scheme premiums)—
in sub-paragraph (3)—
“ in relation to state scheme premiums ” is omitted,
paragraph (b) is omitted, and
at the end there is added— “ and in this sub-paragraph and the following provisions of this paragraph “premium” means a contributions equivalent premium ”,
after sub-paragraph (3) there is inserted—, and
sub-paragraph (5) is omitted.
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Section 28 of the Pension Schemes Act 1993 (ways of giving effect to protected rights) is amended as follows.
In subsection (1), after paragraph (a) there is inserted—.
After that subsection there is inserted—
In subsection (3)—
in paragraph (b), after “the member” there is inserted “or, where section 28A(2) applies, the member’s widow or widower”, and
in the words following that paragraph, after “subsection” there is inserted “(1A)(a) or”.
In subsection (4)(a), for the words from “65” to the end there is substituted—65 or such later date as has been agreed by him, or
In subsection (5), after “subsection” there is inserted “(1A)”.
After subsection (7) there is added—
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Section 29 of the Pension Schemes Act 1993 (the pension and annuity requirements) is amended as follows.
In subsection (1) for paragraph (a) there is substituted—.
In subsection (3)(b)(iii), after “member” there is inserted “or, where section 28A(2) applies, the member’s widow or widower”.
In subsection (4), after “member” there is inserted “(or a member’s widow or widower)”.
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After section 32 of the Pension Schemes Act 1993 there is inserted—.
At the end of section 28 of that Act, as amended by this Act, (ways of giving effect to protected rights) there is inserted—.
After section 33 of the Pension Schemes Act 1993 there is inserted—
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Paragraph 1 of Schedule 1 to the Social Security Contributions and Benefits Act 1992 (Class 1 contributions where earner in more than one employment) is amended as follows.
The amount of the primary Class 1 contribution shall be the aggregate of the amounts determined under the following paragraphs (applying earlier paragraphs before later ones)—
The amount of the secondary Class 1 contribution shall be the aggregate of the amounts determined under the following paragraphs (applying earlier paragraphs before later ones)—
In this paragraph—
Until the principal appointed day, that paragraph, as amended by this section, shall have effect as if—
for sub-paragraph (3)(b) there were substituted—,
sub-paragraph (3)(c) were omitted,
in sub-paragraph (3)(d), for “COMPS or COSRS service” there were substituted “service in contracted-out employment”,
for sub-paragraph (6)(b) there were substituted—,
sub-paragraph (6)(c) were omitted, and
in sub-paragraph (9) the definitions of “COMPS service” and “COSRS service” were omitted.
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In spite of anything in sections 9 and 12 of the Pension Schemes Act 1993 (requirements for certification and determination of basis on which scheme is contracted-out), the Secretary of State may by regulations provide, where the pensions provided by an occupational pension scheme include both— for Part III of that Act to have effect as if the scheme were two separate schemes providing, respectively, the pensions referred to in paragraphs (a) and (b).
such pensions that, if the scheme provided only those pensions, it would satisfy section 9(2) of that Act, and
such other pensions that, if the scheme provided only those other pensions, it would satisfy section 9(3) of that Act,
Regulations made by the Secretary of State may, in connection with any provision made by virtue of subsection (1), make such modifications of the following Acts, and the instruments made or having effect as if made under them, as appear to the Secretary of State desirable: the Social Security Contributions and Benefits Act 1992, the Pension Schemes Act 1993 and Part I of this Act.
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The Occupational Pensions Board (referred to in this section as “the Board”) is hereby dissolved.
An order under section 180 appointing the day on which subsection (1) is to come into force may provide—
for all property, rights and liabilities to which the Board is entitled or subject immediately before that day to become property, rights and liabilities of the Authority or the Secretary of State, and
for any function of the Board falling to be exercised on or after that day, or which fell to be exercised before that day but has not been exercised, to be exercised by the Authority, the Secretary of State or the Department of Health and Social Services for Northern Ireland.
Schedule 5 (which makes amendments related to sections 136 to 150) shall have effect.
Section 93 of the Pension Schemes Act 1993 (scope of provisions relating to transfer values) is amended as follows.
For subsection (1)(a) there is substituted—.
After subsection (1) there is inserted—
After section 93 of the Pension Schemes Act 1993 there is inserted—
In paragraph (a) of section 94(1) of the Pension Schemes Act 1993—
after “occupational pension scheme” there is inserted “ other than a salary related scheme ”, and
after “terminates” there is inserted “ (whether before or after 1st January 1986) ”.
After that paragraph there is inserted—.
After that subsection there is inserted—
“the guarantee date” has the same meaning as in section 93A(2)
After that subsection there is inserted—
For section 168 of the Pension Schemes Act 1993 (penalties for breach of regulations) there is substituted—.
In section 186 of that Act (Parliamentary control of orders and regulations), in subsection (3), after paragraph (c) there is insertedor .
For section 145(4) of the Pension Schemes Act 1993 (staff of the Pensions Ombudsman), there is substituted—
Sections 146 to 151 of the Pension Schemes Act 1993 are amended as shown in subsections (2) to (11).
In section 146 (investigations concerning the trustees or managers of schemes), for subsections (1) to (4) there is substituted—.
In subsection (7) of that section, for “authorised complainants” there is substituted “ actual or potential beneficiaries ”.
In section 147 (death, insolvency etc.), in subsections (1) and (2), for “authorised complainant” there is substituted “ actual or potential beneficiary ” and for “the authorised complainant’s” there is substituted “ his ”.
In subsection (3) of that section, for “an authorised complainant” there is substituted “ a person by whom, or on whose behalf, a complaint or reference has been made under this Part ”.
In section 148 (staying court proceedings), in subsection (5), for paragraphs (a) and (b) there is substituted—.
In section 149 (procedure on investigation), in subsection (1)(a), for “the trustees and managers of the scheme concerned” there is substituted “ any person (other than the person by whom, or on whose behalf, the complaint or reference was made) responsible for the management of the scheme to which the complaint or reference relates ”.
In section 150 (investigations: further provisions), in subsection (1)(a), for “any trustee or manager of the scheme concerned” there is substituted “ any person responsible for the management of the scheme to which the complaint or reference relates ”.
In section 151 (determinations of Pensions Ombudsman), for subsection (1)(a) and (b) there is substituted—.
In subsection (2) of that section, for “the trustees or managers of the scheme concerned” there is substituted “ any person responsible for the management of the scheme to which the complaint or reference relates ”.
In subsection (3) of that section, for paragraphs (a) to (c) there is substituted—.
In Part I of Schedule 1 to the Tribunals and Inquiries Act 1992 (tribunals under the direct supervision of the Council on Tribunals), in paragraph 35(e), for “section 146(2)” there is substituted “ section 146(1)(c) and (d) ”.
In section 149 of the Pension Schemes Act 1993—
after subsection (3)(b) there is insertedand , and
at the end of subsection (3)(a), “ and ” is omitted.
In section 149 of the Pension Schemes Act 1993, after subsection (4) there is added—
In section 151 of that Act, in subsection (7)(a), after “this section” there is inserted—.
After section 151 of the Pension Schemes Act 1993 there is inserted—.
Sections 136 to 141 (modification) and 142 and 143 (winding up) of the Pension Schemes Act 1993 are repealed.
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This section applies to any pension provided to give effect to protected rights of a member of a personal pension scheme if—
there is in force, or was in force at any time after the appointed day, an appropriate scheme certificate issued in accordance with Chapter I of Part III (certification) of the Pension Schemes Act 1993, and
apart from this section, the annual rate of the pension would not be increased each year by at least the appropriate percentage of that rate.
Where a pension to which this section applies, or any part of it, is attributable to contributions in respect of employment carried on on or after the appointed day— must be increased annually by at least the appropriate percentage.
the annual rate of the pension, or
if only part of the pension is attributable to contributions in respect of employment carried on on or after the appointed day, so much of the annual rate as is attributable to that part,
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The first increase required by section 162 in the rate of a pension must take effect not later than the first anniversary of the date on which the pension is first paid; and subsequent increases must take effect at intervals of not more than twelve months.
Where the first such increase is to take effect on a date when the pension has been in payment for a period of less than 12 months, the increase must be of an amount at least equal to one twelfth of the amount of the increase so required (apart from this subsection) for each complete month in that period.
In section 162 and this section—
“appropriate rights” has the same meaning as in paragraph 5 of Schedule 5 to the Welfare Reform and Pensions Act 1999 (pension credits: mode of discharge);
“retail prices index” means—
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then, unless the Secretary of State rejects the notice on either or both of the grounds mentioned in subsection (1A)
after that subsection there is inserted—.
For section 175 of the Pension Schemes Act 1993 (levies towards meeting certain costs and grants) there is substituted—
In the Matrimonial Causes Act 1973, after section 25A there is inserted—
In section 25(2)(h) of that Act (loss of chance to acquire benefits), “ (for example, a pension) ” is omitted.
In section 31 of that Act (variation, discharge, etc. of orders)—
in subsection (2), after paragraph (d) there is inserted—, and
after subsection (2A) there is inserted—.
Nothing in the provisions mentioned in subsection (5) applies to a court exercising its powers under section 23 of the Matrimonial Causes Act 1973 (financial provision in connection with divorce proceedings, etc.) in respect of any benefits under a pension arrangement (within the meaning of section 25B(1) of the Matrimonial Causes Act 1973) which a party to the marriage has or is likely to have.
The provisions referred to in subsections (4) and (4A) are —
section 356 of the Armed Forces Act 2006 or 159(4) and (4A) of the Pension Schemes Act 1993 (which prevent assignment, or orders being made restraining a person from receiving anything which he is prevented from assigning),
section 91 of this Act,
any provision of any enactment (whether passed or made before or after this Act is passed) corresponding to any of the enactments mentioned in paragraphs (a) and (b), and
any provision of the arrangement in question corresponding to any of those enactments.
Nothing in the provisions mentioned in subsection (5) applies to a court exercising its powers under Part 6 of Schedule 5 to the Civil Partnership Act 2004 (making of Part 1 orders having regard to pension benefits).
Subsections (3) to (7) of section 25B, and section 25C of the Matrimonial Causes Act 1973, as inserted by this section, do not affect the powers of the court under section 31 of that Act (variation, discharge, etc.) in relation to any order made before the commencement of this section.
In section 8(1) (orders for financial provision) of the Family Law (Scotland) Act 1985 (“the 1985 Act”), after paragraph (b) there is inserted—.
In section 10 of the 1985 Act (sharing of value of matrimonial property)—
in subsection (5)—
after “party” there is inserted “ (a) ”; and
which is
after subsection (7) there is inserted—.
After section 12 of the 1985 Act there is inserted—.
Nothing in the provisions mentioned in section 166(5) above applies to a court exercising its powers under section 8 (orders for financial provision on divorce, etc.) or 12A (orders for payment of capital sum: pensions lump sums) of the 1985 Act in respect of any benefits under a pension arrangement which fall within subsection (5)(b) of section 10 of that Act (“pension arrangement” having the meaning given in subsection (1) of section 27 of that Act, as it has effect for the purposes of subsection (5) of the said section 10).
In determining whether a pension is payable to a person as a widow, widower or surviving civil partner under any of the enactments mentioned in subsection (3) in respect of any period beginning on or after the commencement date, no account may be taken of the fact that the person has married or formed a civil partnership with another person if, before the beginning of that period—
the marriage or civil partnership has been terminated,
the parties to it have been judicially separated, or
in the case of a civil partnership, a separation order has been made in respect of the parties.
For the purposes of this section— and for those purposes a divorce, dissolution, annulment or legal separation obtained in a country or territory outside the British Islands must, if the Secretary of State so determines, be treated as recognised in the United Kingdom even though no declaration as to its validity has been made by any court in the United Kingdom.
the reference to the termination of a marriage or civil partnership is to its termination by death, dissolution or annulment, and
the reference to judicial separation includes any legal separation obtained in a country or territory outside the British Islands and recognised in the United Kingdom;
The commencement date is—
for the purpose of determining whether a pension is payable to a person as a widow or widower, 19 July 1995;
for the purpose of determining whether a pension is payable to a person as a surviving civil partner, 5 December 2005.
The enactments referred to in subsection (1) are—
The Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 2006, and any order re-enacting the provisions of that order,
The Personal Injuries (Civilians) Scheme 1983, and any subsequent scheme made under the Personal Injuries (Emergency Provisions) Act 1939,
any scheme made under the Pensions (Navy, Army, Air Force and Mercantile Marine) Act 1939 or the Polish Resettlement Act 1947 applying the provisions of any such order as is referred to in paragraph (a),
the order made under section 1(5) of the Ulster Defence Regiment Act 1969 concerning pensions and other grants in respect of disablement or death due to service in the Ulster Defence Regiment.
The Pensions Appeal Tribunals Act 1943 is amended as follows.
In section 1 (appeals against rejection of war pension claims made in respect of members of armed forces)—
in subsection (1), after “administered by the Minister” there is inserted “ or under a scheme made under section 1 of the Polish Resettlement Act 1947 ”, and
in subsections (3) and (3A), for “or Order of His Majesty” there is substituted “ , Order of Her Majesty or scheme ”.
In section 7 (application of Act to past decisions and assessments)—
in subsection (2), at the beginning there is inserted “ Subject to subsection (2A) of this section, ”, and
after that subsection, there is inserted—
In section 10 (power to modify sections 1 to 4 by Order in Council), in subsections (1) and (2), for “or Order of His Majesty” there is substituted “ , Order of Her Majesty or scheme ”.
In section 12 (interpretation), in the definition of “relevant service”—
for “or Order of His Majesty” there is substituted “ , Order of Her Majesty or scheme ”, and
for “or Order” there is substituted “ , Order or scheme ”.
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Section 27 of the Parliamentary and Other Pensions Act 1972 (application of certain provisions with modifications in relation to the Prime Minister and the Speaker) is amended as follows.
For subsection (1)(b) (amount by reference to which dependant’s pension calculated) there is substituted—.
After subsection (1) there is inserted—
For the purposes of the Pensions (Increase) Act 1971, a pension payable under section 27 of the Parliamentary and Other Pensions Act 1972 in respect of a person who ceased to hold the office of Prime Minister and First Lord of the Treasury or Speaker of the House of Commons before 28th February 1991 shall be deemed to have begun on that date.
Where a person— it shall be determined in accordance with subsection (6).
is entitled to receive a pension under that section by reason of the death of a person who, at any time before the commencement of this section, held the office of Prime Minister and First Lord of the Treasury or Speaker of the House of Commons, and
the amount of that pension determined in accordance with subsection (6) is greater than the amount of the pension determined in accordance with subsections (1) to (4),
The annual amount of the pension shall be determined as if—
subsections (1) to (3) had not been enacted, and
for the purposes of the Pensions (Increase) Act 1971, the pension had begun on the day following the date of the death.
This section has effect, and shall be treated as having had effect, in relation to any person who becomes entitled to a pension payable under section 27 of the Parliamentary and Other Pensions Act 1972 on or after 15th December 1994.
Section 3 of the Pensions (Increase) Act 1971 (qualifying conditions for pensions increase) is amended as follows.
In subsection (2)(c), “ is a woman who ” is omitted.
In subsection (10)—
for “woman is in receipt of a pension” there is substituted “ person is in receipt of a pension the whole or any part of ”, and
for “woman and that pension” there is substituted “ person and that pension or part ”.
In subsection (11)— and accordingly for “she” there is substituted “ he ”.
for “woman’s” there is substituted “ person’s ”, and
for “woman” there is substituted “ person ”,
This section shall have effect, and shall be deemed to have had effect, in relation to pensions commencing after 17th May 1990, and in relation to so much of any such pension as is referable to service on or after that date.
In prescribed circumstances, the Secretary of State may provide information to any prescribed person in connection with the following questions— and may impose on that person reasonable fees in respect of administrative expenses incurred in providing that information.
whether an individual who during any period— has suffered loss as a result of a contravention which is actionable under section 62 of the Financial Services Act 1986 or under section 138D of the Financial Services and Markets Act 2000 (actions for damages in respect of contravention of rules etc. made under the Act), and
has been eligible to be an active member of an occupational pension scheme under the Superannuation Act 1972, but
has instead made contributions to a personal pension scheme,
if so, what payment would need to be made to the occupational scheme in respect of the individual to restore the position to what it would have been if the individual had been an active member of the occupational scheme throughout the period in question,
Where— the Secretary of State may impose on any prescribed person reasonable fees in respect of administrative expenses incurred in connection with the admission, readmission or payment.
such an individual as is mentioned in subsection (1) is admitted or readmitted as an active member of an occupational pension scheme under the Superannuation Act 1972, or
a payment is made to the Secretary of State in respect of such an individual for the purpose mentioned in paragraph (b) of that subsection,
In the case of an occupational pension scheme under section 1 of the Superannuation Act 1972 (superannuation of civil servants), the references in subsections (1) and (2) to the Secretary of State shall be read as references to the Minister for the Civil Service, or such person as may be prescribed.
In the case of an occupational pension scheme under section 7 of the Superannuation Act 1972 (superannuation of persons employed in local government etc.), the references in subsections (1) and (2) to the Secretary of State shall be read as references to a prescribed person.
In this section—
“enactment” includes an enactment comprised in subordinate legislation (within the meaning of the Interpretation Act 1978),
Schedule 6, which makes general minor and consequential amendments, shall have effect.
Any power under this Act to make regulations or orders (except a power of the court or the Authority to make orders) shall be exercisable by statutory instrument.
Except in so far as this Act provides otherwise, any power conferred by it to make regulations or an order may be exercised— and where such a power is expressed to be exercisable for alternative purposes it may be exercised in relation to the same case for any or all of those purposes; and any power to make regulations or an order for the purposes of any one provision of this Act shall be without prejudice to any power to make regulations or an order for the purposes of any other provision.
either in relation to all cases to which the power extends, or in relation to those cases subject to specified exceptions, or in relation to any specified cases or classes of case,
so as to make, as respects the cases in relation to which it is exercised—
the full provision to which the power extends or any less provision (whether by way of exception or otherwise),
the same provision for all cases in relation to which the power is exercised, or different provision for different cases or different classes of case or different provision as respects the same case or class of case for different purposes of this Act, or
any such provision either unconditionally or subject to any specified condition,
Any power conferred by this Act to make regulations or an order includes power to make such incidental, supplementary, consequential or transitional provision as appears to the authority making the regulations or order to be expedient for the purposes of the regulations or order.
Regulations made by the Secretary of State may, for the purposes of or in connection with the coming into force of any provisions of this Act, make any such provision as could be made, by virtue of subsection (4)(a) of section 180, by an order bringing those provisions into force.
Subject to subsections (2) to (3), a statutory instrument which contains any regulations or order made under this Act shall be subject to annulment in pursuance of a resolution of either House of Parliament.
A statutory instrument which contains any regulations made by virtue of— or order under section 10(2) must not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.
section 64(4),
section 78(6),
section 116(1), ...
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subsection (1) does not apply to an order under section 180.
A statutory instrument which contains the first regulations made by virtue of section 37(2A), 41A or 41C must not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.
Any provision that may be made by regulations or an order under this Act subject to the procedure described in subsection (1) may instead be made by regulations subject to the procedure described in subsection (2).
In this Act— and the definition of “enactment” shall apply for the purposes of section 114 as if “Act” in section 21(1) of the Interpretation Act 1978 included any enactment.
“occupational pension scheme” and “personal pension scheme” have the meaning given by section 1 of the Pension Schemes Act 1993,
The enactments shown in Schedule 7 are repealed to the extent specified in the third column.
Subject to the following provisions, this Act does not extend to Northern Ireland.
Sections ... 68(5), ... ...168, 170(4) to (7), 172 and 179 extend to Northern Ireland.
The amendment by this Act of an enactment which extends to Northern Ireland extends also to Northern Ireland.
An Order in Council under paragraph 1(1)(b) of Schedule 1 to the Northern Ireland Act 1974 (legislation for Northern Ireland in the interim period) which states that it is made only for purposes corresponding to those of this Act—
shall not be subject to paragraph 1(4) and (5) of that Schedule (affirmative resolution of both Houses of Parliament), but
shall be subject to annulment in pursuance of a resolution of either House.
Subject to the following provisions, this Act shall come into force on such day as the Secretary of State may by order made by statutory instrument appoint and different days may be appointed for different purposes.
The following provisions shall come into force on the day this Act is passed— and any repeal in Schedule 7 for which there is a note shall come into force in accordance with that note.
subject to the provisions of Schedule 4, Part II,
section 168,
sections 170 and 171,
section 179,
Section 166 shall come into force on such day as the Lord Chancellor may by order made by statutory instrument appoint and different days may be appointed for different purposes.
Without prejudice to section 174(3), the power to make an order under this section includes power— as it appears to the Secretary of State expedient, including different adaptations or modifications for different periods.
to make transitional adaptations or modifications—
of the provisions brought into force by the order, or
in connection with those provisions, of any provisions of this Act, or the Pension Schemes Act 1993, then in force, or
to save the effect of any of the repealed provisions of that Act, or those provisions as adapted or modified by the order,
This Act may be cited as the Pensions Act 1995.