PART 5 continued
(1) After section 146(4) of the Pension Schemes Act 1993 (c. 48) (power to apply Part 10 of that Act to those concerned with the administration of a scheme) insert—
“(4A) For the purposes of subsection (4) a person or body of persons is concerned with the administration of an occupational or personal pension scheme where the person or body is responsible for carrying out an act of administration concerned with the scheme.”
(2) The amendment made by this section has effect in relation to the making of any provision under section 146(4) of the Pension Schemes Act 1993 applying Part 10 of that Act in relation to a complaint or a dispute in so far as it relates to a matter which arises on or after the day on which this section comes into force.
(3) For the purposes of subsection (2), a question falling within section 146(1)(g) of the Pension Schemes Act 1993 is to be treated as a dispute.
(1) Omit section 54 of the Child Support, Pensions and Social Security Act 2000 (c. 19) (“the 2000 Act”) (which amends sections 148, 149 and 151 of the Pension Schemes Act 1993 and which has not been brought into force except for the purpose of making regulations and rules).
(2) Omit the following provisions of the Pension Schemes Act 1993—
(a) section 148(5)(ba) and (bb) as inserted by section 54(2) of the 2000 Act,
(b) section 149(1), (1A) and (1B) as substituted by section 54(3) of the 2000 Act,
(c) section 149(3)(ba) as substituted by section 54(4) of the 2000 Act,
(d) section 149(3)(d) and the word “and” immediately preceding it as inserted by section 54(5) of the 2000 Act,
(e) section 149(8) as inserted by section 54(6) of the 2000 Act,
(f) section 151(1)(c) and the word “and” immediately preceding it as inserted by section 54(7) of the 2000 Act,
(g) section 151(3)(ba) and (bb) as substituted by section 54(8) of the 2000 Act, and
(h) in section 151(3)(c) the words “any of paragraphs (a) to (bb)” as inserted by section 54(8) of the 2000 Act,
to the extent that those amendments made by section 54 of the 2000 Act have been brought into force for the purpose of making regulations and rules.
(1) The Pensions Act 1995 (c. 26) is amended as follows.
(2) In section 80 (review of decisions of the Pensions Compensation Board)—
(a) after subsection (2) insert—
“(2A) The Compensation Board may also review such a determination without an application being made.”, and
(b) for subsections (4) and (5) substitute—
“(4) Regulations may make provision—
(a) with respect to reviews under this section (or any corresponding provision in force in Northern Ireland);
(b) with respect to applications under subsection (2) (or any corresponding provision in force in Northern Ireland) and the procedure to be adopted on any such application.”
(3) In section 81 (cases where compensation provisions apply), omit subsections (1)(d), (2A) and (7).
(4) In section 83 (amount of compensation) for subsections (3) and (4) substitute—
“(3) The amount of the payment, or (if there is more than one) the aggregate, must not exceed the aggregate of—
(a) the amount (if any) by which the shortfall at the application date exceeds the recoveries of value made between the application date and the settlement date, and
(b) interest at the prescribed rate for the prescribed period on the amount of that excess (if any).”
(1) Section 51 of the Pensions Act 1995 (annual increase in rate of certain occupational pensions) is amended in accordance with subsections (2) to (6).
(2) In subsection (1)—
(a) omit “and” at the end of sub-paragraph (i) of paragraph (a),
(b) at the end of sub-paragraph (ii) of that paragraph insert—
“(iii) in the case where the pension becomes a pension in payment on or after the commencement day, is not a money purchase scheme, and”, and
(c) for paragraph (b) substitute—
“(b) the whole, or any part of, the pension is attributable—
(i) to pensionable service on or after the appointed day, or
(ii) in the case of money purchase benefits where the pension is in payment before the commencement day, to payments in respect of employment carried on on or after the appointed day, and
(c) apart from this section—
(i) the annual rate of the pension, or
(ii) if only part of the pension is attributable as described in paragraph (b), so much of the annual rate as is attributable to that part,
would not be increased each year by at least the appropriate percentage of that rate.”
(3) In subsection (2) after “money purchase benefits” insert “where the pension is in payment before the commencement day”.
(4) In subsection (4)(b) for “5 per cent per annum” substitute “—
(i) in the case of a category X pension, 5% per annum, and
(ii) in the case of a category Y pension, 2.5% per annum.”
(5) After subsection (4) insert—
“(4A) For the purposes of this section, a pension is a category X pension if it is—
(a) a pension which became a pension in payment before the commencement day, or
(b) a pension—
(i) which becomes a pension in payment on or after the commencement day, and
(ii) the whole of which is attributable to pensionable service before that day.
(4B) For the purposes of this section, a pension is a category Y pension if it is a pension—
(a) which becomes a pension in payment on or after the commencement day, and
(b) the whole of which is attributable to pensionable service on or after the commencement day.
(4C) For the purposes of applying this section in the case of a pension—
(a) which becomes a pension in payment on or after the commencement day,
(b) part of which is attributable to pensionable service before the commencement day, and
(c) part of which is attributable to pensionable service on or after that day,
each of those parts of the pension is to be treated as if it were a separate pension.”
(6) In subsection (5)—
(a) for “the provisions of subsections (2) and (3)” substitute “any of the provisions of this section”, and
(b) in paragraph (a), after “appointed day” insert “or the commencement day”.
(7) After that section insert—
(1) For the purposes of section 51(1)(c) and (2), “the appropriate percentage” in relation to an increase in the whole or part of the annual rate of a pension—
(a) in the case of a category X pension, means the revaluation percentage for the latest revaluation period specified in the order under paragraph 2 of Schedule 3 to the Pension Schemes Act 1993 (revaluation of accrued pension benefits) which is in force at the time of the increase, and
(b) in the case of a category Y pension, means whichever is the lesser of—
(i) the revaluation percentage for the latest revaluation period specified in the order under paragraph 2 of Schedule 3 to the Pension Schemes Act 1993 which is in force at the time of the increase, and
(ii) 2.5%.
(2) In this section “the revaluation percentage” and “the revaluation period” have the same meaning as in paragraph 2 of Schedule 3 to the Pension Schemes Act 1993.”
(8) In section 54(3) of that Act (sections 51 to 53: supplementary), at the appropriate place insert—
““the commencement day” means the day appointed for the coming into force of section 278 of the Pensions Act 2004 (amendments to section 51),”.
(1) Section 162 of the Pensions Act 1995 (c. 26) (annual increase in rate of certain personal pensions) is amended in accordance with subsection (2).
(2) In subsection (1) omit “and” at the end of paragraph (a) and for paragraph (b) substitute—
“(b) the pension became a pension in payment before the commencement day,
(c) the whole, or any part of, the pension is attributable to contributions in respect of employment carried on on or after the appointed day, and
(d) apart from this section—
(i) the annual rate of the pension, or
(ii) if only part of the pension is attributable as described in paragraph (c), so much of the annual rate as is attributable to that part,
would not be increased each year by at least the appropriate percentage of that rate.”
(3) In section 163(3) of that Act (section 162: supplementary)—
(a) in the definition of “appropriate percentage”, for the words from “revaluation period” to the end substitute “latest revaluation period specified in the order under paragraph 2 of Schedule 3 to the Pension Schemes Act 1993 (revaluation of accrued pension benefits) which is in force at the time of the increase (expressions used in this definition having the same meaning as in that paragraph of that Schedule)”, and
(b) at the appropriate place insert—
““the commencement day” means the day appointed for the coming into force of section 279 of the Pensions Act 2004 (amendments to section 162),”.
(1) Section 40 of the Welfare Reform and Pensions Act 1999 (c. 30) (power of the Secretary of State to increase pensions provided to give effect to certain rights) is amended as follows.
(2) In subsection (1), for “5%” substitute “the maximum percentage”.
(3) In subsection (2), for “This” substitute “Subject to subsection (2A), this”.
(4) After subsection (2) insert—
“(2A) Subsection (2) does not apply to pensions which—
(a) are money purchase benefits, and
(b) become pensions in payment on or after the commencement day.
(2B) For the purposes of subsection (1) the “maximum percentage” means—
(a) 5% in a case where—
(i) the pension is in payment before the commencement day, or
(ii) the pension is not in payment before the commencement day but the entitlement to the relevant pension credit arose before that day, and
(b) 2.5% in a case where the entitlement to the relevant pension credit arises on or after the commencement day.”
(5) In subsection (3), at the appropriate places insert—
““commencement day” means the day appointed for the coming into force of section 280 of the Pensions Act 2004 (amendments to section 40);”
““money purchase benefit” has the meaning given by section 181(1) of the Pension Schemes Act 1993;”
““relevant pension credit” means the pension credit to which the eligible pension credit rights or, as the case may be, the safeguarded rights are (directly or indirectly) attributable;”.
(1) Section 84 of the Pension Schemes Act 1993 (c. 48) (basis of revaluation) is amended as follows.
(2) In subsection (5), after paragraph (a) insert “or
(b) under any arrangement which maintains the value of the pension or other benefit by reference to the rise in the retail prices index during that period,”.
(3) After that subsection add—
“(6) In subsection (5)(b), “retail prices index” means—
(a) the general index of retail prices (for all items) published by the Office for National Statistics, or
(b) where that index is not published for a month, any substituted index or figures published by that Office.”
In section 181 of the Pension Schemes Act 1993 (c. 48) (general interpretation), in subsection (1) for the definition of “working life” substitute—
““working life”, in relation to a person, means the period beginning with the tax year in which the person attains the age of 16 and ending with—
(a) the tax year before the one in which the person attains the age of 65 in the case of a man or 60 in the case of a woman, or
(b) if earlier, the tax year before the one in which the person dies.”
In section 9 of the Pension Schemes Act 1993 (requirements for certification of schemes: general), after subsection (5) insert—
“(5A) Regulations about pension schemes made under this Chapter may contain provisions framed by reference to whether or not a scheme—
(a) is approved under Chapter 1 (retirement benefit schemes) of Part 14 of the Income and Corporation Taxes Act 1988, or is a relevant statutory scheme within the meaning of that Chapter, or
(b) is approved under Chapter 4 (personal pension schemes) of that Part.”
(1) For section 21(1) of the Pension Schemes Act 1993 (commutation of guaranteed minimum pensions) substitute—
“(1) A scheme may, in such circumstances and subject to such restrictions and conditions as may be prescribed, provide for the payment of a lump sum instead of a pension required to be provided by the scheme in accordance with section 13 or 17.”
(2) In section 17 of that Act (minimum pensions for widows and widowers), at the end insert—
“(8) Where—
(a) a lump sum is paid to an earner under provisions included in a scheme by virtue of section 21(1), and
(b) those provisions are of a prescribed description,
the earner shall be treated for the purposes of this section as having any guaranteed minimum under section 14 that he would have had but for that payment.”
(3) In section 28 of that Act (ways of giving effect to protected rights), in subsection (4) (provision of a lump sum)—
(a) after “provision of a lump sum” insert “, subject to such restrictions as may be prescribed,”,
(b) omit paragraphs (a) and (b), and
(c) at the end insert “; and
(e) such other conditions as may be prescribed are satisfied.”
(4) Omit subsections (4A) and (4B) of that section.
(5) In subsections (3) and (5) of that section, for “, (4) or (4A)” substitute “or (4)”.
(6) In subsection (8) of that section, in the definition of “the starting date” omit “, which must not be earlier than the member’s 60th birthday,”.
(7) In section 29(1) of that Act (how a pension may comply with “the pension requirements” for the purposes of section 28)—
(a) in paragraph (a), for the words from “date” to “or on” substitute “date that is not later than the member’s 65th birthday, or on”, and
(b) in paragraph (aa)(ii) omit the words from “and is not” to “75th birthday,”.
(1) Section 1 of the Welfare Reform and Pensions Act 1999 (c. 30) (meaning of “stakeholder pension scheme”) is amended in accordance with subsections (2) to (4).
(2) In subsection (1) (requirements to be met by stakeholder pension schemes), in paragraph (a) for “to (9)” substitute “to (10)”.
(3) In subsection (5) (prescribed requirements relating to administrative expenses of scheme), in paragraph (a) for “by or on behalf of” substitute “by, or on behalf or in respect of,”.
(4) After subsection (9) insert—
“(10) The ninth condition is that—
(a) if the scheme is an occupational pension scheme, it is specified in a contracting-out certificate in relation to all categories of employment to which the scheme relates, and
(b) if the scheme is a personal pension scheme, it is an appropriate scheme within the meaning of section 7(4) of the 1993 Act.”
(5) In section 2 of that Act (registration of stakeholder pension), in subsection (2)(b)(i) for “to (9)” substitute “to (10)”.