Office of Public Sector Information
(1) Section 93 of the [1993 c. 48.] Pension Schemes Act 1993 (scope of provisions relating to transfer values) is amended as follows.
(2) For subsection (1)(a) there is substituted—
“(a) to any member of an occupational pension scheme—
(i) whose pensionable service has terminated at least one year before normal pension age, and
(ii) who on the date on which his pensionable service terminated had accrued rights to benefit under the scheme,
except a member of a salary related occupational pension scheme whose pensionable service terminated before 1st January 1986 and in respect of whom prescribed requirements are satisfied”.
(3) After subsection (1) there is inserted—
“(1A) For the purposes of this section and the following provisions of this Chapter, an occupational pension scheme is salary related if—
(a) the scheme is not a money purchase scheme, and
(b) the scheme does not fall within a prescribed class.
(1B) Regulations may—
(a) provide for this Chapter not to apply in relation to a person of a prescribed description, or
(b) apply this Chapter with prescribed modifications to occupational pension schemes—
(i) which are not money purchase schemes, but
(ii) where some of the benefits that may be provided are money purchase benefits.”
After section 93 of the [1993 c. 48.] Pension Schemes Act 1993 there is inserted—
(1) The trustees or managers of a salary related occupational pension scheme must, on the application of any member, provide the member with a written statement (in this Chapter referred to as a “statement of entitlement”) of the amount of the cash equivalent at the guarantee date of any benefits which have accrued to or in respect of him under the applicable rules.
(2) In this section—
“the applicable rules” has the same meaning as in section 94;
“the guarantee date” means the date by reference to which the value of the cash equivalent is calculated, and must be—
within the prescribed period beginning with the date of the application, and
within the prescribed period ending with the date on which the statement of entitlement is provided to the member.
(3) Regulations may make provision in relation to applications for a statement of entitlement, including, in particular, provision as to the period which must elapse after the making of such an application before a member may make a further such application.
(4) If, in the case of any scheme, a statement of entitlement has not been provided under this section, section 10 of the Pensions Act 1995 (power of the Regulatory Authority to impose civil penalties) applies to any trustee or manager who has failed to take all such steps as are reasonable to secure compliance with this section.”
(1) In paragraph (a) of section 94(1) of the [1993 c. 48.] Pension Schemes Act 1993—
(a) after “occupational pension scheme” there is inserted “other than a salary related scheme”, and
(b) after “terminates” there is inserted “(whether before or after 1st January 1986)”.
(2) After that paragraph there is inserted—
“(aa) a member of a salary related occupational pension scheme who has received a statement of entitlement and has made a relevant application within three months beginning with the guarantee date in respect of that statement acquires a right to his guaranteed cash equivalent”.
(3) After that subsection there is inserted—
“(1A) For the purposes of subsection (1)(aa), a person’s “guaranteed cash equivalent” is the amount stated in the statement of entitlement mentioned in that subsection.”
(4) In subsection (2) of that section, after the definition of “the applicable rules” there is inserted—
““the guarantee date” has the same meaning as in section 93A(2)”.
(5) After that subsection there is inserted—
“(3) Regulations may provide that, in prescribed circumstances, subsection (1)(aa) does not apply to members of salary related occupational pension schemes or applies to them with prescribed modifications.”
(1) For section 168 of the [1993 c. 48.] Pension Schemes Act 1993 (penalties for breach of regulations) there is substituted—
(1) Regulations under any provision of this Act (other than Chapter II of Part VII) may make such provision as is referred to in subsection (2) or (4) for the contravention of any provision contained in regulations made or having effect as if made under any provision of this Act.
(2) The regulations may provide for the contravention to be an offence under this Act and for the recovery on summary conviction of a fine not exceeding level 5 on the standard scale.
(3) An offence under any provision of the regulations may be charged by reference to any day or longer period of time; and a person may be convicted of a second or subsequent offence under such a provision by reference to any period of time following the preceding conviction of the offence.
(4) The regulations may provide for a person who has contravened the provision to pay to the Regulatory Authority, within a prescribed period, a penalty not exceeding an amount specified in the regulations; and the regulations must specify different amounts in the case of individuals from those specified in other cases and any amount so specified may not exceed the amount for the time being specified in the case of individuals or, as the case may be, others in section 10(2)(a) of the Pensions Act 1995.
(5) Regulations made by virtue of subsection (4) do not affect the amount of any penalty recoverable under that subsection by reason of an act or omission occurring before the regulations are made.
(6) Where—
(a) apart from this subsection, a penalty under subsection (4) is recoverable from a body corporate or Scottish partnership by reason of any act or omission of the body or partnership as a trustee of a trust scheme, and
(b) the act or omission was done with the consent or connivance of, or is attributable to any neglect on the part of, any persons mentioned in subsection (7),
such a penalty is recoverable from each of those persons who consented to or connived in the act or omission or to whose neglect the act or omission was attributable.
(7) The persons referred to in subsection (6)(b)—
(a) in relation to a body corporate, are—
(i) any director, manager, secretary, or other similar officer of the body, or a person purporting to act in any such capacity, and
(ii) where the affairs of a body corporate are managed by its members, any member in connection with his functions of management, and
(b) in relation to a Scottish partnership, are the partners.
(8) Where the Regulatory Authority requires any person to pay a penalty by virtue of subsection (6), they may not also require the body corporate, or Scottish partnership, in question to pay a penalty in respect of the same act or omission.
(9) A penalty under subsection (4) is recoverable by the Authority and any such penalty recovered by the Authority must be paid to the Secretary of State.
(10) Where by reason of the contravention of any provision contained in regulations made, or having effect as if made, under this Act—
(a) a person is convicted of an offence under this Act, or
(b) a person pays a penalty under subsection (4),
then, in respect of that contravention, he shall not, in a case within paragraph (a), be liable to pay such a penalty or, in a case within paragraph (b), be convicted of such an offence.
(11) In this section “contravention” includes failure to comply, and “Scottish partnership” means a partnership constituted under the law of Scotland.
(1) Any person who knowingly or recklessly provides the Registrar with information which is false or misleading in a material particular is guilty of an offence if the information—
(a) is provided in purported compliance with a requirement under section 6, or
(b) is provided otherwise than as mentioned in paragraph (a) above but in circumstances in which the person providing the information intends, or could reasonably be expected to know, that it would be used by the Registrar for the purpose of discharging his functions under this Act.
(2) Any person guilty of an offence under subsection (1) is liable—
(a) on summary conviction, to a fine not exceeding the statutory maximum,
(b) on conviction on indictment, to imprisonment or a fine, or both”.
(2) In section 186 of that Act (Parliamentary control of orders and regulations), in subsection (3), after paragraph (c) there is inserted “or
(d) regulations made by virtue of section 168(2)”.
For section 145(4) of the [1993 c. 48.] Pension Schemes Act 1993 (staff of the Pensions Ombudsman), there is substituted—
“(4A) The Pensions Ombudsman may (with the approval of the Secretary of State as to numbers) appoint such persons to be employees of his as he thinks fit, on such terms and conditions as to remuneration and other matters as the Pensions Ombudsman may with the approval of the Secretary of State determine.
(4B) The Secretary of State may, on such terms as to payment by the Pensions Ombudsman as the Secretary of State thinks fit, make available to the Pensions Ombudsman such additional staff and such other facilities as he thinks fit.
(4C) Any function of the Pensions Ombudsman, other than the determination of complaints made and disputes referred under this Part, may be performed by any—
(a) employee appointed by the Pensions Ombudsman under subsection (4A), or
(b) member of staff made available to him by the Secretary of State under subsection (4B),
who is authorised for that purpose by the Pensions Ombudsman.”
(1) Sections 146 to 151 of the [1993 c. 48.] Pension Schemes Act 1993 are amended as shown in subsections (2) to (11).
(2) In section 146 (investigations concerning the trustees or managers of schemes), for subsections (1) to (4) there is substituted—
“(1) The Pensions Ombudsman may investigate and determine the following complaints and disputes—
(a) a complaint made to him by or on behalf of an actual or potential beneficiary of an occupational or personal pension scheme who alleges that he has sustained injustice in consequence of maladministration in connection with any act or omission of a person responsible for the management of the scheme,
(b) a complaint made to him—
(i) by or on behalf of a person responsible for the management of an occupational pension scheme who in connection with any act or omission of another person responsible for the management of the scheme, alleges maladministration of the scheme, or
(ii) by or on behalf of the trustees or managers of an occupational pension scheme who in connection with any act or omission of any trustee or manager of another such scheme, allege maladministration of the other scheme,
and in any case falling within sub-paragraph (ii) references in this Part to the scheme to which the complaint relates is to the other scheme referred to in that paragraph,
(c) any dispute of fact or law which arises in relation to an occupational or personal pension scheme between—
(i) a person responsible for the management of the scheme, and
(ii) an actual or potential beneficiary,
and which is referred to him by or on behalf of the actual or potential beneficiary, and
(d) any dispute of fact or law which arises between the trustees or managers of an occupational pension scheme and—
(i) another person responsible for the management of the scheme, or
(ii) any trustee or manager of another such scheme,
and which is referred to him by or on behalf of the person referred to in sub-paragraph (i) or (ii); and in any case falling within sub-paragraph (ii) references in this Part to the scheme to which the reference relates is to the scheme first mentioned in that paragraph.
(2) Complaints and references made to the Pensions Ombudsman must be made to him in writing.
(3) For the purposes of this Part, the following persons (subject to subsection (4)) are responsible for the management of an occupational pension scheme—
(a) the trustees or managers, and
(b) the employer;
but, in relation to a person falling within one of those paragraphs, references in this Part to another person responsible for the management of the same scheme are to a person falling within the other paragraph.
(3A) For the purposes of this Part, a person is responsible for the management of a personal pension scheme if he is a trustee or manager of the scheme.
(4) Regulations may provide that, subject to any prescribed modifications or exceptions, this Part shall apply in the case of an occupational or personal pension scheme in relation to any prescribed person or body of persons where the person or body—
(a) is not a trustee or manager or employer, but
(b) is concerned with the financing or administration of, or the provision of benefits under, the scheme,
as if for the purposes of this Part he were a person responsible for the management of the scheme”.
(3) In subsection (7) of that section, for ““authorised complainants”” there is substituted “actual or potential beneficiaries”.
(4) In section 147 (death, insolvency etc.), in subsections (1) and (2), for “authorised complainant” there is substituted “actual or potential beneficiary” and for “the authorised complainant's” there is substituted “his”.
(5) In subsection (3) of that section, for “an authorised complainant” there is substituted “a person by whom, or on whose behalf, a complaint or reference has been made under this Part”.
(6) In section 148 (staying court proceedings), in subsection (5), for paragraphs (a) and (b) there is substituted—
“(a) the person by whom, or on whose behalf, the complaint or reference has been made,
(b) any person responsible for the management of the scheme to which the complaint or reference relates”.
(7) In section 149 (procedure on investigation), in subsection (1)(a), for “the trustees and managers of the scheme concerned” there is substituted “any person (other than the person by whom, or on whose behalf, the complaint or reference was made) responsible for the management of the scheme to which the complaint or reference relates”.
(8) In section 150 (investigations: further provisions), in subsection (1)(a), for “any trustee or manager of the scheme concerned” there is substituted “any person responsible for the management of the scheme to which the complaint or reference relates”.
(9) In section 151 (determinations of Pensions Ombudsman), for subsection (1)(a) and (b) there is substituted—
“(a) to the person by whom, or on whose behalf, the complaint or reference was made, and
(b) to any person (if different) responsible for the management of the scheme to which the complaint or reference relates”.
(10) In subsection (2) of that section, for “the trustees or managers of the scheme concerned” there is substituted “any person responsible for the management of the scheme to which the complaint or reference relates”.
(11) In subsection (3) of that section, for paragraphs (a) to (c) there is substituted—
“(a) the person by whom, or on whose behalf, the complaint or reference was made,
(b) any person (if different) responsible for the management of the scheme to which the complaint or reference relates, and
(c) any person claiming under a person falling within paragraph (a) or (b)”.
(12) In Part I of Schedule 1 to the [1992 c. 53.] Tribunals and Inquiries Act 1992 (tribunals under the direct supervision of the Council on Tribunals), in paragraph 35(e), for “section 146(2)” there is substituted “section 146(1)(c) and (d)”.
In section 149 of the [1993 c. 48.] Pension Schemes Act 1993—
(a) after subsection (3)(b) there is inserted “and
(c) for the payment by the Ombudsman of such travelling and other allowances (including compensation for loss of remunerative time) as the Secretary of State may determine, to—
(i) actual or potential beneficiaries of a scheme to which a complaint or reference relates, or
(ii) persons appearing and being heard on behalf of such actual or potential beneficiaries,
who attend at the request of the Ombudsman any oral hearing held in connection with an investigation into the complaint or dispute.”, and
(b) at the end of subsection (3)(a), “and” is omitted.
(1) In section 149 of the [1993 c. 48.] Pension Schemes Act 1993, after subsection (4) there is added—
“(5) The Pensions Ombudsman may disclose any information which he obtains for the purposes of an investigation under this Part to any person to whom subsection (6) applies, if the Ombudsman considers that the disclosure would enable or assist that person to discharge any of his functions.
(6) This subsection applies to the following—
(a) the Regulatory Authority,
(b) the Pensions Compensation Board,
(c) the Registrar,
(d) any department of the Government (including the government of Northern Ireland),
(e) the Bank of England,
(f) the Friendly Societies Commission,
(g) the Building Societies Commission,
(h) an inspector appointed by the Secretary of State under Part XIV of the [1985 c. 6.] Companies Act 1985 or section 94 or 177 of the [1986 c. 60.] Financial Services Act 1986,
(j) an inspector appointed by the Department of Economic Development in Northern Ireland under Part XV of the [S.I. 1986/1032 (N.I. 6).] Companies (Northern Ireland) Order 1986,
(k) a person authorised under section 106 of the [1986 c. 60.] Financial Services Act 1986 to exercise powers conferred by section 105 of that Act,
(l) a designated agency or transferee body or the competent authority within the meaning of that Act, and
(m) a recognised self-regulating organisation, recognised professional body, recognised investment exchange or recognised clearing house, within the meaning of that Act.
(7) The Secretary of State may by order—
(a) amend subsection (6) by adding any person or removing any person for the time being specified in that subsection, or
(b) restrict the circumstances in which, or impose conditions subject to which, disclosure may be made to any person for the time being specified in that subsection.”
(2) In section 151 of that Act, in subsection (7)(a), after “this section” there is inserted—
“(aa) in disclosing any information under section 149(5)”.
After section 151 of the [1993 c. 48.] Pension Schemes Act 1993 there is inserted—
Where under this Part the Pensions Ombudsman directs a person responsible for the management of an occupational or personal pension scheme to make any payment in respect of benefit under the scheme which, in his opinion, ought to have been paid earlier, his direction may also require the payment of interest at the prescribed rate”.
Sections 136 to 141 (modification) and 142 and 143 (winding up) of the [1993 c. 48.] Pension Schemes Act 1993 are repealed.
(1) This section applies to any pension provided to give effect to protected rights of a member of a personal pension scheme if—
(a) there is in force, or was in force at any time after the appointed day, an appropriate scheme certificate issued in accordance with Chapter I of Part III (certification) of the [1993 c. 48.] Pension Schemes Act 1993, and
(b) apart from this section, the annual rate of the pension would not be increased each year by at least the appropriate percentage of that rate.
(2) Where a pension to which this section applies, or any part of it, is attributable to contributions in respect of employment carried on on or after the appointed day—
(a) the annual rate of the pension, or
(b) if only part of the pension is attributable to contributions in respect of employment carried on on or after the appointed day, so much of the annual rate as is attributable to that part,
must be increased annually by at least the appropriate percentage.
(1) The first increase required by section 162 in the rate of a pension must take effect not later than the first anniversary of the date on which the pension is first paid; and subsequent increases must take effect at intervals of not more than twelve months.
(2) Where the first such increase is to take effect on a date when the pension has been in payment for a period of less than 12 months, the increase must be of an amount at least equal to one twelfth of the amount of the increase so required (apart from this subsection) for each complete month in that period.
(3) In section 162 and this section—
“annual rate”, in relation to a pension, means the annual rate of the pension, as previously increased under the rules of the scheme or under section 162,
“the appointed day” means the day appointed under section 180 for the commencement of section 162,
“appropriate percentage”, in relation to an increase in the whole or part of the annual rate of a pension, means the revaluation percentage for the revaluation period the reference period for which ends with the last preceding 30th September before the increase is made (expressions used in this definition having the same meaning as in paragraph 2 of Schedule 3 to the [1993 c. 48.] Pension Schemes Act 1993 (methods of revaluing accrued pension benefits)),
“pension”, in relation to a scheme, means any pension in payment under the scheme and includes an annuity,
“protected rights” has the meaning given by section 10 of the Pension Schemes Act 1993 (money purchase benefits).
In section 44 of the Pension Schemes Act 1993 (earner’s chosen scheme)—
(a) in subsection (1), after paragraph (b) there is inserted— “then, unless the Secretary of State rejects the notice on either or both of the grounds mentioned in subsection (1A)”, and
(b) after that subsection there is inserted—
“(1A) The grounds referred to in subsection (1) are that the Secretary of State is of the opinion—
(a) that section 31(5) is not being complied with in respect of any members of the scheme,
(b) that, having regard to any other provisions of sections 26 to 32 and 43 to 45, it is inexpedient to allow the scheme to be the chosen scheme of any further earners”.
For section 175 of the Pension Schemes Act 1993 (levies towards meeting certain costs and grants) there is substituted—
(1) For the purpose of meeting expenditure—
(a) under section 6,
(b) under Part X and section 174, or
(c) of the Regulatory Authority (including the establishment of the authority and, if the authority are appointed as Registrar under section 6 of this Act, their expenditure as Registrar),
regulations may make provision for imposing levies in respect of prescribed occupational or prescribed personal pension schemes.
(2) Any levy imposed under subsection (1) is payable to the Secretary of State by or on behalf of—
(a) the administrators of any prescribed public service pension scheme,
(b) the trustees or managers of any other prescribed occupational or prescribed personal pension scheme, or
(c) any other prescribed person,
at prescribed rates and at prescribed times.
(3) Regulations made by virtue of subsection (1)—
(a) in determining the amount of any levy in respect of the Regulatory Authority, must take account (among other things) of any amounts paid to the Secretary of State under section 168(4) of this Act or section 10 of the Pensions Act 1995, and
(b) in determining the amount of expenditure in respect of which any levy is to be imposed, may take one year with another and, accordingly, may have regard to expenditure estimated to be incurred in current or future periods and to actual expenditure incurred in previous periods (including periods ending before the coming into force of this subsection).
(4) Regulations may make provision for imposing a levy in respect of prescribed occupational pension schemes for the purpose of meeting expenditure of the Pensions Compensation Board (including the establishment of the Board).
(5) Any levy imposed under subsection (4) is payable to the Board by or on behalf of—
(a) the trustees of any prescribed occupational pension scheme, or
(b) any other prescribed person,
at prescribed times and at a rate, not exceeding the prescribed rate, determined by the Board.
(6) In determining the amount of expenditure in respect of which any levy under subsection (4) is to be imposed, the Board, and regulations made by virtue of subsection (5), may take one year with another and, accordingly, may have regard to expenditure estimated to be incurred in current or future periods and to actual expenditure incurred in previous periods (including periods ending before the coming into force of this subsection).
(7) Notice of the rates determined by the Board under subsection (5) must be given to prescribed persons in the prescribed manner.
(8) An amount payable by a person on account of a levy imposed under this section shall be a debt due from him to the appropriate person, that is—
(a) if the levy is imposed under subsection (1), the Secretary of State, and
(b) if the levy is imposed under subsection (4), the Board,
and an amount so payable shall be recoverable by the appropriate person accordingly or, if the appropriate person so determines, be recoverable by the Registrar on behalf of the appropriate person.
(9) Without prejudice to the generality of subsections (1) and (4), regulations under this section may include provision relating to—
(a) the collection and recovery of amounts payable by way of levy under this section, or
(b) the circumstances in which any such amount may be waived.”
(1) In the [1973 c. 18.] Matrimonial Causes Act 1973, after section 25A there is inserted—
(1) The matters to which the court is to have regard under section 25(2) above include—
(a) in the case of paragraph (a), any benefits under a pension scheme which a party to the marriage has or is likely to have, and
(b) in the case of paragraph (h), any benefits under a pension scheme which, by reason of the dissolution or annulment of the marriage, a party to the marriage will lose the chance of acquiring,
and, accordingly, in relation to benefits under a pension scheme, section 25(2)(a) above shall have effect as if “in the foreseeable future” were omitted.
Pensions Act 1995