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STATUTORY INSTRUMENTS
2005 No. 275 (C.10)
PENSIONS
The Pensions Act 2004 (Commencement No. 2, Transitional Provisions and Consequential Amendments) Order 2005
Made
9th February 2005
The Secretary of State for Work and Pensions, in exercise of the powers conferred upon him by sections 315(2) and (5) and 322(1) and (5) of the Pensions Act 2004[1] and of all other powers enabling him in that behalf, hereby makes the following Order:
Citation, interpretation and appointed days
Citation and interpretation 1.
- (1) This Order may be cited as the Pensions Act 2004 (Commencement No. 2, Transitional Provisions and Consequential Amendments) Order 2005.
(2) In this Order -
"the 1993 Act" means the Pension Schemes Act 1993[2];
Appointed days 2.
- (1) The day appointed for the coming into force of the provisions of the Act specified in Part 1 of the Schedule -
(a) for the purpose only of conferring power to make regulations or orders, as the case may be, is 10th February 2005; and
(b) for all other purposes, is 8th March 2005.
(2) The day appointed for the coming into force of the provisions of the Act specified in Part 2 of the Schedule -
(a) for the purpose only of conferring power to make regulations, is 10th February 2005; and
(b) for all other purposes, is 1st April 2005.
(3) Subject to paragraphs (8) and (10), the day appointed for the coming into force of the provisions of the Act specified in Part 3 of the Schedule -
(a) for the purpose only of conferring power to make regulations, orders or rules, as the case may be, is 10th February 2005; and
(b) for all other purposes, is 6th April 2005.
(4) The day appointed for the coming into force of the provisions of the Act specified in Part 4 of the Schedule is 10th February 2005.
(5) The day appointed for the coming into force of the provisions of the Act specified in Part 5 of the Schedule is 8th March 2005.
(6) The day appointed for the coming into force of the provisions of the Act specified in Part 6 of the Schedule is 1st April 2005.
(7) Subject to paragraph (12), the day appointed for the coming into force of the provisions of the Act specified in Part 7 of the Schedule is 6th April 2005.
(8) Paragraph (3) does not apply as respects section 270 of the Act, so far as it affects sections 73 and 74 of the 1995 Act as they apply immediately before 6th April 2005 to any scheme which-
(a) was regarded at that time by virtue of regulation 2 of the Occupational Pension Schemes (Winding Up) Regulations 1996[4] as having begun to be wound up for the purposes of those Regulations; or
(b) in accordance with section 124(3A) to (3E) of the 1995 Act[5] began to wind up before that date.
(9) In paragraph (8) the reference to a scheme includes a reference to any section of a scheme to which sections 73 and 74 of the 1995 Act apply as if it were a scheme by virtue of regulation 12 of those Regulations.
(10) Paragraph (3) does not apply as respects section 271 of the Act, so far as it affects section 75 of the 1995 Act as it applies immediately before 6th April 2005 to-
(a) any scheme other than a money purchase scheme in the case of which a debt to the trustees or managers of the scheme has been treated as arising under section 75(1) of the 1995 Act before that date;
(b) any scheme regarded at that time by virtue of regulation 2 of the Occupational Pension Schemes (Deficiency on Winding Up etc.) Regulations 1996[6] as having begun to be wound up for the purposes of those Regulations; or
(c) any scheme which in accordance with section 124(3A) to (3E) of the 1995 Act began to wind up before that date.
(11) In paragraph (10) the reference to a scheme includes a reference to any section of a scheme to which section 75 of the 1995 Act applies as if it were a scheme by virtue of regulation 4 or 8 of those Regulations.
(12) Paragraph (7) does not apply as respects section 265 of the Act, so far as it affects any period of paternity leave or adoption leave which began before 6th April 2005.
Transitional adaptations and modifications
Transitional provisions in relation to the Pensions Compensation Board 3.
- (1) For the purposes of the provision of information by the Pensions Ombudsman to the Pensions Compensation Board section 149(6) of the 1993 Act shall have effect until 1st September 2005 as if there were inserted after the end of paragraph (ba) (as substituted by paragraph 25 of Schedule 12 to the Act) -
"
(bb) the Pensions Compensation Board,".
(2) The Table in section 158A(1) of the 1993 Act shall have effect until 1st September 2005 as if the entry relating to the Pensions Compensation Board (prior to its substitution by paragraph 26 of Schedule 12 to the Act) remained in place.
Transitional provision and saving in relation to section 175 of the 1993 Act (levies towards certain expenditure) 4.
Notwithstanding anything in this Order, section 175(8) of the 1993 Act continues to apply to a levy for which any person was liable by virtue of section 175 of that Act immediately before 1st April 2005, but which has not been paid in full before that date, as it had effect immediately before that date, except that the reference to "the Registrar" shall be read as if it were a reference to "the Regulatory Authority".
Consequential amendment of the Paternity and Adoption Leave Regulations 2002 5.
- (1) The Paternity and Adoption Leave Regulations 2002[7] shall be amended in accordance with this article.
(2) In paragraph (2) of regulations 14 (incidents of the right to return after paternity leave) and 27 (incidents of the right to return from adoption leave) for the words from "paragraphs 5" to "family leave)." substitute "paragraphs 5, 5B and 6 of Schedule 5 to the Social Security Act 1989[8] (equal treatment under pension schemes: maternity absence, adoption leave and family leave).".
Signed by authority of the Secretary of State for Work and Pensions.
Malcolm Wicks
Minister of State, Department for Work and Pensions
PROVISIONS OF THE ACT COMING INTO FORCE ON 10TH FEBRUARY 2005 FOR THE PURPOSE ONLY OF CONFERRING POWER TO MAKE REGULATIONS OR ORDERS, AS THE CASE MAY BE, AND ON 8TH MARCH 2005 FOR ALL OTHER PURPOSES
Provision of the Act
Subject matter
section 115(3) so far as it relates to the definition of "borrowing limit"
Board of Pension Protection Fund - borrowing
section 126(2)
eligible schemes
section 300(2)
dissolution of OPRA
section 307(1)(b) and (3)
modification of the Act in relation to certain categories of schemes
PROVISIONS OF THE ACT COMING INTO FORCE ON 10TH FEBRUARY 2005 FOR THE PURPOSE ONLY OF CONFERRING POWER TO MAKE REGULATIONS, AND ON 1ST APRIL 2005 FOR ALL OTHER PURPOSES
Provision of the Act
Subject matter
section 59(2)
power to prescribe "registrable scheme"
section 117(1), (3) and (7)(a)
administration levy
section 126(1)(b) and (5)
eligible schemes
section 174(1) to (3)
initial levy
section 181(5) and (8)
calculation, collection and recovery of levies
section 189(11)(a)
fraud compensation levy
section 209(7) and (8)
PPF Ombudsman - levy
Schedule 1, paragraph 26, and section 3 in so far as it relates to that paragraph
the Pensions Regulator - collection of levy
Schedule 12, paragraph 28, and section 319(1) in so far as it relates to that paragraph
consequential amendment
Schedule 13, in so far as it relates to the repeal relating to section 175 of the 1993 Act, and section 320 in so far as it relates to that repeal
PROVISIONS OF THE ACT COMING INTO FORCE ON 10TH FEBRUARY 2005 FOR THE PURPOSE ONLY OF CONFERRING POWER TO MAKE REGULATIONS, ORDERS OR RULES, AS THE CASE MAY BE, AND ON 6TH APRIL 2005 FOR ALL OTHER PURPOSES
Provisions of the Act
Subject matter
section 10(5)(a)
functions exercisable by the determination panel
section 19(7)
pension liberation: court's power to order restitution
section 21(4)
pension liberation: repatriation orders
section 23(10), paragraph (b)(i) of the definition of "the actuary"
freezing orders
section 24(7)(a)
consequences of freezing order
section 30(7)(c)
power to give a direction where freezing order ceases to have effect
section 36(2) and (3)
independent trustees
section 38(1)(b)
contribution notices where avoidance of employer debt
section 43(1)(b), (3)(c) and (9)
financial support directions
section 44(3)(a) and (4)
meaning of "service company" and "insufficiently resourced"
section 45(2)(b)
meaning of "financial support"
section 52(1)(b) and (7)(a)
restoration orders where transactions at an undervalue
section 57(1) to (4)
sections 39 to 56: partnerships and limited liability partnerships
section 60(2)(h) and (3)
registrable information
section 61(1) to (3)
the register: inspection, provision of information and reports etc
section 69(2), (3)(a)(ii) and (b)(ii) and (5)
duty to notify the Regulator of certain events
section 93(2)(q)
The Regulator's procedure in relation to its regulatory functions
section 97(5)(u)
special procedure: applicable cases
section 102(3)
the Pensions Regulator Tribunal
section 103(1)(c)
references to the Tribunal
section 104(6)
appeal on a point of law
section 106 (1) to (4)
legal assistance scheme
section 114(1)(b), (3) and (4)
statement of investment principles relating to the Board of the Pension Protection Fund
section 120(3) and (4)
duty to notify insolvency events in respect of employers
section 121(5)
insolvency event, insolvency date and insolvency practitioner
section 122(3), (5) and (8)
insolvency practitioner's duty to issue notices confirming status of scheme
section 123(5)
approval of notices issued under section 122
section 125(4)(a)
binding notices confirming status of scheme
section 126(3)
eligible schemes
section 129(1)(b), (3) and (8)
applications and notifications for the purposes of section 128
section 130(5) and (8)
Board's duty where application or notification received under section 129
section 133(3)
admission of new members, payment of contributions, etc.
section 134(3) in so far as it relates to paragraph (iii) of the definition of "relevant person" in paragraph (a)
directions
section 135(4)
restrictions on winding up, discharge of liabilities, etc.
section 138(10)(b) and (12)
payment of scheme benefits
section 139(6)
loans to pay scheme benefits
section 140(3)(b) and (6)
reviewable ill health pensions
section 141(2) and (6)
effect of a review
section 143(3) to (5) and (11) in so far as it relates to paragraphs (i) and (ii)(a) of the definition of "actuarial valuation" in paragraph (a)
Board's obligation to obtain valuation of assets and protected liabilities
section 145(4)
binding valuations
section 146(1) and (5)
schemes which become eligible schemes
section 147(1)(a) and (5)
new schemes created to replace existing schemes
section 148(8)
withdrawal following issue of section 122(4) notice
section 150(5) and (6)(a) to (c)
consequences of the Board ceasing to be involved with a scheme
section 151(4), (6), (8) in so far as it relates to paragraph (b) of the definition of "audited scheme accounts" and (9)(b)
application for reconsideration
section 152(4) and (8)
duty to assume responsibility following reconsideration
section 167(1)
modification of chapter where liabilities discharged during assessment period
section 179(1)(a), (2) in so far as it relates to paragraph (b)(i) of the definition of "the actuary" and (3)
valuations to determine scheme underfunding
section 190
information to be provided to the Board etc
section 203(1)
provision of information to members of schemes etc
section 206(2) to (4)
meaning of "reviewable matters"
section 207
review and reconsideration by the Board of reviewable matters
section 208(1) and (3) to (6)
investigation by the Board of complaints of maladministration
section 209(4)(a) to (d), (f) and (g)
PPF Ombudsman
section 210(6)
deputy PPF Ombudsman
section 258(2)(c)(ii) and (7) in so far as it relates to the definition of "relevant contributions"
form of pension protection on transfer of employment
section 270
winding up
section 271
debt due from the employer when assets are insufficient
section 272(1) to (4)
debt due from employer in the case of multi-employer schemes
section 307(1)(a) and (c)
modification of the Act in relation to certain categories of schemes
section 318(4)(a)
general interpretation - meaning of "employer"
Schedule 4, paragraph 9 and section 102 in so far as it relates to that paragraph
tribunal procedure
Schedule 7, paragraphs 4(4), 6(4), 9(4), 12(4)(a), 13(4), 16(3)(b), 17(4)(a), 18(4), 20(4), (7) and (8), 23, 24(1), (2) and (6), 25(1), 26(7) only so far as it relates to paragraph (a) of the definition of "the compensation cap", (9) and (10), 28(6) and (7), 31(2) and (3), 33, and 37(4, and section 162 in so far as it relates to those paragraphs
PROVISIONS OF THE ACT COMING INTO FORCE ON 6TH APRIL 2005
Provisions of the Act
Subject matter
In so far as not already brought into force, sections 19, 21, 23, 24, 30, 36, 38 except subsections (4) and (7)(g), 43 except subsection (7)(e), 44, 45, 52, 57, 59 to 61, 69, 93, 97, 102, 103, 104, 106, 114, 120, 122, 123, 125, 126, 129, 130, 133, 134 except subsection (2)(d), 135, 138 except subsection (10)(a), 139, 140, 141, 143, 145 to 148, 150 except subsection (6)(d), 151 except paragraph (a) in the definition of "audited scheme accounts" and (12)(a), 152, 167, 179 except subsection (1)(b), 203, 206 except subsection (5), 208 and 258
provisions relating to the Pensions Regulator, the Board of the Pension Protection Fund and miscellaneous provisions
section 2(3)
membership of the Regulator
section 4(1)(a), (2) and (3)
Regulator's functions
section 5(1) and (2)
Regulator's objectives
section 7
transfer of Opra's functions to the Regulator
section 8, in so far as not already brought into force
non-executive functions
sections 13 to 17
new powers in respect of occupational and personal pension schemes
section 18, except subsections (3)(b) and (4)(b)
pension liberation: interpretation
section 20(1), (2), (3)(a) and (b) and (4) to (11)
pension liberation: restraining orders
section 22
powers to wind up occupational pension schemes
sections 25 to 29, 31 and 32
provisions relating to freezing orders
sections 33 to 35 and 37
trustees of occupational pension schemes
sections 39, 40, 41(1) to (9), (10)(a) to (e), (11) and (12), and 42(1), (2)(a) and (b) and (3) to (5)
contribution notices where avoidance of employer debt
section 46
financial support directions: clearance statements
section 47(1) to (3), (4)(a) to (f), and (5)
contribution notices where non-compliance with financial support direction
sections 48 and 49
the sum specified in a section 47 contribution notice, content and effect of such a notice
section 50(1) to (9), (10)(a) to (e) and (11)
section 47 contribution notice: relationship with employer debt
section 51
sections 43 to 50: interpretation
sections 53 to 56
transactions at an undervalue
section 58
Regulator's right to apply under section 423 of Insolvency Act 1986
sections 62 to 68
register of schemes, register of prohibited trustees and collecting information relevant to the PPF
sections 70 to 89 (except section 86(2))
duty to report breaches of the law, provisions on reports and on information
section 90(1), (2)(a) to (j) and (3) to (7)
codes of practice
section 91(10) to (12)
procedure for issue and publication of codes of practice
section 92
revocation of codes of practice
section 94
publication of procedure in relation to regulatory functions
section 95(1)(a) and (b)(i), (2) and (3)
application of standard and special procedure
section 96(1) to (5), (6)(a) to (t) and (v)
standard procedure
sections 98 to 100
special procedure, compulsory review, and duty to have regard to the interests of members etc
section 101(1), (2)(a) to (c) and (3) to (5)
powers to vary or revoke orders, notices or directions etc
section 105
redetermination etc by the Tribunal
section 108(4)
membership of the Board
section 110(1)(a)
the Board's functions
section 112(5) and (6)
non-executive functions
section 113
investment of funds relating to the Board of the Pension Protection Fund
section 119
annual reports to the Secretary of State
section 121(1) to (4), (6), (8), (9)(a), (10) and (11)
insolvency event, insolvency date and insolvency practitioner
section 124
Board's duty where there is a failure to comply with section 122
section 127
duty to assume responsibility for schemes following insolvency event
section 128
duty to assume responsibility for schemes following application or notification
section 131
protected liabilities
section 132 except subsection (6)
assessment periods
section 136
power to validate contraventions of section 135
section 137
section 142
definitions
section 144
approval of valuation
section 149
circumstances in which Board ceases to be involved with an eligible scheme
section 154(1), (2)(a) and (c), and (6) to (15)
requirement to wind up schemes with sufficient assets to meet protected liabilities
section 160(1) to (3), (5), (6), and (7) in so far as it relates to section 172(1)
transfer notice
section 161(2)(c)
effect of Board assuming responsibility for a scheme
section 172(1)
relationship with fraud compensation
section 173(1)(c) to (e), (g) to (i) and (3)(b) to (d), (h) and (i)
Pension Protection Fund
section 175(2)(a)(i) and (iii) and (3)(a)
definition of risk-based pension protection levy
section 192, and section 193 in so far as it relates to section 192
entry of premises, and penalties
section 194
warrants
section 195
offence of providing false or misleading information to the Board
section 196
use of information
sections 197 to 202
disclosure of information
section 204(1) and (2)
interpretation
section 205
reports
section 209(6)
PPF Ombudsman
sections 210(4) and (5) and 211
Deputy PPF Ombudsmen
section 219
backdating the winding up of eligible schemes
section 257
pension protection on transfer of employment
section 263
short service benefit
section 265
paternity leave and adoption leave
section 266
inalienability of occupational pension
section 272(13) and (14)
debt due from the employer in the case of multi-employer schemes
section 275
jurisdiction
section 276
investigations
sections 278 to 280
annual increases in rates of pension
section 282
meaning of "working life" in Pension Schemes Act 1993
section 285
meaning of "stakeholder pension scheme"
section 298(4) and (5)(b)
disclosure of state pension information
section 300(3) to (5)
dissolution of OPRA
section 301
transfer of employees from OPRA to the Regulator
Schedule 1, paragraphs 20(1), (2) and (4) to (7), 24, 25, 28, 33, 35(4)(a) and (b) and 35(5) in so far as it relates to paragraph 35(4)(a) and (b), and section 3 in so far as it relates to those paragraphs
the Pensions Regulator
Schedule 3
restricted information held by the Regulator: certain permitted disclosures to facilitate exercise of functions
Schedule 4, paragraphs 8, 10 to 16, and 19 to 21
the Pensions Regulator Tribunal
Schedule 5, paragraphs 18(2)(f) to (h), 19, 22(1) to (3) and (5) to (7) and 23(a), and section 109 in so far as it relates to those paragraphs
the Board of the Pension Protection Fund
Schedule 7, and section 162, in so far as not already brought into force
pension compensation provisions
Schedule 9, paragraphs 1 to 19
reviewable matters
Schedule 12, paragraphs 1, 5(1) and (3), 6, 24(a) and (c), 25, 26, 76(2)(a) and (4) and 79, and section 319(1) insofar as it relates to those paragraphs
consequential amendments
Schedule 13, in so far as it relates to -
the Parliamentary Commissioner Act 1967, Schedule 2, the entry relating to the Occupational Pensions Regulatory Authority;
the House of Commons Disqualification Act 1975, Schedule 1, Part 2, the entry relating to the Occupational Pensions Regulatory Authority;
the Northern Ireland Assembly Disqualification Act 1975, Schedule 1, Part 2, the entry relating to the Occupational Pensions Regulatory Authority;
the Tribunals and Inquiries Act 1992, Schedule 1, Part 1, paragraph 35(g); the 1995 Act, the specified repeals in sections 51(1), 54(3), and 162(1), and Schedule 3, paragraph 21 and Schedule 4, paragraph 21(13);
the Child Support, Pensions and Social Security Act 2000, section 54;
the Freedom of Information Act 2000, Schedule 1, Part 6, the entries relating to the Occupational Pensions Regulatory Authority, and the Registrar of Occupational and Personal Pension Schemes;
and section 320 in so far as it relates to those provisions
This Order provides for the coming into force of provisions of the Pensions Act 2004 (c. 35) on the following dates-
10th February for the purpose only of conferring power to make regulations or orders relating to the borrowing limit for the Board of the Pension Protection Fund, dissolution of the Occupational Pensions Regulatory Authority, and modification of the Act in relation to certain categories. The provisions in question are brought fully into force on 9th March 2005;
10th February 2005 for the purpose only of conferring power to make regulations relating to various levies for the Pensions Regulator and the Board of the Pension Protection Fund. The provisions in question are brought fully into force on 1st April 2005;
10th February 2005 for the purpose only of conferring power to make regulations, orders or rules relating in particular to the functions of the Pensions Regulator (including the Pensions Regulator Tribunal), and the Board of the Pension Protection Fund. The provisions in question are brought fully into force on 6th April 2005,
10th February 2005 for provisions relating in particular to governance of the Pensions Regulator and the Board of the Pension Protection Fund;
8th March 2005 for other provisions relating to borrowing of the Board of the Pension Protection Fund and for modification of the Act in relation to certain categories of scheme;
1st April 2005 for other provisions relating to levies in relation to the Pensions Regulator and the Board of the Pension Protection Fund; and
6th April 2005 for provisions relating in particular to the functions of the Pensions Regulator and the Board of the Pension Protection Fund, the dissolution of OPRA and provisions relating to paternity leave and adoption leave.
This Order also makes transitional adaptations and modifications and consequential amendments.
Article 3 transitionally modifies section 149(6) of the Pension Schemes Act 1993 (c. 48) to insert a reference to the Pensions Compensation Board as a person to whom the Pensions Ombudsman may continue to disclose information until 1st September 2005, and to retain a reference to the Pensions Compensation Board as a person to whom the Secretary of State may disclose information until that date.
Article 4 makes transitional provision in relation the collection of levy which was due before but which remains unpaid on 1st April 2005.
Article 5 consequentially amends the Paternity and Adoption Leave Regulations 2002 (S.I. 2002/2788) to include cross references to provisions relating to paternity leave and adoption leave inserted into Schedule 5 to the Social Security Act 1989 (c. 24) by section 265 of the Pensions Act 2004.