Pensions Act 2008

• (4) Subsection (1) does not apply to any agreement to refrain from instituting or continuing before an employment tribunal any proceedings within section 18(1)(v) of the Employment Tribunals Act 1996 (proceedings under this Act where conciliation is available) if the conditions regulating settlement agreements under this Act are satisfied in relation to the agreement.

• (5) For the purposes of subsection (4) the conditions regulating settlement agreements under this Act are that—

• (a) the agreement must be in writing,

• (b) the agreement must relate to the particular proceedings,

• (c) the worker must have received advice from a relevant independent adviser as to the terms and effect of the proposed agreement and, in particular, its effect on his ability to pursue his rights before an employment tribunal,

• (d) there must be in force, when the adviser gives the advice, a contract of insurance, or an indemnity provided for members of a profession or a professional body, covering the risk of a claim by the worker in respect of loss arising in consequence of the advice,

• (e) the agreement must identify the adviser, and

• (f) the agreement must state that the conditions regulating settlement agreements under this Act are satisfied.

• (6) A person is a relevant independent adviser for the purposes of subsection (5)(c) if that person—

• (a) is a qualified lawyer,

• (b) is an officer, official, employee or member of an independent trade union who has been certified in writing by the trade union as competent to give advice and as authorised to do so on behalf of the trade union,

• (c) works at an advice centre (whether as an employee or a volunteer) and has been certified in writing by the centre as competent to give advice and as authorised to do so on behalf of the centre, or

• (d) is a person of a description specified in an order made by the Secretary of State.

• (7) But a person is not a relevant independent adviser for the purposes of subsection (5)(c) in relation to the worker—

• (a) if the person is employed by, or is acting in the matter for, the employer or an associated employer,

• (b) in the case of a person within subsection (6)(b) or (c), if the trade union or advice centre is the employer or an associated employer,

• (c) in the case of a person within subsection (6)(c), if the worker makes a payment for the advice received from the person, or

• (d) in the case of a person of a description specified in an order under subsection (6)(d), if any condition specified in the order in relation to the giving of advice by persons of that description is not satisfied.

• (8) In this section “qualified lawyer” means—

• (a) as respects England and Wales—

• (i) a barrister (whether in practice as such or employed to give legal advice),

• (ii) a solicitor who holds a practising certificate, or

• (iii) a person other than a barrister or solicitor who is an authorised advocate or authorised litigator (within the meaning of the Courts and Legal Services Act 1990);

• (b) as respects Scotland—

• (i) an advocate (whether in practice as such or employed to give legal advice), or

• (ii) a solicitor who holds a practising certificate.

• (9) For the purposes of this section any two employers are associated if—

• (a) one is a company of which the other (directly or indirectly) has control, or

• (b) both are companies of which a third person (directly or indirectly) has control;

and “associated employer” is to be read accordingly.

Employment Appeal Tribunal

Employment Appeal Tribunal

59

In section 21(1) of the Employment Tribunals Act 1996 (c. 17) (jurisdiction of appeal tribunal), after paragraph (gc) insert—

(gd) the Pensions Act 2008,

.

Chapter 4 — Supplementary provision about compliance and information-sharing

Records and information

Requirement to keep records

60

• (1) For the purposes of Chapter 1 or 2 of this Part, the Secretary of State may by regulations make provision requiring any person—

• (a) to keep, in such form and manner as may be prescribed, such records as may be prescribed;

• (b) to preserve those records for such period, not exceeding 6 years, as may be prescribed;

• (c) to provide those records to the Regulator on receiving a notification requesting them.

• (2) Regulations under subsection (1) may provide that section 10 of the Pensions Act 1995 (c. 26) (civil penalties) applies to a person who fails to comply with those requirements.

Powers to require information and to enter premises

61

• (1) The Pensions Act 2004 (c. 35) is amended as follows.

• (2) In section 72, after subsection (1) insert—

(1A) If the Regulator requires information which is relevant to the exercise of its functions under Chapter 2 of Part 1 of the Pensions Act 2008 or section 51 of that Act, the Regulator may, by notice in writing, require a person to whom subsection (2) applies— (a) to furnish the Regulator with an explanation of any document or information required under subsection (1); (b) to attend before the Regulator at such time and place as may be specified in the notice under that subsection to furnish any such explanation. (1B) The Regulator may not require a person to answer any question or furnish any information which might incriminate the person or, if that person is married or a civil partner, the person's spouse or civil partner.

• (3) In section 74, before subsection (1) insert—

(A1) An inspector may, for the purposes of investigating whether an employer is contravening, or has contravened— (a) any provision of, or of regulations under, Chapter 1 of Part 1, or section 50 or 54, of the Pensions Act 2008, or (b) any corresponding provision in force in Northern Ireland, at any reasonable time enter premises liable to inspection. (B1) Premises are liable to inspection for the purposes of subsection (A1) if the inspector has reasonable grounds to believe that— (a) the employer employs workers there, (b) documents relevant to any of the following are being kept there— (i) the administration of the employer's business, (ii) the duties of the employer under Chapter 1 of Part 1 of the Pensions Act 2008 or under any corresponding provision in force in Northern Ireland, (iii) the administration of a pension scheme that is relevant to the discharge of those duties, or (c) the administration of the employer's business, or work connected with that administration, is being carried out there. (C1) In subsections (A1) and (B1) “employer” and “worker” have the meaning given by section 88 of the Pensions Act 2008. (D1) In the application of subsections (A1) and (B1) in relation to any provision mentioned in subsection (A1)(b) (a “corresponding Northern Ireland provision”), references in those subsections to “employer” or “worker” are to be read as having the meaning that they have for the purposes of the corresponding Northern Ireland provision.

• (4) In section 75(1), after “subsection” (in the third place where it occurs) insert “ (A1), ”.

• (5) In section 76(9), after “subsection” (in the second place where it occurs) insert “ (A1), ”.

Disclosure of tax information etc

62

• (1) In the Pensions Act 2004 (c. 35), for section 88 (tax information) substitute—

(88) (1) This section applies to information held by the Revenue and Customs if it is held by them in connection with a function of the Revenue and Customs that relates to any of these matters— (a) tax or duty; (b) national insurance contributions; (c) the national minimum wage. (2) An officer of Revenue and Customs may disclose to the Regulator information to which this section applies, if the disclosure is made for the purpose of enabling or assisting the Regulator to discharge its functions. (3) Where information to which this section applies is disclosed to the Regulator by virtue of subsection (2) above or section 19 of the Anti-terrorism, Crime and Security Act 2001 (disclosure of information held by revenue departments), it must, subject to subsections (4) and (5), be treated for the purposes of section 82 as restricted information. (4) Information to which this section applies which is disclosed to the Regulator as mentioned in subsection (3) may not be disclosed by the Regulator or any person who receives the information directly or indirectly from the Regulator except— (a) to, or in accordance with authority given by, the Commissioners for Her Majesty's Revenue and Customs, (b) with a view to the institution of, or otherwise for the purposes of, any criminal proceedings, (c) with a view to the institution of any other proceedings by the Regulator, or for the purposes of any such proceedings instituted by the Regulator, (d) in accordance with section 84, otherwise than for the purposes of any proceedings, or (e) in the form of a summary or collection of information so framed as not to enable information relating to any particular person to be ascertained from it. (5) Accordingly sections 82(3), 83, 85 to 87 and 235, and paragraph 4 of Schedule 10, do not apply to such information, and section 84 applies subject to subsection (4)(d). (6) In subsection (4)(c) and (d), “proceedings” includes the issue of notices or any other enforcement action taken by the Regulator under Chapter 2 of Part 1 of the Pensions Act 2008 or any other enactment. (7) In this section “the Revenue and Customs” and a “function of the Revenue and Customs” have the same meaning as in section 18 of the Commissioners for Revenue and Customs Act 2005 (confidentiality).

• (2) In section 82 of that Act (restricted information), in subsection (3) for “88(4)” substitute “ 88(5) ”.

Information for private pensions policy and retirement planning

63

• (1) In Schedule 10 to the Pensions Act 2004 (c. 35) (use and supply of information for purposes relating to private pensions policy and retirement planning), after paragraph 3 insert—

(4) (1) This paragraph applies to information which is held— (a) by the Regulator; (b) by a person providing services to the Regulator, in connection with the provision of those services. (2) Information to which this paragraph applies may be supplied— (a) to the Secretary of State or the Northern Ireland Department, or (b) to a person providing services to the Secretary of State or the Northern Ireland Department, for use for the purposes of functions relating to private pensions policy or retirement planning. (3) In this paragraph— - “private pensions policy” means policy relating to schemes which are occupational pension schemes or personal pension schemes within the meaning of Part 1 of the Pensions Act 2008; - “retirement planning” and “the Northern Ireland Department” have the same meaning as in paragraph 2.

• (2) Section 323 of the Pensions Act 2004 (extent) is amended as follows.

• (3) In subsection (2)(c) (provisions extending to Northern Ireland)—

• (a) for “paragraph 2” substitute “ paragraphs 2 and 4 ”;

• (b) for “that paragraph” substitute “ those paragraphs ”.

• (4) In subsection (4), for “paragraph 2” substitute “ paragraphs 2 and 4 ”.

• (5) Section 3 of the Social Security Act 1998 (c. 14) (use of information) is amended as follows.

• (6) In subsection (5), in the definition of “private pensions policy”—

• (a) the words from “occupational” to the end become paragraph (a), and

• (b) after that paragraph insert

or (b) occupational pension schemes or private pension schemes within the meaning of Part 1 of the Pensions Act 2008, if they do not fall within paragraph (a);

.

Penalty for disclosure

64

• (1) In section 82(5)(a) of the Pensions Act 2004 (penalty for disclosure of restricted information, on summary conviction), at the end insert “ , or imprisonment for a term not exceeding 12 months, or both ”.

• (2) After subsection (5) insert—

(6) In relation to an offence under subsection (5) committed before the commencement of section 282 of the Criminal Justice Act 2003 (short sentences) the reference in subsection (5)(a) to 12 months has effect as if it were a reference to six months. (7) Subsection (6) does not extend to Scotland.

Objectives of the Regulator

Objectives of the Regulator

65

In section 5(1) of the Pensions Act 2004 (c. 35) (Regulator's objectives), before “and” at the end of paragraph (c) insert—

(ca) to maximise compliance with the duties under Chapter 1 of Part 1 (and the safeguards in sections 50 and 54) of the Pensions Act 2008,

.

Functions of the Pensions Ombudsman

Functions of the Pensions Ombudsman

66

• (1) Section 146 of the Pension Schemes Act 1993 (c. 48) (functions of the Pensions Ombudsman) is amended as follows.

• (2) In subsection (7), after paragraph (ba) insert—

(bb) a person who has given notice in accordance with section 8 of the Pensions Act 2008 (right to opt out of membership of an automatic enrolment scheme);

• (3) In paragraph (c)(i) of that subsection, for “or (ba)” substitute “ , (ba) or (bb) ”.

Chapter 5 — Duty to establish a pension scheme

Pension scheme

Duty to establish a pension scheme

67

• (1) The Secretary of State must establish a pension scheme and make provision for its administration and management.

• (2) A scheme established under this section is to be treated for all purposes as established under an irrevocable trust.

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

• (4) It must when registered under Chapter 2 of Part 4 of the Finance Act 2004 be a scheme such that a jobholder's employer, if a participating employer, may comply with an enrolment duty by arranging for the jobholder to become an active member of the scheme.

• (5) It must be a scheme that complies with any provision of Northern Ireland legislation corresponding to subsection (4).

• (6) The scheme administrator must ensure that the scheme is and remains registered under Chapter 2 of Part 4 of the Finance Act 2004.

• (7) “Scheme administrator” has the same meaning here as in that Part.

• (8) The power to make provision in pursuance of subsection (1) is exercisable by order.

• (9) If an order establishes a scheme, any further provision that may be made by order in relation to the scheme may also be made by rules (and rules may be made so as to come into force at the same time as the establishing order).

• (10) That is subject to subsections (11) and (12).

• (11) Rules are subject to any provision made by order.

• (12) No provision may be made by rules about—

• (a) the purpose or object of the scheme;

• (b) the appointment or removal of trustees;

• (c) (as regards trustees, or members of any corporate trustee) meetings, committees or delegation of functions;

• (d) any exclusion of liability on the part of trustees, or the provision of any indemnity or insurance out of the funds of the scheme.

• (13) Except as expressly provided, nothing in this Act limits the generality of the powers conferred by this section.

Scheme orders: general

68

• (1) An order under section 67 establishing a scheme must provide for the trustee corporation (the body established by section 75) to be a trustee on the coming into force of the scheme.

• (2) An order under section 67 may provide for any provision of the Trustee Act 2000 (c. 29) to apply as if an order or rules under section 67 were a trust instrument.

• (3) An order under section 67 may provide for the trustees to have power to make rules under that section.

• (4) Where the trustees have power to make rules, an order under section 67 may provide—

• (a) that they may not exercise the power in specified circumstances;

• (b) that they may exercise it subject to conditions;

• (c) that they must comply with requirements for consultation or publication or other procedural requirements when exercising the power.

• (5) An order under section 67 may make provision for the exclusion of, or indemnity against, liability of a trustee, or an officer or employee of a trustee, arising out of the administration or management of a scheme.

Consultation of members and employers

69

• (1) If an order under section 67 establishes a scheme, the Secretary of State must by order under that section require the trustees to make and maintain arrangements for consulting the members of the scheme and participating employers about the operation, development and amendment of the scheme.

• (2) The arrangements must include establishment and maintenance of—

• (a) a panel of persons to represent members (“the members' panel”), and

• (b) a panel of persons to represent employers (“the employers' panel”).

• (3) The composition and functions of the panels are to be determined by order under section 67, or by the trustees under an order.

• (4) The functions of the members' panel may include nominating individuals to be members of the trustee corporation.

• (5) An order under section 67 may provide for payments to panel members out of scheme funds.

Contribution limits

70

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

Procedure for scheme orders

71

• (1) Subsection (2) applies to any order under section 67 relating to a scheme, except the order establishing the scheme and an order taking effect at the same time as that order.

• (2) The Secretary of State may not make the order without the consent of the trustees.

• (3) But the trustees may not withhold their consent without giving reasons.

• (4) The trustees must consult the members' panel and the employers' panel before deciding whether to give consent.

Procedure for rules

72

• (1) A person who proposes to make rules under section 67 must publish a draft of the rules and invite comments.

• (2) They must have regard to any comments made in accordance with the invitation.

• (3) If they make the rules they must publish an account in general terms of those comments and their response to them.

• (4) If the rules they make differ from the draft published under subsection (1), they must publish details of any differences that they think are significant.

• (5) Subsection (6) applies to any rules made by the Secretary of State under section 67 relating to a scheme, except rules taking effect at the same time as the order establishing the scheme.

• (6) The Secretary of State may not make the rules without the consent of the trustees.

• (7) But the trustees may not withhold their consent without giving reasons.

• (8) The trustees must consult the members' panel and the employers' panel—

• (a) before making rules under section 67;

• (b) before deciding whether to give consent under subsection (6).

• (9) If the Secretary of State or the trustees make rules under section 67 they must publish them.

• (10) Anything published under this section must be published in a way designed to bring it to the attention of the persons likely to be interested or affected.

• (11) The publication must not be limited to electronic publication.

Application of enactments

73

• (1) The Interpretation Act 1978 (c. 30) applies in relation to rules under section 67 as if they were contained in a deed not made under an enactment.

• (2) A scheme established under section 67 is not to be treated as a public service pension scheme for the purposes of any enactment.

Review

74

• (1) The Secretary of State must appoint a person to review in relation to a scheme established under section 67—

• (a) the effect of provision made under section 70 (maximum amount of contributions),

• (b) the effect of any restrictions on rights to transfer into the scheme or transfer out to another pension scheme, and

• (c) such other matters as the Secretary of State may direct.

• (2) The appointment under subsection (1) must be made on or after the later of—

• (a) 1 January 2017;

• (b) the end of five years beginning with the first day on which contributions are paid to the scheme by or in respect of members.

• (3) The person appointed under subsection (1) must—

• (a) prepare a report of the review, and

• (b) send a copy of the report to the Secretary of State.

• (4) The Secretary of State must lay before Parliament a copy of the report.

• (5) The Secretary of State may pay to the person appointed under subsection (1) such remuneration and expenses as the Secretary of State may determine.

Trustee corporation

Trustee corporation

75

• (1) There is to be a body corporate, referred to in this Chapter as the trustee corporation.

• (2) The name of the body is to be determined by order made by the Secretary of State.

• (3) The trustee corporation is not to be regarded as the servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown.

• (4) Property held by the corporation is not to be regarded as property of, or property held on behalf of, the Crown.

• (5) Schedule 1 makes provision about the trustee corporation.

Functions

76

• (1) The functions of the trustee corporation are—

• (a) to act as a trustee of any scheme established under section 67, and

• (b) any other functions it is given by or under an enactment in connection with the scheme.

• (2) The corporation may do anything calculated to facilitate, or incidental or conducive to, the carrying out of any of its functions.

• (3) In particular the corporation may—

• (a) enter into agreements;

• (b) borrow money;

• (c) invest money.

• (4) The corporation's powers within subsection (3)(b) and (c) are exercisable only with the consent of the Secretary of State.

• (5) Subsections (3) and (4) are without prejudice to the exercise by the trustee corporation of any power vested in it as a trustee of a scheme established under section 67.

Application of pension trustee legislation

77

• (1) The Secretary of State may by regulations provide that legislation applying in relation to a person as trustee of a pension scheme, or as director of a company which is a trustee of a pension scheme, applies in relation to the trustee corporation, or its members, with any modifications prescribed in the regulations.

• (2) In this section “legislation” means any provision of an Act or subordinate legislation (and “subordinate legislation” has the same meaning as in the Interpretation Act 1978 (c. 30)).

Interpretation

Interpretation of Chapter

78

In this Chapter—

• “employers' panel” has the meaning given by section 69(2)(b);

• “members' panel” has the meaning given by section 69(2)(a);

• “trustees”, in relation to a scheme established under section 67, means the trustee or trustees of the scheme.

Chapter 6 — Personal Accounts Delivery Authority

Functions

Functions

79

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

Principles

80

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

Directions and guidance

81

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

Finance

82

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

Disclosure of information by the Regulator

83

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

Constitution

Non-executive committee

84

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

Executive members

85

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

Winding up

Winding up of the Authority

86

• (1) Section 23 of the Pensions Act 2007 (c. 22) (winding up of the Authority) is amended as follows.

• (2) For subsection (1) substitute—

(1) The Secretary of State may by order provide for the winding up and dissolution of the Authority.

• (3) Subsections (2) to (4) are omitted.

• (4) In subsection (5)(a), after “Secretary of State” insert “ or any other person ”.

• (5) In subsection (7)—

• (a) the words after “ provision of ” become paragraph (a) of that subsection; and

• (b) at the end of that paragraph insert —

; (b) sections 79 to 85 of the Pensions Act 2008.

Chapter 7 — Stakeholder pension schemes

Stakeholder pension schemes

87

• (1) The Welfare Reform and Pensions Act 1999 (c. 30) is amended as follows.

• (2) Section 3 (duty of employers to facilitate access to stakeholder pension schemes) is amended as follows.

• (3) In subsection (1), for “the requirements set out below” substitute “ the requirement in subsection (5) ”.

• (4) After subsection (1) insert—

(1A) A relevant employee, in relation to an employer, is an employee of the employer who, on the relevant date, satisfies the conditions in subsection (1B). (1B) The conditions are that— (a) the employee is a member of a stakeholder pension scheme; (b) the employee made a request under subsection (5) before the relevant date and that request has not been withdrawn; (c) the employee pays contributions (which are deducted in accordance with that request) to the scheme at regular intervals; (d) at least one deduction has been made before the relevant date in accordance with that request. (1C) A person ceases to be a relevant employee— (a) on ceasing to be employed by the employer; (b) on withdrawing a request under subsection (5); (c) on ceasing to pay contributions at regular intervals.

• (5) Omit subsections (2) to (4).

• (6) In subsection (5)—

• (a) omit the word “fourth”;

• (b) omit the words from “of his” to “qualifying scheme”;

• (c) in paragraph (a), for “scheme” substitute “ stakeholder pension scheme ”.

• (7) After subsection (5) insert—

(5A) That requirement only applies in relation to a request to make deductions made before the relevant date (whether or not that request is varied after that date).

• (8) Omit subsection (6).

• (9) In subsection (7), for “any of the requirements” substitute “ the requirement ”.

• (10) In subsection (8)—

• (a) for the words from “whether before” to “those purposes” substitute “ while subject to the requirement in subsection (5) ”;

• (b) omit paragraph (a)(ii) and (iii).

• (11) In subsection (9), after the definition of “employer” insert—

“relevant date” means the date on which section 87 of the Pensions Act 2008 comes into force.

• (12) In that subsection—

• (a) omit the definition of “qualifying scheme”;

• (b) omit the definition of “relevant employees”.

• (13) In section 6 (application of certain enactments), omit subsections (1), (2) and (4).

• (14) In section 8 (interpretation), in subsection (1), omit the definition of “designated scheme”.

Chapter 8 — Application and interpretation

Workers

“Employer”, “worker” and related expressions

88

• (1) This section applies for the purposes of this Part.

• (2) “Contract of employment” means a contract of service or apprenticeship, whether express or implied, and (if it is express) whether oral or in writing.

• (3) “Worker” means an individual who has entered into or works under—

• (a) a contract of employment, or

• (b) any other contract by which the individual undertakes to do work or perform services personally for another party to the contract.

• (4) But a contract is not within subsection (3)(b) if the status of the other party is by virtue of the contract that of a client or customer of a profession or business undertaking carried on by the individual concerned.

• (5) For the purposes of subsection (3)(b), it does not matter whether the contract is express or implied or (if it is express) whether it is oral or in writing.

• (6) Any reference to a worker's contract is to be read in accordance with subsections (3) to (5).

• (7) “Employer”, in relation to a worker, means the person by whom the worker is employed (subject to sections 37(5) and 38(6)).

• (8) “Employment” in relation to a worker, means employment under the worker's contract, and related expressions are to be read accordingly.

Agency workers

89

• (1) This section applies to an individual (“the agency worker”)—

• (a) who is supplied by a person (“the agent”) to do work for another person (“the principal”) under a contract or other arrangements made between the agent and the principal,

• (b) who is not, as respects that work, a worker, because of the absence of a worker's contract between the individual and the agent or the principal, and

• (c) who is not a party to a contract under which the agency worker undertakes to do the work for another party to the contract whose status is, by virtue of the contract, that of a client or customer of a profession or business undertaking carried on by the individual.

• (2) Where this section applies, the other provisions of this Part have effect—

• (a) as if there were a worker's contract for the doing of the work by the agency worker, made between the agency worker and the relevant person under subsection (3), and

• (b) as if that person were the agency worker's employer.

• (3) The relevant person is—

• (a) whichever of the agent and the principal is responsible for paying the agency worker in respect of the work, or

• (b) if neither the agent nor the principal is responsible for doing so, whichever of them pays the agency worker in respect of the work.

Directors

90

• (1) A person who holds office as a director of a company is not, by virtue of that office or of any employment by the company, a worker for the purposes of this Part, unless—

• (a) the person is employed by the company under a contract of employment, and

• (b) there is at least one other person who is employed by the company under a contract of employment.

• (2) In this section, “company” includes any body corporate.

Crown employment

91

• (1) This Part has effect in relation to employment by or under the Crown as it has effect in relation to other employment.

• (2) For the purposes of the application of the provisions of this Part in accordance with subsection (1)—

• (a) references to a worker are to be construed as references to a person employed by or under the Crown;

• (b) references to a worker's contract are to be construed as references to the terms of employment of a person employed by or under the Crown.

• (3) This section does not impose criminal liability on the Crown.

• (4) But on the application of the Regulator the High Court or the Court of Session may declare unlawful a failure by the Crown to comply with any of the duties mentioned in section 45(1).

Armed forces

92

• (1) A person serving as a member of the naval, military or air forces of the Crown is not, by virtue of that service, a worker for the purposes of this Part.

• (2) A member of any of the forces specified in subsection (3) who assists the activities of any of those forces is not, by virtue of anything done in assisting those activities, a worker for the purposes of this Part.

• (3) The forces are—

• (a) the Combined Cadet Force;

• (b) the Sea Cadet Corps;

• (c) the Army Cadet Force;

• (d) the Air Training Corps.

House of Lords staff

93

• (1) This Part has effect in relation to employment as a relevant member of the House of Lords staff as it has effect in relation to other employment.

• (2) In this section, “relevant member of the House of Lords staff” means any person who is employed under a worker's contract with the Corporate Officer of the House of Lords.

House of Commons staff

94

• (1) This Part has effect in relation to employment as a relevant member of the House of Commons staff as it has effect in relation to other employment.

• (2) In this section, “relevant member of the House of Commons staff” means any person—

• (a) who was appointed by the House of Commons Commission, or

• (b) who is a member of the Speaker's personal staff.

• (3) For the purposes of the application of the provisions of this Part in relation to a relevant member of the House of Commons staff—

• (a) references to a worker are to be read as references to a relevant member of the House of Commons staff, and

• (b) references to a worker's contract are to be read as references to the terms of employment of a relevant member of the House of Commons staff.

Police

95

• (1) This Part has effect in relation to a person who—

• (a) holds the office of constable or an appointment as a police cadet, and

• (b) does not hold that office or appointment under a contract of employment,

as if the person were employed by the relevant local policing body or relevant police authority under a worker's contract.

• (2) A local policing body, or a police authority that maintains a police force is the relevant local policing body, or relevant police authority—

• (a) in relation to a constable, if the constable is a member of that police force;

• (b) in relation to a police cadet, if the cadet is undergoing training with a view to becoming a member of that police force.

Persons working on vessels

96

• (1) Subject to regulations under this section, a person employed or engaged in any capacity on board a ship is not, by virtue of that employment or engagement, a worker for the purposes of this Part.

• (2) The Secretary of State may by regulations provide that, to the extent and for the purposes specified in the regulations, the relevant provisions apply, with or without modification, in relation to a person employed or engaged in any capacity on board a ship (whether or not that person is working or ordinarily works in any part of the United Kingdom).

• (3) For the purposes of this section, the relevant provisions are—

• (a) this Part (and any enactment as amended by this Part), and

• (b) any provision in force in Northern Ireland corresponding to any provision of this Part (and any enactment as amended by such a provision).

• (4) Regulations under this section—

• (a) may provide for a provision to apply in relation to individuals whether or not they are British subjects;

• (b) may provide for a provision to apply in relation to bodies corporate whether or not they are incorporated under the law of a part of the United Kingdom;

• (c) may do so even where the application may affect the individual's or body's activities outside the United Kingdom.

• (5) Regulations under this section—

• (a) may provide for a court or tribunal on which jurisdiction is conferred by the relevant provisions to have jurisdiction, in respect of offences or other matters, for the purposes of any provision as it applies by virtue of the regulations;

• (b) may exclude from the operation of section 3 of the Territorial Waters Jurisdiction Act 1878 (c. 73) (consents required for prosecutions) proceedings for offences under any provision as it applies by virtue of the regulations;

• (c) may provide that such proceedings may not be brought without such consent as may be required by the regulations.

• (6) Any jurisdiction conferred on a court or tribunal under this section is without prejudice to jurisdiction exercisable apart from this section by that or any other court or tribunal.

• (7) In this section, “ship” includes—

• (a) a hovercraft within the meaning of the Hovercraft Act 1968 (c. 59), and

• (b) every description of vessel used in navigation.

Persons in offshore employment

97

• (1) Her Majesty may by Order in Council provide that, to the extent and for the purposes specified in the Order, the relevant provisions apply, with or without modification, in relation to a person in offshore employment.

• (2) For the purposes of this section, the relevant provisions are—

• (a) this Part (and any enactment as amended by this Part), and

• (b) any provision in force in Northern Ireland corresponding to any provision of this Part (and any enactment as amended by such a provision).

• (3) In this section, “offshore employment” has the same meaning as in section 201(1) of the Employment Rights Act 1996 (c. 18).

• (4) An Order in Council under this section—

• (a) may provide for a provision to apply in relation to individuals whether or not they are British subjects;

• (b) may provide for a provision to apply in relation to bodies corporate whether or not they are incorporated under the law of a part of the United Kingdom;

• (c) may do so even where the application may affect the individual's or body's activities outside the United Kingdom.

• (5) An Order in Council under this section—

• (a) may make different provision for different cases;

• (b) may provide for a court or tribunal on which jurisdiction is conferred by the relevant provisions to have jurisdiction, in respect of offences or other matters, for the purposes of any provision as it applies by virtue of the Order;

• (c) may (without prejudice to subsection (1) and paragraph (a)) provide for a provision to apply in relation to any person in employment in a part of the areas referred to in section 201(1)(a) and (b) of the Employment Rights Act 1996 (c. 18);

• (d) may exclude from the operation of section 3 of the Territorial Waters Jurisdiction Act 1878 (c. 73) (consents required for prosecutions) proceedings for offences under any provision as it applies by virtue of the Order;

• (e) may provide that such proceedings may not be brought without such consent as may be required by the Order.

• (6) Any jurisdiction conferred on a court or tribunal under this section is without prejudice to jurisdiction exercisable apart from this section by that or any other court or tribunal.

• (7) No Order in Council may be made under this section unless a draft of the Order has been laid before and approved by a resolution of each House of Parliament.

Extension of definition of worker

98

The Secretary of State may by regulations make provision for this Part to apply with or without modifications—

• (a) as if any individual of a prescribed description (who would not otherwise be a worker) were a worker,

• (b) as if there were in the case of any such individual a worker's contract of a prescribed description under which the individual works, and

• (c) as if a person of a prescribed description were the employer under that contract.

General

Interpretation of Part

99

In this Part—

• “active member”—in relation to an occupational pension scheme, means a person who is in pensionable service under the scheme;in relation to a personal pension scheme, means a jobholder in relation to whom there is an agreement within section 26(4) between the provider of the scheme and the employer or (where section 9 applies) a worker in relation to whom there are direct payment arrangements (within the meaning of section 111A of the Pension Schemes Act 1993 (c. 48)) between the worker and the employer;

• “automatic enrolment scheme” is to be read in accordance with section 3(8);

• “average salary benefits” means benefits the rate or amount of which is calculated by reference to the average salary of a member over the period of service on which the benefits are based;

• “collective money purchase benefit” has the meaning given by section 1 of the Pension Schemes Act 2021;

• “contract of employment” has the meaning given by section 88;

• “defined benefits”, in relation to a member of an occupational pension scheme, means benefits which are not money purchase benefits (but the rate or amount of which is calculated by reference to earnings or service of the member or any other factor other than an amount available for their provision);

• “defined benefits scheme” means an occupational pension scheme under which all the benefits that may be provided are defined benefits;

• “employer”, “employment” and related expressions have the meaning given by section 88;

• “enrolment duty” means a duty under section 3(2), 5(2), 7(3) or 9(2);

• “hybrid scheme” means an occupational pension scheme which is neither a defined benefits scheme nor a money purchase scheme;

• ...

• “jobholder” has the meaning given by section 1(1);

• “money purchase benefits”, in relation to a member of a pension scheme, means—benefits the rate or amount of which is calculated by reference to a payment or payments made by the member or by any other person in respect of the member and which fall within section 99A, and collective money purchase benefits;

• “money purchase scheme” means an occupational pension scheme under which all the benefits that may be provided are money purchase benefits;

• “occupational pension scheme” has the meaning given by section 18;

• “pension scheme” has the meaning given by section 1(5) of the Pension Schemes Act 1993 (c. 48);

• “pensionable age” has the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995 (c. 26);

• “pensionable service”, in relation to a member of an occupational pension scheme, means service in any description of employment to which the scheme relates which qualifies the member (on the assumption that it continues for the appropriate period) for pension or other benefits under the scheme;

• “personal pension scheme” has the meaning given by section 19;

• “prescribed” means prescribed by regulations;

• “provider”—in relation to a personal pension scheme to which section 26 applies, means the person referred to in subsection (1)(b) of that section;in relation to any other personal pension scheme, has the meaning prescribed;

• “qualifying earnings” has the meaning given by section 13;

• “qualifying scheme” is to be read in accordance with section 2(5);

• “regulations” means regulations made by the Secretary of State;

• “the Regulator” means the Pensions Regulator;

• “tax year” means the 12 months beginning with 6th April in any year;

• “trustee or manager”—in relation to England and Wales or Scotland, is to be construed in accordance with section 178 of the Pension Schemes Act 1993 (c. 48) (trustees and managers of schemes: interpretation);in relation to Northern Ireland, is to be construed in accordance with section 173 of the Pension Schemes (Northern Ireland) Act 1993 (c. 49) (trustees or managers of schemes);

• “worker” has the meaning given by section 88.

Part 2 — Simplification etc

Private pensions

Abolition of safeguarded rights

100

Part 3A of the Pension Schemes Act 1993 (safeguarded rights) ceases to have effect.

Revaluation of accrued benefits etc

101

• (1) Schedule 2, which—

• (a) amends Schedule 3 to the Pension Schemes Act 1993 (methods of revaluing accrued pension benefits),

• (b) amends Schedule 7 to the Pensions Act 2004 (c. 35) (pension compensation provisions), and

• (c) makes consequential amendments,

has effect.

• (2) The amendments made by Parts 1 and 3 of Schedule 2 do not apply in relation to a revaluation period ending before this section comes into force.

• (3) In subsection (2), “revaluation period” has the same meaning as in paragraph 2 of Schedule 3 to the Pension Schemes Act 1993.

State pensions etc

Consolidation of additional pension

102

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

Effect of entitlement to guaranteed minimum pension

103

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

Additional pension etc: minor and consequential amendments

104

Schedule 4 (additional pension etc: minor and consequential amendments) has effect.

State pension credit: extension of assessed income period for those aged 75 or over

105

• (1) Section 9 of the State Pension Credit Act 2002 (c. 16) (duration of assessed income period) is amended as set out in subsections (2) to (4).

• (2) For subsection (1) substitute—

(1) An assessed income period shall (subject to the following subsections) be— (a) in the case of a claimant who is under the age of 75 on the day on which the relevant decision takes effect, the period of 5 years beginning with that day; (b) in the case of a claimant who is aged 75 or over on that day, an indefinite period beginning with that day.

• (3) In paragraph (b) of subsection (2), for the words from “may” to “years” substitute “ shall specify a period that is shorter than 5 years ”.

• (4) After subsection (5) insert—

(6) Where— (a) an assessed income period is brought to an end by the expiry of a period of 5 years or more, and (b) the claimant is aged 80 or over at that time, the assessed income period shall be treated as not ending at that time but, subject to subsection (4) and provision made under subsection (5), as continuing indefinitely.

• (5) The amendments made by subsections (2) and (3) apply only where the relevant decision (within the meaning given by section 6(5) of the State Pension Credit Act 2002 (c. 16)) takes effect on or after 6 April 2009.

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Contracting-out: abolition of all protected rights

106

• (1) As from the contracting-out abolition date, pension schemes are not required to make special provision in relation to the protected rights of members.

• (2) Accordingly—

• (a) the provisions of the Pension Schemes Act 1993 (c. 48) (“the 1993 Act”) within subsection (3) cease to have effect as from that date, and

• (b) sections 25A, 27A and 32A of the 1993 Act (as inserted by paragraphs 9, 10 and 12 of Schedule 4 to the Pensions Act 2007 (c. 22)) are not to have any effect as from that date (in spite of section 15(4) of that Act of 2007).

• (3) The provisions of the 1993 Act within this subsection are—

• (a) section 10 (protected rights and money purchase benefits),

• (b) section 26 (persons who may establish scheme),

• (c) section 27 (identification and valuation of protected rights),

• (d) section 30 (securing of liability for protected rights),

• (e) section 32 (suspension or forfeiture), and

• (f) section 33A (appropriate schemes: “blowing the whistle”).

• (4) In this section—

• “the contracting-out abolition date” means the day appointed under section 30 of the Pensions Act 2007 (c. 22) for the coming into force of section 15(1) of that Act (abolition of contracting-out for defined contribution pension schemes), and

• “protected rights” has the same meaning as in the 1993 Act (see section 10 of that Act).

Part 3 — Pension compensation

Chapter 1 — Pension compensation on divorce etc

Scope of mechanism

107

• (1) Pension compensation sharing is available under this Chapter in relation to a person's shareable rights to PPF compensation.

• (2) For the purposes of this Chapter, a right of a person to PPF compensation is “shareable” unless it is of a description specified by regulations made by the Secretary of State.

Interpretation

108

In this Chapter—

• “the Board” means the Board of the Pension Protection Fund;

• “PPF compensation” means compensation payable under the pension compensation provisions;

• “the pension compensation provisions” means—Chapter 3 of Part 2 of the Pensions Act 2004 (pension protection) and any regulations or order made under it,this Chapter and any regulations or order made under it, andany provision corresponding to the provisions mentioned in paragraph (a) or (b) in force in Northern Ireland;

• “prescribed” means prescribed by regulations made by the Secretary of State;

• “the relevant order or provision” means the pension compensation sharing order, or provision contained in a qualifying agreement, which gives rise to the pension compensation sharing;

• “the transfer day” means the day on which the relevant order or provision takes effect;

• “the transferee” means the person for whose benefit the relevant order or provision is made;

• “the transferor” means the person to whose rights the relevant order or provision relates.

Activation of pension compensation sharing

109

Section 111 applies on the taking effect of any of the following relating to a person's shareable rights to PPF compensation—

• (a) a pension compensation sharing order under the Matrimonial Causes Act 1973 (c. 18);

• (b) a pension compensation sharing order under Schedule 5 to the Civil Partnership Act 2004 (c. 33);

• (c) an order under Part 3 of the Matrimonial and Family Proceedings Act 1984 (c. 42) (financial relief in England and Wales in relation to overseas divorce etc) corresponding to such an order as is mentioned in paragraph (a);

• (d) an order under Schedule 7 to the Civil Partnership Act 2004 (c. 33) (financial relief in England and Wales after overseas dissolution etc of a civil partnership) corresponding to such an order as is mentioned in paragraph (b);

• (e) an order under any provision corresponding to a provision mentioned in any of paragraphs (a) to (d) in force in Northern Ireland.

• (f) a pension compensation sharing order under section 8 of the Family Law (Scotland) Act 1985 (c. 37) (orders for financial provision);

• (g) any provision corresponding to provision which may be made by such an order, and which—

• (i) is contained in a qualifying agreement between the parties to a marriage or the partners in a civil partnership,

• (ii) is in such form as the Secretary of State may prescribe by regulations, and

• (iii) takes effect on the grant, in relation to the marriage, of decree of divorce or of declarator of nullity or (as the case may be) on the grant, in relation to the civil partnership, of decree of dissolution or of declarator of nullity,

except where the provision relates to the same rights to PPF compensation as are the subject of an order made under section 12B(2) of the Family Law (Scotland) Act 1985 (order for payment of capital sum: pension compensation).

Activation of pension compensation sharing: supplementary (Scotland)

110

• (1) For the purposes of this Chapter, a qualifying agreement is an agreement which—

• (a) has been entered into in such circumstances as the Secretary of State may prescribe by regulations, and

• (b) is registered in the Books of Council and Session.

• (2) For the purposes of section 109, an order or provision mentioned in paragraph (f) or (g) of that section is to be regarded as never having taken effect if the Board does not receive before the end of the period of 2 months beginning with the relevant date—

• (a) a copy of the relevant documents, and

• (b) such information relating to the transferor and transferee as the Secretary of State may prescribe by regulations under section 115(1)(b)(ii).

• (3) The relevant date for the purpose of subsection (2) is—

• (a) the date of the extract of the decree or declarator responsible for the divorce, dissolution or annulment to which the order or provision relates, or

• (b) if the order is made in relation to disposal of an application under section 28 of the Matrimonial and Family Proceedings Act 1984, or of an application under paragraph 2 of Schedule 11 to the Civil Partnership Act 2004, the date of the disposal.

• (4) The relevant documents referred to in subsection (2) are—

• (a) in the case of an order mentioned in paragraph (f) of section 109, that order and the decree or declarator responsible for the divorce, dissolution or annulment to which it relates,

• (b) in the case of provision mentioned in paragraph (g) of that section—

• (i) that provision and the decree or declarator responsible for the divorce, dissolution or annulment to which it relates, and

• (ii) documentary evidence that the agreement containing the provision is one to which subsection (1)(a) applies.

• (5) The Court of Session or the sheriff may, on the application of any person having an interest, make an order—

• (a) extending the period of 2 months referred to in subsection (2), and

• (b) where that period has already expired, providing that, if the Board receives the documents and information concerned before the end of the period specified in the order, subsection (2) is to be treated as never having applied.

Creation of pension compensation debits and credits

111

• (1) On the application of this section—

• (a) the transferor's shareable rights to PPF compensation that derive from rights under the specified scheme become subject to a debit of the appropriate amount, and

• (b) the transferee becomes entitled to a credit of that amount as against the Board.

• (2) For the purposes of subsection (1) “the appropriate amount” means—

• (a) where the relevant order or provision specifies a percentage to be transferred, that percentage of the cash equivalent of the relevant compensation on the valuation day;

• (b) where the relevant order or provision specifies an amount to be transferred, the lesser of—

• (i) that specified amount, and

• (ii) the cash equivalent of the relevant compensation on the valuation day.

• (3) For the purposes of subsection (2) “the relevant compensation” means the payments or future payments to which, immediately before the transfer day, the transferor is entitled under the pension compensation provisions by virtue of the transferor's shareable rights to PPF compensation that derive from rights under the specified scheme.

• (4) The Secretary of State may by regulations provide for any description of payment to be disregarded for the purposes of subsection (3).

• (5) For the purposes of this section—

• “the specified scheme” means the pension scheme specified in the relevant order or provision;

• “the valuation day” means such day within the implementation period for the credit under subsection (1)(b) as the Board may specify by notice in writing to the transferor and transferee.

• (6) The credit to which the transferee becomes entitled under subsection (1)(b) is referred to in this Chapter as a “pension compensation credit”.

Cash equivalents

112

• (1) The Secretary of State may by regulations make provision about the calculation and verification of cash equivalents for the purposes of section 111.

• (2) Regulations under this section may include provision for calculation and verification in a manner approved by the Board.

Reduction of compensation

113

• (1) Where any of a person's shareable rights to PPF compensation are subject to a pension compensation debit, each payment or future payment—

• (a) to which the person is entitled under the pension compensation provisions by virtue of those rights, and

• (b) which is a qualifying payment,

is reduced by the appropriate percentage.

• (2) For the purposes of subsection (1) a payment is “qualifying payment” if the cash equivalent by reference to which the amount of the pension compensation debit is determined includes an amount in respect of it.

• (3) In this section “the appropriate percentage”, in relation to a pension compensation debit, means—

• (a) the percentage specified in the pension compensation sharing order or provision on which the debit depends; or

• (b) if the pension compensation sharing order or provision on which the debit depends specifies an amount to be transferred, the percentage which the appropriate amount for the purposes of subsection (1) of section 111 represents of the amount mentioned in subsection (2)(b)(ii) of that section.

Time for discharge of liability

114

• (1) This section applies where the Board is subject to a liability in respect of a pension compensation credit.

• (2) The Board must discharge the liability before the end of the implementation period for the credit.

• (3) The Secretary of State may make provision by regulations as to circumstances in which the implementation period for the credit is extended for the purposes of this section.

“Implementation period”

115

• (1) For the purposes of this Chapter, the implementation period for a pension compensation credit is the period of 4 months beginning with the later of—

• (a) the transfer day, and

• (b) the first day on which the Board is in receipt of—

• (i) the relevant documents, and

• (ii) such information relating to the transferor and transferee as the Secretary of State may prescribe by regulations.

• (2) In subsection (1)(b)(i), “the relevant documents” means copies of—

• (a) the relevant order or provision, and

• (b) the order, decree or declarator responsible for the divorce, dissolution or annulment to which it relates.

• (3) Subsection (1) is subject to any provision made by regulations under section 117(2)(a).

• (4) The Secretary of State may by regulations—

• (a) make provision requiring the Board to notify the transferor and transferee of the day on which the implementation period for the credit begins;

• (b) provide for this section to have effect with modifications where the credit depends on a pension compensation sharing order and the order is the subject of an application for leave to appeal out of time.

Discharge of liability

116

• (1) This section applies where the Board is subject to a liability in respect of a pension compensation credit.

• (2) The Board must discharge the liability by sending a notice to the transferee.

• (3) On the sending of the notice the transferee becomes entitled, with effect from (and including) the transfer day, to compensation calculated in accordance with Schedule 5.

• (4) For the purposes of that calculation, the initial annual rate of compensation is an amount determined by the Board.

• (5) The Board must determine that amount in such a way as to secure that the cash equivalent value of the compensation to which the transferee becomes entitled under subsection (3) equals the amount of the credit.

• (6) The Secretary of State may by regulations make provision about the calculation of cash equivalents for the purposes of subsection (5).

• (7) The notice sent under this section must—

• (a) state that the transferee is entitled to periodic pension compensation calculated under Schedule 5, and

• (b) specify the amount determined under subsection (4).

• (8) Where the transferee dies before liability in respect of the credit has been discharged—

• (a) subsections (2) to (7) do not have effect in relation to the discharge of liability in respect of the credit, and

• (b) liability in respect of the credit must be discharged in accordance with regulations made by the Secretary of State.

Charges in respect of pension compensation sharing costs

117

• (1) The Secretary of State may by regulations make provision for the purpose of enabling the Board to recover from the parties to pension compensation sharing prescribed charges in respect of prescribed descriptions of pension compensation sharing activity.

• (2) Regulations under subsection (1) may include—

• (a) provision for the start of the implementation period for a pension compensation credit to be postponed in prescribed circumstances;

• (b) provision enabling the Board to set off against any PPF compensation payable to a party to pension compensation sharing any charges owed to it by that party under the regulations;

• (c) provision, in relation to payments in respect of charges recoverable under the regulations, for reimbursement as between the parties to pension compensation sharing.

• (3) For the purposes of regulations under subsection (1), the question of how much of a charge recoverable under the regulations is attributable to a party to pension compensation sharing is to be determined as follows—

• (a) where the relevant order or provision includes provision (“provision for apportionment”) about the apportionment of charges under this section, there is attributable to the party so much of the charge as is apportioned to that party by that provision for apportionment;

• (b) where the relevant order or provision does not include provision for apportionment, the charge is attributable to the transferor.

• (4) In subsection (1), the reference to pension compensation sharing activity is to activity attributable directly or indirectly to the application of section 111 by virtue of the relevant order or provision.

Supply of information about pension compensation in relation to divorce etc

118

• (1) The Secretary of State may by regulations—

• (a) make provision imposing on the Board requirements with respect to the supply of information relevant to any power with respect to—

• (i) financial relief under Part 2 of the Matrimonial Causes Act 1973 (c. 18) or Part 3 of the Matrimonial and Family Proceedings Act 1984 (c. 42) (England and Wales powers in relation to domestic and overseas divorce etc),

• (ii) financial relief under Schedule 5 or 7 to the Civil Partnership Act 2004 (c. 33) (England and Wales powers in relation to domestic and overseas dissolution of civil partnerships etc),

• (iii) financial relief under any provision corresponding to a provision mentioned in sub-paragraph (i) or (ii) in force in Northern Ireland,

• (iv) orders for financial provision under section 8 of the Family Law (Scotland) Act 1985 (c. 37) (orders for financial provision), or

• (v) provision as to pension sharing, or pension compensation sharing, that is contained in an agreement that is a qualifying agreement for the purposes of section 28(1)(b) and (c) of the Welfare Reform and Pensions Act 1999 (c. 30) (activation of pension sharing) or this Chapter;

• (b) make provision about calculation and verification in relation to the valuation of PPF compensation for the purposes of regulations under paragraph (a);

• (c) make provision for the purpose of enabling the Board to recover prescribed charges in respect of providing information in accordance with regulations under paragraph (a).

• (2) Regulations under subsection (1)(b) may include provision for calculation and verification in a manner approved by the Board.

• (3) Regulations under subsection (1)(c) may include provision for the application in prescribed circumstances, with or without modification, of any provision made by virtue of section 117(2).

Supply of information about pension compensation sharing

119

The Secretary of State may by regulations require the Board to supply, to such persons as the Secretary of State may specify in the regulations, such information relating to anything which follows from the application of section 111 as the Secretary of State may so specify.

Pension compensation sharing and attachment on divorce etc

120

Schedule 6 (which amends matrimonial and civil partnership legislation for the purpose of enabling the court to make pension compensation sharing orders, and orders for the attachment of pension compensation, in connection with proceedings in England and Wales) and Schedule 7 (which amends in relation to pension compensation sharing orders similar legislation applying in Scotland) have effect.

Chapter 2 — Other provision about pension compensation

Charges in respect of pension sharing etc

121

After section 168 of the Pensions Act 2004 (c. 35) (administration of compensation) insert—

(168A) (1) Regulations may make provision for the purpose of enabling the Board to recover prescribed charges in respect of complying with a relevant order or provision. (2) In subsection (1) “a relevant order or provision” means any of the following— (a) an order under section 23 of the Matrimonial Causes Act 1973 (financial provision in connection with divorce etc: England and Wales) so far as the order— (i) includes provision made by virtue of section 25B or 25C of that Act (powers to include provision about pensions), and (ii) applies in relation to the Board by virtue of section 25E of that Act; (b) an order under section 23 of that Act so far as the order includes provision made by virtue of section 25F of that Act (attachment of pension compensation on divorce etc: England and Wales); (c) an order under Part 1 of Schedule 5 to the Civil Partnership Act 2004 (financial provision orders in connection with dissolution of civil partnerships etc: England and Wales) so far as the order— (i) includes provision made by virtue of Part 6 of that Schedule (powers to include provision about pensions), and (ii) applies in relation to the Board by virtue of Part 7 of that Schedule; (d) an order under Part 1 of that Schedule so far as the order includes provision made by virtue of paragraph 34A of that Schedule (attachment of pension compensation on dissolution of civil partnership etc: England and Wales); (e) an order made under any provision corresponding to a provision mentioned in paragraphs (a) to (d) in force in Northern Ireland; (f) an order under section 8(1)(baa) to (bb) of the Family Law (Scotland) Act 1985 (orders for financial provision) so far as the order applies in relation to the Board; (g) any provision corresponding to provision which may be made by such an order and which is contained in a qualifying agreement (to which section 28(3) of the Welfare Reform and Pensions Act 1999, or section 110(1) of the Pensions Act 2008 relates) so far as the agreement applies in relation to the Board; (h) an order or provision of a kind mentioned in section 28(1) of the Welfare Reform and Pensions Act 1999 (pension sharing) so far as the order or provision applies in relation to the Board by virtue of section 220 of this Act. (3) Regulations under subsection (1) may include provision enabling the Board to set off against any PPF compensation payable to a person any charges owed to it by that person under the regulations. (4) In this section “PPF compensation” means compensation payable— (a) under or by virtue of this Chapter, or (b) under or by virtue of Chapter 1 of Part 3 of the Pensions Act 2008 (pension compensation on divorce etc).

Amendments of Schedule 7 to the Pensions Act 2004

122

Schedule 8 (amendments of Schedule 7 to the Pensions Act 2004) has effect.

Consequential amendments

123

• (1) The Pensions Act 2004 (c. 35) is amended as follows.

• (2) In section 173 (Pension Protection Fund)—

• (a) in subsection (3)(b), after “the pension compensation provisions” insert “ or Chapter 1 of Part 3 of the Pensions Act 2008 ”;

• (b) in subsection (5), omit “of this Act”.

• (3) After paragraph 18(2)(d) of Schedule 5 (Board of the Pension Protection Fund) insert—

(da) section 168A (charges in respect of pension sharing etc);

.

• (4) After paragraph 18(2)(g) of that Schedule insert—

(ga) section 116 of, and Schedule 5 to, the Pensions Act 2008 (discharge of liability in respect of pension compensation credit); (gb) section 117 of that Act (charges in respect of pension compensation sharing costs); (gc) section 118 of that Act (supply of information about pension compensation in relation to divorce etc); (gd) section 119 of that Act (supply of information about pension compensation sharing);

.

• (5) In paragraph 18(2)(h) of that Schedule—

• (a) after “section 111” insert “ of this Act ”;

• (b) for “(g)” substitute “ (gd) ”.

Part 4 — Financial assistance scheme

Financial assistance scheme

124

• (1) Subsection (2) of section 286 of the Pensions Act 2004 (c. 35) (financial assistance scheme for members of certain pension schemes) is amended as follows.

• (2) In the definition of “qualifying member”, for the words from “a person” to the end of paragraph (b) substitute “ a person who, at such time as may be prescribed, is a member of the scheme or has ceased to be a member of the scheme, ”.

• (3) In the definition of “qualifying pension scheme”, in paragraph (b), after “began” insert “ , subject to any prescribed exception, ”.

• (4) In that definition, after paragraph (b) insert—

1. the assets of which, at such time as may be prescribed, are insufficient to satisfy in full the liabilities of the scheme calculated in the prescribed manner,

.

• (5) In paragraph (c) of that definition, after “conditions” insert “ , if any, ”.

• (6) Omit the definition of “scheme's pension liabilities” and the words from “and a qualifying pension scheme” to the end.

• (7) Section 316 of that Act (parliamentary control of subordinate legislation) is amended as follows.

• (8) In subsection (1), after “(2)” insert “ , (2A) ”.

• (9) In subsection (2)(n), at the end add “ , except regulations prescribing an exception for the purposes of paragraph (b) of the definition of “qualifying pension scheme” in subsection (2) of that section;” ”.

• (10) After subsection (2) insert—

(2A) Subsection (1) does not apply to regulations under section 286 prescribing an exception for the purposes of paragraph (b) of the definition of “qualifying pension scheme” in subsection (2) of that section, if a draft of the instrument containing them has been laid before and approved by a resolution of each House of Parliament.

Restriction on purchase of annuities

125

• (1) After section 286 of the Pensions Act 2004 (c. 35) insert—

(286A) (1) This section applies to any qualifying pension scheme which has not been fully wound up. (2) The trustees of the scheme must not purchase or agree to purchase annuities on behalf of qualifying members unless— (a) before 26 September 2007 the trustees entered into a binding commitment to purchase the annuities, or (b) the purchase of the annuities is approved by the scheme manager on the application of the trustees and any condition imposed under subsection (4)(b) is satisfied. (3) An application under subsection (2)(b) must be in writing and must set out the trustees' reasons for applying. (4) An approval under subsection (2)(b)— (a) may be given if the scheme manager thinks it appropriate to do so, and (b) may be made subject to such conditions (if any) as the scheme manager thinks appropriate. (5) If the trustees fail to comply with subsection (2), the purchase or agreement to purchase is void if the scheme manager so determines. (6) A determination under subsection (5) may be made if the scheme manager thinks it appropriate to do so. (7) When making a decision under this section as to whether something is appropriate, the scheme manager may take into account such factors as are in the scheme manager's opinion relevant. (8) An application under the Financial Assistance Scheme (Halting Annuitisation) Regulations 2007 (S.I. 2007/2533) that has not been determined before 26 June 2008 has effect as if made under subsection (2)(b). (9) An approval given under those regulations has effect for the purposes of subsection (2)(b) as if given under this section. (10) In this section “qualifying pension scheme”, “qualifying member” and “scheme manager” have the same meaning as in section 286. (11) Regulations may provide that references in this section to the scheme manager have effect as references to such person as may be prescribed.

• (2) The amendment made by subsection (1) must be taken to have had effect from 26 June 2008.

• (3) In section 316(2) of the Pensions Act 2004 (statutory instruments subject to affirmative resolution procedure), after paragraph (n) insert—

(na) regulations under section 286A(11) (power to provide that references in section 286A to the scheme manager are to have effect as references to a prescribed person);

.

Part 5 — Miscellaneous

Miscellaneous provision relating to pensions

Amendments of provisions of Pensions Act 2004 relating to contribution notices or financial support directions

126

Schedule 9 (which amends the Pensions Act 2004 (c. 35) in relation to contribution notices and financial support directions) has effect.

Review of the initial operation of sections 38A and 38B of Pensions Act 2004

127

• (1) The Secretary of State must carry out a review of the operation of sections 38A and 38B of the Pensions Act 2004 (which are inserted into that Act by paragraph 2 of Schedule 9 to this Act) during the period of 4 years beginning with the day on which that paragraph fully comes into force (“the commencement date”).

• (2) The Secretary of State must set out the conclusions of the review in a report and lay the report before Parliament.

• (3) The report must be laid before the end of the period of 5 years beginning with the commencement date.

Pension sharing: power of Court of Session to extend time limits

128

• (1) The Welfare Reform and Pensions Act 1999 (c. 30) is amended as follows.

• (2) In section 28(10) (pension arrangements: time limit for activation of pension sharing in Scotland), for “The sheriff” substitute “ The Court of Session or the sheriff ”.

• (3) In section 48(9) (state scheme rights: time limit for activation of benefit sharing in Scotland), for “The sheriff” substitute “ The Court of Session or the sheriff ”.

Interest on late payment of levies

129

Schedule 10 (which makes provision about payment of interest on late payment of levies) has effect.

Payments to employers

130

In section 37 of the Pensions Act 1995 (payment of surplus to employer) after subsection (1) insert—

(1A) But this section does not apply in the case of any of the payments listed in paragraphs (c) to (f) of section 175 of the Finance Act 2004 (authorised employer payments other than public service scheme payments or authorised surplus payments).

Appointment of trustees

131

• (1) In section 7 of the Pensions Act 1995 (c. 26) (appointment of trustees), in subsection (3)—

• (a) for “necessary”, in the first place where it occurs, substitute “ reasonable ”;

• (b) omit “or” at the end of paragraph (b);

• (c) at the end insert

, or (d) otherwise to protect the interests of the generality of the members of the scheme.

• (2) In paragraph 9(b) of Schedule 2 to the Pensions Act 2004 (c. 35) (reserved regulatory functions), for “or (c)” substitute “ , (c) or (d) ”.

Intervention by Regulator where scheme’s technical provisions improperly determined

132

In section 231 of the Pensions Act 2004 (powers of the Regulator), before paragraph (a) of subsection (1) insert—

(za) that the trustees or managers, when determining the methods and assumptions to be used in calculating the scheme's technical provisions, have failed to comply with a requirement imposed under section 222(4)(c);

.

Delegation of powers by the Regulator

133

• (1) The Pensions Act 2004 is amended as follows.

• (2) In paragraph 21 of Schedule 1 (regulations relating to delegation of the Pensions Regulator's functions), the existing provision becomes sub-paragraph (1).

• (3) For paragraph (e) of that sub-paragraph substitute—

(e) permitting the Regulator to authorise such persons, in such circumstances and under such arrangements, as the Regulator may determine, to exercise on behalf of the Regulator— (i) the power to determine whether to exercise any of the functions listed in sub-paragraph (2); (ii) the power to exercise any of the functions listed in sub-paragraph (2) or such other functions as may be prescribed.

• (4) After that sub-paragraph insert—

(2) The functions mentioned in sub-paragraph (1)(e) are— (a) the power to issue an improvement notice under section 13; (b) the power to issue a third party notice under section 14; (c) the power to recover unpaid contributions under section 17; (d) the power to require information under section 72; (e) the power to vary or revoke a determination, order, notice or direction under section 101; (f) the power to require payment of a penalty under section 10 of the Pensions Act 1995; (g) the power to issue a compliance notice under section 35 of the Pensions Act 2008; (h) the power to issue a third party compliance notice under section 36 of that Act; (i) the power to issue an unpaid contributions notice under section 37 of that Act; (j) the power to issue a fixed penalty notice under section 40 of that Act; (k) the power to issue an escalating penalty notice under section 41 of that Act; (l) the power to recover penalties under section 42 of that Act; (m) the power to review a notice under section 43 of that Act; (n) the power to issue a compliance notice in respect of prohibited recruitment conduct under section 51 of that Act; (o) the power to issue a penalty notice in respect of prohibited recruitment conduct under section 52 of that Act.

• (5) Omit paragraph 28 of Schedule 1 (payment of expenses).

• (6) Subsections (2) to (4)—

• (a) do not affect any regulations made under paragraph 21(e) of Schedule 1 to the Pensions Act 2004 (c. 35) before the coming into force of this section, and

• (b) do not affect the powers conferred by that paragraph, so far as exercisable for the purpose of making, by way of consolidation, provision having the same effect as any provision of those regulations.

Exclusion of transfers out in certain cases

134

• (1) The Pension Schemes Act 1993 (c. 48) is amended as follows.

• (2) In section 93(1B) (regulations as to the application of provisions relating to transfers for early leavers), after paragraph (a) insert—

(aa) provide for this Chapter not to apply in prescribed circumstances in relation to a member of a prescribed scheme or schemes of a prescribed description;

.

• (3) In section 101F (transfer notice in respect of pension credit benefit), after subsection (6) insert—

(6A) Regulations may provide for this Chapter not to apply in prescribed circumstances in relation to a member of a prescribed scheme or schemes of a prescribed description.

State and official pensions

Additional Class 3 contributions

135

• (1) The Social Security Contributions and Benefits Act 1992 (c. 4) is amended as follows.

• (2) After section 13 insert—

(13A) (1) An eligible person is entitled, if he so wishes, but subject to any conditions prescribed by regulations made by the Treasury and to the following provisions of this section, to pay Class 3 contributions in respect of a missing year. (2) A missing year is a tax year not earlier than 1975-76 in respect of which the person would under regulations under section 13 be entitled to pay Class 3 contributions but for a limit on the time within which contributions may be paid in respect of that year. (3) A person is not entitled to pay contributions in respect of more than 6 tax years under this section. (4) A person is not entitled to pay any contribution under this section after the end of 6 years beginning with the day on which he attains pensionable age. (5) A person is an eligible person if the following conditions are satisfied. (6) The first condition is that the person attained or will attain pensionable age in the period— (a) beginning with 6th April 2008, and (b) ending with 5th April 2015. (7) The second condition is that there are at least 20 tax years each of which is a year to which subsection (8) or (10) applies. (8) This subsection applies if— (a) the year is one in respect of which the person has paid or been credited with contributions that are of a relevant class for the purposes of paragraph 5 or 5A of Schedule 3 or been credited (in the case of 1987-88 or any subsequent year) with earnings, and (b) in the case of that year, the earnings factor derived as mentioned in subsection (9) is not less than the qualifying earnings factor for that year. (9) For the purposes of subsection (8)(b) the earnings factor— (a) in the case of 1987-88 or any subsequent year, is that which is derived from— (i) so much of the person's earnings as did not exceed the upper earnings limit and upon which such of the contributions mentioned in subsection (8)(a) as are primary Class 1 contributions were paid or treated as paid or earnings credited, and (ii) any Class 2 or Class 3 contributions for the year, or (b) in the case of any earlier year, is that which is derived from the contributions mentioned in subsection (8)(a). (10) This subsection applies (in the case of a person who attained or will attain pensionable age before 6th April 2010) if the year is one in which the person was precluded from regular employment by responsibilities at home within the meaning of regulations under paragraph 5(7) of Schedule 3. (11) The third condition applies only if the person attained or will attain pensionable age before 6th April 2010. (12) That condition is that— (a) the person has, in respect of any one tax year before that in which he attains pensionable age, actually paid contributions that are of a relevant class for the purposes of paragraph 5 of Schedule 3, and (b) in the case of that year, the earnings factor derived as mentioned in subsection (13) is not less than the qualifying earnings factor for that year. (13) For the purposes of subsection (12)(b) the earnings factor— (a) in the case of 1987-88 or any subsequent year, is that which is derived from— (i) so much of the person's earnings as did not exceed the upper earnings limit and upon which such of the contributions mentioned in subsection (12)(a) as are primary Class 1 contributions were paid or treated as paid, and (ii) any Class 2 or Class 3 contributions for the year, or (b) in the case of any earlier year, is that which is derived from the contributions mentioned in subsection (12)(a).

• (3) In section 1(2)(d) (outline of contribution system) after “section 13” insert “ or 13A ”.

Additional Class 3 contributions (Northern Ireland)

136

• (1) The Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) is amended as follows.

• (2) After section 13 insert—