PART 1 continued CHAPTER 4 continued
“(A1) An inspector may, for the purposes of investigating whether an employer is contravening, or has contravened—
(a) any provision of, or of regulations under, Chapter 1 of Part 1, or section 50 or 54, of the Pensions Act 2008, or
(b) any corresponding provision in force in Northern Ireland,
at any reasonable time enter premises liable to inspection.
(B1) Premises are liable to inspection for the purposes of subsection (A1) if the inspector has reasonable grounds to believe that—
(a) the employer employs workers there,
(b) documents relevant to any of the following are being kept there—
(i) the administration of the employer’s business,
(ii) the duties of the employer under Chapter 1 of Part 1 of the Pensions Act 2008 or under any corresponding provision in force in Northern Ireland,
(iii) the administration of a pension scheme that is relevant to the discharge of those duties, or
(c) the administration of the employer’s business, or work connected with that administration, is being carried out there.
(C1) In subsections (A1) and (B1) “employer” and “worker” have the meaning given by section 88 of the Pensions Act 2008.
(D1) In the application of subsections (A1) and (B1) in relation to any provision mentioned in subsection (A1)(b) (a “corresponding Northern Ireland provision”), references in those subsections to “employer” or “worker” are to be read as having the meaning that they have for the purposes of the corresponding Northern Ireland provision.”
(4) In section 75(1), after “subsection” (in the third place where it occurs) insert “(A1),”.
(5) In section 76(9), after “subsection” (in the second place where it occurs) insert “(A1),”.
(1) In the Pensions Act 2004 (c. 35), for section 88 (tax information) substitute—
(1) This section applies to information held by the Revenue and Customs if it is held by them in connection with a function of the Revenue and Customs that relates to any of these matters—
(a) tax or duty;
(b) national insurance contributions;
(c) the national minimum wage.
(2) An officer of Revenue and Customs may disclose to the Regulator information to which this section applies, if the disclosure is made for the purpose of enabling or assisting the Regulator to discharge its functions.
(3) Where information to which this section applies is disclosed to the Regulator by virtue of subsection (2) above or section 19 of the Anti-terrorism, Crime and Security Act 2001 (disclosure of information held by revenue departments), it must, subject to subsections (4) and (5), be treated for the purposes of section 82 as restricted information.
(4) Information to which this section applies which is disclosed to the Regulator as mentioned in subsection (3) may not be disclosed by the Regulator or any person who receives the information directly or indirectly from the Regulator except—
(a) to, or in accordance with authority given by, the Commissioners for Her Majesty’s Revenue and Customs,
(b) with a view to the institution of, or otherwise for the purposes of, any criminal proceedings,
(c) with a view to the institution of any other proceedings by the Regulator, or for the purposes of any such proceedings instituted by the Regulator,
(d) in accordance with section 84, otherwise than for the purposes of any proceedings, or
(e) in the form of a summary or collection of information so framed as not to enable information relating to any particular person to be ascertained from it.
(5) Accordingly sections 82(3), 83, 85 to 87 and 235, and paragraph 4 of Schedule 10, do not apply to such information, and section 84 applies subject to subsection (4)(d).
(6) In subsection (4)(c) and (d), “proceedings” includes the issue of notices or any other enforcement action taken by the Regulator under Chapter 2 of Part 1 of the Pensions Act 2008 or any other enactment.
(7) In this section “the Revenue and Customs” and a “function of the Revenue and Customs” have the same meaning as in section 18 of the Commissioners for Revenue and Customs Act 2005 (confidentiality).”
(2) In section 82 of that Act (restricted information), in subsection (3) for “88(4)” substitute “88(5)”.
(1) In Schedule 10 to the Pensions Act 2004 (c. 35) (use and supply of information for purposes relating to private pensions policy and retirement planning), after paragraph 3 insert—
4 (1) This paragraph applies to information which is held—
(a) by the Regulator;
(b) by a person providing services to the Regulator, in connection with the provision of those services.
(2) Information to which this paragraph applies may be supplied—
(a) to the Secretary of State or the Northern Ireland Department, or
(b) to a person providing services to the Secretary of State or the Northern Ireland Department,
for use for the purposes of functions relating to private pensions policy or retirement planning.
(3) In this paragraph—
“private pensions policy” means policy relating to schemes which are occupational pension schemes or personal pension schemes within the meaning of Part 1 of the Pensions Act 2008;
“retirement planning” and “the Northern Ireland Department” have the same meaning as in paragraph 2.”
(2) Section 323 of the Pensions Act 2004 (extent) is amended as follows.
(3) In subsection (2)(c) (provisions extending to Northern Ireland)—
(a) for “paragraph 2” substitute “paragraphs 2 and 4”;
(b) for “that paragraph” substitute “those paragraphs”.
(4) In subsection (4), for “paragraph 2” substitute “paragraphs 2 and 4”.
(5) Section 3 of the Social Security Act 1998 (c. 14) (use of information) is amended as follows.
(6) In subsection (5), in the definition of “private pensions policy”—
(a) the words from “occupational” to the end become paragraph (a), and
(b) after that paragraph insert “or
(b) occupational pension schemes or private pension schemes within the meaning of Part 1 of the Pensions Act 2008, if they do not fall within paragraph (a);”.
(1) In section 82(5)(a) of the Pensions Act 2004 (penalty for disclosure of restricted information, on summary conviction), at the end insert “, or imprisonment for a term not exceeding 12 months, or both”.
(2) After subsection (5) insert—
“(6) In relation to an offence under subsection (5) committed before the commencement of section 282 of the Criminal Justice Act 2003 (short sentences) the reference in subsection (5)(a) to 12 months has effect as if it were a reference to six months.
(7) Subsection (6) does not extend to Scotland.”
In section 5(1) of the Pensions Act 2004 (c. 35) (Regulator’s objectives), before “and” at the end of paragraph (c) insert—
“(ca) to maximise compliance with the duties under Chapter 1 of Part 1 (and the safeguards in sections 50 and 54) of the Pensions Act 2008,”.
(1) Section 146 of the Pension Schemes Act 1993 (c. 48) (functions of the Pensions Ombudsman) is amended as follows.
(2) In subsection (7), after paragraph (ba) insert—
“(bb) a person who has given notice in accordance with section 8 of the Pensions Act 2008 (right to opt out of membership of an automatic enrolment scheme);”
(3) In paragraph (c)(i) of that subsection, for “or (ba)” substitute “, (ba) or (bb)”.
(1) The Secretary of State must establish a pension scheme and make provision for its administration and management.
(2) A scheme established under this section is to be treated for all purposes as established under an irrevocable trust.
(3) It must be a scheme that is able to be registered under Chapter 2 of Part 4 of the Finance Act 2004 (c. 12).
(4) It must when registered under that Chapter be a scheme such that a jobholder’s employer, if a participating employer, may comply with an enrolment duty by arranging for the jobholder to become an active member of the scheme.
(5) It must be a scheme that complies with any provision of Northern Ireland legislation corresponding to subsection (4).
(6) The scheme administrator must ensure that the scheme is and remains registered under Chapter 2 of Part 4 of the Finance Act 2004.
(7) “Scheme administrator” has the same meaning here as in that Part.
(8) The power to make provision in pursuance of subsection (1) is exercisable by order.
(9) If an order establishes a scheme, any further provision that may be made by order in relation to the scheme may also be made by rules (and rules may be made so as to come into force at the same time as the establishing order).
(10) That is subject to subsections (11) and (12).
(11) Rules are subject to any provision made by order.
(12) No provision may be made by rules about—
(a) the purpose or object of the scheme;
(b) the appointment or removal of trustees;
(c) (as regards trustees, or members of any corporate trustee) meetings, committees or delegation of functions;
(d) any exclusion of liability on the part of trustees, or the provision of any indemnity or insurance out of the funds of the scheme.
(13) Except as expressly provided, nothing in this Act limits the generality of the powers conferred by this section.
(1) An order under section 67 establishing a scheme must provide for the trustee corporation (the body established by section 75) to be a trustee on the coming into force of the scheme.
(2) An order under section 67 may provide for any provision of the Trustee Act 2000 (c. 29) to apply as if an order or rules under section 67 were a trust instrument.
(3) An order under section 67 may provide for the trustees to have power to make rules under that section.
(4) Where the trustees have power to make rules, an order under section 67 may provide—
(a) that they may not exercise the power in specified circumstances;
(b) that they may exercise it subject to conditions;
(c) that they must comply with requirements for consultation or publication or other procedural requirements when exercising the power.
(5) An order under section 67 may make provision for the exclusion of, or indemnity against, liability of a trustee, or an officer or employee of a trustee, arising out of the administration or management of a scheme.
(1) If an order under section 67 establishes a scheme, the Secretary of State must by order under that section require the trustees to make and maintain arrangements for consulting the members of the scheme and participating employers about the operation, development and amendment of the scheme.
(2) The arrangements must include establishment and maintenance of—
(a) a panel of persons to represent members (“the members' panel”), and
(b) a panel of persons to represent employers (“the employers' panel”).
(3) The composition and functions of the panels are to be determined by order under section 67, or by the trustees under an order.
(4) The functions of the members' panel may include nominating individuals to be members of the trustee corporation.
(5) An order under section 67 may provide for payments to panel members out of scheme funds.
(1) An order under section 67 must prescribe the maximum amount of contributions that may be made by or in respect of a member in any tax year.
(2) For the purposes of provision under subsection (1) an order may in particular make provision as to—
(a) what is a contribution;
(b) when a contribution is to be treated as made;
(c) how contributions are to be treated if the maximum is exceeded;
(d) circumstances in which a payment is to be made to any person in respect of an excess contribution;
(e) who is to make any such payment and how it is to be calculated.
(3) An order may prescribe a maximum amount for payments that may be made by a member and that are not contributions for the purposes of provision under subsection (1).
(4) The Secretary of State may by order repeal this section.
(1) Subsection (2) applies to any order under section 67 relating to a scheme, except the order establishing the scheme and an order taking effect at the same time as that order.
(2) The Secretary of State may not make the order without the consent of the trustees.
(3) But the trustees may not withhold their consent without giving reasons.
(4) The trustees must consult the members' panel and the employers' panel before deciding whether to give consent.
(1) A person who proposes to make rules under section 67 must publish a draft of the rules and invite comments.
(2) They must have regard to any comments made in accordance with the invitation.
(3) If they make the rules they must publish an account in general terms of those comments and their response to them.
(4) If the rules they make differ from the draft published under subsection (1), they must publish details of any differences that they think are significant.
(5) Subsection (6) applies to any rules made by the Secretary of State under section 67 relating to a scheme, except rules taking effect at the same time as the order establishing the scheme.
(6) The Secretary of State may not make the rules without the consent of the trustees.
(7) But the trustees may not withhold their consent without giving reasons.
(8) The trustees must consult the members' panel and the employers' panel—
(a) before making rules under section 67;
(b) before deciding whether to give consent under subsection (6).
(9) If the Secretary of State or the trustees make rules under section 67 they must publish them.
(10) Anything published under this section must be published in a way designed to bring it to the attention of the persons likely to be interested or affected.
(11) The publication must not be limited to electronic publication.
(1) The Interpretation Act 1978 (c. 30) applies in relation to rules under section 67 as if they were contained in a deed not made under an enactment.
(2) A scheme established under section 67 is not to be treated as a public service pension scheme for the purposes of any enactment.
(1) The Secretary of State must appoint a person to review in relation to a scheme established under section 67—
(a) the effect of provision made under section 70 (maximum amount of contributions),
(b) the effect of any restrictions on rights to transfer into the scheme or transfer out to another pension scheme, and
(c) such other matters as the Secretary of State may direct.
(2) The appointment under subsection (1) must be made on or after the later of—
(a) 1 January 2017;
(b) the end of five years beginning with the first day on which contributions are paid to the scheme by or in respect of members.
(3) The person appointed under subsection (1) must—
(a) prepare a report of the review, and
(b) send a copy of the report to the Secretary of State.
(4) The Secretary of State must lay before Parliament a copy of the report.
(5) The Secretary of State may pay to the person appointed under subsection (1) such remuneration and expenses as the Secretary of State may determine.
(1) There is to be a body corporate, referred to in this Chapter as the trustee corporation.
(2) The name of the body is to be determined by order made by the Secretary of State.
(3) The trustee corporation is not to be regarded as the servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown.
(4) Property held by the corporation is not to be regarded as property of, or property held on behalf of, the Crown.
(5) Schedule 1 makes provision about the trustee corporation.
(1) The functions of the trustee corporation are—
(a) to act as a trustee of any scheme established under section 67, and
(b) any other functions it is given by or under an enactment in connection with the scheme.
(2) The corporation may do anything calculated to facilitate, or incidental or conducive to, the carrying out of any of its functions.
(3) In particular the corporation may—
(a) enter into agreements;
(b) borrow money;
(c) invest money.
(4) The corporation’s powers within subsection (3)(b) and (c) are exercisable only with the consent of the Secretary of State.
(5) Subsections (3) and (4) are without prejudice to the exercise by the trustee corporation of any power vested in it as a trustee of a scheme established under section 67.
(1) The Secretary of State may by regulations provide that legislation applying in relation to a person as trustee of a pension scheme, or as director of a company which is a trustee of a pension scheme, applies in relation to the trustee corporation, or its members, with any modifications prescribed in the regulations.
(2) In this section “legislation” means any provision of an Act or subordinate legislation (and “subordinate legislation” has the same meaning as in the Interpretation Act 1978 (c. 30)).
In this Chapter—
“employers' panel” has the meaning given by section 69(2)(b);
“members' panel” has the meaning given by section 69(2)(a);
“trustees”, in relation to a scheme established under section 67, means the trustee or trustees of the scheme.
(1) Section 21 of the Pensions Act 2007 (c. 22) (initial function of the Authority) ceases to have effect.
(2) The Personal Accounts Delivery Authority (referred to in this Chapter as the “Authority”) has the following functions—
(a) to give any assistance and advice that the Secretary of State may require, and any advice that the Authority considers expedient, for or in connection with the establishment and operation of a scheme under section 67(1);
(b) to give any assistance and advice that the Secretary of State or the Regulator may require, and any advice that the Authority considers expedient, for or in connection with arrangements to enable requirements imposed by or under Chapter 1 of this Part to be complied with and enforced.
(3) Assistance or advice required by the Secretary of State under subsection (2)(a) may include assistance or advice to the trustees of the scheme.
(4) The Authority’s functions under subsection (2) are in addition to any functions that may be conferred on it by or under this Act or any other enactment.
(5) The Authority may do anything calculated to facilitate, or incidental or conducive to, the carrying out of any of its functions.
(6) In particular, the Authority may—
(a) enter into agreements;
(b) borrow money.
(7) The Authority’s powers within subsection (6)(b) are exercisable only with the consent of the Secretary of State.
(1) In carrying out its functions under section 79(2) the Authority must have regard to the principles in subsection (2).
(2) The principles are that—
(a) participation in qualifying schemes should be encouraged and facilitated;
(b) the burdens imposed on employers as a result of this Part should be minimised;
(c) any adverse effects on qualifying schemes, and members and future members of those schemes, as a result of implementation of Chapter 5 of this Part should be minimised;
(d) the cost of membership of a scheme established under section 67 should be minimised;
(e) the preferences of members and future members should, so far as practicable, be taken into account in making any provision about investment choice in such a scheme;
(f) diversity among members and future members of such a scheme should be respected.
(3) The Authority must take any steps it considers appropriate to promote and engage in discussion with relevant public authorities and others about its functions under section 79(2) and how it carries them out.
(1) The Secretary of State may give the Authority guidance or directions about the discharge of its functions.
(2) In discharging its functions, the Authority must have regard to any guidance, and comply with any directions, under this section.
(3) Guidance or directions under this section may vary or revoke earlier guidance or directions under this section.
(4) Directions under this section must be in writing.
(5) The Secretary of State must publish any direction given under this section.
In Schedule 6 to the Pensions Act 2007 (c. 22), for paragraph 18 and the italic heading immediately before it, substitute—
18 (1) The Secretary of State may, with the consent of the Treasury, give financial assistance to the Authority.
(2) The assistance—
(a) may take the form of grants, loans, guarantees or indemnities;
(b) may be given on conditions;
(c) in the case of a loan, must be given on a condition requiring the loan to be repaid with interest at a rate approved by the Treasury.
(3) Section 5 of the National Loans Act 1968 (rates of interest on certain loans out of the National Loans Fund) has effect as respects the rate of interest on a loan under this paragraph as it has effect as respects a rate of interest within subsection (1) of that section.”
In section 84 of the Pensions Act 2004 (disclosure for facilitating exercise of functions by the Pensions Regulator), after subsection (3) insert—
“(4) Section 82 does not preclude the disclosure by the Regulator to the Personal Accounts Delivery Authority of such information as appears to the Regulator to be necessary to enable the Authority to provide assistance or advice to the Regulator under section 79(2) of the Pensions Act 2008.”
(1) Schedule 6 to the Pensions Act 2007 (c. 22) is amended as follows.
(2) In paragraph 6(3) and (5), for “the chairman and other non-executive members” substitute “the non-executive committee”.
(3) In paragraph 7(2) and (3), for “the chairman and other non-executive members” substitute “the non-executive committee”.
(4) At the beginning of Part 2 insert—
8A (1) There is to be a committee of the Authority consisting of the chairman and every other non-executive member of the Authority (referred to in this Schedule as the “non-executive committee”).
(2) The non-executive committee must—
(a) keep under review the question whether the Authority’s internal financial controls secure the proper conduct of its financial affairs, and
(b) discharge the other functions conferred on it by this Schedule.
(3) The non-executive committee must prepare a report on the discharge of the functions mentioned in sub-paragraph (2) for inclusion in the annual report of the Authority under paragraph 17.
(4) The report under sub-paragraph (3) must relate to the same period as the Authority’s report.
(5) The non-executive committee may establish a sub-committee.
(6) The members of a sub-committee under sub-paragraph (5)—
(a) must include at least one non-executive member of the Authority, and
(b) must not include persons who are executive members or employees of the Authority.
(7) A sub-committee under sub-paragraph (5) may include persons who are not members of the non-executive committee or the Authority.
(8) Paragraphs 9 and 10 do not apply to the non-executive committee.”
(5) In the italic heading immediately before paragraph 9, for “Committees” substitute “Other committees”.
(6) In paragraph 11, in sub-paragraph (1)(b), at the beginning insert “subject to sub-paragraph (1A),”.