Weekly Epidemiological Record, 1994, vol. 69, 12 [full issue]
For the purposes of this Part a jobholder is a worker—
who is working or ordinarily works in Great Britain under the worker's contract,
who is aged at least 16 and under 75, and
to whom qualifying earnings are payable by the employer in the relevant pay reference period (see sections 13 and 15).
Where a jobholder has more than one employer, or a succession of employers, this Chapter applies separately in relation to each employment.
Accordingly—
references to the employer are references to the employer concerned;
references to membership of a pension scheme are references to membership in relation to the employment concerned.
If a jobholder is an active member of a qualifying scheme, the employer must not take any action, or make any omission, by which (without the jobholder ceasing to be employed by the employer)—
the jobholder ceases to be an active member of the scheme, or
the scheme ceases to be a qualifying scheme.
Subsection (1) is not contravened if the jobholder remains an active member of another qualifying scheme.
Subsection (1) is not contravened if by virtue of section 5 the jobholder becomes an active member of an automatic enrolment scheme with effect from—
the day after the cessation referred to in paragraph (a) or (b) of subsection (1), or
a day within the prescribed period (if a period is prescribed).
Subsection (1) is not contravened if the action or omission is at the jobholder's request.
In this Part as it applies in the case of any jobholder, references to a qualifying scheme are references to a pension scheme which is a qualifying scheme in relation to that jobholder (see section 16).
This section applies to a jobholder—
who is aged at least 22,
who has not reached pensionable age, and
to whom earnings of more than £10,000 are payable by the employer in the relevant pay reference period (see section 15).
The employer must make prescribed arrangements by which the jobholder becomes an active member of an automatic enrolment scheme with effect from the automatic enrolment date.
Subsection (2) does not apply if the jobholder was an active member of a qualifying scheme on the automatic enrolment date.
Subsection (2) does not apply if, within the prescribed period before the automatic enrolment date, the jobholder ceased to be an active member of a qualifying scheme because of any action or omission by the jobholder.
For the purposes of arrangements under subsection (2) regulations may require information to be provided to any person by the employer or—
where the arrangements relate to an occupational pension scheme, the trustees or managers of the scheme;
where the arrangements relate to a personal pension scheme, the provider of the scheme.
For the purposes of arrangements made under subsection (2) in relation to a personal pension scheme, regulations may deem an agreement to exist (subject to section 8) between the jobholder and the provider of the scheme for the jobholder to be an active member of the scheme on terms and conditions determined in accordance with the regulations.
The automatic enrolment date, in relation to any person, is the first day on which this section applies to the person as a jobholder of the employer. This is subject to section 4.
In this section “ earnings ” has the meaning given in section 13(3).
In this Part as it applies in the case of any jobholder, references to an automatic enrolment scheme are references to a pension scheme which is an automatic enrolment scheme in relation to that jobholder (see section 17).
In the case of a pay reference period of less or more than 12 months, subsection (1) applies as if the amount in paragraph (c) were proportionately less or more.
Where— the worker's automatic enrolment date is the deferral date if on that date section 3 applies to the worker as a jobholder of E; if not, subsection (4) applies.
an employer (E) gives to a person employed by E on E's staging date (“the worker”) notice that E intends to defer automatic enrolment for the worker until a date specified in the notice (“the deferral date”), and
any prescribed requirements in relation to the notice are met,
Where— the worker's automatic enrolment date is the deferral date if on that date section 3 applies to the worker as a jobholder of E; if not, subsection (4) applies.
a person (“the worker”) begins to be employed by an employer (E) after E's staging date,
E gives the worker notice that E intends to defer automatic enrolment until a date specified in the notice (“the deferral date”), and
any prescribed requirements in relation to the notice are met,
Where— the worker's automatic enrolment date is the deferral date if on that date section 3 applies to the worker as a jobholder of E; if not, subsection (4) applies.
a person (“the worker”) employed by an employer (E) becomes, after E's staging date, a jobholder to whom section 3 applies,
E gives the worker notice that E intends to defer automatic enrolment until a date specified in the notice (“the deferral date”), and
any prescribed requirements in relation to the notice are met,
Where this subsection applies, section 3(2) does not apply in relation to any employment of the worker by E in the period beginning with the starting day and ending with the deferral date.
A notice under this section may be given on or before the starting day or within a prescribed period after that day.
The deferral date may be any date in the period of three months after the starting day.
An employer who gives a worker a notice under subsection (1) or (2) may not give the worker a notice under subsection (3) in relation to any occasion on or before the deferral date specified in the notice on which the worker becomes a jobholder to whom section 3 applies.
In this section—
“ starting day ” means—
E's staging date, in the case of a notice under subsection (1);
in relation to a pause order, provision contained in the order or the provision made with respect to the order by section 31 of the Pension Schemes Act 2017 or (as the case may be) section 44 of the Pension Schemes Act 2021.
This section applies to a jobholder—
who is aged at least 22,
who has not reached pensionable age, and
to whom earnings of more than £10,000 are payable by the employer in the relevant pay reference period (see section 15).
The employer must make prescribed arrangements by which the jobholder becomes an active member of an automatic enrolment scheme with effect from the automatic re-enrolment date.
This section also applies to a jobholder who—
is aged at least 22,
has not reached pensionable age, and
is not an active member of a qualifying scheme because there has been a period beginning at any time after the jobholder's automatic enrolment date during which the requirements of section 1(1)(a) or (c) were not met (so that the person was not a jobholder for that period).
Subsection (2) does not apply if the jobholder was an active member of a qualifying scheme on the automatic re-enrolment date.
This section also applies to a jobholder who has ceased to be an active member of a qualifying scheme because of something other than an action or omission by the jobholder.
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ceased to be an active member of a qualifying scheme because of any action or omission by the jobholder, or
gave notice under section 8.
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For the purposes of arrangements under subsection (2) regulations may require information to be provided to any person by the employer or—
where the arrangements relate to an occupational pension scheme, the trustees or managers of the scheme;
where the arrangements relate to a personal pension scheme, the provider of the scheme.
Subsection (2) does not apply if the jobholder's automatic enrolment date is deferred under section 4 from a date before the automatic re-enrolment date to a date after the automatic re-enrolment date.
For the purposes of arrangements made under subsection (2) in relation to a personal pension scheme, regulations may deem an agreement to exist (subject to section 8) between the jobholder and the provider of the scheme for the jobholder to be an active member of the scheme on terms and conditions determined in accordance with the regulations.
Automatic re-enrolment dates are dates . . . that are to be determined in accordance with regulations.
In this section “ earnings ” has the meaning given in section 13(3).
In the case of a pay reference period of less or more than 12 months, subsection (1) applies as if the amount in paragraph (c) were proportionately less or more.
Regulations under section 5(8) must either—
secure that for any jobholder there is no automatic re-enrolment date less than three years after the jobholder's automatic enrolment date, and that there is not more than one automatic re-enrolment date in any period of three years, or
secure that for any employer there is not more than one automatic re-enrolment date in any period of 2 years and 9 months.
Subsection (1) does not restrict the provision that regulations may make about the timing of a jobholder's automatic re-enrolment date (“the relevant date”) in the following cases.
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at any time before the end of the minimum period under that section, the jobholder ceases to be an active member of the scheme or the scheme ceases to be a scheme of the relevant kind for the purposes of that section,
that event is not the effect of any action or omission by the jobholder or the employer, and
the relevant date is the jobholder’s first automatic re-enrolment date after that time.
The first case is where—
. . . the jobholder ceases to be an active member of a qualifying scheme . . . ,
that event is not the effect of any action or omission by the jobholder . . . , and
the relevant date is the jobholder's first automatic re-enrolment date after that event.
The second case is where—
there is a period beginning at any time after the jobholder's automatic enrolment date during which the requirements of section 1(1)(a) or (c) are not met (so that the person is not a jobholder for that period), and
the relevant date is the jobholder's first automatic re-enrolment date after that period.
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section 5(2) has effect as if the reference to an automatic enrolment scheme were, in relation to the relevant date, a reference to a scheme (“the new scheme”) of the kind referred to in subsection (3)(a), and
section 4(2) to (5) apply in relation to the new scheme as they applied in relation to the scheme referred to in subsection (3).
This section applies to a jobholder who is not an active member of a qualifying scheme.
But it does not apply at a time when—
arrangements are required to be made under section 3 or 5 in respect of the jobholder, . . .
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The jobholder may by notice require the employer to arrange for the jobholder to become an active member of an automatic enrolment scheme.
The Secretary of State may by regulations make provision—
about the form and content of the notice;
about the arrangements that the employer is required to make;
for determining the date with effect from which the jobholder is to become an active member under the arrangements.
For the purposes of arrangements under subsection (3) regulations may require information to be provided to any person by the employer or—
where the arrangements relate to an occupational pension scheme, the trustees or managers of the scheme;
where the arrangements relate to a personal pension scheme, the provider of the scheme.
For the purposes of arrangements made under subsection (3) in relation to a personal pension scheme, regulations may deem an agreement to exist (subject to section 8) between the jobholder and the provider of the scheme for the jobholder to be an active member of the scheme on terms and conditions determined in accordance with the regulations.
Subsections (8) and (9) apply where a jobholder becomes an active member of an automatic enrolment scheme in pursuance of a notice under this section and, within the period of 12 months beginning with the day on which that notice was given—
ceases to be an active member of that scheme, and
gives the employer a further notice under this section.
The further notice does not have effect to require the employer to arrange for the jobholder to become an active member of an automatic enrolment scheme.
But any arrangements the employer makes for the jobholder to become, within that period, an active member of such a scheme must be made in accordance with regulations under this section.
This section applies on any occasion when arrangements under section 3(2), 5(2) or 7(3) apply to a jobholder (arrangements for the jobholder to become an active member of an automatic enrolment scheme).
If the jobholder gives notice under this section—
the jobholder is to be treated for all purposes as not having become an active member of the scheme on that occasion;
any contributions paid by the jobholder, or by the employer on behalf or in respect of the jobholder, on the basis that the jobholder has become an active member of the scheme on that occasion must be refunded in accordance with prescribed requirements.
Regulations under subsection (2)(b) may, in particular, make provision about—
the time within which contributions must be refunded;
how the amount to be refunded is calculated;
the procedure for refunding contributions.
The Secretary of State may by regulations make further provision in relation to notices under this section.
The regulations may in particular make provision—
as to the form and content of a notice;
as to the period within which a notice must be given;
as to the person to whom a notice must be given;
requiring any person to make prescribed arrangements for enabling notices to be given;
requiring any person to take prescribed action in consequence of a notice (in addition to any action prescribed under subsection (2)(b)).
The regulations must provide for the notice—
to include information about the effect in relation to jobholders of giving notice under this section, and
to be signed or otherwise authorised by the jobholder.
This section applies to a worker—
to whom paragraphs (a) and (b) of section 1(1) apply (working in Great Britain and aged between 16 and 75),
to whom paragraph (c) of section 1(1) does not apply (qualifying earnings), and
who is not an active member of a pension scheme that satisfies the requirements of this section.
The worker may by notice require the employer to arrange for the worker to become an active member of a pension scheme that satisfies the requirements of this section.
The Secretary of State may by regulations make provision—
about the form and content of the notice;
about the arrangements that the employer is required to make;
for determining the date with effect from which the worker is (subject to compliance with any requirements of the scheme) to become an active member under the arrangements.
Subsections (5) and (6) apply where a worker becomes an active member of a pension scheme in pursuance of a notice under this section and, within the period of 12 months beginning with the day on which that notice was given—
ceases to be an active member of that scheme because of any action or omission by the worker, and
gives the employer a further notice under this section.
The further notice does not have effect to require the employer to arrange for the worker to become an active member of a pension scheme.
But any arrangements the employer makes for the worker to become, within that period, an active member of a pension scheme that satisfies the requirements of this section must be made in accordance with regulations under this section.
A pension scheme satisfies the requirements of this section if—
it is registered under Chapter 2 of Part 4 of the Finance Act 2004 (c. 12), and
in the case of a personal pension scheme, there are, in relation to the worker concerned, direct payment arrangements (within the meaning of section 111A of the Pension Schemes Act 1993 (c. 48)) between the worker and the employer.
The Secretary of State may make provision by regulations—
for ... jobholders to be given information about the effect of sections 2 to 8 in relation to them;
for ... workers to whom section 9 applies to be given information about the effect of that section in relation to them;
for a prescribed person to be required to provide the information.
Regulations under this section may in particular make provision about —
what information must be given;
in what circumstances it must be given;
how and when it must be given.
The Secretary of State may make regulations requiring employers to provide the Pensions Regulator (“the Regulator”) with information about action they have taken or intend to take for the purposes of any provision of, or of regulations under, sections 2 to 10.
The regulations may in particular—
require an employer to provide information about pension schemes to which any action relates;
require an employer to identify which of any prescribed descriptions a scheme falls within;
require an employer to provide information that appears to the Secretary of State to be required for the performance by the Regulator of its functions under Chapter 2 of this Part;
make provision about how and in what form any information is to be provided.
The Secretary of State may by regulations provide that sections 2 to 9 do not apply in the case of an employer of any description until such date after the commencement of those sections as is prescribed in relation to employers of that description.
The Secretary of State may make regulations requiring employers to provide information relating to— to the trustees or managers of the scheme (where the scheme is an occupational pension scheme) or the provider of the scheme (where the scheme is a personal pension scheme).
jobholders who are active members of a qualifying scheme, or
workers who are active members of a pension scheme that satisfies the requirements of section 9,
Regulations under this section may make provision—
specifying the information to be provided;
about when, or the frequency with which, the information (or a particular item of information) is to be provided;
about how and in what form the information is to be provided.
The information that regulations under this section may require employers to provide includes information about persons ceasing to be jobholders or workers within subsection (1)(a) or (b).
A person's qualifying earnings in a pay reference period of 12 months are the part (if any) of the gross earnings payable to that person in that period that is—
more than £6,240, and
not more than £50,270.
In the case of a pay reference period of less or more than 12 months, subsection (1) applies as if the amounts in paragraphs (a) and (b) were proportionately less or more.
In this section, “earnings”, in relation to a person, means sums of any of the following descriptions that are payable to the person in connection with the person's employment—
salary, wages, commission, bonuses and overtime;
statutory sick pay under Part 11 of the Social Security Contributions and Benefits Act 1992 (c. 4);
statutory maternity pay under Part 12 of that Act;
statutory paternity pay under Part 12ZA of that Act;
statutory adoption pay under Part 12ZB of that Act;
sums prescribed for the purposes of this section.
statutory shared parental pay under Part 12ZC of that Act;
statutory parental bereavement pay under Part 12ZD of that Act;
statutory neonatal care pay under Part 12ZE of that Act;
The Secretary of State must in each tax year consider whether any of the amounts in sections 3(1)(c), 5(1)(c) and 13(1)(a) and (b) should be increased or decreased.
If the Secretary of State considers that any of those amounts should be increased or decreased, the Secretary of State may make an order substituting in the provisions in question the amounts that the Secretary of State thinks appropriate.
For the purposes of subsection (1) the Secretary of State may take into account any of the factors specified in subsection (4) (as well as any others that the Secretary of State thinks relevant).
The factors are—
the amounts for the time being specified in Chapter 2 of Part 3 (personal allowances) of the Income Tax Act 2007;
the amounts for the time being specified in regulations under section 5 of the Social Security Contributions and Benefits Act 1992 (earnings limits and thresholds for Class 1 national insurance contributions);
the amounts for the time being specified in section 44(4) of that Act (rate of basic state pension) and in regulations under section 3(1) of the Pensions Act 2014 (full rate of state pension);
the general level of prices in Great Britain, and the general level of earnings there, estimated in such manner as the Secretary of State thinks fit.
In relation to any person a pay reference period is the period prescribed.
The Secretary of State may by regulations—
make provision for determining a person's earnings in any pay reference period;
make provision for determining the first date of each pay reference period in relation to a person.
A reference in any provision to the relevant pay reference period is a reference to the period determined in accordance with regulations under this section, as they apply for the purposes of that provision in the case concerned.
The Secretary of State may by order specify rounded figures for the purposes of section 3(6B), 5(7B) or 13(2) in the case of pay reference periods of any length specified in the order.
A rounded figure so specified applies in place of the amount that would otherwise apply (“the exact amount”).
The Secretary of State must decide in relation to any particular amount whether to specify—
a figure that is a whole number of pounds, or
a figure that is divisible by 10 pence, or
a figure that includes a whole number of pennies.
It is for the Secretary of State to decide whether to round any particular amount up or down. Accordingly, a figure specified under this section may be the figure within paragraph (a) or (b) or (c) of subsection (3) that is closest to the exact amount or the one that is next closest to it (or, if two figures are joint closest, it may be either of those).
A pension scheme is a qualifying scheme in relation to a jobholder (J) if—
the scheme is an occupational pension scheme or a personal pension scheme,
the scheme is registered under Chapter 2 of Part 4 of the Finance Act 2004 (c. 12), and
while J is an active member, the scheme satisfies the quality requirement in relation to J.
The Secretary of State may by regulations provide that subsection (1)(b) does not apply in relation to a scheme to which section 25 or 27 applies, if prescribed requirements are satisfied.
The Secretary of State may by regulations provide that a scheme is not a qualifying scheme in relation to J if—
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while J is an active member, the contributions that must be paid to the scheme by, or on behalf or in respect of, J exceed a prescribed amount, or
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the scheme provides for average salary benefits to be provided to or in respect of J and contains prescribed features.
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See also paragraphs 1(4) and 2(4) of Schedule 18 to the Pensions Act 2014, which confer power to make regulations providing for a scheme not to be a qualifying scheme in relation to a jobholder in certain circumstances.
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A pension scheme is an automatic enrolment scheme in relation to a jobholder (J) if—
it is a qualifying scheme in relation to J,
it satisfies the conditions in subsection (2), and
it satisfies any further conditions prescribed.
The conditions mentioned in subsection (1)(b) are that—
no provision of the scheme prevents the employer from making arrangements prescribed by regulations under section 3(2), 5(2) or 7(4) for J to become an active member of the scheme;
no provision of the scheme requires J to express a choice in relation to any matter, or to provide any information, in order to remain an active member.
For the purposes of this Part, each of these is an occupational pension scheme—
an occupational pension scheme within the meaning of section 1(1) of the Pension Schemes Act 1993 (c. 48) that has its main administration in the United Kingdom;
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a pension scheme that is prescribed or is of a prescribed description and that has its main administration elsewhere than in the United Kingdom.
For the purposes of this Part, a personal pension scheme is a pension scheme that is not an occupational pension scheme.
A money purchase scheme that is not a relevant Master Trust and that has its main administration in the United Kingdom satisfies the quality requirement in relation to a jobholder if under the scheme—
the jobholder's employer must pay contributions in respect of the jobholder;
the employer's contribution, however calculated, must be equal to or more than 3% of the amount of the jobholder's qualifying earnings in the relevant pay reference period;
the total amount of contributions paid by the jobholder and the employer, however calculated, must be equal to or more than 8% of the amount of the jobholder's qualifying earnings in the relevant pay reference period.
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A money purchase scheme that is a relevant Master Trust satisfies the quality requirement in relation to a jobholder if the conditions in subsection (1)(a) to (c) and Condition 1 and Condition 2 of this subsection are met. Condition 1 This Condition is that the relevant Master Trust— is approved under section 28A in respect of a main scale default arrangement, is exempted by regulations from the requirement for approval, has previously been approved under section 28E (transition pathway relief) and is to be treated in accordance with regulations as if it had approval under section 28A, qualifies under section 28E for transition pathway relief, or qualifies under section 28F for new entrant pathway relief. Condition 2 This Condition is that the relevant Master Trust— is approved under section 28C in respect of the asset allocation requirement, or is exempted by regulations from the requirement for approval. See also section 28G (suspension of asset allocation requirement: savers’ interest test) for provision about circumstances in which the asset allocation requirement is suspended.
A scheme does not fail to satisfy the quality requirement under this section merely because the trustees or managers of the scheme may on any occasion refuse to accept a contribution below an amount prescribed for the purposes of this section on the grounds that it is below that amount.
Regulations under Condition 1(b) or 2(b) of subsection (1A) may exempt any description of relevant Master Trust, for example those that are—
designed to meet the needs of persons with a protected characteristic within the meaning of the Equality Act 2010, or
hybrid schemes.
Regulations may—
permit the Regulatory Authority to determine that a relevant Master Trust is to be treated for a period (“the protected period”) as meeting Condition 1 or Condition 2 of subsection (1A) for a period specified by the Regulatory Authority;
specify circumstances in which a relevant Master Trust, which is treated as mentioned in paragraph (a) and meets prescribed conditions, is to be subject during a prescribed period (ending with the end of the protected period) to any requirements specified in the regulations; and provision under this paragraph may include provision corresponding to any provision that may be made under section 28A(10);
make provision about the Regulatory Authority requiring the trustees or managers of a relevant Master Trust to give the Regulatory Authority a plan showing how they propose to meet or continue to meet the scale requirement under section 28A or the conditions for approval under section 28C.
In this section—
“relevant Master Trust” means a money purchase scheme that has its main administration in the United Kingdom and is an authorised Master Trust scheme.
A defined benefits scheme that has its main administration in the United Kingdom satisfies the quality requirement in relation to a jobholder if it satisfies the test scheme standard in relation to that jobholder.
Subject to subsection (3), a defined benefits scheme that has its main administration in the United Kingdom satisfies the quality requirement in relation to a jobholder if the jobholder is in contracted-out employment.
A defined benefits scheme that has its main administration in the United Kingdom satisfies the quality requirement in relation to a jobholder who is not in contracted-out employment if it satisfies the test scheme standard in relation to that jobholder.
The Secretary of State may by order provide that a scheme does not satisfy the quality requirement in relation to a jobholder who is in contracted-out employment unless it satisfies the test scheme standard in relation to that jobholder, with the substitution of a higher fraction, not exceeding 1/80th, for the fraction of 1/120th in section 23(4)(a).
In relation to any scheme, a jobholder is in contracted-out employment for the purposes of this section and section 22 if a certificate has been issued in respect of the jobholder under section 7(1) of the Pension Schemes Act 1993 (c. 48) stating that the employment of the jobholder is contracted-out employment by reference to the scheme.
A scheme satisfies the test scheme standard in relation to a jobholder (J) if the pensions to be provided for the relevant members of the scheme are broadly equivalent to, or better than, the pensions which would be provided for them under a test scheme.
Subject to subsection (3), the relevant members are J and all active members who are jobholders of the same employer as J.
if J is not in contracted-out employment, all active members who are not in contracted-out employment and are jobholders of the same employer as J;
if J is in contracted-out employment, all active members who are in contracted-out employment and are jobholders of the same employer as J.
In applying this section the pensions to be provided for relevant members must be considered as a whole.
The Secretary of State may by regulations make provision for the manner of, and criteria for, determining whether the pensions to be provided for the relevant members under a scheme are broadly equivalent to, or better than, the pensions which would be provided for them under a test scheme.
Regulations under subsection (4) may provide for the determination to be made in accordance with guidance issued from time to time by the Secretary of State.
The Secretary of State may by regulations provide that a scheme only satisfies the test scheme standard if the scheme actuary certifies that it does.
Except in prescribed circumstances, the scheme actuary is the actuary appointed under section 47(1)(b) of the Pensions Act 1995 (c. 26) (professional advisers) in relation to the scheme.
In the case of a scheme under which a sum of money is made available for the provision of benefits to a relevant member, references in this section to pensions are to be read as references to such sums.
A test scheme is an occupational pension scheme which satisfies—
the requirement in subsection (2),
the requirement in subsection (4) or requirements prescribed under subsection (6) (as appropriate), and
any further requirements that are prescribed.
The scheme must either—
provide for a member to be entitled to a pension commencing at the appropriate age and continuing for life, or
provide for a sum of money to be made available for the provision of benefits to a member commencing at the appropriate age and continuing for life.
The appropriate age is 65 or any higher age prescribed.
In the case of a scheme that provides entitlement to a pension as mentioned in subsection (2)(a), the annual rate of the pension at the appropriate age must be—
“Master Trust scheme” has the same meaning as in the Pension Schemes Act 2017 (see section 1(1) of that Act);
1/120th of average qualifying earnings in the last three tax years preceding the end of pensionable service, multiplied by
The trustee corporation must— A statement under sub-paragraph (1)(b) must be prepared by the trustee corporation in such form as the Secretary of State may direct. The trustee corporation must send a copy of a statement under sub-paragraph (1)(b)— A copy of a statement must be sent under sub-paragraph (3) within such period, beginning with the end of the financial year to which the statement relates, as the Secretary of State may direct. The Comptroller and Auditor General must— The Secretary of State must lay before Parliament a copy of the statement and report sent under sub-paragraph (5)(b).
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the number of years of pensionable service, up to a maximum of 40.
In this Schedule— “the initial annual rate of compensation” is the amount determined by the Board under section 116(4); “the pension compensation age” of the transferee is the age determined in accordance with paragraph 3.
“freezing event” in relation to a scheme means—
the beginning of an assessment period within the meaning of section 132 of that Act in relation to the scheme, ...
in relation to a benefit within subsection (7)(b), the Department for Social Development in Northern Ireland;
This paragraph applies where — Subject to sub-paragraph (4), the surviving partner is entitled to periodic compensation commencing on the day following the transferee's death and continuing for life. The annual rate of the periodic compensation at any time is half of the annual rate of the periodic compensation (including any actuarial increase under paragraph 16A and any increases under paragraph 17) to which the transferee would at that time have been entitled under paragraph 4 had the transferee not died. If, on the day the transferee (“T”) died, commencement of T's periodic compensation under paragraph 4 was postponed by virtue of paragraph 16A, assume for the purposes of sub-paragraph (3) that the periodic compensation commenced immediately before the date of T's death. The surviving partner is not entitled to periodic compensation under this paragraph in such circumstances as may be prescribed.
The Pensions Act 2004 (c. 35) is amended as follows.
Section 38 (contribution notices where avoidance of employer debt) is amended as follows. In subsection (3) (conditions which must be met before Pensions Regulator can issue contribution notice), for paragraph (d) substitute— In subsection (7) (list of relevant matters for purposes of subsection (3)(d))— After that subsection insert—
Section 13(1) (qualifying earnings) applies for the purposes of subsection (4) as if the reference to a pay reference period were a reference to a tax year.
In the case of a scheme that provides for a sum of money to be made available as mentioned in subsection (2)(b), regulations must prescribe requirements relating to that sum.
A hybrid scheme that has its main administration in the United Kingdom satisfies the quality requirement in relation to a jobholder if it satisfies the requirements mentioned in whichever of these is the appropriate paragraph—
the requirements for a money purchase scheme under section 20, subject to any prescribed modifications;
the requirements for a defined benefits scheme under sections 21 to 23A, subject to any prescribed modifications.
Which paragraph of subsection (1) is appropriate for any hybrid scheme is to be determined by rules made by the Secretary of State.
The rules may provide for different paragraphs to be appropriate for different provisions of a scheme.
The rules may provide for the paragraphs to be appropriate as alternatives, for any scheme or any provisions of a scheme.
The Secretary of State may by regulations provide that a defined benefits scheme that has its main administration in the United Kingdom satisfies the quality requirement in relation to a jobholder if any one or more of the following is satisfied—
the scheme is of a prescribed description and satisfies the quality requirement under section 20 in relation to that jobholder;
the cost of providing the benefits accruing for or in respect of the relevant members over a relevant period would require contributions to be made of a total amount equal to at least a prescribed percentage of the members' total relevant earnings over that period;
in the case of each of at least 90% of the relevant members, the cost of providing the benefits accruing for or in respect of the member over a relevant period would require contributions to be made of a total amount equal to at least a prescribed percentage of the member's total relevant earnings over that period.
For this purpose—
A percentage prescribed under subsection (1)(b) or (c) must be at least 8%.
Regulations under subsection (1)(b) or (c) may make provision—
about how to calculate whether the requirement is satisfied, including provision requiring the calculation to be made in accordance with prescribed methods or assumptions;
requiring benefits of a prescribed description to be disregarded in determining whether the requirement is satisfied;
that a scheme only satisfies the requirement if the scheme actuary certifies that it does; and for this purpose “scheme actuary” has the prescribed meaning.
Section 13(3) (meaning of “earnings”) applies for the purposes of this section as it applies for the purposes of that section.
The Secretary of State must from time to time review any regulations in force under subsection (1).
A review must be carried out—
during 2017, and
after that, no more than three years after the completion of the previous review.
The Secretary of State may by regulations make provision as to the quality requirement to be satisfied in the case of an occupational pension scheme within section 18(c).
This section applies to a personal pension scheme if the operation of the scheme—
is carried on in such a way as to be a regulated activity for the purposes of the Financial Services and Markets Act 2000 (c. 8), and
is carried on in the United Kingdom by a person who is in relation to that activity an authorised person or an exempt person under section 19 of that Act.
The scheme satisfies the quality requirement in relation to a jobholder if the following conditions are satisfied.
The first condition is that all of the benefits that may be provided to the jobholder under the scheme are money purchase benefits.
The second condition is that, in relation to the jobholder, there is an agreement between the provider of the scheme and the employer under which—
the employer must pay contributions in respect of the jobholder;
the employer's contribution, however calculated, must be equal to or more than 3% of the amount of the jobholder's qualifying earnings in the relevant pay reference period.
In subsection (6), “shortfall” means the difference (if any) between—
the employer's contribution in respect of the jobholder under the agreement referred to in subsection (4), and
8% of the amount of the jobholder's qualifying earnings in the relevant pay reference period.
The third condition is that if there is a shortfall there is an agreement between the provider of the scheme and the jobholder under which the jobholder must pay contributions which, however calculated, are equal to or more than the shortfall.
The fourth condition is that, in relation to the jobholder, there are direct payment arrangements (within the meaning of section 111A of the Pension Schemes Act 1993 (c. 48)) between the jobholder and the employer.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The fifth condition is that if the scheme is a group personal pension scheme of a prescribed description it must, unless subsection (7C) applies, hold an approval under section 28B in respect of a main scale default arrangement.
A scheme does not fail to satisfy the quality requirement under this section merely because the provider of the scheme may on any occasion refuse to accept a contribution below an amount prescribed for the purposes of this section on the grounds that it is below that amount.
The sixth condition is that if the scheme is a group personal pension scheme of a prescribed description it must hold an approval under section 28C in respect of the asset allocation requirement. See also section 28G (suspension of asset allocation requirement: savers’ interest test) for provision about circumstances in which the asset allocation requirement is suspended.
This subsection applies if the group personal pension scheme—
has previously been approved under section 28E (transition pathway relief) and is to be treated in accordance with regulations as if it had approval under section 28B,
qualifies under section 28E for transition pathway relief, or
qualifies under section 28F for new entrant pathway relief.
Regulations under subsection (7A) or (7B) may exempt any description of group personal pension schemes, for example those that are designed to meet the needs of persons with a protected characteristic within the meaning of the Equality Act 2010.
Regulations may—
permit the Regulatory Authority to determine that a group personal pension scheme is to be treated as meeting the fifth or sixth condition for a period (the “protected period”) specified by the Regulatory Authority;
specify circumstances in which a group personal pension scheme which is treated as mentioned in paragraph (a) and meets prescribed conditions is to be subject during a prescribed period (which ends with the end of the protected period) to any requirements specified in the regulations; and provision under this paragraph may include provision corresponding to any provision that may be made under section 28A(10);
make provision about the Regulatory Authority requiring the provider of a group personal pension scheme to give the Regulatory Authority a plan showing how they propose to meet or continue to meet the scale requirement under section 28B or the conditions for approval under section 28C.
In this section “main scale default arrangement” is to be interpreted in accordance with section 28B(13).
The Secretary of State may by regulations make provision as to the quality requirement to be satisfied in the case of a personal pension scheme to which section 26 does not apply.
The Secretary of State may by regulations provide that, subject to provision within subsection (6)(f), a scheme to which this section applies is to be taken to satisfy the relevant quality requirement in relation to each of an employer's relevant jobholders if a certificate given in accordance with the regulations is in force in relation to the employer.
The certificate must state—
that, in relation to relevant jobholders of the employer who are active members of the scheme, the scheme is in the opinion of the person giving the certificate able to satisfy the relevant quality requirement throughout the certification period, or
that, in relation to those jobholders, the scheme is in that person's opinion able to satisfy a prescribed alternative requirement throughout the certification period.
In this section—
“ relevant jobholder ” means a jobholder to whom the certificate in question applies;
a reference to a scheme includes a reference to part of a scheme.
This section applies to—
a money purchase scheme to which section 20 applies;
a personal pension scheme to which section 26 applies;
a hybrid scheme, to the extent that requirements within section 24(1)(a) apply.
The “relevant quality requirement”—
for a scheme within subsection (3)(a), means the quality requirement under section 20 , except so far as that quality requirement relates to Condition 1 or 2 in subsection (1A);
for a scheme within subsection (3)(b), means the quality requirement under section 26 , except so far as that quality requirement relates to the fifth and sixth conditions;
for a scheme within paragraph (c) of subsection (3), means the requirements mentioned in that paragraph , except so far as those requirements relate to Condition 1 or 2 in section 20(1A);
for a scheme within subsection (3A), means a prescribed requirement.
Alternative requirements must be such that, assuming all jobholders to be active members of schemes to which this section applies, for at least 90% of jobholders— would be likely to be no less if every scheme satisfied an alternative requirement applicable to it than if every scheme satisfied the relevant quality requirement.
employer contributions, and
total contributions,
Regulations may make further provision in relation to certification under this section.
In subsection (2A)—
Regulations may in particular make provision—
as to the period for which a certificate is in force (the “certification period”);
as to the persons by whom a certificate may be given;
as to procedures in connection with certification or where a certificate has been given;
requiring persons to have regard to guidance issued by the Secretary of State;
requiring an employer to calculate the amount of contributions that a scheme, and any contribution agreements, required to be paid by or in respect of any relevant jobholder in the certification period;
as to cases where the requirements of a scheme, and any contribution agreements, as to payment of contributions by or in respect of relevant jobholders of an employer did not satisfy prescribed conditions.
The Secretary of State— A review under paragraph (b) must be carried out during 2017, and after that each review must be completed no more than three years after the completion of the previous one.
must apply the test in subsection (2A) when regulations under subsection (2)(b) are first made, and
must carry out subsequent reviews of whether the test continues to be satisfied.
Provision within subsection (6)(f) includes in particular provision for a scheme not to be treated by virtue of regulations under this section as having satisfied the relevant quality requirement unless prescribed steps are taken (which may include the making of prescribed payments).
In subsection (6) “contribution agreements” means—
the agreement required, in the case of a scheme within subsection (3)(b), by section 26(4) and any agreement required, in the case of such a scheme, by section 26(6), or
any agreement of the same or a similar kind that is required, in the case of a scheme within subsection (3A)(b), by regulations under section 27.
This section also applies to—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a personal pension scheme of a prescribed description for which provision is made under section 27;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Secretary of State may by order repeal this section.
This section also applies to a defined benefits scheme that has its main administration in the United Kingdom and is of a description prescribed under section 23A(1)(a).
for a scheme within subsection (3B), means the quality requirement under section 23A(1)(a).
For the purposes of Condition 1 of section 20(1A), the Regulatory Authority (“the Authority”) may approve a relevant Master Trust (“the RMT”) in respect of a main scale default arrangement if the Authority determines that—
the RMT meets the scale requirement by reference to the main scale default arrangement, and
any other prescribed conditions are met.
The RMT meets the scale requirement by reference to a main scale default arrangement if the sum of the values mentioned in paragraphs (a) to (c) of subsection (4) is equal to or greater than the minimum amount.
In this section “the minimum amount” means £25 billion.
Subject to subsection (7), those values are—
the total value of assets of the RMT which—
represent accrued rights of members of that scheme,
are held subject to the main scale default arrangement, and
are managed under a common investment strategy;
if one or more relevant Master Trusts are connected with the RMT, the total value of assets of those schemes that—
represent accrued rights of members of those schemes,
are held subject to the main scale default arrangement, and
are managed under the investment strategy mentioned in paragraph (a)(iii);
if one or more group personal pension schemes are connected with the RMT, the total value of assets of those schemes that—
represent accrued rights of members of those schemes,
are held subject to the main scale default arrangement, and
are managed under the investment strategy mentioned in paragraph (a)(iii).
A reference in subsection (4) to a relevant Master Trust or a group personal pension scheme being “connected” with the RMT is to a relevant Master Trust or a group personal pension scheme having a prescribed connection with the RMT.
Regulations under subsection (5) may, for example, provide—
that a relevant Master Trust is connected with the RMT only if it has the same scheme funder or scheme strategist as the RMT, or
that a group personal pension scheme is connected with the RMT only if its provider is also the scheme funder or scheme strategist of the RMT.
Regulations may make provision about amounts that are to be excluded or adjusted in calculating the total value under subsection (4)(a) to (c).
Regulations may make provision about—
how the satisfaction of criteria relevant to the meeting of the scale requirement is to be evidenced;
what it means for assets of a pension scheme to be managed under a “common investment strategy” (including in particular provision defining that expression by reference to whether or how far the assets relating to each member of the scheme are allocated in the same proportion to the same investments).
Regulations may make provision about how the value of assets is to be determined for the purposes of subsections (2) and (4).
Regulations may make provision—
as to a time limit within which the Authority must decide an application for approval;
as to procedures in connection with approvals or where an approval has been given;
about the withdrawal of approvals including conditions for, and procedures in connection with, withdrawals;
for the Authority’s decision on the application, or on a decision to withdraw approval, to be referred to the Upper Tribunal;
for the Authority to maintain and publish a list of relevant Master Trusts that are approved under this section.
Regulations under subsection (10)(c) may in particular make provision—
about steps, including communications with a relevant Master Trust, that the Authority must take before deciding to withdraw an approval;
setting a minimum period that must elapse between a notification that approval is to be withdrawn and the withdrawal of the approval;
where the Authority has given notice to the trustees or managers of a relevant Master Trust that the approval (under this section) of that scheme is likely to be withdrawn and any other prescribed conditions are met, requiring the trustees or managers to—
act in relation to the scheme as if its approval has been withdrawn, and
take steps for ensuring that persons (such as employers) who may be affected in the event of the relevant Master Trust’s losing that approval are promptly informed if such a loss should occur;
permitting the Authority to impose, on a person who fails to comply with a requirement under paragraph (c), a penalty determined in accordance with the regulations that does not exceed £100,000;
providing 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.
Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.
In this section “main scale default arrangement” means an arrangement—
that is used for the purposes of one or more pension schemes, and
subject to which assets of any one of those schemes must under the rules of the scheme be held, or may under those rules be held, if the member of the scheme to whom the assets relate does not make a choice as to the arrangement subject to which the assets are to be held.
The Regulatory Authority (“the Authority”) may, for the purposes of the Condition in section 26(7A), approve a group personal pension scheme (“the GPP”) in respect of a main scale default arrangement if the Authority determines that—
the GPP meets the scale requirement by reference to the main scale default arrangement, and
any other prescribed conditions are met.
The GPP meets the scale requirement by reference to a main scale default arrangement if the sum of the values mentioned in paragraphs (a) to (c) of subsection (4) is equal to or greater than the minimum amount.
In this section “the minimum amount” means £25 billion.
Subject to subsections (5) and (6), those values are—
the total value of assets of the GPP which—
represent accrued rights of members of the GPP,
are held subject to the main scale default arrangement, and
are managed under a common investment strategy;
if one or more group personal pension schemes are connected with the GPP, the total value of assets of those schemes that—
represent accrued rights of members of those schemes,
are held subject to the main scale default arrangement, and
are managed under the investment strategy mentioned in paragraph (a)(iii);
if one or more relevant Master Trusts are connected with the GPP, the total value of assets of those schemes that—
represent accrued rights of members of that scheme,
are held subject to the main scale default arrangement, and
are managed under the investment strategy mentioned in paragraph (a)(iii).
Regulations may make provision about amounts that are to be excluded or adjusted in calculating the total value under subsection (4)(a) to (c).
Regulations may make provision about—
how the satisfaction of criteria relevant to the meeting of the scale requirement is to be evidenced;
what it means for assets of a pension scheme to be managed under a “common investment strategy” (including in particular provision defining that expression by reference to whether or how far the assets relating to each member of the scheme are allocated in the same proportion to the same investments).
Regulations may make provision about how the value of assets is to be determined for the purposes of subsections (2) and (4).
A reference in subsection (4) to a group personal pension scheme or a relevant Master Trust being “connected” with the GPP is to a group personal pension scheme or a relevant Master Trust having a prescribed connection with the GPP.
Regulations under subsection (8) may, for example, provide—
that a group personal pension scheme is connected with the GPP only if it has the same provider as the GPP, or
that a relevant Master Trust is connected with the GPP only if its scheme funder or scheme strategist is also the provider of the GPP.
Regulations may make provision—
as to a time limit within which the Authority must decide an application for approval;
as to procedures in connection with approvals or where an approval has been given;
about the withdrawal of an approval, including conditions for and procedures in connection with withdrawals;
for the Authority’s decision on the application, or on a decision to withdraw approval, to be referred to the Upper Tribunal;
for the Authority to maintain and publish a list of group personal pension schemes that are approved under this section.
Regulations under subsection (10)(c) may in particular make provision—
about steps, including communications with a group personal pension scheme, that the Authority must take before deciding to withdraw an approval;
setting a minimum period that must elapse between notification that approval is to be withdrawn and the withdrawal of the approval;
where the Authority has given notice to the provider of the GPP that its approval is likely to be withdrawn and any other prescribed conditions are met, requiring the provider to—
act in relation to the scheme as if its approval has been withdrawn, and
take steps for ensuring that persons (such as employers) who may be affected in the event of the GPP losing that approval are promptly informed if such a loss should occur;
permitting the Authority to impose, on a person who fails to comply with a requirement under paragraph (c), a penalty determined in accordance with the regulations that does not exceed £100,000;
providing 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.
Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.
In this section “main scale default arrangement” means an arrangement—
that is used for the purposes of one or more pension schemes, and
subject to which assets of any one of those schemes must under the rules of the scheme be held, or may under those rules be held, if the member of the scheme to whom the assets relate does not make a choice as to the arrangement subject to which the assets are to be held.
The Regulatory Authority (“the Authority”) may approve a relevant Master Trust or a group personal pension scheme in respect of the asset allocation requirement only if the Authority determines that at least the prescribed percentage (by value) of the assets held in main default funds of the scheme are qualifying assets.
Regulations under subsection (1) may prescribe a percentage by reference to—
all of the assets of the scheme that are held in main default funds, or
a prescribed description of the assets of the scheme that are so held.
In this section “qualifying asset” means an asset of a prescribed description that is held in a main default fund of a relevant Master Trust or group personal pension scheme.
A description of asset may be prescribed under subsection (3) only if it represents a direct or indirect holding in any of the following asset classes— In this subsection “unlisted equity securities” means equity securities not listed on a recognised stock exchange within the meaning of the Income Tax Acts (see section 1005 of the Income Tax Act 2007) (including equity securities admitted to trading that are not listed on such an exchange).
private equity;
venture capital;
private credit;
interests in land;
infrastructure;
unlisted equity securities not falling within paragraphs (a) to (e).
Regulations under subsection (3) must secure that a description of asset is prescribed under that subsection in respect of each asset class mentioned in subsection (4)(a) to (f).
A description prescribed under subsection (4) may for example relate to—
whether an asset is located in the United Kingdom or elsewhere;
the presence or absence of other prescribed factors linking an asset to economic activity in the United Kingdom.
Regulations under this section may not have the effect of requiring, as a condition of a scheme's approval under subsection (1)—
more than 10% (by value) of all of the assets of the scheme that are held in main default funds to be qualifying assets, or
more than 5% (by value) of all of the assets so held to be of a UK-specific description.
In subsection (7)(b) “UK-specific description” means a description framed by reference to whether an asset is located in the United Kingdom or meets any other condition linked to economic activity in the United Kingdom.
For the purposes of this section assets of a relevant Master Trust or group personal pension scheme are held in “main default funds” if—
the jobholders by or in respect of whom contributions have been made to the scheme have not (or predominantly have not) expressed a choice as to where the contributions are allocated, and
the arrangements under which the assets are held meet any other conditions that may be prescribed.
Regulations may make provision—
about how the meeting of the asset allocation requirement is to be evidenced;
requiring the trustees or managers of relevant Master Trusts or the providers of group personal pension schemes to have regard to any guidance issued by the Secretary of State about the effect of any regulations under this section.
Regulations may make provision—
as to a time limit within which the Authority must decide an application for approval;
as to procedures in connection with approvals or where an approval has been given;
about the period for which an approval has effect;
about the withdrawal of an approval, including conditions for and procedures in connection with withdrawals;
about the provision to the Authority of information required for the purposes of deciding applications (including any additional information the Authority may require in a particular case);
requiring the Authority to report to the Secretary of State any information the Secretary of State may require relating to the allocation of assets by relevant Master Trusts or group personal pension schemes;
for the Authority’s decision on the application to be referred to the Upper Tribunal;
for the Authority to maintain and publish— (or a single list of the pension schemes mentioned in sub-paragraphs (i) and (ii)).
a list of relevant Master Trusts that are approved under this section, and
a list of group personal pension schemes that are approved under this section,
Regulations under subsection (11)(d) may in particular make provision—
about steps, including communications with a relevant Master Trust or group personal pension scheme, that the Authority must take before deciding to withdraw an approval;
setting a minimum period that must elapse between notification that approval is to be withdrawn and the withdrawal of the approval;
where the Authority has given notice to the trustees or managers of a relevant Master Trust or the provider of a group personal pension that its approval is likely to be withdrawn and any other prescribed conditions are met, requiring the trustees or managers or provider to—
act in relation to the scheme as if its approval has been withdrawn, and
take steps for ensuring that persons (such as employers) who may be affected in the event of the scheme losing that approval are promptly informed if such a loss should occur;
permitting the Authority to impose, on a person who fails to comply with a requirement under paragraph (c), a penalty determined in accordance with the regulations that does not exceed £100,000.
Before making regulations under subsection (1) the Secretary of State must prepare and publish a report setting out—
a joint assessment by the Financial Conduct Authority and the Pensions Regulator of the extent to which there is evidence of competitive conditions restricting relevant Master Trusts and group personal pension schemes from investing in qualifying assets, including in circumstances where such investments may be in the best interests of members of such schemes;
the Secretary of State’s assessment of the extent to which relevant Master Trusts and group personal pension schemes have made progress towards achieving—
10% (by value) of scheme assets held in main default funds to be qualifying assets, and
5% (by value) of scheme assets so held to be of a UK-specific description (within the meaning of subsection (7)(b));
the Secretary of State’s assessment of any barriers to relevant Master Trusts or group personal pension schemes investing in qualifying assets, including in particular where such assets are located in the United Kingdom;
the steps taken by the Secretary of State or the Authority to address any such barriers;
how the financial interests of members of relevant Master Trusts and group personal pension schemes are or would be affected by the proposed regulations;
what effects the proposed measures could be expected to have on economic growth in the United Kingdom;
any other matters the Secretary of State considers appropriate.
The power to make regulations under subsection (1) may only be exercised once.
Before making regulations under subsection (1), the Secretary of State must have regard to the joint assessment of the Financial Conduct Authority and the Pensions Regulator mentioned in subsection (13)(a).
Before making regulations under this section, the Secretary of State must consult the Treasury.
The Secretary of State must consult such persons as the Secretary of State considers appropriate before publishing a report under subsection (13).
The Secretary of State may not make regulations under subsection (1) before 1 January 2028.
Provision under this section overrides any provision of the trust deed or rules of the scheme in question, so far as they are in conflict (and for that purpose, a provision of the trust deed or rules of the scheme is “in conflict” with provision under this section so far as the former does not allow for the assets of the scheme to be managed in such a way as to meet the conditions for approval under this section).
Regulations may make provision about information that the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme must give to the Regulatory Authority about the allocation of assets of the relevant Master Trust or group personal pension scheme.
The regulations may make provision about—
the types of information that must be given;
when it must be given;
the form and manner in which it must be given.
The Regulatory Authority (“the Authority”) may approve a relevant Master Trust as qualifying for transition pathway relief if the Authority determines that—
the condition in subsection (2) is met, and
any other prescribed conditions are met.
The condition mentioned in subsection (1)(a) is that the Authority determines that the relevant Master Trust—
would qualify for approval under section 28A (MSDA approval: relevant Master Trusts) if the amount specified in section 28A(3) were £10 billion, and
has a credible plan in place for meeting the scale requirement within the meaning of section 28A(2).
The Authority may approve a group personal pension scheme as qualifying for transition pathway relief if the Authority determines that—
the condition in subsection (4) is met, and
any other prescribed conditions are met.
The condition mentioned in subsection (3)(a) is that the Authority determines that the group personal pension scheme—
would qualify for approval under section 28B (MSDA approval: group personal pension schemes) if the amount specified in section 28B(3) were £10 billion, and
has a credible plan in place for meeting the scale requirement within the meaning of section 28B(2).
Regulations may require trustees or managers of schemes that are authorised under this section to take prescribed steps, for example—
to produce plans for increasing the scale of their schemes’ holdings or to take other actions that may facilitate progress towards approval under section 28A or 28B, or
in connection with governance and investment capability.
Regulations must make provision about the criteria for making any determinations under subsection (1) or (3).
Regulations may make provision of a kind mentioned in section 28A(10) or (11); and for this purpose a reference in those provisions—
to an approval under section 28A is to be read as a reference to an approval under this section;
to a relevant Master Trust is to be read as a reference to a relevant Master Trust or a group personal pension scheme;
to the trustees or managers of a relevant Master Trust is to be read as a reference to the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme.
Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.
In this section “relevant Master Trust” has the same meaning as in section 20.
A relevant Master Trust or group personal pension scheme qualifies for new entrant pathway relief for the purposes of Condition 1(e) of section 20(1A) or section 26(7C)(c) if the relevant Master Trust or group personal pension scheme is approved by the Regulatory Authority (“the Authority”) under this section.
The Authority may approve a relevant Master Trust or a group personal pension scheme under this section only if the Authority determines that—
the scheme in question does not yet have any members,
the scheme in question has strong potential to grow so as to meet the scale requirement under section 28A or 28B,
the scheme in question has an innovative product design, and
any other prescribed conditions are met.
Regulations may make provision of a kind mentioned in section 28A(10) or (11); and for this purpose a reference in those provisions—
to an approval under section 28A is to be read as a reference to an approval under this section;
to a relevant Master Trust is to be read as a reference to a relevant Master Trust or a group personal pension scheme;
to the trustees or managers of a relevant Master Trust is to be read as a reference to the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme.
Regulations may make provision about the meaning of “strong potential to grow” and “innovative product design” (including how it can be demonstrated that a scheme has strong potential to grow or an innovative product design).
Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.
Regulations must make provision for authorising the Regulatory Authority (“the Authority”), on an application by a relevant Master Trust or group personal pension scheme, to determine that the scheme in question is to be treated, for a period specified by the Authority, as if that scheme were exempted from the requirement for approval under section 28C.
The Secretary of State must make regulations under subsection (1) so that they have effect whenever regulations under section 28C(1) or (2) have effect.
Regulations under subsection (1)—
may make provision about the form and content of an application, including about the evidence to be provided as part of an application;
must make provision requiring an application to include a statement—
that the applicant concludes that meeting the asset allocation requirement is likely not to be in the best interests of members of the scheme, and
setting out the basis on which the applicant reached the conclusion;
must make provision requiring the Authority to determine that the applicant is to be treated as mentioned in subsection (1) in cases where—
the application complies with the requirements of regulations made under subsection (1), and
the Authority is of the view that it is reasonable for the applicant to have reached the conclusion that meeting the asset allocation requirement is likely not to be in the best interests of members of the scheme;
may make provision about the basis on which the Authority may or must form such a view, including about the evidence which the Authority may or must take into account;
may make provision as to the process for making a determination, including as to—
the level of detail of enquiry required in different cases;
a time limit within which the Authority must decide an application;
procedures in connection with applications;
must require the Authority to provide reasons for any determination not to approve an application;
must provide for the Authority’s determination on an application to be referred to the Upper Tribunal.
The Regulatory Authority (“the Authority”) may give a risk notice to the trustees or managers of a relevant Master Trust if the Authority considers that—
there is an issue of concern in relation to the relevant Master Trust, and
the relevant Master Trust will, or is likely to, cease to meet the conditions for approval under section 28A or 28C if the issue is not resolved.
A “risk notice” is a notice that requires the trustees or managers of a relevant Master Trust to submit to the Authority a plan (a “resolution plan”) setting out proposals for resolving the issue of concern.
A risk notice must—
identify the issue of concern;
specify the date by which the resolution plan is to be submitted.
If the Authority is not satisfied that the proposals in a resolution plan are likely to be adequate to resolve the issue of concern, the Authority may give a further notice to the trustees or managers requiring them to submit a revised plan by a date specified in the notice.
The trustees or managers must implement the proposals in a resolution plan if the Authority—
is satisfied that the proposals are likely to be adequate to resolve the issue of concern, and
notifies the trustees or managers accordingly.
The Authority may direct the trustees or managers to comply with the requirement imposed by subsection (5).
Where the trustees or managers are required by subsection (5) to implement the proposals in a resolution plan, they must—
submit to the Authority, before the end of a period specified in regulations, a report setting out what progress they are making in implementing the proposals (a “progress report”);
submit further progress reports to the Authority at intervals specified by the Authority.
Resolution plans and progress reports must be provided in the manner and form specified by the Authority.
A reference to a resolution plan in subsections (4) to (8) includes a reference to a resolution plan as revised under subsection (4).
Regulations may—
specify information that a risk notice must contain;
provide that the date referred to in subsection (3)(b) or (4) must fall before the end of a period specified in the regulations.
Section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee or manager of a relevant Master Trust who fails to comply with—
a notice under subsection (1) or (4),
a direction under subsection (6), or
a requirement imposed by subsection (7).
Regulations may make provision about the imposition by the Regulatory Authority of a penalty on the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme where the scheme—
fails to meet the condition in section 20(1A) by virtue of not being approved under section 28A or 28C, and
accepts contributions from an employer in relation to a jobholder on the basis that it is an automatic enrolment scheme in relation to that jobholder.
Regulations may make provision about the imposition by the Regulatory Authority of a penalty on the provider of a group personal pension scheme where the scheme—
fails to meet the condition in section 26(7A) or (7B), and
accepts contributions from an employer in relation to a jobholder on the basis that it is an automatic enrolment scheme in relation to that jobholder.
The regulations must provide—
that a penalty must not exceed £100,000 in relation to each employer from which contributions are accepted as mentioned in subsection (1)(b) or (2)(b), and
that there is a right of appeal against the imposition of the penalty.
The Treasury may make regulations to enable the Financial Conduct Authority to take action (in addition to any action it may otherwise take under the Financial Services and Markets Act 2000) for monitoring and enforcing compliance of any FCA-regulated person with any provision of or under this Chapter.
The regulations may apply, or make provision corresponding to— with or without modification.
provision made by or under this Part in relation to the Regulatory Authority, or
any provision of the Financial Services and Markets Act 2000,
In this section, “FCA-regulated person” means an authorised person (within the meaning of the Financial Services and Markets Act 2000).
The Secretary of State must prepare and publish a report about the effects of consolidation on innovation in the design and operation of relevant Master Trusts and group personal pension schemes.
The report may in particular include information about—
the extent to which consolidated schemes adopt or maintain innovative product designs of constituent schemes;
barriers to consolidated schemes adopting or maintaining such innovative product designs.
The Pensions Regulator and the FCA must provide such information and assistance as the Secretary of State may require for the purposes of the report.
The report under this section must be published before the end of the period of 12 months beginning with the day on which this section comes into force.
In this section “consolidation” means the consolidation of a relevant Master Trust or group personal pension scheme with one or more other schemes.
In making regulations under section 20(1A) or (1C), 26(7A), 28A, 28B, 28E or 28F, the Secretary of State must have regard to the importance of—
innovation in the design and operation of relevant Master Trusts and group personal pension schemes;
competition among relevant Master Trusts and group personal pension schemes;
improving outcomes for members of relevant Master Trusts and group personal pension schemes;
relevant Master Trusts and group personal pension schemes achieving an appropriate scale;
relevant Master Trusts and group personal pension schemes having effective governance.
During the first transitional period ...—
sections 20(1)(b) and 26(4)(b) have effect as if for “3%” there were substituted “ 1% ”;
sections 20(1)(c) and 26(5)(b) have effect as if for “8%” there were substituted “ 2% ”.
The first transitional period is a prescribed period of at least one year, beginning with the coming into force of section 20.
During the second transitional period ...—
sections 20(1)(b) and 26(4)(b) have effect as if for “3%” there were substituted “ 2% ”;
sections 20(1)(c) and 26(5)(b) have effect as if for “8%” there were substituted “ 5% ”.
The second transitional period is a prescribed period of at least one year, beginning with the end of the first transitional period.
Subsection (3) applies if, in relation to a person who on the employer's first enrolment date is a jobholder to whom section 3 applies, the conditions in subsection (2) are satisfied, and continue to be satisfied during the transitional period for defined benefits and hybrid schemes.
The conditions are that—
the jobholder has been employed by the employer for a continuous period beginning before the employer's first enrolment date,
at a time in that period before the employer's first enrolment date, the jobholder became entitled to become an active member of a defined benefits scheme or a defined benefits member of a hybrid scheme ,
the jobholder is, and has always since that time been, entitled to become an active member of a defined benefits scheme or a defined benefits member of a hybrid scheme , and
the scheme to which that entitlement relates is a qualifying scheme, and any scheme to which it has related on or after the employer's first enrolment date has been a qualifying scheme.
If by the end of the prescribed period the employer has given the jobholder notice that the employer intends to defer automatic enrolment until the end of the transitional period for defined benefits and hybrid schemes, section 3 has effect in relation to the jobholder with the substitution for subsection (2) of the following subsection—
If a notice is given under subsection (3) and at any later time in the transitional period for defined benefits and hybrid schemes the condition in subsection (2)(c) or (d) of this section ceases to be satisfied, subsection (5) applies instead of subsection (3) (and the day after the last day on which that condition is satisfied is referred to as “the closure date”).
Where this subsection applies, section 3 has effect in relation to the jobholder with the substitution for subsection (2) of the following subsection—
If the jobholder becomes a member of a scheme under arrangements made under subsection (2)(b) of that section (as substituted by subsection (5))—
the employer's contributions are payable with effect from the automatic enrolment date;
any requirement of the scheme . . . for contributions to be payable by the jobholder does not apply in respect of the period of the jobholder's membership before the closure date;
regulations made for the purposes of section 3(2)(b) must secure that the jobholder may pay, within a period prescribed by the regulations, any contributions which would have been payable by the jobholder but for paragraph (b) of this subsection.
Where subsection (3) or (5) of this section applies—
section 3(3) and (4) apply as if references to the automatic enrolment date were references to the day with effect from which arrangements would by virtue of this section fall to be made in respect of the jobholder;
section 4 applies as if—
the reference in subsection (1) to the employer's staging date were a reference to the employer's first enrolment date;
in that subsection, for “the workers's automatic enrolment date is the deferral date” there were substituted the day with effect from which arrangements fall to be made by virtue of section 30 in respect of the jobholder is changed to the deferral date;
in subsections (4) to (6), references to the starting day were references to the day with effect from which arrangements would by virtue of this section fall to be made in respect of the jobholder.
The transitional period for defined benefits and hybrid schemes is a prescribed period beginning with the day on which section 3 comes into force.
section 5(2) does not apply in relation to an automatic re-enrolment date that falls before the day with effect from which arrangements would by virtue of this section fall to be made in respect of the jobholder.
In this section, the “employer's first enrolment date” means the first day on which section 3 applies in the case of the employer (where that day falls within the transitional period for defined benefits and hybrid schemes).
The Secretary of State may by regulations make provision about the form and content of a notice under subsection (3).
For the purposes of this section—
a person is a “money purchase member” of a hybrid scheme if—
the person is an active member of the scheme, and
all the benefits accruing in respect of his or her membership are money purchase benefits, and
a person is a “defined benefits member” of a hybrid scheme if the person is an active member of the scheme other than a money purchase member.
In subsection (2) references to a scheme do not include—
a defined benefits scheme that satisfies the quality requirement in relation to the jobholder by reason only of section 23A(1)(a), or
a hybrid scheme if—
the appropriate paragraph of section 24(1) for any provisions of the scheme is paragraph (b) (those provisions are referred to below as “the defined benefits section”),
the defined benefits section satisfies section 23A(1)(a) as applied by section 24(1)(b), and
the defined benefits section does not satisfy any of the other requirements mentioned in section 24(1)(b).
The Secretary of State must—
review the effects of any regulations under section 28C (approvals in respect of asset allocation), and
prepare, publish and lay before Parliament, a report of the review.
A review under subsection (1) must be conducted before the end of the period of 5 years beginning with the day on which the regulations in question come into force.
In carrying out the review the Secretary of State must take the following into account—
whether and how the financial interests of members of Master Trust schemes and savers in group personal pension schemes have been affected by the regulations;
the effects (if any) of the measures on economic growth in the United Kingdom;
any other matters the Secretary of State considers appropriate.
Where a jobholder is an active member of a qualifying scheme and a freezing event occurs in relation to the scheme, the jobholder does not, for the purposes of this Chapter, cease to be an active member of the scheme, and the scheme does not, for those purposes, cease to be a qualifying scheme, by virtue of any relevant provision.
Where a worker is an active member of a scheme that satisfies the requirements of section 9 and a freezing event occurs in relation to the scheme, the worker does not, for the purposes of section 9(1)(c), cease to be an active member of the scheme by virtue of any relevant provision.
In this section—
“the transferee” means the person for whose benefit the relevant order or provision is made;
“employers' panel” has the meaning given by section 69(2)(b);
“social security information” means information held by or on behalf of the Secretary of State and obtained as a result of, or for the purpose of, the exercise of the Secretary of State's functions in relation to social security;
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Compensation is payable in accordance with this paragraph where the transferee attains pension compensation age before or on the transfer day. The transferee is entitled to periodic compensation commencing on the transfer day and continuing for life. The annual rate of the periodic compensation is the aggregate of— This paragraph is subject to paragraph 16A (postponement of compensation) and paragraph 18 (compensation cap).
The trustee corporation may— as the Secretary of State may determine. Where— the trustee corporation may make a payment to the person of such amount as the Secretary of State may determine.
The trustee corporation may, subject to this Schedule— The trustee corporation must publish, in such manner as it thinks fit, its own procedures and those of its committees and sub-committees. This paragraph has effect subject to paragraph 13 (disqualification for acting in relation to certain matters).
The validity of proceedings of the trustee corporation, a committee or a sub-committee is not affected by a vacancy among the members or a defect in appointment.
This paragraph applies for the purpose of determining the transferee's “pension compensation age”. Sub-paragraphs (3) and (4) apply where the transferor's PPF compensation, or any of it, is determined under Schedule 7 to the Pensions Act 2004 (c. 35). Where the transferor's right to PPF compensation arises by virtue of his or her status as a member of a pension scheme for which the Board assumed responsibility in accordance with Chapter 3 of Part 2 of that Act, the transferee's pension compensation age is the same as— Where the transferor's right to PPF compensation arises by virtue of his or her status as a person connected with a member of a scheme for which the Board assumed responsibility in accordance with Chapter 3 of Part 2 of that Act, the transferee's pension compensation age is the same as— Sub-paragraph (6) applies where the transferor's PPF compensation is determined only under this Schedule. The transferee's pension compensation age is the same as the pension compensation age of the transferor. In this paragraph, “normal benefit age”, “normal pension age” and “pension credit member” have the same meanings as in Schedule 7 to the Pensions Act 2004.
The trustee corporation must make arrangements for the keeping of proper records—
of its proceedings,
of the proceedings of its committees and sub-committees,
of anything done by an employee or member of the corporation under paragraph 14(a) or (b) (delegation to member or employee).
“the transferor” means the person to whose rights the relevant order or provision relates.
“state pension credit” has the meaning given by section 1(1) of the State Pension Credit Act 2002 (c. 16).
Appointments of members of the corporation, and of a member as chair of the corporation, are to be made— Subject to sub-paragraph (3), the Secretary of State must consult the chair of the corporation before appointing an ordinary member (that is, a member who is not, on appointment, also appointed as chair). A vacancy in the office of chair does not prevent the appointment of an ordinary member. The Secretary of State and the corporation must aim to ensure that, from the end of the initial period, there are not fewer than 9 and not more than 15 members at any time. It is for the Secretary of State to determine the length of the initial period. An order under section 67 may provide for section 242 of the Pensions Act 2004 (c. 35) (member-nominated directors of corporate trustees) to apply to the members of the corporation as it applies to the directors of a company, subject to any modifications specified in the order.
This paragraph applies for the purpose of calculating the revaluation amount mentioned in paragraph 6(3)(b). In this paragraph, “the revaluation period” means the period— The revaluation amount is— For the purposes of sub-paragraph (3)(b) “the revaluation percentage” means the lesser of— For the purposes of sub-paragraph (4)(b) “the maximum revaluation rate” is— This is subject to paragraph 20 (power of Board to alter rates of revaluation and indexation).
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Board must determine an application for a terminal illness lump sum in accordance with this paragraph. The Board must— The Board may hold over the application for determination at a later date if it is satisfied that—
The Secretary of State may by regulations make provision for compensation to be payable to— of prescribed descriptions of transferees. The regulations may, in particular—
A person holds and vacates office as a member or as chair in accordance with the terms of the appointment (subject to this Schedule). A person's appointment as a member or as chair must state the period for which the appointment is made. The period must not be more than five years. At the end of the period the person is eligible for re-appointment, but may not be re-appointed more than once. A person may resign as a member by notice in writing to the chair. A person may resign as chair by notice in writing to the Secretary of State. A person's appointment as chair ceases if the person ceases to be a member.
This paragraph applies if at any meeting of— a member of the trustee corporation or, as the case may be, of the committee or sub-committee has a direct or indirect interest in any matter falling to be considered at the meeting. The person with the interest must declare it and the declaration must be recorded in the minutes of the meeting. The person with the interest may not take part in any discussion or decision relating to the matter in which he has an interest, unless— In granting authorisations for the purposes of sub-paragraph (3)(b), the trustee corporation must secure that a resolution for those purposes does not allow a person to take part in a discussion or decision at a meeting of a committee established by virtue of paragraph 9(1)(a) or of a sub-committee of such a committee unless at least the following requirements are met— For the purposes of this paragraph a general notification given at or sent to a relevant meeting that— is to be regarded as compliance with sub-paragraph (2) in relation to any such matter for the purposes of that meeting and any subsequent relevant meeting of the same type which is held while the notification is in force. Section 252 of the Companies Act 2006 (c. 46) (persons connected with a director) applies for determining whether a person is connected with another person for the purposes of sub-paragraph (5) as it applies for determining whether a person is connected with a director of a company. A notification for the purposes of sub-paragraph (5) remains in force until it is withdrawn. For the purposes of sub-paragraph (5) each of the following is a “relevant meeting”— and a relevant meeting is of the same type as another relevant meeting if both meetings are relevant meetings by virtue of falling within the same paragraph of this sub-paragraph. A person required to make a declaration for the purposes of this paragraph in relation to any meeting— For the purposes of this paragraph a person is not to be taken to have an interest in any matter for these reasons only—
The application of the trustee corporation's seal must be authenticated by the signature of— A document purporting to be duly executed under the seal of the trustee corporation, or to be signed on behalf of the trustee corporation, is to be received in evidence and, except to the extent that the contrary is shown, taken to be duly so executed or signed. This paragraph does not apply to Scotland.
Chapter 3 of Part 2 of the Pensions Act 2004 (pension protection) and any regulations or order made under it,
The trustee corporation may— A committee may include persons (including persons constituting a majority, but not the whole, of the committee) who are neither members nor employees of the trustee corporation. Where a person who is neither a member nor an employee of the trustee corporation is a member of a committee, the trustee corporation may pay to that person such remuneration and expenses as it may determine.
The trustee corporation may, subject to an order or rules under section 67, delegate any function conferred on it to—
a member,
an employee or other member of staff, or
a committee.
As soon as is reasonably practicable after the end of each financial year, the trustee corporation must send to the Secretary of State a report on the exercise of the trustee corporation's functions during that year. The report must include— The Secretary of State must lay before Parliament a copy of each report received under this paragraph.
A committee of the trustee corporation may establish a sub-committee. Every member of a sub-committee must be a member of the committee which established it.
In Schedule 1 to the Public Records Act 1958 (c. 51) (definition of public records), in paragraph 3, insert at the appropriate place in Part 2 of the Table (other establishments and organisations)— “ The trustee corporation established by section 75 of the Pensions Act 2008. ”
the beginning of an assessment period within the meaning of section 132 of that Act in relation to the scheme;
“the specified scheme” means the pension scheme specified in the relevant order or provision;
In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (c. 36) (public authorities: miscellaneous), insert at the appropriate place— “ The trustee corporation established by section 75 of the Pensions Act 2008. ”
The trustees or managers of an occupational pension scheme may by resolution modify the scheme—
with a view to enabling the scheme to comply with the conditions in section 17(2), or
by increasing the amount required to be paid in contributions, in order for the scheme to satisfy—
the requirements contained in section 20(1),
those requirements as modified under section 24(1)(a), or
a requirement prescribed under section 28(2)(b).
An increase under subsection (1)(b) may be made only—
by increasing the amount of any contribution, directly or by modifying the basis on which it is calculated, or
by increasing the frequency of any contributions.
No modification may be made by virtue of subsection (1) without the consent of the employer in relation to the scheme.
In the application of subsection (3) to a scheme in relation to which there is more than one employer, references to the employer have effect as if they were references to a person nominated by the employers, or by the scheme, to act as the employers' representative for the purposes of this section or, if no such nomination is made, to all of the employers.
Regulations may provide that this section does not apply to occupational pension schemes within a prescribed class or description.
An employer who arranges for a person to become a member of a scheme in accordance with section 3(2), 5(2) or 7(3), or of an occupational pension scheme in accordance with section 9(2), may deduct the person's contributions to the scheme from the person's remuneration and pay them to the trustees or managers of the scheme (in the case of an occupational pension scheme) or the provider of the scheme (in the case of a personal pension scheme).
Regulations prescribing arrangements for the purposes of section 3(2), 5(2), 7(3) or 9(2), may require the employer to make such a deduction or payment at any time on or after the date with effect from which the jobholder is to become an active member of a scheme under the arrangements.
Contravention of any of the employer duty provisions does not give rise to a right of action for breach of statutory duty.
But nothing in the employer duty provisions or this Chapter affects any right of action arising apart from those provisions.
In this Chapter, references to the employer duty provisions are references to any provision of sections 2 to 11A or of regulations under those sections.
The Regulator may issue a compliance notice to a person if the Regulator is of the opinion that the person has contravened one or more of the employer duty provisions.
A compliance notice is a notice directing the person to whom it is issued to take, or refrain from taking, the steps specified in the notice in order to remedy the contravention.
A compliance notice may, in particular—
state the period within which any step must be taken or must cease to be taken;
require the person to whom it is issued to provide within a specified period specified information relating to the contravention;
require the person to inform the Regulator, within a specified period, how the person has complied or is complying with the notice;
state that, if the person fails to comply with the requirements of the notice, the Regulator may issue a fixed penalty notice under section 40.
The steps specified in the notice may, in particular, include such steps as the Regulator thinks appropriate for placing the worker in the same position (as nearly as possible) as if the contravention had not occurred.
If the compliance notice is issued in respect of a failure to comply with an enrolment duty and the specified steps relate to membership of a defined benefits scheme or a hybrid scheme, the notice may, in particular, require the employer to ensure that the worker is entitled to the same benefits under the scheme as if the employer had complied with that duty.
The Regulator may issue a third party compliance notice if it is of the opinion that—
a person has contravened one or more of the employer duty provisions,
the contravention is or was, wholly or partly, a result of a failure of another person (the “third party”) to do any thing, and
that failure is not itself a contravention of any of the employer duty provisions.
A third party compliance notice is a notice directing the third party to take, or refrain from taking, the steps specified in the notice in order to remedy or prevent a recurrence of the failure.
A third party notice may, in particular—
state the period within which any step must be taken or must cease to be taken;
require the third party to inform the Regulator, within a specified period, how the third party has complied or is complying with the notice;
state that, if the third party fails to comply with the requirements of the notice, the Regulator may issue a fixed penalty notice under section 40.
A third party notice may give the third party a choice between different ways of remedying or preventing the recurrence of the third party's failure.
The Regulator may issue an unpaid contributions notice to an employer if it is of the opinion that relevant contributions have not been paid on or before the due date.
An unpaid contributions notice is a notice requiring an employer to pay into a pension scheme by a specified date an amount in respect of relevant contributions that have not been paid.
“Due date” has the meaning prescribed.
An unpaid contributions notice may, in particular—
specify the scheme to which the contributions are due;
specify the workers, or category of workers, in respect of whom the contributions are due;
state the period in respect of which the contributions are due;
state the due date in respect of the contributions;
require the employer to take such other steps in relation to remedying the failure to pay the contributions as the Regulator considers appropriate;
state that if the employer fails to comply with the notice, the Regulator may issue a fixed penalty notice under section 40.
In this section, “employer” in relation to a worker means the person by whom the worker is or, if the employment has ceased, was employed.
This section applies to—
a compliance notice issued to an employer in respect of a contravention of section 2(1) or a failure to comply with an enrolment duty;
an unpaid contributions notice.
The notice may, in particular, include—
a requirement to calculate the amount of relevant contributions that are of a description specified in the notice (“unpaid relevant contributions”);
if the contributions are being paid within the prescribed period after the appropriate date, a requirement to pay an amount equal to the amount of unpaid relevant contributions within section 39(2)(a);
if the contributions are not being paid within the prescribed period after the appropriate date, a requirement to pay (on the employer's own account) an amount equal to the amount of unpaid relevant contributions;
if paragraph (b) applies, a requirement to ensure—
that the worker is not required to pay an amount equal to the balance of the unpaid relevant contributions during the prescribed period, and
that, if the worker chooses to pay that amount, it may be paid in instalments;
if the contributions are payable to a money purchase scheme, a hybrid scheme or a personal pension scheme, a requirement to pay interest on the amount required by the notice to be paid in respect of unpaid relevant contributions, at a rate and in respect of a period determined in accordance with regulations.
The Secretary of State may by regulations make provision about the way in which the Regulator may (without prejudice to subsection (2)(a)) estimate the amount of contributions that an employer has failed to pay on behalf or in respect of a worker.
Regulations under subsection (3) may include, in particular, provision about the sources of information that the Regulator may use in estimating that amount, other than information provided by the employer.
In this section, “appropriate date” means—
in the case of a compliance notice, such date as may be specified in the notice;
in the case of an unpaid contributions notice, the due date within the meaning of section 37(3).
In this section, “employer” in relation to a worker means the person by whom the worker is or, if the employment has ceased, was employed.
In sections 37 and 38 “relevant contributions” are—
in relation to a jobholder, employer contributions payable to a qualifying scheme in relation to the jobholder;
in relation to a worker to whom section 9 applies, employer contributions payable to a pension scheme which satisfies the requirements of that section.
In subsection (1), employer contributions means contributions payable by the employer—
on the employer's own account (but in respect of the worker), or
on behalf of the worker out of deductions from the worker's earnings.
The Regulator may issue a fixed penalty notice to a person if it is of the opinion that the person has failed to comply with—
a compliance notice under section 35,
a third party compliance notice under section 36,
an unpaid contributions notice under section 37, ...
a notice issued under section 72 of the Pensions Act 2004 (c. 35) (provision of information), so far as relevant to the exercise of any of its functions under or by virtue of this Part , or
a notice issued under section 72A of that Act (interviews), so far as relevant to the exercise of any of its functions under or by virtue of this Part.
The Regulator may issue a fixed penalty notice to a person if it is of the opinion that the person has contravened—
any provision of regulations under section 3(2) or 5(2) (prescribed arrangements for automatic enrolment or re-enrolment),
any provision of regulations under section 7(4) (prescribed arrangements: jobholder's right to opt in),
section 8(2)(b) (refund of contributions if jobholder opts out of scheme membership), and any provision of regulations under that provision,
section 10 (requirement to give information to workers), and any provision of regulations under that section, or
any provision of regulations under section 60 (requirement to keep records).
A fixed penalty notice is a notice requiring the person to whom it is issued to pay a penalty within the period specified in the notice.
The penalty—
is to be determined in accordance with regulations, and
must not exceed £50,000.
A fixed penalty notice must—
state the amount of the penalty;
state the date, which must be at least 4 weeks after the date on which the notice is issued, by which the penalty must be paid;
state the period to which the penalty relates;
if the notice is issued under subsection (1), specify the failure to which the notice relates;
if the notice is issued under subsection (2), specify the provision or provisions that have been contravened;
if the notice is issued under subsection (1), state that, if the failure to comply continues, the Regulator may issue an escalating penalty notice under section 41;
notify the person to whom the notice is issued of the review process under section 43 and the right of referral to a tribunal under section 44.
The Regulator may issue an escalating penalty notice to a person if it is of the opinion that the person has failed to comply with—
a compliance notice under section 35,
a third party compliance notice under section 36,
an unpaid contributions notice under section 37, ...
a notice under section 72 of the Pensions Act 2004 (c. 35) (provision of information), so far as relevant to the exercise of any of its functions under or by virtue of this Part , or
a notice issued under section 72A of that Act (interviews), so far as relevant to the exercise of any of its functions under or by virtue of this Part.
But the Regulator may not issue an escalating penalty notice if—
it relates to failure to comply with a notice within subsection (1)(a), (b) or (c), the person to whom that notice was issued has applied for a review of it under section 43, and any review has not been completed;
it relates to failure to comply with any notice within subsection (1), the person has exercised the right of referral to a tribunal under section 44 in respect of a fixed penalty notice issued in relation to that notice, and the reference has not been determined.
An escalating penalty notice is a notice requiring a person to pay an escalating penalty if the person fails to comply with a notice referred to in subsection (1) before a specified date.
An escalating penalty is a penalty which is calculated by reference to a prescribed daily rate.
The prescribed daily rate—
is to be determined in accordance with regulations, and
must not exceed £10,000.
An escalating penalty notice must—
specify the failure to which the notice relates;
state that, if the person fails to comply with the notice referred to in subsection (1) before a specified date, the person will be liable to pay an escalating penalty;
state the daily rate of the escalating penalty and the way in which the penalty is calculated;
state the date from which the escalating penalty will be payable, which must not be earlier than the date specified in the fixed penalty notice under section 40(5)(b);
state that the escalating penalty will continue to be payable at the daily rate until the date on which the person complies with the notice referred to in subsection (1) or such earlier date as the Regulator may determine;
notify the person of the review process under section 43 and the right of referral to a tribunal under section 44.
Any penalty payable under section 40 or section 41 is recoverable by the Regulator.
In England and Wales, any such penalty is, if the county court so orders, recoverable under section 85 of the County Courts Act 1984 (c. 28) or otherwise as if it were payable under an order of that court.
In Scotland, a fixed penalty notice or escalating penalty notice is enforceable 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 Regulator must pay into the Consolidated Fund any penalty recovered under this section.
The Regulator may review a notice to which this section applies—
on the written application of the person to whom the notice was issued, or
if the Regulator otherwise considers it appropriate.
This section applies to—
a compliance notice issued under section 35;
a third party compliance notice issued under section 36;
an unpaid contributions notice issued under section 37;
a fixed penalty notice issued under section 40;
an escalating penalty notice issued under section 41.
Regulations may prescribe the period within which—
an application to review a notice may be made under subsection (1)(a);
a notice may be reviewed under subsection (1)(b).
On a review of a notice, the effect of the notice is suspended for the period beginning when the Regulator determines to carry out the review and ending when the review is completed.
In carrying out a review, the Regulator must consider any representations made by the person to whom the notice was issued.
The Regulator's powers on a review include power to—
confirm, vary or revoke the notice;
substitute a different notice.
A person to whom a notice is issued under section 40 or 41 may, if one of the conditions in subsection (2) is satisfied, make a reference to the Tribunal in respect of—
the issue of the notice;
the amount of the penalty payable under the notice.
The conditions are—
that the Regulator has completed a review of the notice under section 43;
that the person to whom the notice was issued has made an application for the review of the notice under section 43(1)(a) and the Regulator has determined not to carry out such a review.
On a reference to the Tribunal in respect of a notice, the effect of the notice is suspended for the period beginning when the Tribunal receives notice of the reference and ending—
when the reference is withdrawn or completed, or
if the reference is made out of time, on the Tribunal determining not to allow the reference to proceed.
For the purposes of subsection (3), a reference is completed when—
the reference has been determined,
the Tribunal has remitted the matter to the Regulator, and
any directions of the Tribunal for giving effect to its determination have been complied with.
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the words from “by this Act” to the end become paragraph (a);
at the end insert—
In this section “the Tribunal”, in relation to a reference under this section, means—
the Upper Tribunal, in any case where it is determined by or under Tribunal Procedure Rules that the Upper Tribunal is to hear the reference;
the First-tier Tribunal, in any other case.
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the words from “under this Act” to the end become paragraph (a);
at the end insert—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
after “a reference” (in both places where it occurs) insert “under this Act, or any provisions in force in Northern Ireland corresponding to this Act,”;
The Lord Chancellor may by regulations make provision about the award of costs and expenses by the Tribunal on a reference made under section 44 of the Pensions Act 2008 or any provision in force in Northern Ireland corresponding to that section.
An offence is committed by an employer who wilfully fails to comply with—
the duty under section 3(2) (automatic enrolment),
the duty under section 5(2) (automatic re-enrolment), or
the duty under section 7(3) (jobholder's right to opt in).
A person guilty of an offence under this section is liable—
on conviction on indictment, to imprisonment for a term not exceeding two years, or to a fine, or both;
on summary conviction to a fine not exceeding the statutory maximum.
Subsection (2) applies where an offence under section 45 committed by a body corporate is proved—
to have been committed with the consent or connivance of an officer of the body corporate, or
to be attributable to any neglect on the part of an officer of the body corporate.
The officer, as well as the body corporate, is guilty of the offence and is liable to be proceeded against and punished accordingly.
“Officer” in this section means—
a director, manager, secretary or other similar officer, or
a person purporting to act in such a capacity.
Where the affairs of a body corporate are managed by its members, this section applies in relation to the acts and defaults of a member in connection with the member's functions of management as if the member were an officer of the body corporate.
Proceedings for an offence under section 45 alleged to have been committed by a partnership or an unincorporated association may be brought in the name of the partnership or association.
For the purposes of such proceedings—
rules of court relating to the service of documents are to have effect as if the partnership or association were a body corporate;
the following provisions apply in relation to the partnership or association as they apply in relation to a body corporate—
section 33 of the Criminal Justice Act 1925 (c. 86) and Schedule 3 to the Magistrates' Courts Act 1980 (c. 43);
section 70 of the Criminal Procedure (Scotland) Act 1995 (c. 46).
A fine imposed on a partnership or association on its conviction of an offence under section 45 is to be paid out of the funds of the partnership or association.
Subsection (5) applies where an offence under section 45 committed by a partnership is proved—
to have been committed with the consent or connivance of a partner, or
to be attributable to any neglect on the part of a partner.
The partner, as well as the partnership, is guilty of the offence and is liable to be proceeded against and punished accordingly.
Subsection (7) applies where an offence under section 45 committed by an unincorporated association is proved—
to have been committed with the consent or connivance of an officer of the association, or
to be attributable to any neglect on the part of an officer of the association.
The officer, as well as the association, is guilty of the offence and is liable to be proceeded against and punished accordingly.
“Officer” in this section means—
an officer of the association or a member of its governing body, or
a person purporting to act in such capacity.
“Partner” in this section includes a person purporting to act as a partner.
In section 80(1)(a) of the Pensions Act 2004 (c. 35) (offences of providing false or misleading information)—
at the end of sub-paragraph (iv) insertor ;
omit “or” at the end of sub-paragraph (iii).
In section 111A of the Pension Schemes Act 1993 (c. 48) (monitoring of employers' payments to personal pension schemes), at the end insert—
An employer contravenes this section if any statement made or question asked by or on behalf of the employer for the purposes of recruitment indicates (expressly or impliedly) that an application for employment with the employer may be determined by reference to whether or not an applicant might opt out of automatic enrolment.
The reference in subsection (1) to a statement made or a question asked for the purposes of recruitment is a reference to one made or asked in the course of any of the following—
inviting applications for employment;
requesting information from an applicant, referee or other person in connection with an application for employment;
providing information about employment;
proposing terms or conditions of employment.
The reference in subsection (1) to an applicant opting out of automatic enrolment is a reference to the applicant, if becoming at any time in the course of the employment a jobholder to whom section 3 or 5 applies, giving notice in accordance with section 8 in relation to arrangements made by the employer under the relevant section.
In this section and sections 51 and 52, “employer” means the prospective employer in relation to any employment.
The Regulator may issue a compliance notice to an employer if the Regulator is of the opinion that the employer has contravened section 50.
A compliance notice is a notice directing the employer to take, or refrain from taking, the steps specified in the notice in order to—
remedy the contravention, or
prevent the contravention being repeated.
A compliance notice may, in particular—
state the period within which any step must be taken or must cease to be taken;
require the employer to provide within a specified period specified information relating to the contravention;
require the employer to inform the Regulator, within a specified period, how the employer has complied or is complying with the notice;
state that, if the employer fails to comply with the requirements of the notice, the Regulator may issue a penalty notice under section 52.
A compliance notice must specify the contravention to which the notice relates.
The Regulator may issue a penalty notice to an employer if the Regulator is of the opinion that the employer—
has contravened section 50, or
has failed to comply with a compliance notice under section 51.
A penalty notice is a notice requiring the person to whom it is issued to pay a penalty within the period specified in the notice.
The penalty—
is to be determined in accordance with regulations, and
must not exceed £50,000.
A penalty notice must—
state the amount of the penalty;
state the date, which must be at least 4 weeks after the date on which the notice is issued, by which the penalty must be paid;
specify the contravention or failure to which the notice relates;
notify the employer of the review process under section 43 and the right to make a reference under section 44 (as applied by section 53).
Section 42 (penalty notices: recovery) applies to a penalty payable under this section, and to a notice under this section, as it applies to a penalty payable under section 40, and to a notice under that section.
Section 43 (review of notices) also applies to a compliance notice issued under section 51 and to a penalty notice issued under section 52.
Section 44 (references to the First-tier Tribunal or Upper Tribunal) applies in relation to a penalty notice issued under section 52 as it applies in relation to a notice issued under section 40 or 41.
An employer contravenes this section if the employer takes any action for the sole or main purpose of—
inducing a worker to give up membership of a relevant scheme without becoming an active member of another relevant scheme with effect from—
the day after the membership is given up, or
a day within the prescribed period (if a period is prescribed), or
inducing a jobholder to give a notice under section 8 without becoming an active member of a qualifying scheme with effect from—
the day on which the jobholder became an active member of the scheme to which the notice relates, or
a day within the prescribed period (if a period is prescribed).
Section 35 applies in relation to a contravention of this section as it applies in relation to a contravention of section 2(1), and sections 38 to 44 apply accordingly.
But the Regulator may not issue a compliance notice in respect of a contravention of this section unless the contravention occurred within the prescribed period before—
the time when a complaint was made to the Regulator about the contravention, or
the time when the Regulator informed the employer of an investigation of the contravention, if no complaint was made before that time.
A compliance notice in respect of a contravention of this section may direct the employer to take or refrain from taking specified steps in order to prevent the contravention being repeated.
For the purposes of this section a worker gives up membership of a relevant scheme if the worker—
takes action or makes an omission by which the worker, without ceasing to be employed by the employer, ceases to be an active member of the scheme, or
requests or authorises the employer to take such action or to make such an omission.
In this section, “relevant scheme” means—
in relation to a jobholder, a qualifying scheme;
in relation to a worker to whom section 9 applies, a scheme which satisfies the requirements of that section.
A worker has the right not to be subjected to any detriment by an act, or a deliberate failure to act, by the worker's employer, done on the ground that—
any action was taken, or was proposed to be taken, with a view to enforcing in favour of the worker a requirement to which this section applies,
the employer was prosecuted for an offence under section 45 as a result of action taken for the purpose of enforcing in favour of the worker a requirement to which this section applies, or
any provision of Chapter 1 of this Part applies to the worker, or will or might apply.
It is immaterial for the purposes of paragraph (a) or (b) of subsection (1)— but, for that subsection to apply, the claim that the requirement applies and, if applicable, the claim that it has been contravened must be made in good faith.
whether or not the requirement applies in favour of the worker, or
whether or not the requirement has been contravened,
This section applies to any requirement imposed on the employer by or under any provision of Chapter 1 of this Part.
This section does not apply where the detriment in question amounts to dismissal within the meaning of Part 10 of the Employment Rights Act 1996 (c. 18) (unfair dismissal).
In this section references to enforcing a requirement include references to securing its benefit in any way.
A worker may present a complaint to an employment tribunal that the worker has been subjected to a detriment in contravention of section 55.
Subject to the following provisions of this section, the provisions of sections 48(2) to (4A) and 49 of the Employment Rights Act 1996(complaints to employment tribunals and remedies), apply in relation to a complaint under this section as they apply in relation to a complaint under section 48 of that Act, but taking references in those provisions to the employer as references to the employer within the meaning of section 55(1).
Where— any compensation awarded under section 49 of the Employment Rights Act 1996 by virtue of subsection (2) must not exceed the limit specified in subsection (4).
the detriment to which the worker is subjected is the termination of the worker's contract, but
that contract is not a contract of employment,
The limit is the total of—
the sum which would be the basic award for unfair dismissal, calculated in accordance with section 119 of the Employment Rights Act 1996, if the worker had been an employee within the meaning of that Act and the contract terminated had been a contract of employment, and
the sum for the time being specified in section 124(1) of that Act which is the limit for a compensatory award to a person calculated in accordance with section 123 of that Act.
Where the worker has been working under arrangements which do not fall to be regarded as a worker's contract for the purposes of the Employment Rights Act 1996, the worker is to be treated for the purposes of subsections (3) and (4) as if any arrangements under which the worker has been working constituted a worker's contract falling within section 230(3)(b) of that Act.
In section 18(1) of the Employment Tribunals Act 1996 (c. 17) (proceedings where conciliation is available), after paragraph (u) insert, or
The Employment Rights Act 1996 (c. 18) is amended as follows.
After section 104C (flexible working) insert—
In section 105 (redundancy as unfair dismissal), in subsection (1)(c) (which refers to any of subsections (2A) to (7J) of that section applying) for “(7J)” substitute “ (7JA) ”.
After subsection (7J) of that section insert—
In section 108 (exclusion of right: qualifying period of employment) in subsection (3) (cases where no qualifying period is required) after paragraph (gi) insert—.
In section 237(1A) of the Trade Union and Labour Relations (Consolidation) Act 1992 (c. 52) (cases where employee may complain of unfair dismissal despite participation in unofficial industrial action), in paragraph (a)—
for “, 103A or 104C” substitute “ , 103A, 104C or 104D ”;
for “protected disclosure and flexible working” substitute “ protected disclosure, flexible working and pension scheme membership ”.
In section 238(2A)(a) of that Act (cases where employment tribunal to determine whether dismissal of an employee is unfair despite limitation in subsection (2) of that section)—
for “, 103 or 104C” substitute “ , 103, 104C or 104D ”;
for “, employee representative and flexible working” substitute “ , employee representative, flexible working and pension scheme membership ”.
Any provision in any agreement (whether a worker's contract or not) is void in so far as it purports—
to exclude or limit the operation of any provision of this Part, or
to preclude a person from bringing proceedings under section 56 before an employment tribunal.
The fact that an agreement is to any extent void under subsection (1) does not entitle the employer to recover any property transferred, or the value of any benefit conferred, as an inducement to enter into, or otherwise in connection with, the agreement.
Subsection (1) does not apply to any agreement to refrain from instituting or continuing proceedings where a conciliation officer has taken action under any of sections 18A to 18C of the Employment Tribunals Act 1996 (c. 17) (conciliation).
Subsection (1) does not apply to any agreement to refrain from instituting or continuing before an employment tribunal any proceedings within section 18(1)(v) of the Employment Tribunals Act 1996 (proceedings under this Act where conciliation is available) if the conditions regulating settlement agreements under this Act are satisfied in relation to the agreement.
For the purposes of subsection (4) the conditions regulating settlement agreements under this Act are that—
the agreement must be in writing,
the agreement must relate to the particular proceedings,
the worker must have received advice from a relevant independent adviser as to the terms and effect of the proposed agreement and, in particular, its effect on his ability to pursue his rights before an employment tribunal,
there must be in force, when the adviser gives the advice, a contract of insurance, or an indemnity provided for members of a profession or a professional body, covering the risk of a claim by the worker in respect of loss arising in consequence of the advice,
the agreement must identify the adviser, and
the agreement must state that the conditions regulating settlement agreements under this Act are satisfied.
A person is a relevant independent adviser for the purposes of subsection (5)(c) if that person—
is a qualified lawyer,
is an officer, official, employee or member of an independent trade union who has been certified in writing by the trade union as competent to give advice and as authorised to do so on behalf of the trade union,
works at an advice centre (whether as an employee or a volunteer) and has been certified in writing by the centre as competent to give advice and as authorised to do so on behalf of the centre, or
is a person of a description specified in an order made by the Secretary of State.
But a person is not a relevant independent adviser for the purposes of subsection (5)(c) in relation to the worker—
if the person is employed by, or is acting in the matter for, the employer or an associated employer,
in the case of a person within subsection (6)(b) or (c), if the trade union or advice centre is the employer or an associated employer,
in the case of a person within subsection (6)(c), if the worker makes a payment for the advice received from the person, or
in the case of a person of a description specified in an order under subsection (6)(d), if any condition specified in the order in relation to the giving of advice by persons of that description is not satisfied.
In this section “qualified lawyer” means—
as respects England and Wales—
a barrister (whether in practice as such or employed to give legal advice),
a solicitor who holds a practising certificate, or
a person other than a barrister or solicitor who is an authorised advocate or authorised litigator (within the meaning of the Courts and Legal Services Act 1990);
as respects Scotland—
an advocate (whether in practice as such or employed to give legal advice), or
a solicitor who holds a practising certificate.
For the purposes of this section any two employers are associated if— and “associated employer” is to be read accordingly.
one is a company of which the other (directly or indirectly) has control, or
both are companies of which a third person (directly or indirectly) has control;
In section 21(1) of the Employment Tribunals Act 1996 (c. 17) (jurisdiction of appeal tribunal), after paragraph (gc) insert—.
For the purposes of Chapter 1 or 2 of this Part, the Secretary of State may by regulations make provision requiring any person—
to keep, in such form and manner as may be prescribed, such records as may be prescribed;
to preserve those records for such period, not exceeding 6 years, as may be prescribed;
to provide those records to the Regulator on receiving a notification requesting them.
Regulations under subsection (1) may provide that section 10 of the Pensions Act 1995 (c. 26) (civil penalties) applies to a person who fails to comply with those requirements.
The Pensions Act 2004 (c. 35) is amended as follows.
In section 72, after subsection (1) insert—
In section 74, before subsection (1) insert—
In section 75(1), after “subsection” (in the third place where it occurs) insert “ (A1), ”.
In section 76(9), after “subsection” (in the second place where it occurs) insert “ (A1), ”.
In the Pensions Act 2004 (c. 35), for section 88 (tax information) substitute—
In section 82 of that Act (restricted information), in subsection (3) for “88(4)” substitute “ 88(5) ”.
In Schedule 10 to the Pensions Act 2004 (c. 35) (use and supply of information for purposes relating to private pensions policy and retirement planning), after paragraph 3 insert—
Section 323 of the Pensions Act 2004 (extent) is amended as follows.
In subsection (2)(c) (provisions extending to Northern Ireland)—
for “paragraph 2” substitute “ paragraphs 2 and 4 ”;
for “that paragraph” substitute “ those paragraphs ”.
In subsection (4), for “paragraph 2” substitute “ paragraphs 2 and 4 ”.
Section 3 of the Social Security Act 1998 (c. 14) (use of information) is amended as follows.
In subsection (5), in the definition of “private pensions policy”—
the words from “occupational” to the end become paragraph (a), and
after that paragraph insertor .
In section 82(5)(a) of the Pensions Act 2004 (penalty for disclosure of restricted information, on summary conviction), at the end insert “ , or imprisonment for a term not exceeding 12 months, or both ”.
After subsection (5) insert—
In section 5(1) of the Pensions Act 2004 (c. 35) (Regulator's objectives), before “and” at the end of paragraph (c) insert—.
Section 146 of the Pension Schemes Act 1993 (c. 48) (functions of the Pensions Ombudsman) is amended as follows.
In subsection (7), after paragraph (ba) insert—
In paragraph (c)(i) of that subsection, for “or (ba)” substitute “ , (ba) or (bb) ”.
The Secretary of State must establish a pension scheme and make provision for its administration and management.
A scheme established under this section is to be treated for all purposes as established under an irrevocable trust.
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It must when registered under Chapter 2 of Part 4 of the Finance Act 2004 be a scheme such that a jobholder's employer, if a participating employer, may comply with an enrolment duty by arranging for the jobholder to become an active member of the scheme.
It must be a scheme that complies with any provision of Northern Ireland legislation corresponding to subsection (4).
The scheme administrator must ensure that the scheme is and remains registered under Chapter 2 of Part 4 of the Finance Act 2004.
“Scheme administrator” has the same meaning here as in that Part.
The power to make provision in pursuance of subsection (1) is exercisable by order.
If an order establishes a scheme, any further provision that may be made by order in relation to the scheme may also be made by rules (and rules may be made so as to come into force at the same time as the establishing order).
That is subject to subsections (11) and (12).
Rules are subject to any provision made by order.
No provision may be made by rules about—
the purpose or object of the scheme;
the appointment or removal of trustees;
(as regards trustees, or members of any corporate trustee) meetings, committees or delegation of functions;
any exclusion of liability on the part of trustees, or the provision of any indemnity or insurance out of the funds of the scheme.
Except as expressly provided, nothing in this Act limits the generality of the powers conferred by this section.
An order under section 67 establishing a scheme must provide for the trustee corporation (the body established by section 75) to be a trustee on the coming into force of the scheme.
An order under section 67 may provide for any provision of the Trustee Act 2000 (c. 29) to apply as if an order or rules under section 67 were a trust instrument.
An order under section 67 may provide for the trustees to have power to make rules under that section.
Where the trustees have power to make rules, an order under section 67 may provide—
that they may not exercise the power in specified circumstances;
that they may exercise it subject to conditions;
that they must comply with requirements for consultation or publication or other procedural requirements when exercising the power.
An order under section 67 may make provision for the exclusion of, or indemnity against, liability of a trustee, or an officer or employee of a trustee, arising out of the administration or management of a scheme.
If an order under section 67 establishes a scheme, the Secretary of State must by order under that section require the trustees to make and maintain arrangements for consulting the members of the scheme and participating employers about the operation, development and amendment of the scheme.
The arrangements must include establishment and maintenance of—
a panel of persons to represent members (“the members' panel”), and
a panel of persons to represent employers (“the employers' panel”).
The composition and functions of the panels are to be determined by order under section 67, or by the trustees under an order.
The functions of the members' panel may include nominating individuals to be members of the trustee corporation.
An order under section 67 may provide for payments to panel members out of scheme funds.
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An order under section 67 must prescribe the maximum amount of contributions that may be made by or in respect of a member in any tax year.
For the purposes of provision under subsection (1) an order may in particular make provision as to—
what is a contribution;
when a contribution is to be treated as made;
how contributions are to be treated if the maximum is exceeded;
circumstances in which a payment is to be made to any person in respect of an excess contribution;
who is to make any such payment and how it is to be calculated.
An order may prescribe a maximum amount for payments that may be made by a member and that are not contributions for the purposes of provision under subsection (1).
The Secretary of State may by order repeal this section.
Subsection (2) applies to any order under section 67 relating to a scheme, except the order establishing the scheme and an order taking effect at the same time as that order.
The Secretary of State may not make the order without the consent of the trustees.
But the trustees may not withhold their consent without giving reasons.
The trustees must consult the members' panel and the employers' panel before deciding whether to give consent.
A person who proposes to make rules under section 67 must publish a draft of the rules and invite comments.
They must have regard to any comments made in accordance with the invitation.
If they make the rules they must publish an account in general terms of those comments and their response to them.
If the rules they make differ from the draft published under subsection (1), they must publish details of any differences that they think are significant.
Subsection (6) applies to any rules made by the Secretary of State under section 67 relating to a scheme, except rules taking effect at the same time as the order establishing the scheme.
The Secretary of State may not make the rules without the consent of the trustees.
But the trustees may not withhold their consent without giving reasons.
The trustees must consult the members' panel and the employers' panel—
before making rules under section 67;
before deciding whether to give consent under subsection (6).
If the Secretary of State or the trustees make rules under section 67 they must publish them.
Anything published under this section must be published in a way designed to bring it to the attention of the persons likely to be interested or affected.
The publication must not be limited to electronic publication.
The Interpretation Act 1978 (c. 30) applies in relation to rules under section 67 as if they were contained in a deed not made under an enactment.
A scheme established under section 67 is not to be treated as a public service pension scheme for the purposes of any enactment.
The Secretary of State must appoint a person to review in relation to a scheme established under section 67—
the effect of provision made under section 70 (maximum amount of contributions),
the effect of any restrictions on rights to transfer into the scheme or transfer out to another pension scheme, and
such other matters as the Secretary of State may direct.
The appointment under subsection (1) must be made on or after the later of—
1 January 2017;
the end of five years beginning with the first day on which contributions are paid to the scheme by or in respect of members.
The person appointed under subsection (1) must—
prepare a report of the review, and
send a copy of the report to the Secretary of State.
The Secretary of State must lay before Parliament a copy of the report.
The Secretary of State may pay to the person appointed under subsection (1) such remuneration and expenses as the Secretary of State may determine.
There is to be a body corporate, referred to in this Chapter as the trustee corporation.
The name of the body is to be determined by order made by the Secretary of State.
The trustee corporation is not to be regarded as the servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown.
Property held by the corporation is not to be regarded as property of, or property held on behalf of, the Crown.
Schedule 1 makes provision about the trustee corporation.
The functions of the trustee corporation are—
to act as a trustee of any scheme established under section 67, and
any other functions it is given by or under an enactment in connection with the scheme.
The corporation may do anything calculated to facilitate, or incidental or conducive to, the carrying out of any of its functions.
In particular the corporation may—
enter into agreements;
borrow money;
invest money.
The corporation's powers within subsection (3)(b) and (c) are exercisable only with the consent of the Secretary of State.
Subsections (3) and (4) are without prejudice to the exercise by the trustee corporation of any power vested in it as a trustee of a scheme established under section 67.
The Secretary of State may by regulations provide that legislation applying in relation to a person as trustee of a pension scheme, or as director of a company which is a trustee of a pension scheme, applies in relation to the trustee corporation, or its members, with any modifications prescribed in the regulations.
In this section “legislation” means any provision of an Act or subordinate legislation (and “subordinate legislation” has the same meaning as in the Interpretation Act 1978 (c. 30)).
In this Chapter—
“the transfer day” means the day on which the relevant order or provision takes effect;
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Section 21 of the Pensions Act 2007 (c. 22) (initial function of the Authority) ceases to have effect.
The Personal Accounts Delivery Authority (referred to in this Chapter as the “Authority”) has the following functions—
to give any assistance and advice that the Secretary of State may require, and any advice that the Authority considers expedient, for or in connection with the establishment and operation of a scheme under section 67(1);
to give any assistance and advice that the Secretary of State or the Regulator may require, and any advice that the Authority considers expedient, for or in connection with arrangements to enable requirements imposed by or under Chapter 1 of this Part to be complied with and enforced.
Assistance or advice required by the Secretary of State under subsection (2)(a) may include assistance or advice to the trustees of the scheme.
The Authority’s functions under subsection (2) are in addition to any functions that may be conferred on it by or under this Act or any other enactment.
The Authority may do anything calculated to facilitate, or incidental or conducive to, the carrying out of any of its functions.
In particular, the Authority may—
enter into agreements;
borrow money.
The Authority’s powers within subsection (6)(b) are exercisable only with the consent of the Secretary of State.
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In carrying out its functions under section 79(2) the Authority must have regard to the principles in subsection (2).
The principles are that—
participation in qualifying schemes should be encouraged and facilitated;
the burdens imposed on employers as a result of this Part should be minimised;
any adverse effects on qualifying schemes, and members and future members of those schemes, as a result of implementation of Chapter 5 of this Part should be minimised;
the cost of membership of a scheme established under section 67 should be minimised;
the preferences of members and future members should, so far as practicable, be taken into account in making any provision about investment choice in such a scheme;
diversity among members and future members of such a scheme should be respected.
The Authority must take any steps it considers appropriate to promote and engage in discussion with relevant public authorities and others about its functions under section 79(2) and how it carries them out.
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The Secretary of State may give the Authority guidance or directions about the discharge of its functions.
In discharging its functions, the Authority must have regard to any guidance, and comply with any directions, under this section.
Guidance or directions under this section may vary or revoke earlier guidance or directions under this section.
Directions under this section must be in writing.
The Secretary of State must publish any direction given under this section.
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Schedule 6 to the Pensions Act 2007 (c. 22) is amended as follows.
In paragraph 6(3) and (5), for “the chairman and other non-executive members” substitute “the non-executive committee”.
In paragraph 7(2) and (3), for “the chairman and other non-executive members” substitute “the non-executive committee”.
At the beginning of Part 2 insert—
In the italic heading immediately before paragraph 9, for “Committees” substitute “Other committees”.
In paragraph 11, in sub-paragraph (1)(b), at the beginning insert “subject to sub-paragraph (1A),”.
The non-executive committee may, subject to this Schedule—
In that paragraph, in sub-paragraph (2)—
for “the chairman and non-executive members of the Authority” substitute “the non-executive committee”;
for “the non-executive members” substitute “the members of that committee”.
In that paragraph, in sub-paragraph (3), for “the chairman and non-executive members” substitute “the non-executive committee”.
In paragraph 17(2), before “and” at the end of paragraph (a) insert—.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule 6 to the Pensions Act 2007 (c. 22) is amended as follows.
For the italic heading immediately before paragraph 6, substitute “Executive members and employees”.
The chief executive is to be an employee of the Authority. The Authority may appoint any other executive members as employees.
In paragraph 7 (terms and conditions of executive members)—
in sub-paragraphs (1) and (2), before “employed by the Authority” insert “, if appointed as employees under paragraph 6(6A), are to be”;
in sub-paragraph (3)(a), omit “employees who are”.
Section 23 of the Pensions Act 2007 (c. 22) (winding up of the Authority) is amended as follows.
For subsection (1) substitute—
Subsections (2) to (4) are omitted.
In subsection (5)(a), after “Secretary of State” insert “ or any other person ”.
In subsection (7)—
the words after “ provision of ” become paragraph (a) of that subsection; and
at the end of that paragraph insert —;
The Welfare Reform and Pensions Act 1999 (c. 30) is amended as follows.
Section 3 (duty of employers to facilitate access to stakeholder pension schemes) is amended as follows.
In subsection (1), for “the requirements set out below” substitute “ the requirement in subsection (5) ”.
After subsection (1) insert—
Omit subsections (2) to (4).
In subsection (5)—
omit the word “fourth”;
omit the words from “of his” to “qualifying scheme”;
in paragraph (a), for “scheme” substitute “ stakeholder pension scheme ”.
After subsection (5) insert—
Omit subsection (6).
In subsection (7), for “any of the requirements” substitute “ the requirement ”.
In subsection (8)—
for the words from “whether before” to “those purposes” substitute “ while subject to the requirement in subsection (5) ”;
omit paragraph (a)(ii) and (iii).
“relevant date” means the date on which section 87 of the Pensions Act 2008 comes into force.
In that subsection—
omit the definition of “qualifying scheme”;
omit the definition of “relevant employees”.
In section 6 (application of certain enactments), omit subsections (1), (2) and (4).
In section 8 (interpretation), in subsection (1), omit the definition of “designated scheme”.
This section applies for the purposes of this Part.
“Contract of employment” means a contract of service or apprenticeship, whether express or implied, and (if it is express) whether oral or in writing.
“Worker” means an individual who has entered into or works under—
a contract of employment, or
any other contract by which the individual undertakes to do work or perform services personally for another party to the contract.
But a contract is not within subsection (3)(b) if the status of the other party is by virtue of the contract that of a client or customer of a profession or business undertaking carried on by the individual concerned.
For the purposes of subsection (3)(b), it does not matter whether the contract is express or implied or (if it is express) whether it is oral or in writing.
Any reference to a worker's contract is to be read in accordance with subsections (3) to (5).
“Employer”, in relation to a worker, means the person by whom the worker is employed (subject to sections 37(5) and 38(6)).
“Employment” in relation to a worker, means employment under the worker's contract, and related expressions are to be read accordingly.
This section applies to an individual (“the agency worker”)—
who is supplied by a person (“the agent”) to do work for another person (“the principal”) under a contract or other arrangements made between the agent and the principal,
who is not, as respects that work, a worker, because of the absence of a worker's contract between the individual and the agent or the principal, and
who is not a party to a contract under which the agency worker undertakes to do the work for another party to the contract whose status is, by virtue of the contract, that of a client or customer of a profession or business undertaking carried on by the individual.
Where this section applies, the other provisions of this Part have effect—
as if there were a worker's contract for the doing of the work by the agency worker, made between the agency worker and the relevant person under subsection (3), and
as if that person were the agency worker's employer.
The relevant person is—
whichever of the agent and the principal is responsible for paying the agency worker in respect of the work, or
if neither the agent nor the principal is responsible for doing so, whichever of them pays the agency worker in respect of the work.
A person who holds office as a director of a company is not, by virtue of that office or of any employment by the company, a worker for the purposes of this Part, unless—
the person is employed by the company under a contract of employment, and
there is at least one other person who is employed by the company under a contract of employment.
In this section, “company” includes any body corporate.
This Part has effect in relation to employment by or under the Crown as it has effect in relation to other employment.
For the purposes of the application of the provisions of this Part in accordance with subsection (1)—
references to a worker are to be construed as references to a person employed by or under the Crown;
references to a worker's contract are to be construed as references to the terms of employment of a person employed by or under the Crown.
This section does not impose criminal liability on the Crown.
But on the application of the Regulator the High Court or the Court of Session may declare unlawful a failure by the Crown to comply with any of the duties mentioned in section 45(1).
A person serving as a member of the naval, military or air forces of the Crown is not, by virtue of that service, a worker for the purposes of this Part.
A member of any of the forces specified in subsection (3) who assists the activities of any of those forces is not, by virtue of anything done in assisting those activities, a worker for the purposes of this Part.
The forces are—
the Combined Cadet Force;
the Sea Cadet Corps;
the Army Cadet Force;
the Air Training Corps.
This Part has effect in relation to employment as a relevant member of the House of Lords staff as it has effect in relation to other employment.
In this section, “relevant member of the House of Lords staff” means any person who is employed under a worker's contract with the Corporate Officer of the House of Lords.
This Part has effect in relation to employment as a relevant member of the House of Commons staff as it has effect in relation to other employment.
In this section, “relevant member of the House of Commons staff” means any person—
who was appointed by the House of Commons Commission, or
who is a member of the Speaker's personal staff.
For the purposes of the application of the provisions of this Part in relation to a relevant member of the House of Commons staff—
references to a worker are to be read as references to a relevant member of the House of Commons staff, and
references to a worker's contract are to be read as references to the terms of employment of a relevant member of the House of Commons staff.
This Part has effect in relation to a person who— as if the person were employed by the relevant local policing body or relevant police authority under a worker's contract.
holds the office of constable or an appointment as a police cadet, and
does not hold that office or appointment under a contract of employment,
A local policing body, or a police authority that maintains a police force is the relevant local policing body, or relevant police authority—
in relation to a constable, if the constable is a member of that police force;
in relation to a police cadet, if the cadet is undergoing training with a view to becoming a member of that police force.
Subject to regulations under this section, a person employed or engaged in any capacity on board a ship is not, by virtue of that employment or engagement, a worker for the purposes of this Part.
The Secretary of State may by regulations provide that, to the extent and for the purposes specified in the regulations, the relevant provisions apply, with or without modification, in relation to a person employed or engaged in any capacity on board a ship (whether or not that person is working or ordinarily works in any part of the United Kingdom).
For the purposes of this section, the relevant provisions are—
this Part (and any enactment as amended by this Part), and
any provision in force in Northern Ireland corresponding to any provision of this Part (and any enactment as amended by such a provision).
Regulations under this section—
may provide for a provision to apply in relation to individuals whether or not they are British subjects;
may provide for a provision to apply in relation to bodies corporate whether or not they are incorporated under the law of a part of the United Kingdom;
may do so even where the application may affect the individual's or body's activities outside the United Kingdom.
Regulations under this section—
may provide for a court or tribunal on which jurisdiction is conferred by the relevant provisions to have jurisdiction, in respect of offences or other matters, for the purposes of any provision as it applies by virtue of the regulations;
may exclude from the operation of section 3 of the Territorial Waters Jurisdiction Act 1878 (c. 73) (consents required for prosecutions) proceedings for offences under any provision as it applies by virtue of the regulations;
may provide that such proceedings may not be brought without such consent as may be required by the regulations.
Any jurisdiction conferred on a court or tribunal under this section is without prejudice to jurisdiction exercisable apart from this section by that or any other court or tribunal.
In this section, “ship” includes—
a hovercraft within the meaning of the Hovercraft Act 1968 (c. 59), and
every description of vessel used in navigation.
Her Majesty may by Order in Council provide that, to the extent and for the purposes specified in the Order, the relevant provisions apply, with or without modification, in relation to a person in offshore employment.
For the purposes of this section, the relevant provisions are—
this Part (and any enactment as amended by this Part), and
any provision in force in Northern Ireland corresponding to any provision of this Part (and any enactment as amended by such a provision).
In this section, “offshore employment” has the same meaning as in section 201(1) of the Employment Rights Act 1996 (c. 18).
An Order in Council under this section—
may provide for a provision to apply in relation to individuals whether or not they are British subjects;
may provide for a provision to apply in relation to bodies corporate whether or not they are incorporated under the law of a part of the United Kingdom;
may do so even where the application may affect the individual's or body's activities outside the United Kingdom.
An Order in Council under this section—
may make different provision for different cases;
may provide for a court or tribunal on which jurisdiction is conferred by the relevant provisions to have jurisdiction, in respect of offences or other matters, for the purposes of any provision as it applies by virtue of the Order;
may (without prejudice to subsection (1) and paragraph (a)) provide for a provision to apply in relation to any person in employment in a part of the areas referred to in section 201(1)(a) and (b) of the Employment Rights Act 1996 (c. 18);
may exclude from the operation of section 3 of the Territorial Waters Jurisdiction Act 1878 (c. 73) (consents required for prosecutions) proceedings for offences under any provision as it applies by virtue of the Order;
may provide that such proceedings may not be brought without such consent as may be required by the Order.
Any jurisdiction conferred on a court or tribunal under this section is without prejudice to jurisdiction exercisable apart from this section by that or any other court or tribunal.
No Order in Council may be made under this section unless a draft of the Order has been laid before and approved by a resolution of each House of Parliament.
The Secretary of State may by regulations make provision for this Part to apply with or without modifications—
as if any individual of a prescribed description (who would not otherwise be a worker) were a worker,
as if there were in the case of any such individual a worker's contract of a prescribed description under which the individual works, and
as if a person of a prescribed description were the employer under that contract.
The Secretary of State may by regulations provide for exceptions to the employer duties; and an exception may in particular—
turn an employer duty into a power;
be framed by reference to a description of worker, particular circumstances or in some other way.
But the regulations may not provide for an exception for employers of a particular size.
Regulations which make provision under subsection (1)(a) may make provision modifying this Part or regulations made under it in connection with that provision.
The regulations may make provision in connection with the coming to an end of the state of affairs that caused an exception to apply, including provision—
modifying this Part or regulations made under it in relation to a person;
for the purpose of putting a person, wholly or partly, in the position he or she would have been in if the exception had never applied.
In this section “employer duties” means any duty of an employer under any provision of sections 2 to 11 and 54 or of regulations made under those sections.
In this Part— “active member”— in relation to an occupational pension scheme, means a person who is in pensionable service under the scheme; in relation to a personal pension scheme, means a jobholder in relation to whom there is an agreement within section 26(4) between the provider of the scheme and the employer or (where section 9 applies) a worker in relation to whom there are direct payment arrangements (within the meaning of section 111A of the Pension Schemes Act 1993 (c. 48)) between the worker and the employer; “automatic enrolment scheme” is to be read in accordance with section 3(8); “average salary benefits” means benefits the rate or amount of which is calculated by reference to the average salary of a member over the period of service on which the benefits are based; “collective money purchase benefit” has the meaning given by section 1 of the Pension Schemes Act 2021; “contract of employment” has the meaning given by section 88; “defined benefits”, in relation to a member of an occupational pension scheme, means benefits which are not money purchase benefits (but the rate or amount of which is calculated by reference to earnings or service of the member or any other factor other than an amount available for their provision); “defined benefits scheme” means an occupational pension scheme under which all the benefits that may be provided are defined benefits; “employer”, “employment” and related expressions have the meaning given by section 88; “enrolment duty” means a duty under section 3(2), 5(2), 7(3) or 9(2); “group personal pension scheme” means a personal pension scheme which is available, or intended to be available, to employees of the same employer or of employers within a group, but does not include— a stakeholder pension scheme (as defined in section 1 of the Welfare Reform and Pensions Act 1999), or any pension scheme that requires all its members to make a choice as to how their contributions are invested;”; “hybrid scheme” means an occupational pension scheme which is neither a defined benefits scheme nor a money purchase scheme; ... “jobholder” has the meaning given by section 1(1); “money purchase benefits”, in relation to a member of a pension scheme, means— benefits the rate or amount of which is calculated by reference to a payment or payments made by the member or by any other person in respect of the member and which fall within section 99A, and collective money purchase benefits; “money purchase scheme” means an occupational pension scheme under which all the benefits that may be provided are money purchase benefits; “occupational pension scheme” has the meaning given by section 18; “pension scheme” has the meaning given by section 1(5) of the Pension Schemes Act 1993 (c. 48); “pensionable age” has the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995 (c. 26); “pensionable service”, in relation to a member of an occupational pension scheme, means service in any description of employment to which the scheme relates which qualifies the member (on the assumption that it continues for the appropriate period) for pension or other benefits under the scheme; “personal pension scheme” has the meaning given by section 19; “prescribed” means prescribed by regulations; “provider”— in relation to a personal pension scheme to which section 26 applies, means the person referred to in subsection (1)(b) of that section; in relation to any other personal pension scheme, has the meaning prescribed; “qualifying earnings” has the meaning given by section 13; “qualifying scheme” is to be read in accordance with section 2(5); “regulations” means regulations made by the Secretary of State; “Regulatory Authority” has the meaning given by regulations under subsection (2); “the Regulator” means the Pensions Regulator; “relevant Master Trust” has the meaning given by section 20(4); “tax year” means the 12 months beginning with 6th April in any year; “trustee or manager”— in relation to England and Wales or Scotland, is to be construed in accordance with section 178 of the Pension Schemes Act 1993 (c. 48) (trustees and managers of schemes: interpretation); in relation to Northern Ireland, is to be construed in accordance with section 173 of the Pension Schemes (Northern Ireland) Act 1993 (c. 49) (trustees or managers of schemes); “worker” has the meaning given by section 88.
The Secretary of State may by regulations define “Regulatory Authority” for the purposes of this Part.
This section applies for the purposes of paragraph (a) of the definition of “money purchase benefits” in section 99.
A benefit other than a pension in payment falls within this section if its rate or amount is calculated solely by reference to assets which (because of the nature of the calculation) must necessarily suffice for the purposes of its provision to or in respect of the member.
A benefit which is a pension in payment falls within this section if—
its provision to or in respect of the member is secured by an annuity contract or insurance policy made or taken out with an insurer, and
at all times before coming into payment the pension was a benefit falling within this section by virtue of subsection (2).
For the purposes of subsection (2) it is immaterial if the calculation of the rate or amount of the benefit includes deductions for administrative expenses or commission.
In this section references to a pension do not include income withdrawal or dependants' income withdrawal (within the meaning of paragraphs 7 and 21 of Schedule 28 to the Finance Act 2004).
Part 3A of the Pension Schemes Act 1993 (safeguarded rights) ceases to have effect.
Schedule 2, which— has effect.
amends Schedule 3 to the Pension Schemes Act 1993 (methods of revaluing accrued pension benefits),
amends Schedule 7 to the Pensions Act 2004 (c. 35) (pension compensation provisions), and
makes consequential amendments,
The amendments made by Parts 1 and 3 of Schedule 2 do not apply in relation to a revaluation period ending before this section comes into force.
In subsection (2), “revaluation period” has the same meaning as in paragraph 2 of Schedule 3 to the Pension Schemes Act 1993.
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The Social Security Contributions and Benefits Act 1992 (c. 4) (the 1992 Act) is amended as follows.
Section 45 (the additional pension in a Category A retirement pension) is amended as follows.
In subsection (2), after “1999” insert “but before 6th April 2020”.
After subsection (2) insert—
Schedule 3, which inserts Schedule 4C to the 1992 Act, has effect.
In section 47 (increase of Category A retirement pension for invalidity), after subsection (4) insert—
Section 36 of the National Insurance Act 1965 (c. 51) (graduated retirement benefit), as it continues in force as mentioned in section 62 of the 1992 Act, has effect in relation to a person over pensionable age only if the person attained pensionable age before 6th April 2020.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Pension Schemes Act 1993 (c. 48) is amended as follows.
In section 46 (effect of entitlement to guaranteed minimum pensions on payment of social security benefits) after subsection (1) insert—
After section 46 insert—
In section 185(2) (consultation) at the end of paragraph (c) insert “or 46A(2); or”.
In section 186(3) (parliamentary control) before paragraph (a) insert—.
Schedule 4 (additional pension etc: minor and consequential amendments) has effect.
Section 9 of the State Pension Credit Act 2002 (c. 16) (duration of assessed income period) is amended as set out in subsections (2) to (4).
For subsection (1) substitute—
In paragraph (b) of subsection (2), for the words from “may” to “years” substitute “ shall specify a period that is shorter than 5 years ”.
After subsection (5) insert—
The amendments made by subsections (2) and (3) apply only where the relevant decision (within the meaning given by section 6(5) of the State Pension Credit Act 2002 (c. 16)) takes effect on or after 6 April 2009.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
As from the contracting-out abolition date, pension schemes are not required to make special provision in relation to the protected rights of members.
Accordingly—
the provisions of the Pension Schemes Act 1993 (c. 48) (“the 1993 Act”) within subsection (3) cease to have effect as from that date, and
sections 25A, 27A and 32A of the 1993 Act (as inserted by paragraphs 9, 10 and 12 of Schedule 4 to the Pensions Act 2007 (c. 22)) are not to have any effect as from that date (in spite of section 15(4) of that Act of 2007).
The provisions of the 1993 Act within this subsection are—
section 10 (protected rights and money purchase benefits),
section 26 (persons who may establish scheme),
section 27 (identification and valuation of protected rights),
section 30 (securing of liability for protected rights),
section 32 (suspension or forfeiture), and
section 33A (appropriate schemes: “blowing the whistle”).
In this section—
“prescribed” means prescribed by regulations made by the Secretary of State;
Section 75
“the relevant order or provision” means the pension compensation sharing order, or provision contained in a qualifying agreement, which gives rise to the pension compensation sharing;
A person is disqualified for appointment as a member if— While the trustee corporation is a trustee of a scheme established under section 67, section 3 of that Act applies in relation to being a member of the trustee corporation as it applies in relation to being a trustee of the scheme. The Pensions Regulator may also make an order under section 3 of that Act as applied by sub-paragraph (2) at any time when it would have power to make an order under section 4 of that Act (suspension) if the person were a trustee of the scheme.
The trustee corporation may appoint employees and make any other arrangements for its staffing that it thinks fit. Employees are appointed and hold their employment on terms and conditions, including remuneration, determined by the trustee corporation. The trustee corporation must—
The Secretary of State may, with the consent of the Treasury, give financial assistance to the trustee corporation. The assistance— Section 5 of the National Loans Act 1968 (c. 13) (rates of interest on certain loans out of the National Loans Fund) has effect as respects the rate of interest on a loan under this paragraph as it has effect as respects a rate of interest within subsection (1) of that section.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
This Schedule applies for the purposes of determining the compensation payable to or in respect of a person entitled to compensation on the discharge of a pension compensation credit in accordance with this Chapter.
A person is disqualified for appointment as a member if disqualified under section 29 of the Pensions Act 1995 or Article 29 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) for being a trustee of a trust scheme. A person is not disqualified under this paragraph if the Pensions Regulator has given the person a general waiver under section 29(5) of that Act or Article 29(5) of that Order. The Pensions Regulator may, on the application of a person disqualified under this paragraph, give the person notice in writing waiving the disqualification. A member who becomes disqualified under sub-paragraph (1) ceases to be a member.
The trustee corporation may make charges in connection with the exercise of its functions.
The Secretary of State may remove a member from office if satisfied that the member—
has a conflict of interest,
is unfit for office by reason of misconduct,
has failed to comply with the terms of appointment,
has without reasonable excuse failed to discharge the functions of the office, or
is otherwise incapable of discharging, or unfit or unwilling to discharge, the functions of the office.
“relevant provision” means—
In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975 (c. 24) (bodies of which all members are disqualified), insert at the appropriate place— “ The trustee corporation established by section 75 of the Pensions Act 2008. ”
In this Schedule— In this Schedule references to the relevant authority's functions relating to occupational pension schemes or personal pension schemes include such functions conferred at any time after the passing of this Act.
This Part makes amendments to Schedule 7 to the Pensions Act 2004 (c. 35) (pension compensation provisions).
The Social Security Contributions and Benefits Act 1992 is amended as follows.
Regulations may prescribe circumstances in which, and conditions subject to which, the transferee may become entitled to periodic compensation under paragraph 6 before attaining pension compensation age. The Board must determine the amount of the actuarial reduction to be applied to compensation to which the transferee is entitled by virtue of this paragraph. Where, by virtue of this paragraph, periodic compensation is payable to the transferee before he or she attains pension compensation age, paragraph 8(2)(b) (end of revaluation period) applies as if the reference to the day before the transferee attains pension compensation age were to the day on which compensation is payable by virtue of this paragraph.
An application for a terminal illness lump sum—
must be made in writing, either on a form approved by the Board for the purposes of this paragraph or in such other manner as the Board may accept as sufficient in the circumstances of the case;
must be accompanied by such information as the Board may require for the purpose of determining the application.
Relevant information held by the Secretary of State about an individual may be disclosed to the Board for use for a purpose relating to its functions under paragraphs 12 to 15. In sub-paragraph (1), “relevant information” means information held for the purposes of any function of the Secretary of State relating to—
After section 175 of the Pension Schemes Act 1993 (levies towards certain expenditure) insert—
In Part 2 of Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 (c. 25) (bodies of which all members are disqualified), insert at the appropriate place— “ The trustee corporation established by section 75 of the Pensions Act 2008. ”
Paragraph 12 (active members who have not attained normal pension age at assessment date: the revaluation amount for the revaluation period) is amended as follows. In sub-paragraph (3), for paragraph (b) substitute— After sub-paragraph (3) insert— For sub-paragraphs (4) and (5) substitute—
In section 21(5A)(c) (contribution conditions), after “5(2)(b) and (4)(a)” insert “ , 5A(3)(a) ”.
Paragraph 17 (deferred members who have not attained normal pension age at assessment date: the revaluation amount for the second revaluation period) is amended as follows. In sub-paragraph (3), for paragraph (b) substitute— After sub-paragraph (3) insert— For sub-paragraphs (4) and (5) substitute—
In section 39(1) (rate of widowed mother's allowance and widow's pension), for “46(2)” substitute “ 46 ”.
In paragraph 29 (Board's powers to alter rates of revaluation etc), for sub-paragraph (1) substitute—
Section 39C (rate of widowed parent's allowance and bereavement allowance) is amended as follows. In subsection (1)— In subsections (3) and (4)—
After section 45 (additional pension in Category A retirement pension) insert— Sub-paragraph (1), together with paragraphs 4(2)(a) and (3)(a), 9(2)(a) and (3)(a) and 11 (which make amendments consequential on sub-paragraph (1)), are referred to in the following provisions of this paragraph as “the relevant provisions”. Subject to sub-paragraphs (4) and (5), the relevant provisions apply to a person (“the pensioner”) who attains pensionable age after 5 April 1999 and, in relation to such a person— Where the pensioner is a woman, the relevant provisions have 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 (c. 4) 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— The relevant provisions have 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 48A or 48B(2) of that Act (other Category B retirement pension) if—
Section 46 (modifications of section 45 for calculating the additional pension in certain benefits) is amended as follows. In subsection (2), for “, 48B(2) or 48BB(5)” substitute “ or 48B(2) ”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 48A(4) (category B retirement pension for married person)—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
for “46(2)” substitute “ 46 ”.
In section 48B(2) (category B retirement pension for widows and widowers)—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
for “46(2)” substitute “ 46 ”.
Section 48BB (category B retirement pension: entitlement by reference to benefits under section 39A or 39B) is amended as follows. In subsection (5)— In subsection (6)—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 51(2) and (3) (category B retirement pension for widowers), for “45” substitute “ 45AA ”.
Schedule 4B (additional pension: accrual rates for purposes of section 45(2)(d)) is amended as follows. In paragraph 2 (application of Part 2 of Schedule)— In paragraph 3 (appropriate amount for year)— In paragraph 5(a), for “surplus” substitute “ earnings factor ”. In paragraph 6 (application of Part 3 of Schedule)— In paragraph 8(1) (calculation of amount A: assumed surplus not exceeding LET), for the words from “there” to “which” substitute “ the pensioner's assumed earnings factor for the year ”; and, accordingly, in the heading before paragraph 8 for “surplus” substitute “ earnings factor ”. In paragraph 9 (calculation of amount A: assumed surplus exceeding LET)— and accordingly in the heading before paragraph 9 for “surplus” substitute “ earnings factor ”. In paragraph 10(1)(a) (amount B), for “assumed surplus” substitute “ pensioner's assumed earnings factor ”. In paragraph 12 (interpretation)—
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Section 101
Section 51ZA of the Pensions Act 1995 (c. 26) (meaning of “the appropriate percentage”) is amended as follows. In subsection (1)— In subsection (2), for “ “the revaluation percentage”” substitute “ “ “the higher revaluation percentage”, “the lower revaluation percentage” ”.
...
After Schedule 4B to the Social Security Contributions and Benefits Act 1992 (c. 4) insert—
Section 104
Section 116
“insured person” is to be read in accordance with section 141;
Compensation is payable in accordance with this paragraph where the transferee attains pension compensation age after the transfer day. The transferee is entitled to periodic compensation commencing at that age and continuing for life. The annual rate of the periodic compensation is the aggregate of— This paragraph is subject to— paragraph 9 (commutation), paragraph 10 (early payment), ... paragraph 15 (terminal illness lump sum), ... paragraph 16A (postponement of compensation), and paragraph 18 (compensation cap).
A transferee who is entitled to periodic compensation under paragraph 6 may, in prescribed circumstances, opt to commute for a lump sum a portion of the periodic compensation with effect from the time it commences. Except in such circumstances as may be prescribed, the portion commuted under sub-paragraph (1) must not exceed 25%. Any reduction required to be made by virtue of paragraph 18 (compensation cap) must be made before determining the amount of the transferee's periodic compensation which may be commuted under this paragraph. Where the transferee opts to commute any part of his or her periodic compensation under this paragraph, the lump sum payable under sub-paragraph (1) is the actuarial equivalent of the commuted portion of the periodic compensation calculated from tables designated for this purpose by the Board. The Board must publish in such manner as it considers appropriate the tables designated by it for the purposes of sub-paragraph (4). Regulations may prescribe the manner in which an option to commute periodic compensation under this paragraph may be exercised. The Secretary of State may, by order, amend sub-paragraph (2) so as to substitute a different percentage for that for the time being specified there.
This paragraph applies where all of the following conditions are met— The transferee may make an application to the Board to commute the future entitlement mentioned in sub-paragraph (1)(b) for a lump sum (“a terminal illness lump sum”) payable on the granting of the application. For the purposes of this Chapter, a person is “terminally ill” at any time if at that time the person suffers from a progressive disease and the person's death in consequence of that disease can reasonably be expected within 12 months. In this paragraph— Sub-paragraph (6) applies where the commencement of a person's periodic compensation under paragraph 6 is postponed by virtue of paragraph 16A. This paragraph applies as if—
If the Board grants an application for a terminal illness lump sum, the transferee— The amount of the terminal illness lump sum is 2 times the amount to which the transferee would have been entitled under paragraph 6 in respect of the pension compensation credit in the year following the granting of the application, if he or she had attained the relevant age on the granting of the application. In this paragraph “the relevant age” has the same meaning as in paragraph 12. Where on the granting of the application the commencement of a person's periodic compensation under paragraph 6 is postponed by virtue of paragraph 16A, this paragraph applies as if the references to the transferee attaining the relevant age were references to the period of postponement ending.
The Secretary of State may by regulations make provision for restricting the amount of periodic compensation payable under this Schedule in a case in which, on the transfer day, the transferor is not entitled to present payment of PPF compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 38(5)(a) (main purpose or one of main purposes of act or failure to prevent recovery of employer debt under section 75 of the Pensions Act 1995 (c. 26) etc.), after “is of the opinion that” insert “ the material detriment test is met in relation to the act or failure (see section 38A) or that ”. After section 38 insert—
In section 38 (contribution notices where avoidance of employer debt), at the end insert— In section 39 (the sum specified in a section 38 contribution notice)—
The amendments made by paragraphs 2, 6 and 7 have effect in relation to any act occurring, or any failure to act first occurring, on or after 14 April 2008. The amendments made by paragraph 8 have effect— The amendments made by paragraphs 9 and 10 have effect in relation to any case where rights are transferred or extinguished on or after 14 April 2008. The amendment made by paragraph 14 has effect so as to enable the Pensions Regulator to issue a financial support direction under section 43 of the Pensions Act 2004 by reference to any time falling on or after 14 April 2008.
The Pensions Act 2004 is amended as follows.
In section 90(2) (the matters in relation to which the Pensions Regulator must issue codes of practice), after paragraph (a) insert—.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 96 (standard procedure), after subsection (1) insert—
In section 173 (Pension Protection Fund), after subsection (1)(b) insert—.
In section 316(2) (subordinate legislation that is subject to affirmative resolution procedure), before paragraph (a) insert—.
After section 181 (calculation, collection and recovery of levies) insert—
In section 188 (Fraud Compensation Fund), after subsection (1)(b) insert—.
After section 189 (fraud compensation levy) insert—
In section 209 (Ombudsman for the Board of the Pension Protection Fund), at the end add—
In section 323(2)(b)(i) (provisions extending to Northern Ireland), for “subsections (7) and (8)” substitute “ subsections (7) to (9) ”.
This paragraph provides for annual increases to compensation payable to the transferee. Subject to sub-paragraph (3), the transferee is entitled, on each indexation date, to an increase of— This sub-paragraph applies where— This sub-paragraph applies where— This sub-paragraph applies where— This sub-paragraph applies where the transferor's PPF compensation is payable otherwise than in accordance with the relevant Schedule 7 provisions. The amount mentioned in this sub-paragraph is the aggregate of the appropriate percentage of the pre-1997 underlying rate and the appropriate percentage of the post-1997 underlying rate. The amount mentioned in this sub-paragraph is the aggregate of the appropriate percentage of the notional pre-1997 underlying rate and the appropriate percentage of the post-1997 underlying rate. The amount mentioned in this sub-paragraph is the appropriate percentage of the post-1997 underlying rate. The amount mentioned in this sub-paragraph is the appropriate percentage of the general underlying rate. The increase to which the transferee is entitled on the first indexation date is restricted to 1/12 of the amount calculated under sub-paragraph (2E), (2F), (2G) or (2H) (as the case may be) for each full month in the period beginning with the transfer day and ending with that indexation date. For the purposes of sub-paragraphs (2A) to (2C)— For the purposes of sub-paragraphs (2) to (2H)— “the appropriate percentage”, as at an indexation date, is the lesser of— the percentage increase in the general level of prices in Great Britain for the period of 12 months ending with the 31 May last falling before that date, and 2.5%; “the indexation date” means— the 1 January next falling after the transferee first becomes entitled to the periodic compensation, and each subsequent 1 January during the transferee's lifetime; “the general underlying rate”, as at an indexation date, is the aggregate of— the general indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount, so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph (a), and so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs (a) and (b); “the notional pre-1997 underlying rate”, as at an indexation date, is the aggregate of— the notional pre-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount, so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph (a), and so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs (a) and (b); “the post-1997 underlying rate”, as at an indexation date, is the aggregate of— the post-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount, so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph (a), and so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs (a) and (b); “the pre-1997 underlying rate”, as at an indexation date, is the aggregate of— the pre-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount, so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph (a), and so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs (a) and (b). For the purposes of paragraph (a) of the definition of “the appropriate percentage” in sub-paragraph (4), the Secretary of State may (from time to time) decide, as the Secretary of State thinks fit, the manner in which percentage increases in the general level of prices in Great Britain are to be determined. The Secretary of State must publish any decision made under sub-paragraph (4A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For the purposes of paragraph (a) of the definition of “the general underlying rate”, “the general indexed proportion” is such proportion as is determined in accordance with regulations made by the Secretary of State. For the purposes of paragraph (a) of the definition of “the notional pre-1997 underlying rate”, “the notional pre-1997 indexed proportion” is such proportion of the amount mentioned in sub-paragraph (3)(a) of the paragraph of Schedule 7 to the Pensions Act 2004 under which the transferor’s PPF compensation is payable that is attributable to pre-1997 service as may be prescribed. For the purposes of paragraph (a) of the definition of “the post-1997 underlying rate”, “the post-1997 indexed proportion” is the proportion of the amount mentioned in sub-paragraph (3)(a) of the paragraph of that Schedule under which the transferor’s PPF compensation is payable that is attributable to post-1997 service. For the purposes of paragraph (a) of the definition of “the pre-1997 underlying rate”, “the pre-1997 indexed proportion” is the proportion of the amount mentioned in sub-paragraph (3)(a) of the paragraph of that Schedule under which the transferor’s PPF compensation is payable that is attributable to pre-1997 service. Where the compensation payable to the transferee is— the references in paragraph (a) of the definition of “the general underlying rate”, the definition of “the notional pre-1997 underlying rate”, the definition of “the post-1997 underlying rate” and the definition of “the pre-1997 underlying rate” in sub-paragraph (4) above to the initial annual compensation rate and the revaluation amount are to that rate and that amount as so restricted or reduced (and paragraph (aa) of the definition applies accordingly). Where the commencement of periodic compensation has been postponed by virtue of paragraph 16A, this paragraph applies as if the transferee first becomes entitled to the periodic compensation on the day on which the periodic compensation commences. The definition of “the appropriate percentage” in sub-paragraph (4) is subject to paragraph 20 (power of Board to alter rates of revaluation and indexation). In this paragraph—
The Board may determine the percentage that is to be— Before making a determination under this paragraph the Board must— The rate determined under this paragraph may be nil. A determination under this paragraph may be expressed so as to have effect for a limited period. A determination under sub-paragraph (1)(b)— A determination under sub-paragraph (1)(b) which has effect as mentioned in sub-paragraph (5)(b)(ii) may provide that, where the payment of periodic compensation to the transferee is postponed by virtue of paragraph 16A, the determination applies as if the transferee first becomes entitled to the periodic compensation on the day on which the periodic compensation commences. Notice of any determination under this paragraph must be published in such manner as the Board considers appropriate.
In section 38(5) (acts or failures to act in relation to which Pensions Regulator may issue contribution notices), in paragraph (a)(ii), omit “otherwise than in good faith,”.
After section 39 (the sum specified in a section 38 contribution notice) insert—
In the case of the first set of regulations made under subsection (8) of section 39B of that Act, subsection (10)(a) of that section has effect as if for the words from “the date” to “the regulations” there were substituted “ 20 October 2008 ”. In the case of the first set of regulations made under subsection (8) of section 43B of that Act, subsection (10)(a) of that section has effect as if for the words from “the date” to “the regulations” there were substituted “ 20 October 2008 ”.
After section 43 (financial support directions) insert—
In section 306(2) (overriding requirements)—
after paragraph (d) insert—; and
after paragraph (e) insert—.
In section 316(2) (subordinate legislation that is subject to affirmative resolution procedure), after paragraph (za) (as inserted by paragraph 5 of this Schedule) insert—.
In Part 4 of Schedule 2 (the reserved regulatory functions of Pensions Regulator: functions under 2004 Act)—
after paragraph 30 insert—; and
after paragraph 33 insert—
Regulations may prescribe circumstances in which, and conditions subject to which, a person who becomes entitled to periodic compensation under paragraph 4 or 6 may elect to postpone the commencement of periodic compensation under that paragraph. Where the commencement of periodic compensation under paragraph 4 or 6 ceases to be postponed, the Board must determine— References in this Schedule to the amount of an actuarial increase under this paragraph are to the difference between the amounts in sub-paragraphs (2)(a) and (2)(b). In sub-paragraph (2) the “ relevant amount ” means (as appropriate)—
Section 120
The Matrimonial Causes Act 1973 (c. 18) is amended as follows.
After section 21A (pension sharing orders) insert—
After section 24D (pension sharing orders: apportionment of charges) insert—
Section 25 (matters to which court is to have regard) is amended as follows. In the heading, for “and 24A” substitute “ , 24A, 24B and 24E ”. In subsections (1) and (2), for “or 24B” substitute “ , 24B or 24E ”.
In section 25A(1) (exercise of court's powers in favour of party to marriage on decree of divorce or nullity of marriage), for “or 24B” substitute “ , 24B or 24E ”.
In section 25E(9) (the Pension Protection Fund), omit the definition of “PPF compensation”.
After section 25E insert—
Section 31 (variation, discharge etc of certain orders for financial relief) is amended as follows. In subsection (2)(dd)— In subsection (2)(g), after “a pension sharing order under section 24B above” insert “ , or a pension compensation sharing order under section 24E above, ”. In subsection (4B), after “pension sharing order” insert “ , or a pension compensation sharing order, ”. In subsection (4C), after “pension sharing order” insert “ , or a pension compensation sharing order, ”. In subsection (5), after “pension sharing order” insert “ or pension compensation sharing order ”. In subsection (7B), after paragraph (ba) insert. After subsection (7G) insert—
After section 40A (appeals relating to pension sharing orders which have taken effect) insert—
The Matrimonial and Family Proceedings Act 1984 (c. 42) is amended as follows.
In section 17 (orders for financial provision and property adjustment), at the end of subsection (1) add—
In section 18(7) (matters to which court to have regard), for paragraph (c) substitute—
Section 21 (application of certain provisions of Part 2 of the Matrimonial Causes Act 1973) is amended as follows. After subsection (1)(bc) insert—. After subsection (1)(bf) insert—. After subsection (1)(l) add— In subsection (2), for “and (be)” substitute “ , (be) and (bg) ”. In subsection (4), at the end add “ or under subsections (1) to (3) of section 25G of that Act ”.
The Civil Partnership Act 2004 (c. 33) is amended as follows.
After Part 4 of Schedule 5 (pension sharing orders on or after dissolution or nullity order) insert—
Part 5 of Schedule 5 (matters to which court is to have regard under Parts 1 to 4) is amended as follows. In the heading of the Part for “4” substitute “ 4A ”. In paragraph 20— In paragraph 21(1)— In paragraph 23(1)—
Part 7 of Schedule 5 (pension protection fund compensation etc) is amended as follows. Omit paragraph 30(3) (definition of PPF compensation). After paragraph 34 insert— Before paragraph 35 insert— In paragraph 37(1) of that Schedule—
Part 11 of Schedule 5 (variation, discharge etc of certain orders for financial relief) is amended as follows. In paragraph 50(1)(f)— In paragraph 50(1)(i) after “a pension sharing order” insert “ , or a pension compensation sharing order, ”. After paragraph 53(2)(c) insert—. After paragraph 54(5) insert— In the italic heading before paragraph 56 for “and pension sharing orders” substitute “ , pension sharing and pension compensation sharing orders ”. In the following provisions of paragraph 57, after “pension sharing order” insert “ or pension compensation sharing order ” In paragraph 58(2) for “or pension sharing order” substitute “ , pension sharing order or pension compensation sharing order ”.
In Part 14 of Schedule 5 (miscellaneous and supplementary) after paragraph 79 insert—
In Schedule 7 (financial relief in England and Wales after overseas dissolution etc of a civil partnership), in the italic heading before paragraph 9, for “and pension sharing” substitute “ , pension sharing and pension compensation sharing ”. In paragraph 9(2) of that Schedule— In paragraph 10(9)(c) of that Schedule omit “Part 7 of”. In paragraph 14 of that Schedule—
Section 120
The Family Law (Scotland) Act 1985 (c. 37) is amended as follows.
In section 8 (orders for financial provision)—
in subsection (1)—
after paragraph (baa) insert—,
after paragraph (ba) insert—,
subsection (4A) is repealed,
after subsection (7) add—
After section 8A insert—
In section 10 (sharing of value of matrimonial property or partnership property)—
in subsection (5A), for the words from “compensation payable” to “that Chapter” substitute “ PPF compensation ”,
for subsection (8B) substitute—
In section 12A (orders for payment of capital sum: pensions lump sums), in subsection (7ZC), for the words “Notwithstanding the provisions of section 8(4A), for” substitute “ For ”.
After section 12A insert—
In section 13 (order for periodical allowance), in subsection (2)(b), after the words “pension sharing order” insert “ or pension compensation sharing order ”.
In section 16 (agreements on financial provision)—
in subsection (2)(b), for the words “does not contain a term relating to pension sharing” substitute “ contains neither a term relating to pension sharing nor a term relating to pension compensation sharing ”,
in subsection (2)(c), after the word “sharing” in the first place where it occurs insert “ or pension compensation sharing ”,
in subsection (2)(c)(i), after the word “sharing” insert “ or (as the case may be) the term relating to pension compensation sharing ”,
after subsection (2A), insert—
In section 27 (interpretation)—
“pension compensation sharing order” is an order which—
after subsection (1A) insert—
Section 122
Schedule 7 to the Pensions Act 2004 (c. 35) (pension compensation provisions) is amended as follows.
In paragraph 3(6), at the end, add “ to the scheme ”.
In paragraph 5(5), at the end, add “ to the scheme ”.
In paragraph 11(8), after “paragraph 24 (commutation),” insert— “ paragraph 25E (terminal illness lump sum), ”.
In paragraph 13, after sub-paragraph (3) insert—
In paragraph 14(9), after “paragraph 20 (compensation in respect of scheme right to transfer payment or contribution refund),” insert— “ paragraph 25E (terminal illness lump sum), ”.
In paragraph 15(6), after “paragraph 24 (commutation),” insert— “ paragraph 25E (terminal illness lump sum), ”.
In paragraph 18, after sub-paragraph (3) insert—
In paragraph 19(8), after “This paragraph is subject to—” insert— “ paragraph 25E (terminal illness lump sum), ”.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In paragraph 25(3), after “before that person attains normal pension age” insert “ (or, in a case to which paragraph 21 applies, normal benefit age) ”.
After paragraph 25 insert—
After paragraph 25A (inserted by paragraph 13 above) insert—
In paragraph 33, make the existing provision sub-paragraph (1) and at the end add—
In paragraph 34(1), after “ill health” insert “ or otherwise ”.
For paragraph 35(2)(a) substitute—.
For paragraph 35(3) substitute—
Section 126
Section 129
Section 148
Title Extent of repeal Welfare Reform and Pensions Act 1999 (c. 30) In section 3— subsections (2) to (4); in subsection (5), “fourth” and the words from “of his” to “qualifying scheme”; subsection (6); subsection (8)(a)(ii) and (iii); in subsection (9), the definitions of “qualifying scheme” and “relevant employees”. Section 6(1), (2) and (4). In section 8(1), the definition of “designated scheme”. Employment Relations Act 2004 (c. 24) Section 41(1) and (2). Pensions Act 2004 (c. 35) In section 80(1)(a), at the end of sub-paragraph (iii), the word “or”. Pensions Act 2007 (c. 22) Section 21. Section 23(2) to (4). In Schedule 6, in paragraph 7(3)(a), the words “employees who are”.
Title Extent of repeal Social Security Contributions and Benefits Act 1992 (c. 4) In Schedule 4B, in paragraph 12, the definition of “assumed surplus”. Pension Schemes Act 1993 (c. 48) In section 50(1)— paragraph (a)(iii); in paragraph (b), the words “, or safeguarded,”. In section 52— subsection (2A)(c); in subsection (3)(b), the words “, or safeguarded,” (in both places). Sections 68A to 68D. In section 181(1), the definition of “safeguarded rights”. Welfare Reform and Pensions Act 1999 (c. 30) Section 36. In section 40— subsection (2)(b) and the word “and” preceding it; in subsection (3), in the definition of “relevant pension credit”, the words “or, as the case may be, the safeguarded rights”; in that subsection, the definition of “safeguarded rights”. In Schedule 5, paragraph 7(2) and (6). In Schedule 12— paragraphs 29 and 30; paragraph 41(b). Proceeds of Crime Act 2002 (c. 29) In Schedule 11, paragraph 22(5). Pensions Act 2007 (c. 22) In Schedule 4— paragraph 27; paragraph 40.
Title Extent of repeal Pension Schemes Act 1993 (c. 48) Section 10. Sections 25A to 27A. Section 30. Sections 32 and 32A. Section 33A. Pensions Act 2007 (c. 22) In Schedule 4, paragraphs 5, 8 to 10 and 12 to 14. These repeals have effect in accordance with section 106.
Title Extent of repeal Matrimonial Causes Act 1973 (c. 18) In section 25E(9), the definition of “PPF compensation”. In section 31(2)(dd), at the end of sub-paragraph (i), the word “or”. Family Law (Scotland) Act 1985 (c. 37) Section 8(4A). Civil Partnership Act 2004 (c. 33) In Schedule 5— at the end of paragraph 20(a)(iii), the word “or”; at the end of paragraph 21(1)(c), the word “or”; at the end of paragraph 23(1)(c), the word “or”; paragraph 30(3); at the end of paragraph 50(1)(f)(i), the word “or”. In Schedule 7, in paragraph 10(9)(c), the words “Part 7 of”. Pensions Act 2004 (c. 35) In section 173(5), the words “of this Act”.
Title Extent of repeal Pensions Act 2004 (c. 35) In section 286(2), the definition of “scheme's pension liabilities” and the words from “and a qualifying pension scheme” to the end.
Title Extent of repeal Social Security Pensions Act 1975 (c. 60) In section 59(5ZA), the words from “but this subsection” to the end. Pensions Act 1995 (c. 26) In section 7(3), at the end of paragraph (b), the word “or”. Pensions Act 2004 (c. 35) In section 38(5)(a)(ii), the words “otherwise than in good faith,”. Section 321. In Schedule 1, paragraph 28. The repeal in section 38(5)(a)(ii) of the Pensions Act 2004 (c. 35) has effect in accordance with paragraph 15(1) of Schedule 9 to this Act.
Pension compensation sharing is available under this Chapter in relation to a person's shareable rights to PPF compensation.
For the purposes of this Chapter, a right of a person to PPF compensation is “shareable” unless it is of a description specified by regulations made by the Secretary of State.
In this Chapter—
“relevant earnings” means earnings of a prescribed description;
this Chapter and any regulations or order made under it, and
The Secretary of State and, under paragraph 1(1)(b), the corporation must satisfy themselves that a person to be appointed as a member does not have a conflict of interest. The Secretary of State and the corporation must also satisfy themselves from time to time that none of the members has a conflict of interest. A member of the corporation, or a person the Secretary of State or the corporation proposes to appoint as a member, must provide the Secretary of State on request with any information the Secretary of State considers necessary for the purposes of sub-paragraph (1) or (2). A member of the corporation, or a person the corporation proposes to appoint as a member, must provide the corporation on request with any information the corporation considers necessary for the purposes of sub-paragraph (1) or (2). In this paragraph and paragraph 3 “conflict of interest”, in relation to a person, means a financial or other interest which is likely to affect prejudicially that person's discharge of functions as a member of the trustee corporation. But for the purposes of this paragraph and paragraph 3 a person is not to be taken to have a conflict of interest for these reasons alone—
This Part makes amendments to Schedule 3 to the Pension Schemes Act 1993 (c. 48) (methods of revaluing accrued pension benefits).
In section 44(3) (meaning of “insufficiently resourced”), for paragraph (b) substitute— After subsection (3) insert— In subsection (4), for “subsection (3)” substitute “ subsections (3) to (3B) ”.
In paragraph 1 (the final salary method), for sub-paragraphs (1) to (3) substitute—
Paragraph 2 (the revaluation percentage and the appropriate revaluation percentage) is amended as follows. for each period For sub-paragraph (3) substitute— For sub-paragraphs (6) and (7) substitute—
Section 111 applies on the taking effect of any of the following relating to a person's shareable rights to PPF compensation—
a pension compensation sharing order under the Matrimonial Causes Act 1973 (c. 18);
a pension compensation sharing order under Schedule 5 to the Civil Partnership Act 2004 (c. 33);
an order under Part 3 of the Matrimonial and Family Proceedings Act 1984 (c. 42) (financial relief in England and Wales in relation to overseas divorce etc) corresponding to such an order as is mentioned in paragraph (a);
an order under Schedule 7 to the Civil Partnership Act 2004 (c. 33) (financial relief in England and Wales after overseas dissolution etc of a civil partnership) corresponding to such an order as is mentioned in paragraph (b);
an order under any provision corresponding to a provision mentioned in any of paragraphs (a) to (d) in force in Northern Ireland.
a pension compensation sharing order under section 8 of the Family Law (Scotland) Act 1985 (c. 37) (orders for financial provision);
any provision corresponding to provision which may be made by such an order, and which— except where the provision relates to the same rights to PPF compensation as are the subject of an order made under section 12B(2) of the Family Law (Scotland) Act 1985 (order for payment of capital sum: pension compensation).
is contained in a qualifying agreement between the parties to a marriage or the partners in a civil partnership,
is in such form as the Secretary of State may prescribe by regulations, and
takes effect on the grant, in relation to the marriage, of decree of divorce or of declarator of nullity or (as the case may be) on the grant, in relation to the civil partnership, of decree of dissolution or of declarator of nullity,
For the purposes of this Chapter, a qualifying agreement is an agreement which—
has been entered into in such circumstances as the Secretary of State may prescribe by regulations, and
is registered in the Books of Council and Session.
For the purposes of section 109, an order or provision mentioned in paragraph (f) or (g) of that section is to be regarded as never having taken effect if the Board does not receive before the end of the period of 2 months beginning with the relevant date—
a copy of the relevant documents, and
such information relating to the transferor and transferee as the Secretary of State may prescribe by regulations under section 115(1)(b)(ii).
The relevant date for the purpose of subsection (2) is—
the date of the extract of the decree or declarator responsible for the divorce, dissolution or annulment to which the order or provision relates, or
if the order is made in relation to disposal of an application under section 28 of the Matrimonial and Family Proceedings Act 1984, or of an application under paragraph 2 of Schedule 11 to the Civil Partnership Act 2004, the date of the disposal.
The relevant documents referred to in subsection (2) are—
in the case of an order mentioned in paragraph (f) of section 109, that order and the decree or declarator responsible for the divorce, dissolution or annulment to which it relates,
in the case of provision mentioned in paragraph (g) of that section—
that provision and the decree or declarator responsible for the divorce, dissolution or annulment to which it relates, and
documentary evidence that the agreement containing the provision is one to which subsection (1)(a) applies.
The Court of Session or the sheriff may, on the application of any person having an interest, make an order—
extending the period of 2 months referred to in subsection (2), and
where that period has already expired, providing that, if the Board receives the documents and information concerned before the end of the period specified in the order, subsection (2) is to be treated as never having applied.
On the application of this section—
the transferor's shareable rights to PPF compensation that derive from rights under the specified scheme become subject to a debit of the appropriate amount, and
the transferee becomes entitled to a credit of that amount as against the Board.
For the purposes of subsection (1) “the appropriate amount” means—
where the relevant order or provision specifies a percentage to be transferred, that percentage of the cash equivalent of the relevant compensation on the valuation day;
where the relevant order or provision specifies an amount to be transferred, the lesser of—
that specified amount, and
the cash equivalent of the relevant compensation on the valuation day.
For the purposes of subsection (2) “the relevant compensation” means the payments or future payments to which, immediately before the transfer day, the transferor is entitled under the pension compensation provisions by virtue of the transferor's shareable rights to PPF compensation that derive from rights under the specified scheme.
The Secretary of State may by regulations provide for any description of payment to be disregarded for the purposes of subsection (3).
For the purposes of this section—
The credit to which the transferee becomes entitled under subsection (1)(b) is referred to in this Chapter as a “pension compensation credit”.
The Secretary of State may by regulations make provision about the calculation and verification of cash equivalents for the purposes of section 111.
Regulations under this section may include provision for calculation and verification in a manner approved by the Board.
Where any of a person's shareable rights to PPF compensation are subject to a pension compensation debit, each payment or future payment— is reduced by the appropriate percentage.
to which the person is entitled under the pension compensation provisions by virtue of those rights, and
which is a qualifying payment,
For the purposes of subsection (1) a payment is “qualifying payment” if the cash equivalent by reference to which the amount of the pension compensation debit is determined includes an amount in respect of it.
In this section “the appropriate percentage”, in relation to a pension compensation debit, means—
the percentage specified in the pension compensation sharing order or provision on which the debit depends; or
if the pension compensation sharing order or provision on which the debit depends specifies an amount to be transferred, the percentage which the appropriate amount for the purposes of subsection (1) of section 111 represents of the amount mentioned in subsection (2)(b)(ii) of that section.
This section applies where the Board is subject to a liability in respect of a pension compensation credit.
The Board must discharge the liability before the end of the implementation period for the credit.
The Secretary of State may make provision by regulations as to circumstances in which the implementation period for the credit is extended for the purposes of this section.
For the purposes of this Chapter, the implementation period for a pension compensation credit is the period of 4 months beginning with the later of—
the transfer day, and
the first day on which the Board is in receipt of—
the relevant documents, and
such information relating to the transferor and transferee as the Secretary of State may prescribe by regulations.
In subsection (1)(b)(i), “the relevant documents” means copies of—
the relevant order or provision, and
the order, decree or declarator responsible for the divorce, dissolution or annulment to which it relates.
Subsection (1) is subject to any provision made by regulations under section 117(2)(a).
The Secretary of State may by regulations—
make provision requiring the Board to notify the transferor and transferee of the day on which the implementation period for the credit begins;
provide for this section to have effect with modifications where the credit depends on a pension compensation sharing order and the order is the subject of an application for leave to appeal out of time.
This section applies where the Board is subject to a liability in respect of a pension compensation credit.
The Board must discharge the liability by sending a notice to the transferee.
On the sending of the notice the transferee becomes entitled, with effect from (and including) the transfer day, to compensation calculated in accordance with Schedule 5.
For the purposes of that calculation, the initial annual rate of compensation is an amount determined by the Board.
The Board must determine that amount in such a way as to secure that the cash equivalent value of the compensation to which the transferee becomes entitled under subsection (3) equals the amount of the credit.
The Secretary of State may by regulations make provision about the calculation of cash equivalents for the purposes of subsection (5).
The notice sent under this section must—
state that the transferee is entitled to periodic pension compensation calculated under Schedule 5, and
specify the amount determined under subsection (4).
Where the transferee dies before liability in respect of the credit has been discharged—
subsections (2) to (7) do not have effect in relation to the discharge of liability in respect of the credit, and
liability in respect of the credit must be discharged in accordance with regulations made by the Secretary of State.
The Secretary of State may by regulations make provision for the purpose of enabling the Board to recover from the parties to pension compensation sharing prescribed charges in respect of prescribed descriptions of pension compensation sharing activity.
Regulations under subsection (1) may include—
provision for the start of the implementation period for a pension compensation credit to be postponed in prescribed circumstances;
provision enabling the Board to set off against any PPF compensation payable to a party to pension compensation sharing any charges owed to it by that party under the regulations;
provision, in relation to payments in respect of charges recoverable under the regulations, for reimbursement as between the parties to pension compensation sharing.
For the purposes of regulations under subsection (1), the question of how much of a charge recoverable under the regulations is attributable to a party to pension compensation sharing is to be determined as follows—
where the relevant order or provision includes provision (“provision for apportionment”) about the apportionment of charges under this section, there is attributable to the party so much of the charge as is apportioned to that party by that provision for apportionment;
where the relevant order or provision does not include provision for apportionment, the charge is attributable to the transferor.
In subsection (1), the reference to pension compensation sharing activity is to activity attributable directly or indirectly to the application of section 111 by virtue of the relevant order or provision.
The Secretary of State may by regulations—
make provision imposing on the Board requirements with respect to the supply of information relevant to any power with respect to—
financial relief under Part 2 of the Matrimonial Causes Act 1973 (c. 18) or Part 3 of the Matrimonial and Family Proceedings Act 1984 (c. 42) (England and Wales powers in relation to domestic and overseas divorce etc),
financial relief under Schedule 5 or 7 to the Civil Partnership Act 2004 (c. 33) (England and Wales powers in relation to domestic and overseas dissolution of civil partnerships etc),
financial relief under any provision corresponding to a provision mentioned in sub-paragraph (i) or (ii) in force in Northern Ireland,
orders for financial provision under section 8 of the Family Law (Scotland) Act 1985 (c. 37) (orders for financial provision), or
provision as to pension sharing, or pension compensation sharing, that is contained in an agreement that is a qualifying agreement for the purposes of section 28(1)(b) and (c) of the Welfare Reform and Pensions Act 1999 (c. 30) (activation of pension sharing) or this Chapter;
make provision about calculation and verification in relation to the valuation of PPF compensation for the purposes of regulations under paragraph (a);
make provision for the purpose of enabling the Board to recover prescribed charges in respect of providing information in accordance with regulations under paragraph (a).
Regulations under subsection (1)(b) may include provision for calculation and verification in a manner approved by the Board.
Regulations under subsection (1)(c) may include provision for the application in prescribed circumstances, with or without modification, of any provision made by virtue of section 117(2).
The Secretary of State may by regulations require the Board to supply, to such persons as the Secretary of State may specify in the regulations, such information relating to anything which follows from the application of section 111 as the Secretary of State may so specify.
Schedule 6 (which amends matrimonial and civil partnership legislation for the purpose of enabling the court to make pension compensation sharing orders, and orders for the attachment of pension compensation, in connection with proceedings in England and Wales) and Schedule 7 (which amends in relation to pension compensation sharing orders similar legislation applying in Scotland) have effect.
After section 168 of the Pensions Act 2004 (c. 35) (administration of compensation) insert—
Schedule 8 (amendments of Schedule 7 to the Pensions Act 2004) has effect.
The Pensions Act 2004 (c. 35) is amended as follows.
In section 173 (Pension Protection Fund)—
in subsection (3)(b), after “the pension compensation provisions” insert “ or Chapter 1 of Part 3 of the Pensions Act 2008 ”;
in subsection (5), omit “of this Act”.
After paragraph 18(2)(d) of Schedule 5 (Board of the Pension Protection Fund) insert—.
After paragraph 18(2)(g) of that Schedule insert—.
In paragraph 18(2)(h) of that Schedule—
after “section 111” insert “ of this Act ”;
for “(g)” substitute “ (gd) ”.
Subsection (2) of section 286 of the Pensions Act 2004 (c. 35) (financial assistance scheme for members of certain pension schemes) is amended as follows.
In the definition of “qualifying member”, for the words from “a person” to the end of paragraph (b) substitute “ a person who, at such time as may be prescribed, is a member of the scheme or has ceased to be a member of the scheme, ”.
In the definition of “qualifying pension scheme”, in paragraph (b), after “began” insert “ , subject to any prescribed exception, ”.
the assets of which, at such time as may be prescribed, are insufficient to satisfy in full the liabilities of the scheme calculated in the prescribed manner,
In paragraph (c) of that definition, after “conditions” insert “ , if any, ”.
Omit the definition of “scheme's pension liabilities” and the words from “and a qualifying pension scheme” to the end.
Section 316 of that Act (parliamentary control of subordinate legislation) is amended as follows.
In subsection (1), after “(2)” insert “ , (2A) ”.
In subsection (2)(n), at the end add “ , except regulations prescribing an exception for the purposes of paragraph (b) of the definition of “qualifying pension scheme” in subsection (2) of that section;” ”.
After subsection (2) insert—
After section 286 of the Pensions Act 2004 (c. 35) insert—
The amendment made by subsection (1) must be taken to have had effect from 26 June 2008.
In section 316(2) of the Pensions Act 2004 (statutory instruments subject to affirmative resolution procedure), after paragraph (n) insert—.
Schedule 9 (which amends the Pensions Act 2004 (c. 35) in relation to contribution notices and financial support directions) has effect.
The Secretary of State must carry out a review of the operation of sections 38A and 38B of the Pensions Act 2004 (which are inserted into that Act by paragraph 2 of Schedule 9 to this Act) during the period of 4 years beginning with the day on which that paragraph fully comes into force (“the commencement date”).
The Secretary of State must set out the conclusions of the review in a report and lay the report before Parliament.
The report must be laid before the end of the period of 5 years beginning with the commencement date.
The Welfare Reform and Pensions Act 1999 (c. 30) is amended as follows.
In section 28(10) (pension arrangements: time limit for activation of pension sharing in Scotland), for “The sheriff” substitute “ The Court of Session or the sheriff ”.
In section 48(9) (state scheme rights: time limit for activation of benefit sharing in Scotland), for “The sheriff” substitute “ The Court of Session or the sheriff ”.
Schedule 10 (which makes provision about payment of interest on late payment of levies) has effect.
In section 37 of the Pensions Act 1995 (payment of surplus to employer) after subsection (1) insert—
In section 7 of the Pensions Act 1995 (c. 26) (appointment of trustees), in subsection (3)—
for “necessary”, in the first place where it occurs, substitute “ reasonable ”;
omit “or” at the end of paragraph (b);
at the end insert, or
In paragraph 9(b) of Schedule 2 to the Pensions Act 2004 (c. 35) (reserved regulatory functions), for “or (c)” substitute “ , (c) or (d) ”.
In section 231 of the Pensions Act 2004 (powers of the Regulator), before paragraph (a) of subsection (1) insert—.
The Pensions Act 2004 is amended as follows.
In paragraph 21 of Schedule 1 (regulations relating to delegation of the Pensions Regulator's functions), the existing provision becomes sub-paragraph (1).
For paragraph (e) of that sub-paragraph substitute—
After that sub-paragraph insert—
Omit paragraph 28 of Schedule 1 (payment of expenses).
Subsections (2) to (4)—
do not affect any regulations made under paragraph 21(e) of Schedule 1 to the Pensions Act 2004 (c. 35) before the coming into force of this section, and
do not affect the powers conferred by that paragraph, so far as exercisable for the purpose of making, by way of consolidation, provision having the same effect as any provision of those regulations.
The Pension Schemes Act 1993 (c. 48) is amended as follows.
In section 93(1B) (regulations as to the application of provisions relating to transfers for early leavers), after paragraph (a) insert—.
In section 101F (transfer notice in respect of pension credit benefit), after subsection (6) insert—
The Social Security Contributions and Benefits Act 1992 (c. 4) is amended as follows.
After section 13 insert—
In section 1(2)(d) (outline of contribution system) after “section 13” insert “ or 13A ”.
The Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) is amended as follows.
After section 13 insert—
In section 1(2)(d) (outline of contribution system) after “section 13” insert “ or 13A ”.
Section 59 of the Social Security Pensions Act 1975 (c. 60) (increase of official pensions) is amended as follows.
Subsection (5ZA) is amended as follows.
In the words before paragraph (a)—
for “or widower's” substitute “ , widower's or surviving civil partner's ”;
after “spouse” insert “ or civil partner ”.
In paragraph (a), after “spouse” insert “ or civil partner ”.
In paragraph (b)—
after “period” insert “ (“the relevant time”) ”;
for the words from “one half” to the end substitute “ the rate provided for in subsection (5ZB); ”.
In paragraph (c), for “or widower's” substitute “ , widower's or surviving civil partner's ”.
Omit the words from “but this subsection” to the end.
After subsection (5ZA) insert—
Section 168 of the Pensions Act 1995 (c. 26) (war pensions for widows: effect of remarriage) is amended as follows.
For subsection (1) substitute—
In subsection (2), in paragraph (a)—
after “a marriage” insert “ or civil partnership ”;
for “the termination of the marriage” substitute “ its termination ”.
In that subsection, after “divorce” insert “ , dissolution ”.
In subsection (3)(a), for “The Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 1983” substitute “ The Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 2006 ”.
In section 1(3) of the Polish Resettlement Act 1947 (c. 19) (power to apply Royal Warrant as to pensions etc to certain Polish forces) for “, and the scheme shall contain provision for securing that no payment shall be made thereunder to or in respect of any person as to whom the Secretary of State is satisfied that he is resident in Poland” substitute “ (including exceptions applying by virtue of a person's residence in Poland at any time prior to 1 May 2004) ”.
Subsection (3) below applies where—
a person (“A”) was resident in Poland at any time in the relevant period, and
but for that fact, an amount would have been payable to or in respect of A under the scheme made under section 1 of the Polish Resettlement Act 1947.
The power to make the scheme includes power to make provision for payments to or in respect of A in relation to any part of the relevant period.
In this section “the relevant period” means the period beginning with 1 May 2004 and ending with the coming into force of this section.
This section applies where the conditions in subsections (2) and (3) are satisfied.
The first condition is satisfied if it appears to the Secretary of State that a person (the “pensioner”) is, or was immediately before death, a person—
whose German pension entitlement is (or was) reduced by one or more periods of pre-1948 insurance, or
who would have (or would have had) a German pension entitlement, but for one or more periods of pre-1948 insurance.
The second condition is satisfied if—
the insured person entered the United Kingdom as an unaccompanied child directly or indirectly from Germany, Austria, Czechoslovakia or Poland in the period beginning with 2 December 1938 and ending with 31 May 1940, or
the Secretary of State otherwise considers it appropriate to give a direction under subsection (4).
At the request of the pensioner or (where the pensioner is dead) any other person claiming to be affected, the Secretary of State may direct that, on the giving of the direction, subsection (5) takes effect in relation to the period or periods of pre-1948 insurance.
On this subsection taking effect in relation to any period—
the insured person is deemed not to have been, not to have been deemed to be, and not to have been treated as being, insured for that period under the Widows', Orphans' and Old Age Contributory Pensions Acts 1936 to 1941 or under any provision of Northern Ireland legislation corresponding to those Acts, and
any contribution mentioned in section 141(2)(b) or (c) is deemed not to have been credited to the insured person.
The Secretary of State may give directions specifying how any request for the purposes of subsection (4) must be made.
Where subsection (5) has taken effect in relation to a period or periods of pre-1948 insurance, the relevant authority may pay to any person an amount not exceeding any amount that would, but for subsection (5), have been payable to that person in respect of—
a benefit specified in section 20(1) of the Social Security Contributions and Benefits Act 1992 (c. 4) (contributory benefits), or
a benefit specified in any provision of Northern Ireland legislation corresponding to that provision.
In this section—
“child” means a person aged under 18;
In section 140 a “period of pre-1948 insurance” means any period ending before 6 April 1948 to which subsection (2) applies by reference to any person (“the insured person”).
This subsection applies to a period which is one of the following—
a period for which the insured person at any time was, was deemed to be, or was treated as, insured under the Widows', Orphans' and Old Age Contributory Pensions Acts 1936 to 1941, or under any provision of Northern Ireland legislation corresponding to those Acts;
a period for or in respect of which contributions of any class were credited to the insured person in accordance with the provisions of the National Insurance Act 1965 (c. 51) or regulations made under that Act, or in accordance with any provision of Northern Ireland legislation corresponding to that Act or such regulations;
a period for which contributions are credited to the insured person by any provision of the Social Security (Widow's Benefit, Retirement Pensions and Other Benefits) (Transitional) Regulations 1979 (S.I. 1979/643), or by any provision of Northern Ireland legislation corresponding to a provision of those regulations.
The Secretary of State may by regulations make provision authorising the Secretary of State, or a person providing services to the Secretary of State, to supply relevant persons with social security information about persons in receipt of state pension credit.
In this section “relevant person” means—
a person who holds a licence under section 6(1)(d) of the Electricity Act 1989 (c. 29) or section 7A(1) of the Gas Act 1986 (c. 44) (supply of electricity or gas to premises), or
a person providing services to the Secretary of State or to a person within paragraph (a).
Regulations under this section must specify the purposes for which information may be supplied by virtue of subsection (1), which must be purposes in connection with enabling the provision of assistance to persons in receipt of state pension credit.
Regulations under this section may authorise the supply of information by a relevant person to the Secretary of State or another relevant person—
for the purpose of determining what information is to be supplied by virtue of subsection (1), or
to enable information supplied to a relevant person by virtue of subsection (1) to be used by that or another relevant person for purposes within subsection (3).
Regulations under this section may—
make provision as to the use or disclosure of information supplied under the regulations (including provision creating criminal offences);
provide for the recovery by the Secretary of State of costs incurred in connection with the supply or use of information under the regulations.
In this section—
Any power conferred on the Secretary of State to make an order or regulations under this Act is exercisable by statutory instrument.
A statutory instrument containing such an order or regulations is subject to annulment in pursuance of a resolution of either House of Parliament.
Subsection (2) does not apply to a statutory instrument containing an order under section 149 or to a statutory instrument to which subsection (4) applies.
A statutory instrument to which this subsection applies may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.
Subsection (4) applies to a statutory instrument containing (alone or with other provision)—
regulations under section 16(3)(c), 17(1)(c), 20, 26(7A), (7B), (7C) or (7E), 28, 28A, 28B, 28C (other than subsection (11)(f)), 28E, 28F, 28G, 28I, 28J, 96, 98 or 142;
the first regulations under section 3(2) or (6), 5(2) or (7), 7(4)(b) or (6) or 9(3)(b);
an order under section 14(2), 28(9), 67 or 70(4);
an order under section 145 amending or repealing any provision of an Act;
an order under paragraph 9(7) of Schedule 5.
This section applies to an order or regulations made by the Secretary of State under this Act.
An order or regulations may include—
such incidental, supplemental, consequential or transitional provision as appears to the Secretary of State to be expedient;
provision conferring a discretion on any person.
An order under section 67 may include provision for anything that may be prescribed by the order to be determined under it, and for anything falling to be so determined to be determined by such persons, in accordance with such procedure and by reference to such matters, and to the opinion of such persons, as may be prescribed.
The power to make an order or regulations may be exercised—
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.
The Secretary of State may by order make— as the Secretary of State thinks appropriate for the general purposes, or any particular purpose, of this Act or in consequence of any provision made by or under this Act or for giving full effect to this Act or any such provision.
such supplemental, incidental or consequential provision, or
such transitory, transitional or saving provision,
An order under this section may, for purposes of or in consequence of or for giving full effect to any provision of or made under Chapter 5 of Part 1 or section 106, make provision for applying (with or without modifications) or amending, repealing or revoking any provision of or made under an Act passed before this Act or in the same Session.
Amendments made under this section are in addition, and without prejudice, to those made by or under any other provision of this Act.
No other provision of this Act restricts the powers conferred by this section.
In sections 303 to 305 of the Pensions Act 2004 (service of documents and electronic working) references to that Act are to be treated as including references to the following provisions of this Act— Chapters 2 and 3 of Part 1; section 60(1)(c); Chapter 1 of Part 3.
The Secretary of State may by order make such modifications of enactments within subsection (2) as in the Secretary of State's opinion facilitate, or are otherwise desirable in connection with, the consolidation of any of those enactments.
The enactments are—
the Pension Schemes Act 1993 (c. 48);
the Pensions Act 1995 (c. 26);
Parts 1 to 4 of the Welfare Reform and Pensions Act 1999 (c. 30);
Chapter 2 of Part 2 of the Child Support, Pensions and Social Security Act 2000 (c. 19);
the Pensions Act 2004 (c. 35);
the Pensions Act 2007 (c. 22);
this Act;
enactments referring to any enactment within paragraphs (a) to (g).
No order may be made under this section unless a Bill for consolidating the enactments modified by the order (with or without other enactments) has been presented to either House of Parliament.
An order under this section, so far as it modifies any enactment, is not to come into force except in accordance with provision made for the purpose by the Act resulting from that Bill.
An order under this section must not make any provision which would, if it were included in an Act of the Scottish Parliament, be within the legislative competence of that Parliament.
There is to be paid out of money provided by Parliament—
any expenditure incurred by the Secretary of State or a government department in consequence of this Act, and
any increase attributable to this Act in the sums payable out of money so provided under any other enactment.
Schedule 11 (repeals) has effect.
Subject to the following provisions, this Act comes into force in accordance with provision made by order by the Secretary of State.
Subsection (1) does not apply to—
sections 67 to 73;
sections 78 to 86;
section 105;
section 124(1), (3) and (7) to (10);
section 125;
section 131;
sections 133 to 136;
sections 140 to 142;
this Part, except section 148 and Schedule 11 (subject to paragraph (j));
the provisions mentioned in subsection (3);
any other provision of this Act so far as it confers any power to make regulations, rules, an Order in Council or an order under this Act.
The provisions mentioned in this subsection are—
in Schedule 9—
paragraph 1 so far as relating to any of the following paragraphs;
paragraph 3 (and paragraph 2 so far as necessary for the purposes of that paragraph);
paragraphs 5 to 7;
paragraph 8 for purposes other than those of the material detriment test;
paragraphs 9 to 14;
in paragraph 15, sub-paragraph (1) so far as relating to paragraphs 6 and 7, sub-paragraph (2) for purposes other than those of the material detriment test, and sub-paragraphs (3) and (4);
paragraph 16;
section 126 so far as relating to any of the paragraphs of that Schedule mentioned in paragraph (a) of this subsection;
the repeal in Schedule 11 relating to section 38(5)(a)(ii) of the Pensions Act 2004 (c. 35), the note in that Schedule relating to that repeal and section 148 so far as relating to that repeal and that note.
Sections 105, 135 and 136 come into force on 6 April 2009.
Section 131 comes into force at the end of the period of 2 months beginning with the day on which this Act is passed.
An order under subsection (1) may appoint different days for different purposes.
Subject to the following provisions, this Act extends to England and Wales and Scotland.
The following provisions extend also to Northern Ireland—
Chapters 5 and 6 of Part 1 and section 99 so far as it relates to those Chapters;
section 96(2) to (7);
section 97;
section 125(2);
sections 140 and 141;
143, 144, 145 and 146
section 149, this section and section 151.
An amendment or repeal by this Act has the same extent as the enactment amended or repealed (subject to the provision made by section 63(3), section 64(2) and paragraph 9 of Schedule 10).
This Act may be cited as the Pensions Act 2008.