Superannuation Act 1972

Persons employed in the civil service, etc.

Superannuation schemes as respects civil servants, etc.

1

• (1) The Minister for the Civil Service (in this Act referred to as “the Minister”)—

• (a) may make, maintain, and administer schemes (whether contributory or not) whereby provision is made with respect to the pensions, allowances or gratuities which, subject to the fulfilment of such requirements and conditions as may be prescribed by the scheme, are to be paid, or may be paid, by the Minister to or in respect of such of the persons to whom this section applies as he may determine;

• (b) may, in relation to such persons as any such scheme may provide, pay or receive transfer values;

• (c) may make, in such circumstances as any such scheme may provide, payments by way of a return of contributions, with or without interest; and

• (d) may make such payments as he thinks fit towards the provision, otherwise than by virtue of such a scheme, of superannuation benefits for or in respect of such of the persons to whom this section applies as he may determine.

• (1A) Subsection (1) is subject to sections 18 and 19 of the Public Service Pensions Act 2013 (restrictions on benefits provided under existing schemes).

• (2) The Minister may, to such extent and subject to such conditions as he thinks fit, delegate to any other Minister or officer of the Crown any functions exercisable by him by virtue of this section or any scheme made thereunder.

• (2A) Where a money purchase scheme under this section includes provision enabling a member to elect for the benefits which are to be provided to or in respect of him to be purchased from any authorised provider whom he may specify, then—

• (a) notwithstanding subsection (1)(a) above, the scheme may make provision for the making of such an election to have the effect, in such cases as the scheme may specify, of discharging any liability of the Treasury to pay those benefits to or in respect of that member; but

• (b) the scheme shall not be so framed as to have the effect that benefits under it may only be provided in a manner which discharges that liability of the Treasury.

• (2B) The Minister may, to such extent and subject to such conditions as he thinks fit, delegate to the Scottish Parliamentary Corporate Body any function exercisable by him by virtue of this section or any scheme made thereunder so far as that function or scheme relates to any employees of that Body.

• (3) Before making any scheme under this section the Minister, or, if the Minister so directs in relation to a particular scheme (other than a scheme mentioned in subsection (3A) below), another Minister of the Crown specified in the direction, shall consult with persons appearing to the Minister or that other Minister, as the case may be, to represent persons likely to be affected by the proposed scheme or with the last-mentioned persons.

• (3A) Before making any scheme under this section relating to any employees of the Scottish Parliamentary Corporate Body (referred to as “the Parliamentary corporation”) the Minister, or, if the Minister so directs, the Parliamentary corporation, shall consult with–

• (a) persons appearing to the Minister or the Parliamentary corporation, as the case may be, to represent persons likely to be affected by the proposed scheme, or

• (b) the last-mentioned persons.

• (4) This section applies to persons serving—

• (a) in employment in the civil service of the State; or

• (b) in employment of any of the kinds listed in Schedule 1 to this Act; or

• (c) in an office so listed.

• (4A) This section also applies to persons serving in employment or in an office, not being service in employment or in an office of a kind mentioned in subsection (4), where the employment or office is specified in a list produced for the purposes of this subsection (see section 1A).

• (5) Subject to subsection (6) below, the Minister may by order—

• (a) add any employment to those listed in the said Schedule 1, being employment by a body or in an institution specified in the order,

• (b) add any office so specified to the offices so listed, or

• (c) remove any employment or office from the employments or offices so listed.

• (6) No employment or office shall be added to those listed in the said Schedule 1 unless at the date from which the addition has effect the remuneration of persons serving in that employment or office is paid out of moneys provided by Parliament the Consolidated Fund or the Scottish Consolidated Fund.

• (7) Notwithstanding subsection (6) above, the Minister may by order provide that this section shall apply to persons serving in employment which is remunerated out of a fund specified in the order, being a fund established by or under an Act of Parliament.

• (8) An order under subsection (5) or (7) above—

• (a) may be made so as to have effect as from a date before the making of the order;

• (b) may include transitional and other supplemental provisions;

• (c) may vary or revoke a previous order made under that subsection; and

• (d) shall be made by statutory instrument, which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

• (9) In this section—

• “authorised provider”, in relation to the investment of any sums paid by way of voluntary contributions or the provision of any benefit, means—a person who has permission under Part 4A of the Financial Services and Markets Act 2000 to invest such sums or, as the case may be, to provide that benefit;an EEA firm of a kind mentioned in paragraph 5(a), (b) or (c) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to invest such sums or, as the case may be, to provide that benefit and which satisfies the conditions applicable to it which are specified in subsection (9B), (9C) or (9D); oran EEA firm of a kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to invest such sums or, as the case may be, to provide that benefit;

• “money purchase scheme” has the meaning given by section 181(1) of the Pension Schemes Act 1993

• (9A) In subsection (9), the definition of “authorised provider” must be read with—

• (a) section 22 of the Financial Services and Markets Act 2000;

• (b) any relevant order under that section; and

• (c) Schedule 2 to that Act.

• (9B) If the EEA firm concerned is of the kind mentioned in paragraph 5(a) of Schedule 3 to the Financial Services and Markets Act 2000, the conditions are—

• (a) that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on a service falling within section A or B of Annex I to the markets in financial instruments directive; and

• (b) that the firm is authorised by its home state authorisation to carry on that service.

• (9C) If the EEA firm concerned is of the kind mentioned in paragraph 5(b) of that Schedule, the conditions are-

• (a) that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on an activity falling within Annex 1 to the capital requirements directive; and

• (b) that the activity in question is one in relation to which an authority in the firm’s home State has regulatory functions.

• (9D) If the EEA firm concerned is of the kind mentioned in paragraph 5(c) of that Schedule, the conditions are—

• (a) that, in investing of the sums in question, or in providing the benefit in question, the firm is carrying on an activity falling within Annex 1 to the capital requirements directive;

• (b) that the activity in question is one in relation to which an authority in the firm’s home State has regulatory functions; and

• (c) that the firm also carries on the activity in question in its home State.

• (9E) Expressions used in subsections (9B) to (9D) which are also used in Schedule 3 to the Financial Services and Markets Act 2000 have the same meaning in those subsections as they have in that Schedule.

Further provisions relating to schemes under s. 1

2

• (1) A scheme under section 1 of this Act which makes provision with respect to the pensions, allowances or gratuities which are to be, or may be, paid to or in respect of a person to whom that section applies and who is incapacitated or dies as a result of an injury sustained, or disease contracted, in circumstances prescribed by the scheme may make the like provision in relation to any other person, being a person who is employed in a civil capacity for the purposes of Her Majesty’s Government in the United Kingdom, whether temporarily or permanently and whether for reward or not, or is a person holding office in that Government and who is incapacitated or dies as a result of an injury or disease so sustained or contracted.

• (2) Any scheme under the said section 1 may make provision for the payment by the Minister of pensions, allowances or gratuities by way of compensation to or in respect of persons—

• (a) to whom that section applies; and

• (b) who suffer loss of office or employment, or loss or diminution of emoluments, in such circumstances, or by reason of the happening of such an event, as may be prescribed by the scheme.

• (3) Subject to subsection (3A) below, no scheme under the said section 1 shall make any provision which would have the effect of reducing the amount of any pension, allowance or gratuity, in so far as that amount is directly or indirectly referable to rights which have accrued (whether by virtue of service rendered, contributions paid or any other thing done) before the coming into operation of the scheme, unless the persons consulted in accordance with section 1(3) of this Act have agreed to the inclusion of that provision.

• (3A) Subsection (3) above does not apply to a provision which would have the effect of reducing the amount of a compensation benefit except in so far as the compensation benefit is one provided in respect of a loss of office or employment which is the consequence of—

• (a) a notice of dismissal given before the coming into operation of the scheme which would have that effect, or

• (b) an agreement made before the coming into operation of that scheme.

• (3B) In this section—

• “compensation benefit” means so much of any pension, allowance or gratuity as is provided under the civil service compensation scheme by way of compensation to or in respect of a person by reason only of the person's having suffered loss of office or employment;

• “the civil service compensation scheme” means so much of any scheme under the said section 1 (whenever made) as provides by virtue of subsection (2) above for benefits to be provided by way of compensation to or in respect of persons who suffer loss of office or employment.

• (3C) In subsection (3B) above a reference to suffering loss of office or employment includes a reference to suffering loss or diminution of emoluments as a consequence of suffering loss of office or employment.

• (3D) So far as it relates to a provision of a scheme under the said section 1 which would have the effect of reducing the amount of a compensation benefit, the duty to consult in section 1(3) of this Act is a duty to consult with a view to reaching agreement with the persons consulted.

• (4) Subject to subsection (3) above, any scheme under the said section 1, or any provision thereof, may be framed—

• (a) so as to have effect as from a date earlier than the date on which the scheme is made; or

• (b) so as to apply in relation to the pensions, allowances or gratuities paid or payable to or in respect of persons who, having been persons to whom the said section 1 applies, have died or ceased to be persons to whom that section applies before the scheme comes into operation; or

• (c) so as to require or authorise the payment of pensions, allowances or gratuities to or in respect of such persons.

• (5) Where an order has been made under section 1(7) of this Act, any scheme under that section may provide for the payment to the Minister out of the fund specified in the order of benefits or other sums paid by him in accordance with the scheme to or in respect of persons to whom that section applies by virtue of the order, together with any administrative expenses incurred in connection with the payment of those sums, and for the payment into that fund of contributions paid in accordance with the scheme by or in respect of those persons and of any transfer values received in respect of them.

• (6) Any scheme under the said section 1 may provide for the determination by the Minister of questions arising under the scheme and may provide that the decision of the Minister on any such question shall be final.

• (7) Where under any such scheme any question falls to be determined by the Minister, then, at any time before the question is determined, the Minister may (and if so directed by any of the Courts hereinafter mentioned shall) state in the form of a special case for determination by the High Court, the Court of Session or the Court of Appeal in Northern Ireland any question of law arising out of the question which falls to be determined by him.

• (8) Where such a case is stated for determination by the High Court, an appeal to the Court of Appeal from the determination by the High Court shall lie only with the leave of the High Court or of the Court of Appeal; and where such a case is stated for determination by the Court of Session then, subject to any rules of court, the Minister shall be entitled to appear and be heard when the case is being considered by that Court.

• (9) Any scheme under the said section 1 may amend or revoke any previous scheme made thereunder.

• (10) Different schemes may be made under the said section 1 in relation to different classes of persons to whom that section applies, and in this section “the principal civil service pension scheme” means the principal scheme so made relating to persons serving in employment in the civil service of the State.

• (11) Before a scheme made under the said section 1, being the principal civil service pension scheme or a scheme amending or revoking that scheme, comes into operation the Minister shall lay a copy of the scheme before Parliament.

• (11A) Subsection (11B) below applies if a scheme made under the said section 1 makes any provision which would have the effect of reducing the amount of a compensation benefit.

• (11B) Before the scheme comes into operation, the Minister must have laid before Parliament a report providing information about—

• (a) the consultation that took place for the purposes of section 1(3) of this Act, so far as relating to the provision,

• (b) the steps taken in connection with that consultation with a view to reaching agreement in relation to the provision with the persons consulted, and

• (c) whether such agreement has been reached.

• (12) Notwithstanding any repeal made by this Act, the existing civil service superannuation provisions, that is to say, the enactments and instruments listed in Schedule 2 to this Act, shall, with the necessary adaptations and modifications, have effect as from the commencement of this Act as if they constituted a scheme made under the said section 1 in relation to the persons to whom that section applies, being the principal civil service pension scheme, and coming into operation on the said commencement and may be revoked or amended accordingly.

Recovery in certain circumstances of payments by way of injury allowances

3

• (1) The following provisions of this section shall have effect where a scheme under section 1 of this Act provides for the payment of a pension, allowance or gratuity to or in respect of a person who is incapacitated or dies as a result of an injury sustained or disease contracted in circumstances prescribed by the scheme, and a pension, allowance or gratuity is paid in accordance with the scheme to or in respect of a person in consequence of an injury or disease so sustained or contracted or of a death resulting from such injury or disease.

• (2) If the scheme requires the Minister to take into account, as against any sums otherwise payable under the scheme, any damages which are recovered or recoverable by or on behalf of the recipient of the pension, allowance or gratuity granted in consequence of the injury, disease or death, being damages in respect of that injury, disease or death, and the Minister makes any payments without taking such damages into account, then if and when the Minister is satisfied that there are any damages to be so taken into account, he shall have the right to recover from the recipient—

• (a) where the amount of the payments made by the Minister is less than the net amount of the damages, the amount of those payments;

• (b) where the amount of those payments is not less than the net amount of the damages, such part of those payments as is equal to the net amount of the damages.

• (3) So far as any amount recoverable under this section represents a payment made by the Minister from which income tax has been deducted before payment, the proper allowance shall be made in respect of the amount so deducted, and in this section “the net amount of the damages” means the amount of the damages after deducting any tax payable in the United Kingdom or elsewhere to which the damages are subject.

• (4) No proceedings shall be brought to recover any amount under this section—

• (a) after the death of the recipient of the payments; or

• (b) after the expiration of two years from the date on which the amount of the damages taken into account in arriving at the amount so recoverable is finally determined (whether in court proceedings or in arbitration proceedings or by agreement between the parties) or from the date on which the final determination of that amount first came to the knowledge of the Minister, whichever date is the later.

• (5) A certificate issued by the Minister and stating the date on which the final determination of any amount of damages first came to his knowledge shall be admissible in any proceedings as sufficient evidence of that date.