Office of Public Sector Information
291.Paragraph 13 amends section 33 (tax requirements to prevail over certification requirements), and its sidenote, to include references to new section 25A.
292.Paragraph 14 amends section 33A (appropriate schemes: blowing the whistle) so that it applies to personal pension schemes which cease to be contracted-out as a result of section 15(1) of the Act.
293.Paragraph 15 amends section 34 (cancellation, variation, surrender and refusal of certificates) so that after the abolition date this section will only apply to schemes contracted-out by virtue of satisfying section 9(2).
294.Paragraph 16 amends section 38 (alteration of the rules of appropriate schemes) so that, rather than applying to appropriate schemes, it applies to personal pension schemes that were appropriate schemes. The prohibition on rule changes continues to apply for as long as there are people who have protected rights under the personal pension scheme or who are entitled to any benefit giving effect to such rights under the scheme.
295.Paragraph 17 amends section 42A by providing a new subsection (8) setting out a definition of “appropriate flat-rate percentage” and “appropriate age-related percentage” in view of the fact that the sections including definitions of these terms (sections 42B and 45A) are to be repealed. Section 42A provides for the calculation of reduced rates of national insurance contributions, and rebates, for earners in COMPs. The section is retained during the period immediately after the abolition date so that HMRC can continue to deal with any matters in connection with reduced rates of national insurance contributions, and rebates, which are outstanding at the date of abolition.
296.Paragraph 18 omits section 42B. Section 42B provides for the Secretary of State to make a report and then an order specifying the “appropriate flat-rate percentage” and the “appropriate age-related percentage”. These percentages are used to determine national insurance rebates for COMPs, and there will therefore be no need for the Secretary of State to make further orders after the abolition date.
297.Paragraph 19 amends section 43 by providing a new subsection (7) defining “the earner’s chosen scheme”. This is necessary because the current definition is contained in section 44, which is to be repealed. Section 43 deals with the payment of contracted-out rebates (minimum contributions) to appropriate personal pension schemes. The section is retained for the period immediately after the abolition date so that HMRC can continue to deal with any minimum contributions relating to the period before the abolition date which are outstanding as at the date of abolition.
298.Paragraph 20 omits section 44. Section 44 provides a mechanism for an earner to choose that contracted-out rebates (minimum contributions) must be made by HMRC to the earner’s chosen APP. After abolition of APPs this section will no longer be required.
299.Paragraph 21 amends section 45 by inserting a new subsection (4), defining “appropriate age-related percentage” for the purpose of the section. The new subsection is required in view of the fact that the definition is currently included in section 45A, which is to be repealed. Section 45 sets out how contracted-out rebates to APPs (minimum contributions) are to be calculated. Section 45 is retained for the period immediately after abolition so that HMRC can continue to deal with any minimum contributions relating to the period before the abolition date which are outstanding as at the date of abolition.
300.Paragraph 22 omits section 45A. Section 45A provides for the Secretary of State to make a report and then an order specifying the “appropriate age-related percentage” for the purposes of calculating minimum contributions under section 45. After the abolition of APPs there will be no need for the Secretary of State to make further orders.
301.Paragraph 23 amends section 48A. That section deals with the reduction of an earner’s additional pension in respect of any tax week in which a contracted-out rebate was paid as a result of the earner’s membership of a contracted-out occupational pension scheme or an APP. In section 48A(1)(a), the reference to section 42A is amended to reflect the fact that from the abolition date no further contracted-out rebates in respect of COMPs will be made (although rebates resulting from pre-abolition periods of membership of a COMP will continue to affect a person’s entitlement to additional pension). Similarly, in section 48A(1)(b), the reference to section 45(1) is amended, to reflect the fact that from the abolition date no further national insurance rebates in respect of APPs will be made (although rebates resulting from pre-abolition periods of membership of an APP will continue to affect a person’s entitlement to additional pension).
302.Paragraph 24 amends section 50. That section gives power to HMRC to approve arrangements for schemes which cease to be certified as contracted-out or APPs or to issue a certificate of non-approval. The effect of the amendments is that HMRC’s powers under section 50 extend to schemes which cease to be COMPs or APPs as a result of section 15(1) of the Act. Paragraph 20 also makes various consequential amendments to section 50 to reflect the fact that there will be no money purchase contracted-out schemes after the abolition date.
303.Paragraph 25 amends section 52. Section 52 provides for the continued supervision by HMRC of occupational pension schemes which used to be contracted-out and personal pension schemes which used to be APPs. The effect of the amendments is that the supervision requirements also apply to schemes which cease to be COMPs and APPs as a result of section 15(1) of the Act.
304.Paragraph 26 amends section 55, which deals with contributions equivalent premiums. The amendment reflects the fact that after the abolition date COMPs will cease to exist, and therefore the existing provision that the section applies to contracted-out occupational pension schemes other than COMPs becomes superfluous.
305.Paragraph 27 amends section 68A (safeguarded rights). The reference to section 9(3) in section 68A(5) is replaced by a reference to a “money purchase contracted-out scheme” in view of the fact that section 9(3) is to be omitted. The references in this subsection to rights under, or derived from, a COMP or APP are retained because safeguarded rights which arose pre-abolition date and which are attributable to COMP or APP service will continue to include COMP or APP rights.
306.Paragraph 28 amends section 87 (the general protection principle). The amendment re-states the present position that the section only applies to occupational pension schemes contracted-out by virtue of satisfying section 9(2), but without doing so by referring to COMPs, which will not exist after the abolition date.
307.Paragraph 29 amends section 96, which deals with cash equivalents. The amendment reflects the fact that appropriate schemes will cease to exist from the abolition date. The effect of the amendment is that, where a transfer is made to a personal pension scheme which is unable or unwilling to accept a transfer payment for guaranteed minimum pensions or protected rights, the member will have a right to the balance of the cash equivalent after deduction of liabilities for guaranteed minimum pensions and/or protected rights.
308.Paragraph 30 amends section 156 so as to allow HMRC to give information to a former APP for the purposes of Part III.
309.Paragraph 31 amends section 163 (exemption of certain schemes from rule against perpetuities) so as to remove a reference to APPs that becomes redundant after the abolition date.
310.Paragraph 32 amends section 164 (Crown employment) by removing references to provisions of the 1993 Act which are to be repealed.
311.Paragraph 33 amends section 177 (general financial arrangements) by removing references to provisions of the 1993 Act which are to be repealed.
312.Paragraph 34 amends section 181(1) (general interpretation) by providing various new and amended definitions. Section 181(4) (regulations) is amended to reflect the fact that section 44 is to be repealed.
313.Paragraph 35 inserts a new section 181A which deals with the interpretation of references to money purchase contracted-out schemes or appropriate schemes after the abolition date. The definitions apply in respect of periods before the abolition date, and mirror the existing definitions of the same expressions in the Act. These historical definitions are required because, although COMPs and APPS will cease to exist from the abolition date, the definitions used in this section will continue to be relevant for the calculation of a person’s additional pension, and, during the period immediately after the abolition date, for dealing with matters relating to periods before that date which are still outstanding at that date (for example contracted-out rebates).
314.Paragraph 36 amends section 149 of the PA1995. Section 149 gives a power to the Secretary of State to make regulations providing for schemes which provide both pensions capable of being contracted out by virtue of section 9(2) and pensions capable of being contracted out by virtue of section 9(3) to be treated as two separate schemes. The effect of the amendment is that schemes which provide both pensions capable of being contracted out by virtue of section 9(2), and pensions satisfying the requirements mentioned in new section 25A(3) are to be treated as two separate schemes for the purposes of Part 3 of the PSA1993.
315.Paragraph 37 omits section 1(10). The amendment removes the current condition that a stakeholder pension scheme which is a personal pension scheme must be an appropriate scheme. A consequential amendment is made to section 1(1).
316.Paragraph 38 amends a cross-reference to section 1(10) to reflect the fact that it has been omitted.
317.Paragraph 39 omits section 7, which allows orders under section 42B and 45A of the PSA1993 to specify different percentages in orders made under those sections for the purposes of for stakeholder schemes. Those sections are to be repealed and so section 7 is no longer needed.
318.Paragraph 40 amends Schedule 5 paragraph 7(6) to remove a cross reference to a provision that is repealed by the Act and to insert a new paragraph (ab).
319.Paragraph 41 omits section 257(7) of the PA2004. This subsection means that the pensions protection provided by virtue of transfer of undertakings protection of employment is not provided to employees in a contracted-out money purchase occupational pension schemes where the scheme only makes contributions based on the contracted-out rebate (minimum payments). The need for such an exemption will cease to exist after the abolition date.
320.The amendments in Part 2 are intended to be brought into force at a date later than the abolition date. The purpose of bringing the amendments in Part 2 of the Schedule into force at a later date is to ensure that the existing statutory mechanisms for HMRC to deal with administrative matters concerning the contracted-out rebate and certification of schemes etc. remain in place until any matters outstanding at the date of abolition of COMPs and APPs have been dealt with before the amendments are brought into force.
321.Paragraph 42 makes amendments to section 4C (regulation-making power in respect of retrospective tax legislation) to reflect the abolition of COMPs and APPs.
322.Paragraphs 43 and 44 make amendments to sections 8 and 9 respectively (calculation of primary and secondary Class 1 contributions) to remove references to section 42A of the PSA1993, which is to be repealed.
323.Paragraph 45 makes amendments to Schedule 1, which deals with the calculation of national insurance contributions in cases where an earner is employed in more than one employment, to reflect the fact that COMPs and APPs are being abolished.
324.Paragraph 47 omits section 8(3), which allows for regulations to be made in relation to the manner in which minimum payments are to be made etc. Minimum payments derive from the contracted-out rebate and are paid to a COMP in respect of earners in contracted out employment.
325.Paragraph 48 amends section 20(3) to omit a reference to sections that are being repealed by the Act
326.Paragraph 49 omits section 31 which currently provides for the investment and resources of schemes.
327.Paragraph 50 omits section 40(b), which currently provides for contributions to be paid by HMRC in respect of earners who are members of COMPs and APPs.
328.Paragraph 51 omits section 42A, which provides for the calculation of national insurance rebates in respect of contracted-out employment in a COMP.
329.Paragraph 52 omits section 43, which provides for HMRC to make minimum contributions to an APP which is an earner’s chosen scheme.
330.Paragraph 53 omits section 45, which provides for the calculation of minimum contributions.
331.Paragraph 54 omits section 45B, which provides a power to make regulations dealing with the verification of ages for the purpose of determining “appropriate age-related percentages”, and provides a power to disclose information in connection with contracted-out rebates.
332.Paragraphs 55, 56, and 57 amend sections 50, 164 and 177 respectively to reflect the repeal of sections 42A, 43 and 45.
333.Paragraph 58 omits the definition of “minimum contributions” in section 181(1) and omits a reference to section 43 in section 181(4). Minimum contributions are made to APPs, and will therefore no longer be required.
334.Paragraph 59 amends Schedule 2 (certification regulations) by making a correction to paragraphs 4 and 6 to reflect the fact that section 66 has been repealed, and by amending the list of provisions in paragraph 5 to reflect repeals in this Schedule.
335.Paragraph 60 amends Schedule 4 (priority in bankruptcy) to reflect the fact that COMPs will no longer exist.
336.Paragraph 61 allows HMRC to continue to deal with COMP and APP certificates which are still outstanding at the abolition date.
337.Paragraph 62 allows HMRC to continue to cancel, vary etc. COMP and APP certificates retrospectively after the abolition date.
338.Section 16 amends section 273 of the PA2004. That section of that Act (pensions disputes) substitutes a new section 50 into the PA1995 and adds new sections 50A and 50B. Section 273 has not yet been brought into force.
339.Subsections (2), (3) and (9) make minor textual amendments.
340.Subsection (4) inserts subsection (4A) into the new section 50. Subsection (4A) provides trustees or managers of an occupational pension scheme with the option of adopting two-stage dispute resolution arrangements. Schemes must provide for disputes to be considered by the trustees or managers, but the trustees or managers can choose for disputes to be considered by another person first. Any decision by the trustees or managers will confirm or replace any first-stage decision.
341.Subsection (5) inserts subsection (5A) into the new section 50. The effect is that the requirements of new section 50(5) apply equally to any first-stage arrangements. This means any decision on an application made under a discretionary first stage must be made and notified to the applicant within a reasonable period.
342.Subsections (6) and (7) make minor amendments to make it clear that the requirements of section 50B relating to the dispute resolution procedure apply only to applications to the trustees or managers, and not any discretionary first stage process.
343.Subsection (8) substitutes a new version of section 50B(3). The amendment means that certain applications will simply have to be made within a reasonable period rather than in accordance with a fixed six-month time limit. This will give the trustees or managers the flexibility to adopt time limits to suit either one or two stage arrangements.
344.Subsection (10) inserts a new subsection (4A) into new section 50B. This amendment makes it clear that a decision by the trustees or managers can be made by one or more of the trustees on behalf of the whole board.
345.The section introduces Schedule 5 which amends pensions legislation and other legislation to remove the requirement for the Secretary of State to approve certain actuarial guidance.
346.This Schedule amends provisions which require actuarial guidance to have been approved by the Secretary of State.
347.Paragraphs 1 and 2 amend sections 36C and 36F of the Bankruptcy (Scotland) Act 1985 and paragraphs 3 and 4 amend sections 342C and 342F of the Insolvency Act 1986 respectively to remove the requirement that guidance prepared by a prescribed person to calculate the value of a pension scheme is to have been approved by the Secretary of State.
348.Paragraphs 5 and 6 amend the PSA1993. Section 12A is amended to remove the requirement for the Secretary of State’s approval in the case of prescribed guidance to determine whether a pension scheme which has applied to contract out under section 9(2B) meets the statutory standard and section 113 is amended to remove the requirement for the Secretary of State’s approval in the case of prescribed guidance on the information to be given about schemes to members.
349.Paragraphs 7 and 8 amend the PA1995. Section 67D is amended to remove the power to make regulations to require prescribed guidance on calculating the actuarial value of an affected member’s subsisting rights to have been approved by the Secretary of State. Section 119 is amended to remove the power to make regulations to require the prescribed guidance on valuing a scheme’s assets and liabilities to have been so approved.
350.Paragraph 9 amends section 230 of the PA2004 to remove the power to make regulations to require the Secretary of State’s approval in the case of prescribed actuarial guidance.
351.Section 18 amends section 286 of the PA2004 which provides for a financial assistance scheme for members of certain pension schemes. The section also makes freestanding provision relating to initial payments made under that financial assistance scheme.
352.Subsection (2) inserts two subsections, (1A) and (1B), into section 286 of the PA2004. Subsection (1A) provides that regulations made under section 286(1) of that Act must ensure that the level of any final assistance payment made to a member (known as an “annual payment”) is set at no less than 80% of that member’s expected pension (as that term is defined in the regulations), taking account of any actual pension (as defined in the regulations, which is, broadly, the actual amount of pension that a member is determined to be receiving based on the assets allocated to them by their scheme). This is subject to certain restrictions set out in the regulations (described in subsection (1B)). Subsection (1A) also requires the regulations to ensure that that level of assistance will be received by all qualifying members, regardless of age.
353.Subsection (1B) sets out the restrictions that can apply to the amount of an annual payment. The specified proportion of the member’s expected pension may be subject to any cap set out in the regulations and regulations may provide that an annual payment is not payable where the member’s actual pension exceeds a specified amount. The current caps are set at £12,000.
354.Subsection (3) inserts new definitions into section 286(2), which are defined by reference to regulations made under section 286(1). Currently the relevant regulations are the Financial Assistance Scheme Regulations 2005 (S.I. 2005/1886, as amended).
355.Subsections (4) to (11) relate to initial payments (which are paid on account of annual payments while pension schemes are winding up) that have been or that will be made under the financial assistance scheme to qualifying members or to their survivors. Initial payments are provided for in regulations made under section 286(1) of the PA2004. These new provisions override those regulations to the extent that they are inconsistent (subsection (8)). Subsection (5) sets initial payments at a level of 80% of the expected pension for a qualifying member less any interim pension the member is receiving from their scheme. Subsection (5) also provides, however, that initial payments are subject to certain restrictions which are set out in the regulations made under section 286(1) (and which are modified by subsection (7)). The cumulative effect is that a cap (currently £12,000) is applied to the product of the calculation of 80% of the member’s expected pension and an initial payment is not payable where a member’s interim pension exceeds a specified amount (also currently £12,000).
356.Subsection (6) sets initial payments for eligible survivors of qualifying members at half of the qualifying member’s expected pension proportion less any interim pension payable to the survivor. If 80% of the member’s expected pension was or would have been subject to a cap then subsection (6) provides for the survivor to receive half the capped amount instead.
357.Subsection (9) provides that the level of initial payments set by this section can be amended by regulations (which under subsection (10) will be subject to the affirmative procedure).
358.Section 19 requires the Secretary of State to make regulations to temporarily prevent the purchase of annuities by trustees of relevant pension schemes except where they have entered into a binding commitment or where the FAS scheme manager considers such purchase to be appropriate.
359.Subsection (1) requires the Secretary of State to make regulations to prevent trustees of relevant pensions schemes from purchasing, or agreeing to purchase, annuities on behalf of qualifying members during the period of 9 months beginning with the date on which the regulations come into force. Paragraph (a) provides for an exception to be made if before the date on which the regulations come into force the trustees have entered into a binding commitment to purchase annuities and paragraph (b) provides for an exception to be made if the purchase of annuities is approved under the terms of subsection (2).
360.Subsection (2) requires regulations under subsection (1) to make provision for enabling trustees of relevant pension schemes to apply to the scheme manager for approval of the purchase of annuities (paragraph (a)) and for authorising the scheme manager to approve such purchases where he thinks it is appropriate to do so (paragraph (b)).
361.Subsection (3) defines a “relevant pension scheme” as any scheme that is a qualifying pension scheme and which is not fully wound up at any time during the 9 months commencing from the date on which the regulations made under subsection (1) come into force.
362.Subsection (4) states that regulations under section 19 must be made as soon as is reasonably practicable after the passing of the Act (paragraph (a)) and that such regulations may make any consequential, incidental, supplemental or transitional provisions that the Secretary of State considers appropriate (paragraph (b)).
363.Subsection (5) provides that regulations under section 19 will be subject to the negative resolution procedure.
364.Subsection (6) provides that "occupational pension scheme", "qualifying member", "qualifying pension scheme" and "scheme manager" have the same meanings as in section 286 of the Pensions Act 2004 (c.35).
365.Section 20 establishes as from the passing of the Act a body corporate called the ‘Personal Accounts Delivery Authority’ (the “Authority”) which is to have a remit covering the whole of Great Britain and Northern Ireland. The Authority is not a servant or agent of the Crown, and as such does not enjoy the associated status, immunity or privileges. The section also introduces Schedule 6, which contains provisions about the membership of the Authority and other matters.
366.The Authority may do what it thinks appropriate to prepare for the implementation of, or for advising on the modification of, any relevant proposals about personal accounts.
367.In this section the phrase ‘advising on the modification of any relevant proposals about personal accounts’ relates to the Authority’s advisory role in helping the Government understand the commercial and operational implications on implementation of policy proposals. This could amount to suggesting additions, omissions or variations in the proposals to reflect, for example, industry best practice.
368.Subsection (2) defines the meaning of ‘relevant proposals’ as being any proposals made by the Secretary of State connected with the establishment of a national low-cost portable pensions savings scheme, and any additional proposals that relate to this subject matter, or relate to matters that are incidental or supplemental to the proposals or to consequential or transitional matters. Proposals are to be considered relevant whether or not Parliament has given the approval on which their implementation would depend. The Government will make proposals relating to personal accounts and the Authority needs to be able to prepare for these before Parliament has given its approval. However, by virtue of subsection (4) the Authority will not be able to implement any proposals requiring the approval of Parliament in advance of Parliament giving its approval.
369.Subsection (3) provides the Authority with incidental powers in connection with the discharge of its main function.
370.Subsection (4) provides that the Authority may not implement any of the proposals requiring Parliament’s approval unless such approval has been received. Before any such approval is given the Authority can only formulate proposals and take preparatory steps towards their implementation when approved and carry out any connected activities.
371.Subsection (5) provides that the Authority may not borrow money for the purpose of, or in connection with, performing its functions from anyone.
372.Subsection (6) provides that the Secretary of State may issue guidance to the Authority from time to time about the discharge of the Authority’s functions as outlined in the section.
373.Subsection (7) obliges the Authority to have regard to any guidance that may be issued by the Secretary of State under subsection (6) in discharging its functions as outlined in the section.
374.Section 22 places the Authority under a duty, when managing its affairs, to have regard to such guidance concerning the management of public bodies as it considers appropriate and, subject to such guidance and insofar as they are applicable to the Authority, to generally accepted principles of good corporate governance.
375.Guidance on the management of public bodies includes that provided by the Cabinet Office, for example the Guidance on Codes of Practice for Board Members of Public Bodies (October 2004). Principles of good corporate governance include those currently set out in the Combined Code published by the Financial Reporting Council in June 2006.
376.Subsection (1) provides that the Secretary of State may by order provide for the winding up and dissolution of the Authority if he considers that the condition in subsection (3) is met, namely, that as a result of the abandonment or modification of relevant proposals on the personal accounts scheme it is no longer necessary for the Authority to exist.
377.Subsection (2) provides that if the Secretary of State considers that the condition in subsection (3) is met at any time after 2008 he must, as soon as is reasonably practicable, make an order providing for the dissolution of the Authority.
378.Subsection (4) clarifies that the Secretary of State is not obliged to reintroduce an order for the Authority’s dissolution by virtue of subsection (2) if such an order has been previously defeated in either House of Parliament.
379.Subsection (5) makes provision allowing the order to include, among other things, details on the transferring of the Authority’s property, rights and liabilities to the Secretary of State on dissolution of the Authority.
380.Subsection (6) provides that the order can include consequential, incidental, or supplemental provisions, and transitional, transitory or saving arrangements that are considered appropriate by the Secretary of State as a result of the winding up and dissolution of the Authority.
381.Subsection (7) enables the Secretary of State to use the order to remove what will be redundant provisions from the Act in the event of the dissolution of the Authority.
382.Subsection (8) provides that the power to make an order for the Authority’s dissolution is subject to the affirmative resolution procedure in both Houses of Parliament.
383.Part 1 deals with the members and employees of the Authority. The table below summarises the appointment procedures for the Authority and its staff.
| Initial appointment by | Subsequent appointments by | Terms and conditions set by | Remuneration set by | |
|---|---|---|---|---|
| Chairman | Secretary of State | Secretary of State | Secretary of State | Secretary of State |
| Chief Executive | Secretary of State | Chairman and other non-executive members, subject to Secretary of State approval | Initial Appointment – Secretary of State. Thereafter- Chairman and other non-executive members, subject to Secretary of State approval | Initial Appointment – Secretary of State. Thereafter- Chairman and other non-executive members, subject to Secretary of State approval |
| Non-executive members (other than Chairman) | Secretary of State | The Authority, subject to Secretary of State approval | Initial appointment - Secretary of State. Thereafter, the Authority, subject to the approval of the Secretary of State. | Secretary of State |
| Executive members (other than Chief Executive and other employees) |
Secretary of State | The Chairman and other non-executives, subject to Secretary of State approval | Initial Appointment – Secretary of State. Thereafter- Chairman and other non-executive members, subject to Secretary of State approval | Initial Appointment – Secretary of State. Thereafter- Chairman and other non-executive members, subject to Secretary of State approval |
| Other staff | The Authority | The Authority | The Authority | The Authority |
384.Paragraph 1 specifies that both the Secretary of State and the Authority must aim to ensure the Authority’s membership is between 3 and 9 members. The membership of the Authority is to consist of a chairman, appointed by the Secretary of State, non-executives appointed subject to sub-paragraphs (2) and (3) (namely that the first non-executives will be appointed by the Secretary of State, with any subsequent appointments to be made by the Authority with Secretary of State’s approval), and any executive members appointed as mentioned in paragraph 6 of the Schedule.
385.Paragraph 2 describes how the Secretary of State must, before appointing a chairman or another non-executive member, and from time to time once they have taken up their position, be satisfied that they do not have a conflict of interest, defined in sub-paragraph (6) as any interest, financial or otherwise, that is likely to affect prejudicially the way they carry out their functions.
386.Sub-paragraph (3) provides that any person mentioned in sub-paragraph (4) must, if the Secretary of State requests, provide information that will allow the Secretary of State to satisfy himself that they do not have a conflict of interest.
387.Sub-paragraph (5) states that sub-paragraphs (1) to (4) apply both when the Secretary of State proposes to make an appointment and when he considers approving an appointment made by the Authority.
388.Sub-paragraph (7) sets out the activities that are not to be considered a conflict of interest if they are the only relevant activities. These include being, or having been, involved on behalf of the relevant authority in activities connected with the discharge of the relevant authority’s functions relating to occupational or personal pension schemes. They also include having been a trustee or manager of an occupational or personal pension scheme, or an employee of such a trustee or manager.
389.Paragraph 24(1) defines the relevant authority as either the Secretary of State or the Department for Social Development in Northern Ireland.
390.Paragraph 3 deals with the tenure of office of the chairman and other non-executive members including the terms and period of their appointment, the procedure for resigning and the grounds, under sub-paragraph (5), on which the Secretary of State may, by notice in writing, remove a non-executive member from office.
391.Paragraph 4 allows the Authority to pay to non-executive members such remuneration, and to pay to or in respect of them such allowances and gratuities, as may be determined by the Secretary of State.
392.Sub-paragraph (2) provides for the Authority to pay compensation to the chairman or other non-executive members if they cease to hold their position for a reason other than the expiry of their term of office and the Secretary of State thinks there are special circumstances that make compensation appropriate. The Secretary of State will decide the amount of any such compensation.
393.Paragraph 5 provides for the Secretary of State to be able to appoint a non-executive member to the post of deputy chairman to discharge the functions of the chairman if there is a vacancy in the office of chairman or if the chairman is absent or otherwise unable to act. When discharging the chairman’s functions, the deputy must have regard to any guidance given by the chairman.
394.Sub-paragraph (1) of paragraph 6 states that the executive members of the Authority will be the chief executive of the Authority and other persons, if any, appointed in accordance with sub-paragraph (4) or (5).
395.Sub-paragraph (2) states that the Authority is not required by paragraph 1(1)(c) to have any executive members until the Secretary of State has appointed the initial chief executive.
396.Sub-paragraph (4) of paragraph 7 states that if an executive member who is a participant in a pension scheme relevant to his membership ceases to be an executive member without ceasing to be an employee of the Authority, the Secretary of State may, for the purposes of pension provision, determine that that person’s service as an employee is to be treated as if it were service as an executive member.
397.Paragraphs 6(7) and 8 allow the Authority to appoint other employees of the Authority who are not executive members, and for the Authority to determine their terms and conditions, including remuneration.
398.Paragraph 8(3) states that if an employee of the Authority is a participant in a pension scheme relevant to his employment and becomes an executive member of the Authority, the Secretary of State may, for the purposes of pension provision, determine that that person’s service as an executive member is to be treated as if it were service as an employee.
399.Paragraph 9 sets out the committees the Authority may establish and who their members may be.
Pensions Act 2007