PART III continued
(3B) Where this sub-paragraph applies—
(a) regulations may provide for treating the member as if sections 46 to 48 or, as the case may be, section 48A(1) did not apply, or applied only to such extent as is determined in accordance with the regulations, and
(b) the amount required for restoring the member’s State scheme rights, or a prescribed part of that amount, shall be a debt due from the trustees or managers of the scheme to the Secretary of State.
(3C) Regulations may make provision—
(a) for determining the cash equivalent of a member’s rights under a scheme and the extent (if any) to which the resources of the scheme are insufficient to meet the liability for that cash equivalent,
(b) for the recovery of any debt due under sub-paragraph (3B)(b), and
(c) for determining the amount required for restoring a member’s State scheme rights including provision requiring the Secretary of State to apply whichever prescribed actuarial table in force at the appropriate time is applicable.
(3D) Section 155 shall apply as if sub-paragraphs (3A) and (3B)(a), and regulations made by virtue of this sub-paragraph and sub-paragraph (3B)(b), were included among the provisions there referred to.
(3E) In sub-paragraphs (3A) and (3B), “State scheme rights”, in relation to a member of a scheme, are the rights for which, if the scheme had not been a contracted-out scheme, the member would have been eligible by virtue of section 44(6) of the Social Security Contributions and Benefits Act 1992 (earnings factors for additional pension).”, and
(c) sub-paragraph (5) is omitted.
(1) Section 28 of the [1993 c. 48.] Pension Schemes Act 1993 (ways of giving effect to protected rights) is amended as follows.
(2) In subsection (1), after paragraph (a) there is inserted—
“(aa) in any case where subsection (1A) so requires, by the making of such payments as are mentioned in that subsection,”.
(3) After that subsection there is inserted—
“(1A) In the case of a personal pension scheme, where the member so elects, effect shall be given to his protected rights—
(a) during the interim period, by the making of payments under an interim arrangement which—
(i) complies with section 28A,
(ii) satisfies such conditions as may be prescribed, and
(b) at the end of the interim period, in such of the ways permitted by the following subsections as the rules of the scheme may specify.”
(4) In subsection (3)—
(a) in paragraph (b), after “the member” there is inserted “or, where section 28A(2) applies, the member’s widow or widower”, and
(b) in the words following that paragraph, after “subsection” there is inserted “(1A)(a) or”.
(5) In subsection (4)(a), for the words from “65” to the end there is substituted— “65 or such later date as has been agreed by him, or
(ii) in the case of a personal pension scheme, where the member has elected to receive payments under an interim arrangement, the date by reference to which the member elects to terminate that arrangement, and otherwise such date as has been agreed by him and is not earlier than his 60th birthday nor later than his 75th birthday.”
(6) In subsection (5), after “subsection” there is inserted “(1A)”.
(7) After subsection (7) there is added—
“(8) In this section and sections 28A, 28B and 29—
“the interim period” means the period beginning with the starting date in relation to the member in question and ending with the termination date;
“the starting date” means the date, which must not be earlier than the member’s 60th birthday, by reference to which the member elects to begin to receive payments under the interim arrangement;
“the termination date” means the date by reference to which the member (or, where section 28A(2) applies, the member’s widow or widower) elects to terminate the interim arrangement, and that date must be not later than—
the member’s 75th birthday, or
where section 28A(2) applies, the earlier of the member’s widow or widower’s 75th birthday and the 75th anniversary of the member’s birth.”
After section 28 of the [1993 c. 48.] Pension Schemes Act 1993 there is inserted—
(1) An interim arrangement must provide for payments to be made to the member, and, where subsection (2) applies, to the member’s widow or widower, throughout the interim period, at intervals not exceeding twelve months.
(2) This subsection applies where the member dies during the interim period and is survived by a widow or widower who at the date of the member’s death has not yet attained the age of 75 years.
(3) The aggregate amount of payments made to a person under an interim arrangement in each successive period of twelve months must not be—
(a) greater than the annual amount of the annuity which would have been purchasable by him on the relevant reference date, or
(b) less than the prescribed percentage of that amount.
(4) The percentage prescribed under subsection (3)(b) may be zero.
(5) For the purposes of this section—
(a) the annual amount of the annuity which would have been purchasable by a person on any date shall be calculated in the prescribed manner by reference to—
(i) the value on that date, determined by or on behalf of the trustees or managers of the scheme, of the person’s protected rights, and
(ii) the current published tables of rates of annuities prepared in the prescribed manner by the Government Actuary for the purposes of this section, and
(b) the relevant reference date is—
(i) in relation to payments made to the member during the three years beginning with the member’s starting date, that date, and in relation to such payments made during each succeeding period of three years, the first day of the period of three years in question, or
(ii) where subsection (2) applies, in relation to payments made to the member’s widow or widower during the three years beginning with the date of the member’s death, that date, and in relation to such payments made during each succeeding period of three years, the first day of the period of three years in question.
(1) The trustees or managers of a personal pension scheme must, if required to do so by the Secretary of State, produce any document relevant to—
(a) the level of payments made under any interim arrangement, or
(b) the value of protected rights to which such an arrangement gives effect,
or otherwise connected with the making of payments under such an arrangement.
(2) In this section, “document” includes information recorded in any form, and the reference to the production of a document, in relation to information recorded otherwise than in legible form, is a reference to producing a copy of the information in legible form.”
(1) Section 29 of the [1993 c. 48.] Pension Schemes Act 1993 (the pension and annuity requirements) is amended as follows.
(2) In subsection (1) for paragraph (a) there is substituted—
“(a) in the case of an occupational pension scheme it commences on a date—
(i) not earlier than the member’s 60th birthday, and
(ii) not later than his 65th birthday,
or on such later date as has been agreed by him, and continues until the date of his death, or
(aa) in the case of a personal pension scheme—
(i) where the member has elected under section 28(1A) to receive payments under an interim arrangement, it commences on the termination date, and continues until the date of the member’s death or, where section 28A(2) applies, until the death of the member’s widow or widower, or
(ii) otherwise, it commences on such a date as has been agreed by the member and is not earlier than his 60th birthday nor later than his 75th birthday, and continues until the date of his death;”.
(3) In subsection (3)(b)(iii), after “member” there is inserted “or, where section 28A(2) applies, the member’s widow or widower”.
(4) In subsection (4), after “member” there is inserted “(or a member’s widow or widower)”.
Regulations made by the Secretary of State may provide that sections 141 to 143 shall have effect, subject to prescribed modifications, in relation to protected rights under an occupational pension scheme as they have effect in relation to protected rights under a personal pension scheme.
(1) After section 32 of the [1993 c. 48.] Pension Schemes Act 1993 there is inserted—
(1) Where an occupational pension scheme is being wound up and such conditions as may be prescribed are satisfied, effect may be given to the protected rights of a member of the scheme (in spite of section 28) by—
(a) taking out an appropriate policy of insurance, or a number of such policies, under which the member is the beneficiary, or
(b) assuring the benefits of a policy of insurance, or a number of such policies, to the member, where the policy assured is an appropriate policy.
(2) A policy of insurance is appropriate for the purposes of this section if—
(a) the insurance company with which it is or was taken out or entered into—
(i) is, or was at the time when the policy was taken out or (as the case may be) the benefit of it was assured, carrying on ordinary long-term insurance business (within the meaning of the Insurance Companies Act 1982) in the United Kingdom or any other Member State, and
(ii) satisfies, or at that time satisfied, prescribed requirements, and
(b) it may not be assigned or surrendered except on conditions which satisfy such requirements as may be prescribed, and
(c) it contains or is endorsed with terms whose effect is that the amount secured by it may not be commuted except on conditions which satisfy such requirements as may be prescribed, and
(d) it satisfies such other requirements as may be prescribed”.
(2) At the end of section 28 of that Act, as amended by this Act, (ways of giving effect to protected rights) there is inserted—
“(9) This section is subject to section 32A”.
After section 33 of the [1993 c. 48.] Pension Schemes Act 1993 there is inserted—
(1) If any person acting as an auditor or actuary of an appropriate scheme has reasonable cause to believe that—
(a) any requirement which, in the case of the scheme, is required by section 9(5)(a) to be satisfied is not satisfied, and
(b) the failure to satisfy the requirement is likely to be of material significance in the exercise by the Secretary of State of any of his functions relating to appropriate schemes,
that person must immediately give a written report of the matter to the Secretary of State.
(2) No duty to which a person acting as auditor or actuary of an appropriate scheme is subject shall be regarded as contravened merely because of any information or opinion contained in a written report under this section.”
(1) Paragraph 1 of Schedule 1 to the [1992 c. 4.] Social Security Contributions and Benefits Act 1992 (Class 1 contributions where earner in more than one employment) is amended as follows.
(2) For sub-paragraph (3) there is substituted—
“(3) The amount of the primary Class 1 contribution shall be the aggregate of the amounts determined under the following paragraphs (applying earlier paragraphs before later ones)—
(a) if the aggregated earnings are paid to or for the benefit of an earner in respect of whom minimum contributions are payable under section 43(1) of the Pension Schemes Act 1993 (contributions to personal pension schemes), the amount obtained by applying the rate of primary Class 1 contributions that would apply if all the aggregated earnings were attributable to employments which are not contracted-out to such part of the aggregated earnings so attributable as does not exceed the current upper earnings limit (referred to in this paragraph as “the APPS earnings”),
(b) if some of the aggregated earnings are attributable to COMPS service, the amount obtained by applying the rate of primary Class 1 contributions that would apply if all the aggregated earnings were attributable to COMPS service—
(i) to such part of the aggregated earnings attributable to COMPS service as does not exceed the current upper earnings limit, or
(ii) if paragraph (a) applies, to such part of the earnings attributable to COMPS service as, when added to the APPS earnings, does not exceed the current upper earnings limit,
(c) if some of the aggregated earnings are attributable to COSRS service, the amount obtained by applying the rate of primary Class 1 contributions that would apply if all the aggregated earnings were attributable to COSRS service—
(i) to such part of the aggregated earnings attributable to COSRS service as does not exceed the current upper earnings limit, or
(ii) if paragraph (a) or (b) applies, to such part of the earnings attributable to COSRS service as, when added to the APPS earnings or the part attributable to COMPS service (or both), does not exceed the current upper earnings limit,
(d) the amount obtained by applying the rate of primary Class 1 contributions that would apply if all the aggregated earnings were attributable to employments which are not contracted-out to such part of the aggregated earnings as, when added to the part or parts attributable to COMPS or COSRS service, does not exceed the current upper earnings limit”.
(3) For sub-paragraph (6) there is substituted—
“(6) The amount of the secondary Class 1 contribution shall be the aggregate of the amounts determined under the following paragraphs (applying earlier paragraphs before later ones)—
(a) if the aggregated earnings are paid to or for the benefit of an earner in respect of whom minimum contributions are payable under section 43(1) of the Pension Schemes Act 1993, the amount obtained by applying the rate of secondary Class 1 contributions that would apply if all the aggregated earnings were attributable to employments which are not contracted-out to the APPS earnings,
(b) if some of the aggregated earnings are attributable to COMPS service, the amount obtained by applying the rate of secondary Class 1 contributions that would apply if all the aggregated earnings were attributable to COMPS service to the part of the aggregated earnings attributable to such service,
(c) if some of the aggregated earnings are attributable to COSRS service, the amount obtained by applying the rate of secondary Class 1 contributions that would apply if all the aggregated earnings were attributable to COSRS service to the part of the aggregated earnings attributable to such service,
(d) the amount obtained by applying the rate of secondary Class 1 contributions that would apply if all the aggregated earnings were attributable to employments which are not contracted-out to the remainder of the aggregated earnings”.
(4) At the end of that paragraph there is added—
“(9) In this paragraph—
“COMPS service” means service in employment in respect of which minimum payments are made to a money purchase contracted-out scheme,
“COSRS service” means service in employment which qualifies the earner for a pension provided by a salary related contracted-out scheme”.
(5) Until the principal appointed day, that paragraph, as amended by this section, shall have effect as if—
(a) for sub-paragraph (3)(b) there were substituted—
“(b) if some of the aggregated earnings are attributable to service in contracted-out employment, the amount obtained by applying the rate of primary Class 1 contributions that would apply if all the aggregated earnings were attributable to such service—
(i) to such part of the aggregated earnings attributable to such service as does not exceed the current upper earnings limit, or
(ii) if paragraph (a) applies, to such part of the earnings attributable to such service as, when added to the APPS earnings, does not exceed the current upper earnings limit”,
(b) sub-paragraph (3)(c) were omitted,
(c) in sub-paragraph (3)(d), for “COMPS or COSRS service” there were substituted “service in contracted-out employment”,
(d) for sub-paragraph (6)(b) there were substituted—
“(b) if some of the aggregated earnings are attributable to service in contracted-out employment, the amount obtained by applying the rate of secondary Class 1 contributions that would apply if all the aggregated earnings were attributable to such service to the part of the aggregated earnings attributable to such service”,
(e) sub-paragraph (6)(c) were omitted, and
(f) in sub-paragraph (9) the definitions of “COMPS service” and “COSRS service” were omitted.
(1) In spite of anything in sections 9 and 12 of the [1993 c. 48.] Pension Schemes Act 1993 (requirements for certification and determination of basis on which scheme is contracted-out), the Secretary of State may by regulations provide, where the pensions provided by an occupational pension scheme include both—
(a) such pensions that, if the scheme provided only those pensions, it would satisfy section 9(2) of that Act, and
(b) such other pensions that, if the scheme provided only those other pensions, it would satisfy section 9(3) of that Act,
for Part III of that Act to have effect as if the scheme were two separate schemes providing, respectively, the pensions referred to in paragraphs (a) and (b).
(2) Regulations made by the Secretary of State may, in connection with any provision made by virtue of subsection (1), make such modifications of the following Acts, and the instruments made or having effect as if made under them, as appear to the Secretary of State desirable: the Social Security Contributions and Benefits Act 1992, the Pension Schemes Act 1993 and Part I of this Act.
(1) The Occupational Pensions Board (referred to in this section as “the Board”) is hereby dissolved.
(2) An order under section 180 appointing the day on which subsection (1) is to come into force may provide—
(a) for all property, rights and liabilities to which the Board is entitled or subject immediately before that day to become property, rights and liabilities of the Authority or the Secretary of State, and
(b) for any function of the Board falling to be exercised on or after that day, or which fell to be exercised before that day but has not been exercised, to be exercised by the Authority, the Secretary of State or the Department of Health and Social Services for Northern Ireland.
Schedule 5 (which makes amendments related to sections 136 to 150) shall have effect.