Pensions Act 1995

• “transfer credits” means rights allowed to a member under the rules of an occupational pension scheme by reference to — a transfer to the scheme of, or transfer payment to the trustees or managers of the scheme in respect of, any of his rights (including transfer credits allowed) under another occupational pension scheme or a personal pension scheme, other than pension credit rights, ora cash transfer sum paid under Chapter 2 of Part 4ZA of the Pension Schemes Act 1993 (transfers and contribution refunds) in respect of him, to the trustees or managers of the scheme,

• “trustees or managers”, in relation to an occupational pension scheme, means—in the case of a trust scheme, the trustees of the scheme, andin any other case, the managers of the scheme,

• “trust scheme” means an occupational pension scheme established under a trust.

• (2) For the purposes of this Part—

• (a) the accrued rights of a member of an occupational pension scheme at any time are the rights which have accrued to or in respect of him at that time to future benefits under the scheme, and

• (b) at any time when the pensionable service of a member of an occupational pension scheme is continuing, his accrued rights are to be determined as if he had opted, immediately before that time, to terminate that service;

and references to accrued pension or accrued benefits are to be interpreted accordingly.

• (2A) In subsection (2)(a), the reference to rights which have accrued to or in respect of the member does not include any rights which are pension credit rights.

• (3) In determining what is “pensionable service” for the purposes of this Part—

• (a) service notionally attributable for any purpose of the scheme is to be disregarded, and

• (b) no account is to be taken of any rules of the scheme by which a period of service can be treated for any purpose as being longer or shorter than it actually is but, in its application for the purposes of section 51, paragraph (b) does not affect the operation of any rules of the scheme by virtue of which a period of service is to be rounded up or down by a period of less than a month.

• (3A) In a case of the winding-up of an occupational pension scheme in pursuance of an order of the Authority under section 11 or of an order of a court, the winding-up shall (subject to subsection (3E) and to sections 28, 154 and 219 of the Pensions Act 2004) be taken for the purposes of this Part to begin—

• (a) if the order provides for a time to be the time when the winding-up begins, at that time; and

• (b) in any other case, at the time when the order comes into force.

• (3B) In a case of the winding-up of an occupational pension scheme in accordance with a requirement or power contained in the rules of the scheme, the winding-up shall (subject to subsections (3C) to (3E) and to sections 154 and 219 of the Pensions Act 2004) be taken for the purposes of this Part to begin—

• (a) at the time (if any) which under those rules is the time when the winding-up begins; and

• (b) if paragraph (a) does not apply, at the earliest time which is a time fixed by the trustees or managers as the time from which steps for the purposes of the winding-up are to be taken.

• (3C) Subsection (3B) shall not require a winding-up of a scheme to be treated as having begun at any time before the end of any period during which effect is being given—

• (a) to a determination under section 38 that the scheme is not for the time being to be wound up; or

• (b) to a determination in accordance with the rules of the scheme to postpone the commencement of a winding-up.

• (3D) In subsection (3B)(b) the reference to the trustees or managers of the scheme shall have effect in relation to any scheme the rules of which provide for a determination that the scheme is to be wound up to be made by persons other than the trustees or managers as including a reference to those other persons.

• (3E) Subsections (3A) to (3D) above do not apply for such purposes as may be prescribed.

• (4) In the application of this Part to Scotland, in relation to conviction on indictment, references to imprisonment are to be read as references to imprisonment for a term not exceeding two years.

• (5) Subject to the provisions of this Act, expressions used in this Act and in the Pension Schemes Act 1993 have the same meaning in this Act as in that.

Section 124: supplementary.

125

• (1) For the purposes of this Part, an occupational pension scheme is salary related if—

• (a) the scheme is not a money purchase scheme, and

• (b) the scheme does not fall within a prescribed class or description,

and “salary related trust scheme” is to be read accordingly.

• (2) Regulations may apply this Part with prescribed modifications to occupational pension schemes—

• (a) which are not money purchase schemes, but

• (b) where some of the benefits that may be provided are money purchase benefits.

• (3) Regulations may, in relation to occupational pension schemes, extend for the purposes of this Part the meaning of “employer” to include persons who have been the employer in relation to the scheme.

• (4) For any of the purposes of this Part, regulations may in relation to occupational pension schemes—

• (a) extend or restrict the meaning of “member”,

• (b) determine who is to be treated as a prospective member, and

• (c) determine the times at which a person is to be treated as becoming, or as ceasing to be, a member or prospective member.

Part II — State Pensions

Equalisation of pensionable age and of entitlement to certain benefits and increase in pensionable age.

126

Schedule 4 to this Act, of which—

• (a) Part I has effect to equalise pensionable age for men and women and then to increase it,

• (b) Part II makes provision for bringing equality for men and women to certain pension and other benefits, and

• (c) Part III makes consequential amendments of enactments,

shall have effect.

Enhancement of additional pension, etc. where family credit or disability working allowance paid.

127

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Additional pension: calculation of surpluses.

128

• (1) In section 44 of the Social Security Contributions and Benefits Act 1992 (Category A retirement pension), for subsection (5) (surplus on which additional pension is calculated) there is substituted—

(5A) For the purposes of this section and section 45 below— (a) there is a surplus in the pensioner’s earnings factor for a relevant year if that factor exceeds the qualifying earnings factor for that year, and (b) the amount of the surplus is the amount of that excess, as increased by the last order under section 148 of the Administration Act to come into force before the end of the final relevant year

.

• (2) In subsection (6) of that section (calculation of earnings factors), for paragraphs (a)(ii) and (b) there is substituted—

(ii) his earnings factors derived from Class 2 and Class 3 contributions actually paid in respect of that year, or, if less, the qualifying earnings factor for that year; and (b) where the relevant year is an earlier tax year, to the aggregate of— (i) his earnings factors derived from Class 1 contributions actually paid by him in respect of that year, and (ii) his earnings factors derived from Class 2 and Class 3 contributions actually paid by him in respect of that year, or, if less, the qualifying earnings factor for that year.

• (3) Section 148 of the Social Security Administration Act 1992 (revaluation of earnings factors) shall have effect in relation to surpluses in a person’s earnings factors under section 44(5A) of the Social Security Contributions and Benefits Act 1992 for the purposes of section 45(1) and (2)(a) and (b) of that Act as it has effect in relation to earnings factors.

• (4) Subject to subsections (5), (5A) and (6) below, this section has effect in relation to a person (“the pensioner”) who attains pensionable age after 5th April 2000.

• (5) Where the pensioner is a woman, this section has effect in the case of additional pension falling to be calculated under sections 44 and 45 of the Social Security Contributions and Benefits Act 1992 by virtue of section 39 of that Act (widowed mother’s allowance and widow’s pension), including Category B retirement pension payable under section 48B(4), if her husband—

• (a) dies after 5th April 2000, and

• (b) has not attained pensionable age on or before that date.

• (5A) This section has effect in the case of additional pension falling to be calculated under sections 44 and 45 of the Social Security Contributions and Benefits Act 1992 by virtue of section 39C(1) of that Act (widowed parent’s allowance), including Category B retirement pension payable under section 48BB(2), if the pensioner’s spouse—

• (a) dies after 5th April 2000, and

• (b) has not attained pensionable age on or before that date.

• (6) This section has effect where additional pension falls to be calculated under sections 44 and 45 of the Social Security Contributions and Benefits Act 1992 as applied by section ... 48B(2) or 48BB(5) of that Act (other Category B retirement pension) if—

• (a) the pensioner attains pensionable age after 5th April 2000, and

• (b) the pensioner’s spouse has not attained pensionable age on or before that date.

Contribution conditions.

129

In Schedule 3 to the Social Security Contributions and Benefits Act 1992 (contribution conditions), in paragraph 5(3)(a) (conditions for widowed mother’s allowance, widow’s pension and Category A and Category B retirement pension), after “class” there is inserted “ or been credited (in the case of 1987-88 or any subsequent year) with earnings ”.

Up-rating of pensions increased under section 52 of the Social Security Contributions and Benefits Act.

130

• (1) For section 156 of the Social Security Administration Act 1992 there is substituted—

(156) (1) This section applies in any case where a person is entitled to a Category A retirement pension with an increase, under section 52(3) of the Contributions and Benefits Act, in the additional pension on account of the contributions of a spouse who has died. (2) Where in the case of any up-rating order under section 150 above— (a) the spouse’s final relevant year is the tax year preceding the tax year in which the up-rating order comes into force, but (b) the person’s final relevant year was an earlier tax year, then the up-rating order shall not have effect in relation to that part of the additional pension which is attributable to the spouse’s contributions. (3) Where in the case of any up-rating order under section 150 above— (a) the person’s final relevant year is the tax year preceding the tax year in which the up-rating order comes into force, but (b) the spouse’s final relevant year was an earlier tax year, then the up-rating order shall not have effect in relation to that part of the additional pension which is attributable to the person’s contributions.

• (2) In section 151(1) of that Act (effect of up-rating orders on additional pensions), after “and shall apply” there is inserted “ subject to section 156 and ”.

Graduated retirement benefit.

131

• (1) In section 62(1) of the Social Security Contributions and Benefits Act 1992 (graduated retirement benefit), after paragraph (a) there is inserted—

(aa) for amending section 36(7) of that Act (persons to be treated as receiving nominal retirement pension) so that where a person has claimed a Category A or Category B retirement pension but— (i) because of an election under section 54(1) above, or (ii) because he has withdrawn his claim for the pension, he is not entitled to such a pension, he is not to be treated for the purposes of the preceding provisions of that section as receiving such a pension at a nominal weekly rate;

.

• (2) In section 150(11) of the Social Security Administration Act 1992 (application of up-rating provisions to graduated retirement benefit) for the words following “provisions of this section” there is substituted—

(a) to the amount of graduated retirement benefit payable for each unit of graduated contributions, (b) to increases of such benefit under any provisions made by virtue of section 24(1)(b) of the Social Security Pensions Act 1975 or section 62(1)(a) of the Contributions and Benefits Act, and (c) to any addition under section 37(1) of the National Insurance Act 1965 (addition to weekly rate of retirement pension for widows and widowers) to the amount of such benefit.

• (3) In section 155(7) of that Act (effect of alteration of rates of graduated retirement benefit) for the words following “provisions of this section” there is substituted—

(a) to the amount of graduated retirement benefit payable for each unit of graduated contributions, (b) to increases of such benefit under any provisions made by virtue of section 24(1)(b) of the Social Security Pensions Act 1975 or section 62(1)(a) of the Contributions and Benefits Act, and (c) to any addition under section 37(1) of the National Insurance Act 1965 (addition to weekly rate of retirement pension for widows and widowers) to the amount of such benefit

.

Extension of Christmas bonus for pensioners.

132

• (1) Section 150 of the Social Security Contributions and Benefits Act 1992 (Christmas bonus: interpretation) is amended as follows.

• (2) In subsection (1), after paragraph (k) there is inserted—

(l) a mobility supplement

.

• (3) In subsection (2)—

• (a) after the definition of “attendance allowance” there is inserted—

“mobility supplement” means a supplement awarded in respect of disablement which affects a person’s ability to walk and for which the person is in receipt of war disablement pension;

,

• (b) in the definition of “retirement pension”, “ if paid periodically ” is omitted,

• (c) in paragraph (b) of the definition of “unemployability supplement or allowance”, after sub-paragraph (iv) there is inserted

or (v) under the Pensions (Navy, Army, Air Force and Mercantile Marine) Act 1939.

and accordingly, the “or” immediately following sub-paragraph(iii) is omitted.

Contributions paid in error.

133

After section 61 of the Social Security Contributions and Benefits Act 1992 there is inserted—

(61A) (1) This section applies in the case of any individual if— (a) the individual has paid amounts by way of primary Class 1 contributions which, because the individual was not an employed earner, were paid in error, and (b) prescribed conditions are satisfied. (2) Regulations may, where— (a) this section applies in the case of any individual, and (b) the Secretary of State is of the opinion that it is appropriate for the regulations to apply to the individual, provide for entitlement to, and the amount of, additional pension to be determined as if the individual had been an employed earner and, accordingly, those contributions had been properly paid. (3) The reference in subsection (2) above to additional pension is to additional pension for the individual or the individual’s spouse falling to be calculated under section 45 above for the purposes of— (a) Category A retirement pension, (b) Category B retirement pension for widows or widowers, (c) widowed mother’s allowance and widow’s pension, and (d) incapacity benefit (except in transitional cases). (4) Regulations may, where— (a) this section applies in the case of any individual, and (b) the Secretary of State is of the opinion that it is appropriate for regulations made by virtue of section 4(8) of the Social Security (Incapacity for Work) Act 1994 (provision during transition from invalidity benefit to incapacity benefit for incapacity benefit to include the additional pension element of invalidity pension) to have the following effect in the case of the individual, provide for the regulations made by virtue of that section to have effect as if, in relation to the provisions in force before the commencement of that section with respect to that additional pension element, the individual had been an employed earner and, accordingly, the contributions had been properly paid. (5) Where such provision made by regulations as is mentioned in subsection (2) or (4) above applies in respect of any individual, regulations under paragraph 8(1)(m) of Schedule 1 to this Act may not require the amounts paid by way of primary Class 1 contributions to be repaid. (6) Regulations may provide, where— (a) such provision made by regulations as is mentioned in subsection (2) or (4) above applies in respect of any individual, (b) prescribed conditions are satisfied, and (c) any amount calculated by reference to the contributions in question has been paid in respect of that individual by way of minimum contributions under section 43 of the Pension Schemes Act 1993 (contributions to personal pension schemes), for that individual to be treated for the purposes of that Act as if that individual had been an employed earner and, accordingly, the amount had been properly paid

.

Minor amendments.

134

• (1) In section 23(1) of the Social Security Contributions and Benefits Act 1992 (contribution conditions: supplemental), for “22(1)(a)” there is substituted “ 22(1) ”.

• (2) Section 54(4) of that Act (effect on advance claims for retirement pension of deferral of entitlement) is omitted.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) In section 122(1) of that Act (interpretation of Parts I to VI), after the definition of “week” there is inserted—

“working life” has the meaning given by paragraph 5(8) of Schedule 3 to this Act

.

• (5) In paragraph 5(8) of Schedule 3 to that Act (contribution conditions: meaning of “working life”) for “this paragraph” there is substituted “ Parts I to VI of this Act ”.

Part III — Certification of pension schemes and effects on members’ state scheme rights and duties

Introductory

The “principal appointed day” for Part III.

135

An order under section 180 of this Act appointing a day for the coming into force of any provisions of this Part, being 6th April in any year, may designate that day as the principal appointed day for the purposes of this Part.

New certification requirements applying as from the principal appointed day

New requirements for contracted-out schemes.

136

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reduction in State scheme contributions, payment of rebates and reduction in State scheme benefits

State scheme contributions and rebates.

137

• (1) In section 40 of the Pension Schemes Act 1993 (scope of Chapter II of Part III), in paragraph (b), after “members of” there is inserted “ money purchase contracted-out schemes and members of ”.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) After that section there is inserted—

(42A) (1) Subsections (2) and (3) apply where— (a) the earnings paid to or for the benefit of an earner in any tax week are in respect of an employment which is contracted-out employment at the time of the payment, and (b) the earner’s service in the employment is service which qualifies him for a pension provided by a money purchase contracted-out scheme. (2) The amount of a Class 1 contribution in respect of so much of the earnings paid in that week in respect of that employment as exceeds the current lower earnings limit but not the current upper earnings limit for that week (or the prescribed equivalents if he is paid otherwise than weekly) shall be reduced by an amount equal to the appropriate flat-rate percentage of that part of those earnings. (3) The Secretary of State shall except in prescribed circumstances or in respect of prescribed periods pay in respect of that earner and that tax week to the trustees or managers of the scheme or, in prescribed circumstances, to a prescribed person the amount by which— (a) the appropriate age-related percentage of that part of those earnings, exceeds (b) the appropriate flat-rate percentage of that part of those earnings. (4) Regulations may make provision— (a) as to the manner in which and time at which or period within which payments under subsection (3) are to be made, (b) for the adjustment of the amount which would otherwise be payable under that subsection so as to avoid the payment of trivial or fractional amounts, (c) for earnings to be calculated or estimated in such manner and on such basis as may be prescribed for the purpose of determining whether any, and if so what, payments under subsection (3) are to be made. (5) If the Secretary of State pays an amount under subsection (3) which he is not required to pay or is not required to pay to the person to whom, or in respect of whom, he pays it, he may recover it from any person to whom, or in respect of whom, he paid it. (6) Where— (a) an earner has ceased to be employed in an employment, and (b) earnings are paid to him or for his benefit within the period of six weeks, or such other period as may be prescribed, from the day on which he so ceased, that employment shall be treated for the purposes of this section as contracted-out employment at the time when the earnings are paid if it was contracted-out employment in relation to the earner when he was last employed in it. (7) Subsection (3) of section 41 applies for the purposes of this section as it applies for the purposes of that. (42B) (1) The Secretary of State shall at intervals of not more than five years lay before each House of Parliament— (a) a report by the Government Actuary or the Deputy Government Actuary on the percentages which, in his opinion, are required to be specified in an order under this section so as to reflect the cost of providing benefits of an actuarial value equivalent to that of the benefits which, under section 48A, are foregone by or in respect of members of money purchase contracted-out schemes, (b) a report by the Secretary of State stating what, in view of the report under paragraph (a), he considers those percentages should be, and (c) a draft of an order under subsection (2). (2) An order under this subsection shall have effect in relation to a period of tax years (not exceeding five) and may— (a) specify different percentages for primary and secondary Class 1 contributions, and (b) for each of the tax years for which it has effect— (i) specify a percentage in respect of all earners which is “the appropriate flat-rate percentage” for the purposes of section 42A, and (ii) specify different percentages (not being less than the percentage specified by virtue of sub-paragraph (i)) in respect of earners by reference to their ages on the last day of the preceding year (the percentage for each group of earners being “the appropriate age-related percentage” in respect of earners in that group for the purposes of section 42A). (3) If the draft of an order under subsection (2) is approved by resolution of each House of Parliament, the Secretary of State shall make the order in the form of the draft. (4) An order under subsection (2) shall have effect from the beginning of such tax year as may be specified in the order, not being a tax year earlier than the second after that in which the order is made. (5) Subsection (2) is without prejudice to the generality of section 182

.

• (6) In Schedule 4 to that Act (priority in bankruptcy, etc.), in paragraph 2(3)—

• (a) in paragraph (a), for “4.8 per cent.” there is substituted “ the percentage for non-contributing earners ”,

• (b) in paragraph (b), for “3 per cent.” there is substituted “ the percentage for contributing earners ”.

• (7) In paragraph 2(5) of that Schedule—

• (a) before the definition of “employer” there is inserted—

“appropriate flat-rate percentage” has the same meaning as in section 42A

, and

• (b) after the definition there is inserted—

• “the percentage for contributing earners” means—
• in relation to a salary related contracted-out scheme, 3 per cent, and
• in relation to a money purchase contracted-out scheme, the percentage which is the appropriate flat-rate percentage for secondary Class 1 contributions,
• “the percentage for non-contributing earners” means—
• in relation to a salary related contracted-out scheme, 4.8 per cent, and
• in relation to a money purchase contracted-out scheme, a percentage equal to the sum of the appropriate flat-rate percentages for primary and secondary Class 1 contributions

.

Minimum contributions towards appropriate personal pension schemes.

138

• (1) Section 45 of the Pension Schemes Act 1993 (minimum contributions to personal pension schemes) is amended as follows.

• (2) For subsection (1) there is substituted—

(1) In relation to any tax week falling within a period for which the Secretary of State is required to pay minimum contributions in respect of an earner, the amount of those contributions shall be an amount equal to the appropriate age-related percentage of so much of the earnings paid in that week (other than earnings in respect of contracted-out employment) as exceeds the current lower earnings limit but not the current upper earnings limit for that week (or the prescribed equivalents if he is paid otherwise than weekly)

.

• (3) Subsection (2) is omitted.

• (4) In subsection (3)(e), the words following “ prescribed period ” are omitted.

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Money purchase and personal pension schemes: verification of ages.

139

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reduction in benefits for members of certified schemes.

140

• (1) After section 48 of the Pension Schemes Act 1993 there is inserted—

(48A) (1) In relation to any tax week where— (a) the amount of a Class 1 contribution in respect of the earnings paid to or for the benefit of an earner in that week is reduced under section 41 or 42A, or (b) an amount is paid under section 45(1) in respect of the earnings paid to or for the benefit of an earner, section 44(6) of the Social Security Contributions and Benefits Act 1992 (earnings factors for additional pension) shall have effect, except in prescribed circumstances, as if no primary Class 1 contributions had been paid or treated as paid upon those earnings for that week and section 45A of that Act did not apply (where it would, apart from this subsection, apply). (2) Where the whole or part of a contributions equivalent premium has been paid or treated as paid in respect of the earner, the Secretary of State may make a determination reducing or eliminating the application of subsection (1). (3) Subsection (1) is subject to regulations under paragraph 5(3A) to (3E) of Schedule 2. (4) Regulations may, so far as is required for the purpose of providing entitlement to additional pension (such as is mentioned in section 44(3)(b) of the Social Security Contributions and Benefits Act 1992) but to the extent only that the amount of additional pension is attributable to provision made by regulations under section 45(5) of that Act, disapply subsection (1). (5) In relation to earners where, by virtue of subsection (1), section 44(6) of the Social Security Contributions and Benefits Act 1992 has effect, in any tax year, as mentioned in that subsection in relation to some but not all of their earnings, regulations may modify the application of section 44(5) of that Act.

• (2) In section 48 of the Pension Schemes Act 1993 (effect of membership of money purchase contracted-out scheme or appropriate scheme on payment of social security benefits) in subsection (2), paragraph (b) is omitted and, in paragraph (c), “ if the earner dies before reaching pensionable age ” is omitted.

• (3) Section 48 of that Act shall cease to have effect in relation to minimum payments made, or minimum contributions paid, on or after the principal appointed day.

Premiums and return to State scheme

State scheme etc. premiums and buyback into State scheme.

141

• (1) In section 55 of the Pension Schemes Act 1993 (payment of state scheme premiums on termination of certified status), for subsection (2) there is substituted—

(2) Where— (a) an earner is serving in employment which is contracted-out employment by reference to an occupational pension scheme (other than a money purchase contracted-out scheme), (b) paragraph (a) ceases to apply, by reason of any of the following circumstances, before the earner attains the scheme’s normal pension age or (if earlier) the end of the tax year preceding that in which the earner attains pensionable age, and (c) the earner has served for less than two years in the employment, the prescribed person may elect to pay a premium under this subsection (referred to in this Act as a “contributions equivalent premium”). (2A) The circumstances referred to in subsection (2) are that— (a) the earner’s service in the employment ceases otherwise than on the earner’s death, (b) the earner ceases to be a member of the scheme otherwise than on the earner’s death, (c) the earner’s service in the employment ceases on the earner’s death and the earner dies leaving a widow or widower, (d) the scheme is wound up, (e) the scheme ceases to be a contracted-out occupational pension scheme; but paragraph (a), (b), (d) or (e) does not apply if the earner has an accrued right to short service benefit

.

• (2) In Schedule 2 to that Act, in paragraph 5 (state scheme premiums)—

• (a) in sub-paragraph (3)—

• (i) “ in relation to state scheme premiums ” is omitted,

• (ii) paragraph (b) is omitted, and

• (iii) at the end there is added— “ and in this sub-paragraph and the following provisions of this paragraph “premium” means a contributions equivalent premium ”,

• (b) after sub-paragraph (3) there is inserted—

(3A) Sub-paragraph (3B) applies in relation to a member of a contracted-out occupational pension scheme which is being wound up if, in the opinion of the Secretary of State— (a) the resources of the scheme are insufficient to meet the whole of the liability for the cash equivalent of the member’s rights under the scheme, and (b) if the resources of the scheme are sufficient to meet a part of that liability, that part is less than the amount required for restoring his State scheme rights. (3B) Where this sub-paragraph applies— (a) regulations may provide for treating the member as if sections 46 to 48 or, as the case may be, section 48A(1) did not apply, or applied only to such extent as is determined in accordance with the regulations, and (b) the amount required for restoring the member’s State scheme rights, or a prescribed part of that amount, shall be a debt due from the trustees or managers of the scheme to the Secretary of State. (3C) Regulations may make provision— (a) for determining the cash equivalent of a member’s rights under a scheme and the extent (if any) to which the resources of the scheme are insufficient to meet the liability for that cash equivalent, (b) for the recovery of any debt due under sub-paragraph (3B)(b), and (c) for determining the amount required for restoring a member’s State scheme rights including provision requiring the Secretary of State to apply whichever prescribed actuarial table in force at the appropriate time is applicable. (3D) Section 155 shall apply as if sub-paragraphs (3A) and (3B)(a), and regulations made by virtue of this sub-paragraph and sub-paragraph (3B)(b), were included among the provisions there referred to. (3E) In sub-paragraphs (3A) and (3B), “State scheme rights”, in relation to a member of a scheme, are the rights for which, if the scheme had not been a contracted-out scheme, the member would have been eligible by virtue of section 44(6) of the Social Security Contributions and Benefits Act 1992 (earnings factors for additional pension).

, and

• (c) sub-paragraph (5) is omitted.

Protected rights

Interim arrangements for giving effect to protected rights.

142

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Requirements for interim arrangements.

143

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interim arrangements: supplementary.

144

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extension of interim arrangements to occupational pension schemes.

145

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Discharge of protected rights on winding up: insurance policies.

146

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Miscellaneous

Monitoring personal pension schemes.

147

After section 33 of the Pension Schemes Act 1993 there is inserted—

(33A) (1) If any person acting as an auditor or actuary of an appropriate scheme has reasonable cause to believe that— (a) any requirement which, in the case of the scheme, is required by section 9(5)(a) to be satisfied is not satisfied, and (b) the failure to satisfy the requirement is likely to be of material significance in the exercise by the Secretary of State of any of his functions relating to appropriate schemes, that person must immediately give a written report of the matter to the Secretary of State. (2) No duty to which a person acting as auditor or actuary of an appropriate scheme is subject shall be regarded as contravened merely because of any information or opinion contained in a written report under this section.

Earner employed in more than one employment.

148

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Hybrid occupational pension schemes.

149

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Dissolution of Occupational Pensions Board.

150

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Minor and consequential amendments

Minor and consequential amendments related to sections 136 to 150.

151

Schedule 5 (which makes amendments related to sections 136 to 150) shall have effect.

Part IV — Miscellaneous and General

Transfer values

Extension of scope of right to cash equivalent.

152

• (1) Section 93 of the Pension Schemes Act 1993 (scope of provisions relating to transfer values) is amended as follows.

• (2) For subsection (1)(a) there is substituted—

(a) to any member of an occupational pension scheme— (i) whose pensionable service has terminated at least one year before normal pension age, and (ii) who on the date on which his pensionable service terminated had accrued rights to benefit under the scheme, except a member of a salary related occupational pension scheme whose pensionable service terminated before 1st January 1986 and in respect of whom prescribed requirements are satisfied

.

• (3) After subsection (1) there is inserted—

(1A) For the purposes of this section and the following provisions of this Chapter, an occupational pension scheme is salary related if— (a) the scheme is not a money purchase scheme, and (b) the scheme does not fall within a prescribed class. (1B) Regulations may— (a) provide for this Chapter not to apply in relation to a person of a prescribed description, or (b) apply this Chapter with prescribed modifications to occupational pension schemes— (i) which are not money purchase schemes, but (ii) where some of the benefits that may be provided are money purchase benefits.

Right to guaranteed cash equivalent.

153

After section 93 of the Pension Schemes Act 1993 there is inserted—

(93A) (1) The trustees or managers of a salary related occupational pension scheme must, on the application of any member, provide the member with a written statement (in this Chapter referred to as a “statement of entitlement”) of the amount of the cash equivalent at the guarantee date of any benefits which have accrued to or in respect of him under the applicable rules. (2) In this section— - “the applicable rules” has the same meaning as in section 94; - “the guarantee date” means the date by reference to which the value of the cash equivalent is calculated, and must be— 1. within the prescribed period beginning with the date of the application, and 2. within the prescribed period ending with the date on which the statement of entitlement is provided to the member. (3) Regulations may make provision in relation to applications for a statement of entitlement, including, in particular, provision as to the period which must elapse after the making of such an application before a member may make a further such application. (4) If, in the case of any scheme, a statement of entitlement has not been provided under this section, section 10 of the Pensions Act 1995 (power of the Regulatory Authority to impose civil penalties) applies to any trustee or manager who has failed to take all such steps as are reasonable to secure compliance with this section.

Right to guaranteed cash equivalent: supplementary.

154

• (1) In paragraph (a) of section 94(1) of the Pension Schemes Act 1993—

• (a) after “occupational pension scheme” there is inserted “ other than a salary related scheme ”, and

• (b) after “terminates” there is inserted “ (whether before or after 1st January 1986) ”.

• (2) After that paragraph there is inserted—

(aa) a member of a salary related occupational pension scheme who has received a statement of entitlement and has made a relevant application within three months beginning with the guarantee date in respect of that statement acquires a right to his guaranteed cash equivalent

.

• (3) After that subsection there is inserted—

(1A) For the purposes of subsection (1)(aa), a person’s “guaranteed cash equivalent” is the amount stated in the statement of entitlement mentioned in that subsection.

• (4) In subsection (2) of that section, after the definition of “the applicable rules” there is inserted—

“the guarantee date” has the same meaning as in section 93A(2)

.

• (5) After that subsection there is inserted—

(3) Regulations may provide that, in prescribed circumstances, subsection (1)(aa) does not apply to members of salary related occupational pension schemes or applies to them with prescribed modifications.

Penalties

Breach of regulations under the Pension Schemes Act 1993.

155

• (1) For section 168 of the Pension Schemes Act 1993 (penalties for breach of regulations) there is substituted—

(168) (1) Regulations under any provision of this Act (other than Chapter II of Part VII) may make such provision as is referred to in subsection (2) or (4) for the contravention of any provision contained in regulations made or having effect as if made under any provision of this Act. (2) The regulations may provide for the contravention to be an offence under this Act and for the recovery on summary conviction of a fine not exceeding level 5 on the standard scale. (3) An offence under any provision of the regulations may be charged by reference to any day or longer period of time; and a person may be convicted of a second or subsequent offence under such a provision by reference to any period of time following the preceding conviction of the offence. (4) The regulations may provide for a person who has contravened the provision to pay to the Regulatory Authority, within a prescribed period, a penalty not exceeding an amount specified in the regulations; and the regulations must specify different amounts in the case of individuals from those specified in other cases and any amount so specified may not exceed the amount for the time being specified in the case of individuals or, as the case may be, others in section 10(2)(a) of the Pensions Act 1995. (5) Regulations made by virtue of subsection (4) do not affect the amount of any penalty recoverable under that subsection by reason of an act or omission occurring before the regulations are made. (6) Where— (a) apart from this subsection, a penalty under subsection (4) is recoverable from a body corporate or Scottish partnership by reason of any act or omission of the body or partnership as a trustee of a trust scheme, and (b) the act or omission was done with the consent or connivance of, or is attributable to any neglect on the part of, any persons mentioned in subsection (7), such a penalty is recoverable from each of those persons who consented to or connived in the act or omission or to whose neglect the act or omission was attributable. (7) The persons referred to in subsection (6)(b)— (a) in relation to a body corporate, are— (i) any director, manager, secretary, or other similar officer of the body, or a person purporting to act in any such capacity, and (ii) where the affairs of a body corporate are managed by its members, any member in connection with his functions of management, and (b) in relation to a Scottish partnership, are the partners. (8) Where the Regulatory Authority requires any person to pay a penalty by virtue of subsection (6), they may not also require the body corporate, or Scottish partnership, in question to pay a penalty in respect of the same act or omission. (9) A penalty under subsection (4) is recoverable by the Authority and any such penalty recovered by the Authority must be paid to the Secretary of State. (10) Where by reason of the contravention of any provision contained in regulations made, or having effect as if made, under this Act— (a) a person is convicted of an offence under this Act, or (b) a person pays a penalty under subsection (4), then, in respect of that contravention, he shall not, in a case within paragraph (a), be liable to pay such a penalty or, in a case within paragraph (b), be convicted of such an offence. (11) In this section “contravention” includes failure to comply, and “Scottish partnership” means a partnership constituted under the law of Scotland. (168A) (1) Any person who knowingly or recklessly provides the Registrar with information which is false or misleading in a material particular is guilty of an offence if the information— (a) is provided in purported compliance with a requirement under section 6, or (b) is provided otherwise than as mentioned in paragraph (a) above but in circumstances in which the person providing the information intends, or could reasonably be expected to know, that it would be used by the Registrar for the purpose of discharging his functions under this Act. (2) Any person guilty of an offence under subsection (1) is liable— (a) on summary conviction, to a fine not exceeding the statutory maximum, (b) on conviction on indictment, to imprisonment or a fine, or both

.

• (2) In section 186 of that Act (Parliamentary control of orders and regulations), in subsection (3), after paragraph (c) there is inserted

or (d) regulations made by virtue of section 168(2)

.

Pensions Ombudsman

Employment of staff by the Pensions Ombudsman.

156

For section 145(4) of the Pension Schemes Act 1993 (staff of the Pensions Ombudsman), there is substituted—

(4A) The Pensions Ombudsman may (with the approval of the Secretary of State as to numbers) appoint such persons to be employees of his as he thinks fit, on such terms and conditions as to remuneration and other matters as the Pensions Ombudsman may with the approval of the Secretary of State determine. (4B) The Secretary of State may, on such terms as to payment by the Pensions Ombudsman as the Secretary of State thinks fit, make available to the Pensions Ombudsman such additional staff and such other facilities as he thinks fit. (4C) Any function of the Pensions Ombudsman, other than the determination of complaints made and disputes referred under this Part, may be performed by any— (a) employee appointed by the Pensions Ombudsman under subsection (4A), or (b) member of staff made available to him by the Secretary of State under subsection (4B), who is authorised for that purpose by the Pensions Ombudsman.

Jurisdiction of Pensions Ombudsman.

157

• (1) Sections 146 to 151 of the Pension Schemes Act 1993 are amended as shown in subsections (2) to (11).

• (2) In section 146 (investigations concerning the trustees or managers of schemes), for subsections (1) to (4) there is substituted—

(1) The Pensions Ombudsman may investigate and determine the following complaints and disputes— (a) a complaint made to him by or on behalf of an actual or potential beneficiary of an occupational or personal pension scheme who alleges that he has sustained injustice in consequence of maladministration in connection with any act or omission of a person responsible for the management of the scheme, (b) a complaint made to him— (i) by or on behalf of a person responsible for the management of an occupational pension scheme who in connection with any act or omission of another person responsible for the management of the scheme, alleges maladministration of the scheme, or (ii) by or on behalf of the trustees or managers of an occupational pension scheme who in connection with any act or omission of any trustee or manager of another such scheme, allege maladministration of the other scheme, and in any case falling within sub-paragraph (ii) references in this Part to the scheme to which the complaint relates is to the other scheme referred to in that paragraph, (c) any dispute of fact or law which arises in relation to an occupational or personal pension scheme between— (i) a person responsible for the management of the scheme, and (ii) an actual or potential beneficiary, and which is referred to him by or on behalf of the actual or potential beneficiary, and (d) any dispute of fact or law which arises between the trustees or managers of an occupational pension scheme and— (i) another person responsible for the management of the scheme, or (ii) any trustee or manager of another such scheme, and which is referred to him by or on behalf of the person referred to in sub-paragraph (i) or (ii); and in any case falling within sub-paragraph (ii) references in this Part to the scheme to which the reference relates is to the scheme first mentioned in that paragraph. (2) Complaints and references made to the Pensions Ombudsman must be made to him in writing. (3) For the purposes of this Part, the following persons (subject to subsection (4)) are responsible for the management of an occupational pension scheme— (a) the trustees or managers, and (b) the employer; but, in relation to a person falling within one of those paragraphs, references in this Part to another person responsible for the management of the same scheme are to a person falling within the other paragraph. (3A) For the purposes of this Part, a person is responsible for the management of a personal pension scheme if he is a trustee or manager of the scheme. (4) Regulations may provide that, subject to any prescribed modifications or exceptions, this Part shall apply in the case of an occupational or personal pension scheme in relation to any prescribed person or body of persons where the person or body— (a) is not a trustee or manager or employer, but (b) is concerned with the financing or administration of, or the provision of benefits under, the scheme, as if for the purposes of this Part he were a person responsible for the management of the scheme

.

• (3) In subsection (7) of that section, for “authorised complainants” there is substituted “ actual or potential beneficiaries ”.

• (4) In section 147 (death, insolvency etc.), in subsections (1) and (2), for “authorised complainant” there is substituted “ actual or potential beneficiary ” and for “the authorised complainant’s” there is substituted “ his ”.

• (5) In subsection (3) of that section, for “an authorised complainant” there is substituted “ a person by whom, or on whose behalf, a complaint or reference has been made under this Part ”.

• (6) In section 148 (staying court proceedings), in subsection (5), for paragraphs (a) and (b) there is substituted—

(a) the person by whom, or on whose behalf, the complaint or reference has been made, (b) any person responsible for the management of the scheme to which the complaint or reference relates

.

• (7) In section 149 (procedure on investigation), in subsection (1)(a), for “the trustees and managers of the scheme concerned” there is substituted “ any person (other than the person by whom, or on whose behalf, the complaint or reference was made) responsible for the management of the scheme to which the complaint or reference relates ”.

• (8) In section 150 (investigations: further provisions), in subsection (1)(a), for “any trustee or manager of the scheme concerned” there is substituted “ any person responsible for the management of the scheme to which the complaint or reference relates ”.

• (9) In section 151 (determinations of Pensions Ombudsman), for subsection (1)(a) and (b) there is substituted—

(a) to the person by whom, or on whose behalf, the complaint or reference was made, and (b) to any person (if different) responsible for the management of the scheme to which the complaint or reference relates

.

• (10) In subsection (2) of that section, for “the trustees or managers of the scheme concerned” there is substituted “ any person responsible for the management of the scheme to which the complaint or reference relates ”.

• (11) In subsection (3) of that section, for paragraphs (a) to (c) there is substituted—

(a) the person by whom, or on whose behalf, the complaint or reference was made, (b) any person (if different) responsible for the management of the scheme to which the complaint or reference relates, and (c) any person claiming under a person falling within paragraph (a) or (b)

.

• (12) In Part I of Schedule 1 to the Tribunals and Inquiries Act 1992 (tribunals under the direct supervision of the Council on Tribunals), in paragraph 35(e), for “section 146(2)” there is substituted “ section 146(1)(c) and (d) ”.

Costs and expenses.

158

In section 149 of the Pension Schemes Act 1993—

• (a) after subsection (3)(b) there is inserted

and (c) for the payment by the Ombudsman of such travelling and other allowances (including compensation for loss of remunerative time) as the Secretary of State may determine, to— (i) actual or potential beneficiaries of a scheme to which a complaint or reference relates, or (ii) persons appearing and being heard on behalf of such actual or potential beneficiaries, who attend at the request of the Ombudsman any oral hearing held in connection with an investigation into the complaint or dispute.

, and

• (b) at the end of subsection (3)(a), “ and ” is omitted.

Disclosing information.

159

• (1) In section 149 of the Pension Schemes Act 1993, after subsection (4) there is added—

(5) The Pensions Ombudsman may disclose any information which he obtains for the purposes of an investigation under this Part to any person to whom subsection (6) applies, if the Ombudsman considers that the disclosure would enable or assist that person to discharge any of his functions. (6) This subsection applies to the following— (a) the Regulatory Authority, (b) the Pensions Compensation Board, (c) the Registrar, (d) any department of the Government (including the government of Northern Ireland), (e) the Bank of England, (f) the Friendly Societies Commission, (g) the Building Societies Commission, (h) an inspector appointed by the Secretary of State under Part XIV of the Companies Act 1985 or section 94 or 177 of the Financial Services Act 1986, (j) an inspector appointed by the Department of Economic Development in Northern Ireland under Part XV of the Companies (Northern Ireland) Order 1986, (k) a person authorised under section 106 of the Financial Services Act 1986 to exercise powers conferred by section 105 of that Act, (l) a designated agency or transferee body or the competent authority within the meaning of that Act, and (m) a recognised self-regulating organisation, recognised professional body, recognised investment exchange or recognised clearing house, within the meaning of that Act. (7) The Secretary of State may by order— (a) amend subsection (6) by adding any person or removing any person for the time being specified in that subsection, or (b) restrict the circumstances in which, or impose conditions subject to which, disclosure may be made to any person for the time being specified in that subsection.

• (2) In section 151 of that Act, in subsection (7)(a), after “this section” there is inserted—

(aa) in disclosing any information under section 149(5)

.

Interest on late payment of benefit.

160

After section 151 of the Pension Schemes Act 1993 there is inserted—

(151A) Where under this Part the Pensions Ombudsman directs a person responsible for the management of an occupational or personal pension scheme to make any payment in respect of benefit under the scheme which, in his opinion, ought to have been paid earlier, his direction may also require the payment of interest at the prescribed rate

.

Modification and winding up of schemes

Repeal of sections 136 to 143 of the Pension Schemes Act 1993.

161

Sections 136 to 141 (modification) and 142 and 143 (winding up) of the Pension Schemes Act 1993 are repealed.

Personal pensions

Annual increase in rate of personal pension.

162

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 162: supplementary.

163

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power to reject notice choosing appropriate personal pension scheme.

164

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Levy

Levy.

165

For section 175 of the Pension Schemes Act 1993 (levies towards meeting certain costs and grants) there is substituted—

(175) (1) For the purpose of meeting expenditure— (a) under section 6, (b) under Part X and section 174, or (c) of the Regulatory Authority (including the establishment of the authority and, if the authority are appointed as Registrar under section 6 of this Act, their expenditure as Registrar), regulations may make provision for imposing levies in respect of prescribed occupational or prescribed personal pension schemes. (2) Any levy imposed under subsection (1) is payable to the Secretary of State by or on behalf of— (a) the administrators of any prescribed public service pension scheme, (b) the trustees or managers of any other prescribed occupational or prescribed personal pension scheme, or (c) any other prescribed person, at prescribed rates and at prescribed times. (3) Regulations made by virtue of subsection (1)— (a) in determining the amount of any levy in respect of the Regulatory Authority, must take account (among other things) of any amounts paid to the Secretary of State under section 168(4) of this Act or section 10 of the Pensions Act 1995, and (b) in determining the amount of expenditure in respect of which any levy is to be imposed, may take one year with another and, accordingly, may have regard to expenditure estimated to be incurred in current or future periods and to actual expenditure incurred in previous periods (including periods ending before the coming into force of this subsection). (4) Regulations may make provision for imposing a levy in respect of prescribed occupational pension schemes for the purpose of meeting expenditure of the Pensions Compensation Board (including the establishment of the Board). (5) Any levy imposed under subsection (4) is payable to the Board by or on behalf of— (a) the trustees of any prescribed occupational pension scheme, or (b) any other prescribed person, at prescribed times and at a rate, not exceeding the prescribed rate, determined by the Board. (6) In determining the amount of expenditure in respect of which any levy under subsection (4) is to be imposed, the Board, and regulations made by virtue of subsection (5), may take one year with another and, accordingly, may have regard to expenditure estimated to be incurred in current or future periods and to actual expenditure incurred in previous periods (including periods ending before the coming into force of this subsection). (7) Notice of the rates determined by the Board under subsection (5) must be given to prescribed persons in the prescribed manner. (8) An amount payable by a person on account of a levy imposed under this section shall be a debt due from him to the appropriate person, that is— (a) if the levy is imposed under subsection (1), the Secretary of State, and (b) if the levy is imposed under subsection (4), the Board, and an amount so payable shall be recoverable by the appropriate person accordingly or, if the appropriate person so determines, be recoverable by the Registrar on behalf of the appropriate person. (9) Without prejudice to the generality of subsections (1) and (4), regulations under this section may include provision relating to— (a) the collection and recovery of amounts payable by way of levy under this section, or (b) the circumstances in which any such amount may be waived.

Pensions on divorce, etc.

Pensions on divorce etc.

166

• (1) In the Matrimonial Causes Act 1973, after section 25A there is inserted—

(25B) (1) The matters to which the court is to have regard under section 25(2) above include— (a) in the case of paragraph (a), any benefits under a pension scheme which a party to the marriage has or is likely to have, and (b) in the case of paragraph (h), any benefits under a pension scheme which, by reason of the dissolution or annulment of the marriage, a party to the marriage will lose the chance of acquiring, and, accordingly, in relation to benefits under a pension scheme, section 25(2)(a) above shall have effect as if “in the foreseeable future” were omitted. (2) In any proceedings for a financial provision order under section 23 above in a case where a party to the marriage has, or is likely to have, any benefit under a pension scheme, the court shall, in addition to considering any other matter which it is required to consider apart from this subsection, consider— (a) whether, having regard to any matter to which it is required to have regard in the proceedings by virtue of subsection (1) above, such an order (whether deferred or not) should be made, and (b) where the court determines to make such an order, how the terms of the order should be affected, having regard to any such matter. (3) The following provisions apply where, having regard to any benefits under a pension scheme, the court determines to make an order under section 23 above. (4) To the extent to which the order is made having regard to any benefits under a pension scheme, the order may require the trustees or managers of the pension scheme in question, if at any time any payment in respect of any benefits under the scheme becomes due to the party with pension rights, to make a payment for the benefit of the other party. (5) The amount of any payment which, by virtue of subsection (4) above, the trustees or managers are required to make under the order at any time shall not exceed the amount of the payment which is due at that time to the party with pension rights. (6) Any such payment by the trustees or managers— (a) shall discharge so much of the trustees or managers liability to the party with pension rights as corresponds to the amount of the payment, and (b) shall be treated for all purposes as a payment made by the party with pension rights in or towards the discharge of his liability under the order. (7) Where the party with pension rights may require any benefits which he has or is likely to have under the scheme to be commuted, the order may require him to commute the whole or part of those benefits; and this section applies to the payment of any amount commuted in pursuance of the order as it applies to other payments in respect of benefits under the scheme. (25C) (1) The power of the court under section 23 above to order a party to a marriage to pay a lump sum to the other party includes, where the benefits which the party with pension rights has or is likely to have under a pension scheme include any lump sum payable in respect of his death, power to make any of the following provision by the order. (2) The court may— (a) if the trustees or managers of the pension scheme in question have power to determine the person to whom the sum, or any part of it, is to be paid, require them to pay the whole or part of that sum, when it becomes due, to the other party, (b) if the party with pension rights has power to nominate the person to whom the sum, or any part of it, is to be paid, require the party with pension rights to nominate the other party in respect of the whole or part of that sum, (c) in any other case, require the trustees or managers of the pension scheme in question to pay the whole or part of that sum, when it becomes due, for the benefit of the other party instead of to the person to whom, apart from the order, it would be paid. (3) Any payment by the trustees or managers under an order made under section 23 above by virtue of this section shall discharge so much of the trustees, or managers, liability in respect of the party with pension rights as corresponds to the amount of the payment. (25D) (1) Where— (a) an order made under section 23 above by virtue of section 25B or 25C above imposes any requirement on the trustees or managers of a pension scheme (“the first scheme”) and the party with pension rights acquires transfer credits under another pension scheme (“the new scheme”) which are derived (directly or indirectly) from a transfer from the first scheme of all his accrued rights under that scheme (including transfer credits allowed by that scheme), and (b) the trustees or managers of the new scheme have been given notice in accordance with regulations, the order shall have effect as if it has been made instead in respect of the trustees or managers of the new scheme; and in this subsection “transfer credits” has the same meaning as in the Pension Schemes Act 1993. (2) Regulations may— (a) in relation to any provision of sections 25B or 25C above which authorises the court making an order under section 23 above to require the trustees or managers of a pension scheme to make a payment for the benefit of the other party, make provision as to the person to whom, and the terms on which, the payment is to be made, (b) require notices to be given in respect of changes of circumstances relevant to such orders which include provision made by virtue of sections 25B and 25C above, (c) make provision for the trustees or managers of any pension scheme to provide, for the purposes of orders under section 23 above, information as to the value of any benefits under the scheme, (d) make provision for the recovery of the administrative expenses of— (i) complying with such orders, so far as they include provision made by virtue of sections 25B and 25C above, and (ii) providing such information, from the party with pension rights or the other party, (e) make provision for the value of any benefits under a pension scheme to be calculated and verified, for the purposes of orders under section 23 above, in a prescribed manner, and regulations made by virtue of paragraph (e) above may provide for that value to be calculated and verified in accordance with guidance which is prepared and from time to time revised by a prescribed person and approved by the Secretary of State. (3) In this section and sections 25B and 25C above— (a) references to a pension scheme include— (i) a retirement annuity contract, or (ii) an annuity, or insurance policy, purchased or transferred for the purpose of giving effect to rights under a pension scheme, (b) in relation to such a contract or annuity, references to the trustees or managers shall be read as references to the provider of the annuity, (c) in relation to such a policy, references to the trustees or managers shall be read as references to the insurer, and in section 25B(1) and (2) above, references to benefits under a pension scheme include any benefits by way of pension, whether under a pension scheme or not. (4) In this section and sections 25B and 25C above— - “the party with pension rights” means the party to the marriage who has or is likely to have benefits under a pension scheme and “the other party” means the other party to the marriage, - “pension scheme” means an occupational pension scheme or a personal pension scheme (applying the definitions in section 1 of the Pension Schemes Act 1993, but as if the reference to employed earners in the definition of “personal pension scheme” were to any earners), - “prescribed” means prescribed by regulations, and - “regulations” means regulations made by the Lord Chancellor; and the power to make regulations under this section shall be exercisable by statutory instrument, which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

• (2) In section 25(2)(h) of that Act (loss of chance to acquire benefits), “ (for example, a pension) ” is omitted.

• (3) In section 31 of that Act (variation, discharge, etc. of orders)—

• (a) in subsection (2), after paragraph (d) there is inserted—

(dd) any deferred order made by virtue of section 23(1)(c) (lump sums) which includes provision made by virtue of— (i) section 25B(4), or (ii) section 25C, (provision in respect of pension rights)

, and

• (b) after subsection (2A) there is inserted—

(2B) Where the court has made an order referred to in subsection (2)(dd)(ii) above, this section shall cease to apply to the order on the death of either of the parties to the marriage

.

• (4) Nothing in the provisions mentioned in subsection (5) applies to a court exercising its powers under section 23 of the Matrimonial Causes Act 1973 (financial provision in connection with divorce proceedings, etc.) in respect of any benefits under a pension arrangement (within the meaning of section 25B(1) of the Matrimonial Causes Act 1973) which a party to the marriage has or is likely to have.

• (4A) Nothing in the provisions mentioned in subsection (5) applies to a court exercising its powers under Part 6 of Schedule 5 to the Civil Partnership Act 2004 (making of Part 1 orders having regard to pension benefits).

• (5) The provisions referred to in subsections (4) and (4A) are —

• (a) section 356 of the Armed Forces Act 2006 or 159(4) and (4A) of the Pension Schemes Act 1993 (which prevent assignment, or orders being made restraining a person from receiving anything which he is prevented from assigning),

• (b) section 91 of this Act,

• (c) any provision of any enactment (whether passed or made before or after this Act is passed) corresponding to any of the enactments mentioned in paragraphs (a) and (b), and

• (d) any provision of the arrangement in question corresponding to any of those enactments.

• (6) Subsections (3) to (7) of section 25B, and section 25C of the Matrimonial Causes Act 1973, as inserted by this section, do not affect the powers of the court under section 31 of that Act (variation, discharge, etc.) in relation to any order made before the commencement of this section.

Pensions on divorce, etc.: Scotland.

167

• (1) In section 8(1) (orders for financial provision) of the Family Law (Scotland) Act 1985 (“the 1985 Act”), after paragraph (b) there is inserted—

(ba) an order under section 12A(2) or (3) of this Act;

.

• (2) In section 10 of the 1985 Act (sharing of value of matrimonial property)—

• (a) in subsection (5)—

• (i) after “party” there is inserted “ (a) ”; and

• (ii) for “or occupational pension scheme or similar arrangement” there is substituted—

or similar arrangement; and (b) in any benefits under a pension scheme which either party has or may have (including such benefits payable in respect of the death of either party), which is

; and

• (b) after subsection (7) there is inserted—