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Pension Schemes Act 2021

Type Public General Act

Publication 2021-02-11

Last updated 2024-04-06

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(41A) (1) Regulations may impose requirements on the trustees or managers of an occupational pension scheme of a prescribed description with a view to securing that there is effective governance of the scheme with respect to the effects of climate change. (2) The effects of climate change in relation to which provision may be made under subsection (1) include, in particular— (a) risks arising from steps taken because of climate change (whether by governments or otherwise), and (b) opportunities relating to climate change. (3) The requirements which may be imposed by the regulations include, in particular, requirements about— (a) reviewing the exposure of the scheme to risks of a prescribed description; (b) assessing the assets of the scheme in a prescribed manner; (c) determining, reviewing and (if necessary) revising a strategy for managing the scheme's exposure to risks of a prescribed description; (d) determining, reviewing and (if necessary) revising targets relating to the scheme's exposure to risks of a prescribed description; (e) measuring performance against such targets; (f) preparing documents containing information of a prescribed description. (4) Regulations under subsection (3)(b) may, in particular, require— (a) that assets are assessed by reference to their exposure to risks of a prescribed description, and (b) that an assessment includes determining the contribution of the assets of the scheme to climate change. (5) The regulations may require the trustees or managers of the scheme to take into account— (a) different ways in which the climate might change, and (b) different steps that might be taken because of climate change. (6) Regulations under subsection (5) may require the trustees or managers of the scheme to adopt prescribed assumptions as to future events, including assumptions about— (a) the steps that might be taken for the purpose of achieving the Paris Agreement goal or other climate change goal, or (b) the achievement of the Paris Agreement goal or other climate change goal. (7) In complying with requirements imposed by the regulations, a trustee or manager must have regard to guidance prepared from time to time by the Secretary of State. (8) In this section “the Paris Agreement goal” means the goal of holding the increase in the average global temperature to well below 2°C above pre-industrial levels referred to in Article 2(1)(a) of the agreement done at Paris on 12 December 2015. (41B) (1) Regulations may require the trustees or managers of an occupational pension scheme of a prescribed description to publish information of a prescribed description relating to the effects of climate change on the scheme (which may include information about matters to which regulations under section 41A may relate). (2) Regulations under subsection (1) may, among other things— (a) require the trustees or managers to publish a document of a prescribed description; (b) require information or a document to be made available free of charge; (c) require information or a document to be provided in a form that is or by means that are prescribed or of a prescribed description. (3) In complying with requirements imposed by the regulations, a trustee or manager must have regard to guidance prepared from time to time by the Secretary of State. (41C) (1) Regulations may make provision with a view to ensuring compliance with a provision of regulations under section 41A or 41B. (2) The regulations may in particular— (a) provide for the Authority to issue a notice (a “compliance notice”) to a person with a view to ensuring the person's compliance with a provision of regulations under section 41A or 41B; (b) provide for the Authority to issue a notice (a “third party compliance notice”) to a person with a view to ensuring another person's compliance with a provision of regulations under section 41A or 41B; (c) provide for the Authority to issue a notice (a “penalty notice”) imposing a penalty on a person where the Authority are of the opinion that the person— (i) has failed to comply with a compliance notice or third party compliance notice, or (ii) has contravened a provision of regulations under section 41A or 41B; (d) provide for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty; (e) confer other functions on the Authority. (3) The regulations may make provision for determining the amount, or the maximum amount, of a penalty in respect of a failure or contravention. (4) But the amount of a penalty imposed under the regulations in respect of a failure or contravention must not exceed— (a) £5,000, in the case of an individual, and (b) £50,000, in any other case.

(3) In section 116 (breach of regulations), in subsection (3)(b), after “10” insert “ or under provision contained in regulations made by virtue of section 41C ”.

(4) In section 175 (Parliamentary control of orders and regulations)—

(a) in subsection (1), after “(2)” insert “ , (2A) ”;

(b) after subsection (2) insert—

(2A) A statutory instrument which contains the first regulations made by virtue of section 41A or 41C must not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

Transfer rights

Exercise of right to cash equivalent

125

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

(2) In section 95 (ways of taking right to cash equivalent), after subsection (6) insert—

(6ZA) The trustees or managers of the scheme may not use the cash equivalent in a way specified in subsection (2)(a), (b) or (d), (2A)(a), (b) or (d) or (3) unless prescribed conditions are satisfied. (6ZB) The conditions that may be prescribed by regulations under subsection (6ZA) include (but are not limited to) conditions about— (a) the member's employment or place of residence; (b) providing the trustees or managers with information or evidence about the member's employment or place of residence; (c) the member obtaining information or guidance about exercising the option conferred by subsection (1) from a prescribed person in a prescribed case; (d) providing the trustees or managers with evidence that— (i) the member has complied with a prescribed condition about obtaining such information or guidance from a prescribed person, or (ii) the member is not subject to such a prescribed condition. (6ZC) Regulations may make provision requiring the trustees or managers of a pension scheme to notify a member who makes an application under subsection (1) of conditions prescribed under subsection (6ZA).

(3) In section 98 (loss of right to cash equivalent), in subsection (2), for “99(2A)” substitute “ 99(2ZA) or (2A) ”.

(4) In section 99 (trustees' duties after exercise of option), after subsection (2) insert—

(2ZA) Subsection (2) does not apply if the trustees or managers have been unable to carry out what the member requires because a condition prescribed by regulations under section 95(6ZA) has not been satisfied.

(5) In section 99, after subsection (2ZA) (inserted by subsection (4))—

(2ZB) Subsection (2) does not apply if— (a) the member was required by section 96(4) to give a transfer notice under section 101F(1) in addition to making an application, and (b) the trustees or managers have been unable to carry out what the member required in the transfer notice under section 101F(1) because a condition prescribed by regulations under section 101F(5A) has not been satisfied.

(6) In section 101F (power to give transfer notice), after subsection (5) insert—

(5A) The trustees or managers of the scheme may not use the amount equal to the cash equivalent for an authorised purpose under subsection (2)(a) or (c) or (3) unless prescribed conditions are satisfied. (5B) The conditions that may be prescribed by regulations under subsection (5A) include (but are not limited to) conditions about— (a) the member's employment or place of residence; (b) providing the trustees or managers with information or evidence about the member's employment or place of residence; (c) the member obtaining information or guidance about exercising the right under subsection (1) from a prescribed person in a prescribed case; (d) providing the trustees or managers with evidence that— (i) the member has complied with a prescribed condition about obtaining such information or guidance from a prescribed person, or (ii) the member is not subject to such a prescribed condition. (5C) Regulations may make provision requiring the trustees or managers of a qualifying scheme to notify an eligible member who gives a transfer notice of conditions prescribed under subsection (5A).

(7) In section 101J (time for compliance with transfer notice), after subsection (2A) insert—

(2AA) Subsection (1) does not apply if the trustees or managers have been unable to carry out what the member requires because a condition prescribed by regulations under section 101F(5A) has not been satisfied.

(8) In section 101J, after subsection (2AA) (inserted by subsection (7))—

(2AB) Subsection (1) does not apply if— (a) the member was required by section 101G(4) to make an application under section 95(1) in addition to giving a transfer notice, and (b) the trustees or managers have been unable to carry out what the member required in the application under section 95(1) because a condition prescribed by regulations under section 95(6ZA) has not been satisfied.

The Pension Protection Fund

Modification of provisions relating to pensionable service

126

(1) The amendments of the Pension Protection Fund (Compensation) Regulations 2005 (S.I. 2005/670) made by regulation 2(2) and (3) of the Pension Protection Fund (Pensionable Service) and Occupational Pension Schemes (Investment and Disclosure) (Amendment and Modification) Regulations 2018 (S.I. 2018/988) (“the 2018 Regulations”) are to be deemed always to have had effect.

(2) The amendment of the Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations 2005 (S.I. 2005/441) made by regulation 3 of the 2018 Regulations is to be deemed always to have had effect.

Administration charges

127

(1) In section 1 of the Welfare Reform and Pensions Act 1999 (meaning of “stakeholder pension scheme”), in subsection (5) (fourth condition: charge cap)—

(a) for “result in” substitute “ constitute ”;

(b) after “members” insert “ or the making of transfer payments with a view to acquiring rights or entitlements to pension benefits under different pension schemes ”.

(2) In Schedule 18 to the Pensions Act 2014 (power to restrict charges or impose requirements in relation to schemes), in paragraph 1(5), in the definition of “administration charge”—

(a) for “result in” substitute “ constitute ”;

(b) after “members” insert “ or the making of transfer payments with a view to acquiring rights or entitlements to pension benefits under different pension schemes ”.

(3) In section 113 of the Pension Schemes Act 1993 (disclosure of information about schemes to members etc)—

(a) in subsection (6)(b), after “the” insert “ other ”;

(b) in subsection (7), after “or” insert “ other ”.

(4) In section 137FA of the Financial Services and Markets Act 2000 (FCA general rules: disclosure of information about pension scheme transaction costs etc)—

(a) in subsection (3)(b), after “the” insert “ other ”;

(b) in subsection (4), after “or” insert “ other ”;

Categories of pension schemes

Pension Schemes Act 2015: repeals

128

In the Pension Schemes Act 2015, omit—

(a) sections 1 to 7 (Part 1: categories of pension scheme);

(b) sections 8 to 35 (Part 2: pension schemes providing collective benefits);

(d) Schedule 1 (early leavers: revaluation of accrued benefits);

(e) in Schedule 2 (other amendments to do with Parts 1 and 2)—

(i) paragraphs 1 to 22;

(ii) paragraphs 25 to 29;

(iii) paragraphs 31 and 32;

(iv) paragraphs 34 and 35;

(v) paragraphs 37 to 51.

Northern Ireland

Further provision relating to pension schemes: Northern Ireland

129

Schedule 11 contains—

(a) in Part 1, provision for Northern Ireland corresponding to the provision made for England and Wales and Scotland in Schedule 10, and

(b) in Part 2, provision for Northern Ireland corresponding to the provision made for England and Wales and Scotland in sections 124 to 128.

PART 6 — Final

Extent

130

(1) This Act extends to England and Wales and Scotland only, subject as follows.

(2) Subject to subsection (4), the following provisions extend to Northern Ireland only—

(a) Part 2;

(b) section 117 and Schedule 8;

(d) section 129 and Schedule 11.

(3) The following provisions extend to England and Wales, Scotland and Northern Ireland—

(a) section 126(2);

(b) this section and sections 131 and 132.

(4) An amendment or repeal contained in this Act has the same extent as the enactment to which it relates.

Commencement

131

(1) This Act comes into force on such day as the Secretary of State may by regulations appoint, subject to subsections (2) and (3).

(2) Subject to subsection (3), the following provisions come into force on such day as the Department for Communities in Northern Ireland may by order appoint—

(a) Part 2;

(b) section 117 and Schedule 8;

(d) section 129 and Schedule 11.

(3) The following provisions come into force on the day on which this Act is passed—

(a) any provision of Part 1, 2 or 4 so far as it confers power to make regulations or is otherwise necessary for enabling the exercise of such a power on or after the day on which this Act is passed;

(b) any provision of Schedule 10 so far as it confers power to make regulations or is otherwise necessary for enabling the exercise of such a power on or after the day on which this Act is passed and section 123 so far as relating to that provision;

(c) any provision of Part 1 of Schedule 11 so far as it confers power to make regulations or is otherwise necessary for enabling the exercise of such a power on or after the day on which this Act is passed and section 129 so far as relating to that provision;

(d) section 130;

(e) this section;

(f) section 132.

(4) Regulations or orders under this section may appoint different days for different purposes.

(5) The Secretary of State may by regulations make transitional, transitory or saving provision in connection with the coming into force of a provision of this Act, other than a provision mentioned in subsection (2).

(6) The Department for Communities in Northern Ireland may by order make transitional, transitory or saving provision in connection with the coming into force of a provision mentioned in subsection (2).

(7) Regulations made by the Secretary of State under this section are to be made by statutory instrument.

(8) The power of the Department for Communities in Northern Ireland to make an order under subsection (2) or (6) is exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).

Short title

132

This Act may be cited as the Pension Schemes Act 2021.

SCHEDULE 1

Building Societies Act 1986 (c. 53)

1

(1) Schedule 10A to the Building Societies Act 1986 (disclosures about directors, other officers and employees in notes to accounts) is amended as follows.

(2) In paragraph 1(2) (aggregate amount of director's remuneration), at the appropriate place insert—

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

(3) In that provision, in the definition of “money purchase benefits”—

(a) for “means retirement benefits” substitute

means— (a) retirement benefits

;

(b) at the end insert

, and (b) collective money purchase benefits;

(4) In paragraph 1A(1) (money purchase benefits), for “the definition” substitute “ paragraph (a) of the definition ”.

Pension Schemes Act 1993 (c. 48)

2

The Pension Schemes Act 1993 is amended as follows.

3

(1) Section 181(1) (general interpretation) is amended as follows.

(2) At the appropriate place insert—

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

(3) In the definition of “money purchase benefits”—

(a) for “means benefits” substitute

means— (a) benefits

;

(b) at the end insert

, and (b) collective money purchase benefits;

4

In section 181B(1) (money purchase benefits: supplementary), for “the definition” substitute “ paragraph (a) of the definition ”.

Pensions Act 2008 (c. 30)

5

The Pensions Act 2008 is amended as follows.

6

(1) Section 99 (interpretation of Part 1: pension scheme membership for jobholders) is amended as follows.

(2) At the appropriate place insert—

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

(3) In the definition of “money purchase benefits”—

(a) for “means benefits” substitute

means— (a) benefits

;

(b) at the end insert

, and (b) collective money purchase benefits;

7

In section 99A(1) (money purchase benefits: supplementary), for “the definition” substitute “ paragraph (a) of the definition ”.

SCHEDULE 2

Consequences of a pause order

1

(1) If a pause order is made in relation to a collective money purchase scheme, any action taken in contravention of the order is void, except to the extent that the action is validated by an order under paragraph 3.

(2) If a pause order contains a direction under section 44(5)(b) that no further payments (or no further payments of a specified description) are to be made towards a scheme during the period for which the order has effect—

(a) any payments that are the subject of the direction and would otherwise be due to be made towards the scheme during that period are to be treated as if they do not fall due, and

(b) any obligation to make those payments (including any obligation under section 49(8) of the Pensions Act 1995 to pay amounts deducted corresponding to such payments) is to be treated as if it does not arise.

(3) If a pause order contains a direction under section 44(5)(d) (no payment of benefits or benefits of a specified description under the scheme rules) and an amount of benefit under the scheme rules was not paid as a result of the direction—

(a) the direction does not affect any entitlement to that benefit, and

(b) any benefit to which a member, or a person in respect of a member, remains entitled at the end of the period for which the pause order had effect is an amount that falls due to the member or (as the case may be) the person at the end of that period.

(4) If a pause order contains a direction under section 44(5)(e) (no transfers etc of members' rights) it does not prevent—

(a) a pension sharing order or provision having effect, or

(b) a pension earmarking order having effect in a case where—

(i) the order requires a payment to be made if a payment in respect of any benefits under the scheme becomes due to a person, and

(ii) a direction under section 44(5)(d) does not prevent the payment becoming due.

(5) In sub-paragraph (4)—

“pension sharing order or provision” means an order or provision falling within section 28(1) of the Welfare Reform and Pensions Act 1999 (activation of pension sharing);

“pension earmarking order” means—an order under section 23 of the Matrimonial Causes Act 1973 (financial provision orders in connection with divorce etc) so far as it includes provision made by virtue of section 25B or 25C of that Act (powers to include provision about pensions),an order under Part 1 of Schedule 5 to the Civil Partnership Act 2004 (financial provision in connection with dissolution, nullity or separation) so far as it includes provision made by virtue of paragraphs 25 and 26 of Part 6 of that Schedule (powers to include provision about pensions),an order under section 12A(2) or (3) of the Family Law (Scotland) Act 1985 (powers in relation to pension lump sums when making a capital sum order),an order under Article 25 of the Matrimonial Causes (Northern Ireland) Order 1978 (S.I. 1978/1045 (N.I. 15)) so far as it includes provision made by virtue of Article 27B or 27C of that Order (Northern Ireland powers corresponding to those mentioned in paragraph (a)), oran order under Part 1 of Schedule 15 to the Civil Partnership Act 2004 (financial provision in connection with dissolution, nullity or separation: Northern Ireland) so far as it includes provision made by virtue of paragraphs 20 and 21 of Part 5 of that Schedule (powers to include provision about pensions).

(6) The Secretary of State may make regulations modifying any provision of—

(a) Chapter 1 of Part 4ZA of the Pension Schemes Act 1993 (transfer rights: general), or

(b) Chapter 2 of that Part (early leavers: cash transfer sums and contribution refunds),

in their application to a collective money purchase scheme in relation to which a pause order has effect containing a direction under section 44(5)(e) (no transfers etc of members' rights).

(7) Regulations under sub-paragraph (6) override any provision of the collective money purchase scheme, to the extent that there is a conflict.

(8) Disregarding sub-paragraph (1), if a pause order made in relation to a collective money purchase scheme is not complied with, section 10 of the Pensions Act 1995 (civil penalties) applies to any trustee of the scheme who has failed to take all reasonable steps to secure compliance.

(9) Sub-paragraph (8) does not apply in the case of non-compliance with a direction under section 44(5)(c) (direction that certain deducted payments are to be repaid by employer).

(10) In such a case, section 10 of the Pensions Act 1995 (civil penalties) applies to an employer who, without reasonable excuse, fails to repay an amount as required by the direction.

(11) Regulations under sub-paragraph (6) are subject to negative resolution procedure.

Period of effect etc of pause order

2

(1) A pause order must specify the period for which it has effect, which must not exceed three months.

(2) The Pensions Regulator may on one or more occasions by order extend the period for which the pause order has effect for a further three months.

(3) A pause order that is in effect at the end of the triggering event period ceases to have effect at the end of that period.

Validation of action in contravention of pause order

3

(1) If a pause order is made in relation to a collective money purchase scheme, the Pensions Regulator may by order validate action taken in contravention of the order.

(2) Any of the following persons may apply to the Regulator for an order under this paragraph validating particular action—

(a) the trustees of the scheme;

(b) any person directly affected by the action.

Notification of trustees, employers and members

4

(1) This paragraph applies where—

(a) a pause order is made in relation to a collective money purchase scheme,

(b) an order is made under paragraph 2(2) extending the period for which a pause order made in relation to a collective money purchase scheme has effect, or

(c) an order is made under paragraph 3 validating action taken in contravention of a pause order made in relation to a collective money purchase scheme.

(2) The Pensions Regulator must, as soon as reasonably practicable after the order has been made, notify the trustees of the scheme of the fact that the order has been made and of its effect.

(3) The Pensions Regulator may by order direct the trustees of the scheme to notify the following persons of the fact that the order has been made and of its effect—

(a) all of the members of the scheme or such members as are of a description specified in the order;

(b) all employers by which the scheme is used, or such employers as are of a description specified in the order;

(c) all relevant former employers who, but for the pause order, would be liable to make payments towards the scheme, or such of them as are of a description specified in the order.

(4) The trustees must give the notification within the period and in the manner specified in the order under sub-paragraph (3).

(5) If the trustees of a scheme fail to comply with a direction to them contained in an order under sub-paragraph (3), section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee who has failed to take all reasonable steps to secure compliance.

Supplementary

5

(1) A pause order, or an order made under any of paragraphs 2, 3 and 4, may be made in relation to a collective money purchase scheme—

(a) in spite of any enactment or rule of law, or any rule of the scheme, that would otherwise operate to prevent the order being made, and

(b) without regard to any enactment, rule of law or rule of the scheme that would otherwise require, or might otherwise be taken to require, the implementation of any procedure or the obtaining of any consent, with a view to making the order.

(2) Sub-paragraph (1) does not have effect to authorise the Pensions Regulator to make an order as mentioned in that sub-paragraph if its doing so would be unlawful as a result of section 6(1) of the Human Rights Act 1998 (unlawful for public authority to act in contravention of a Convention right).

SCHEDULE 3

Pension Schemes Act 1993 (c. 48)

1

The Pension Schemes Act 1993 is amended as follows.

2

(1) Section 84 (basis of revaluation of accrued benefits) is amended as follows.

(2) In subsection (3), after “money purchase benefit” insert “ other than a collective money purchase benefit ”.

(3) After subsection (3A) insert—

(3AA) If any such benefit as is mentioned in section 83(1)(a) is a collective money purchase benefit, the benefit shall be revalued using the cash balance method.

3

In section 101AI (right to cash transfer sum and contribution refund: further provisions), in subsection (8)—

(a) in paragraph (a), at the end insert—

(xiii) regulations made under section 18(4) of or paragraph 1(6) of Schedule 2 to the Pension Schemes Act 2021; (xiv) sections 34, 39, 41, 42 and 45 of the Pension Schemes Act 2021;

;

(b) in paragraph (b), at the end insert—

(xi) sections 18(7)(b), 34(5), 39(6), 41(6), 42(2) and 45(5) of and paragraph 1(7) of Schedule 2 to the Pension Schemes Act 2021.

4

In section 186 (Parliamentary control of orders and regulations), in subsection (3) (statutory instruments subject to affirmative resolution procedure), after paragraph (f) insert

, or (g) regulations under section 99(2)(c), or (h) regulations under section 99A(2)(b),

5

In Schedule 3 (methods of revaluing accrued pension benefits), in paragraph 3A (the cash balance method), for “cash balance benefit” substitute “ benefit ”.

Pensions Act 1995 (c. 26)

6

The Pensions Act 1995 is amended as follows.

7

In section 51 (annual increase in rate of pension), after subsection (1) insert—

(1A) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this section as a separate occupational pension scheme which is a money purchase scheme.

8

In section 75 (deficiencies in the assets of certain occupational pension schemes), after subsection (1) insert—

(1A) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this section as a separate occupational pension scheme which is a money purchase scheme.

9

In section 87 (schedules of payments to money purchase schemes), after subsection (1) insert—

(1A) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this section and section 88 as an occupational pension scheme which is a money purchase scheme.

10

In section 89 (application of further provisions to money purchase schemes), at the end insert—

(3) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this section as a separate money purchase scheme.

Pensions Act 2004 (c. 35)

11

The Pensions Act 2004 is amended as follows.

12

In section 13 (improvement notices), in subsection (7), after paragraph (h) insert—

(i) Part 1 of the Pension Schemes Act 2021.

13

(1) Section 90 (codes of practice) is amended as follows.

(2) In subsection (2) (matters on which the Pensions Regulator must issue codes of practice), after paragraph (jb) insert—

(jc) the process for making an application under Part 1 of the Pension Schemes Act 2021 for authorisation of a collective money purchase scheme; (jd) the matters that the Pensions Regulator expects to take into account in deciding whether it is satisfied that a pension scheme meets the authorisation criteria under that Part (see section 9 of the Pension Schemes Act 2021);

(3) In subsection (6), in the definition of “the pensions legislation”—

(a) omit the “or” at the end of paragraph (f);

(b) after paragraph (g) insert

, or (h) Part 1 of the Pension Schemes Act 2021.

14

(1) Section 93(2) (regulatory functions of the Pensions Regulator) is amended as follows.

(2) In paragraph (pa)—

(a) after “strategy” insert “ for Master Trust scheme ”;

(b) omit the “and” at the end.

(3) After paragraph (pa) insert—

(pb) the power to give a direction under section 23(2) of the Pension Schemes Act 2021 (direction to obtain actuarial valuation or take other steps to remedy or mitigate failure in relation to a collective money purchase scheme), (pc) the power to give a notice under section 29(1) or (4) of that Act (risk notices), (pd) the power to give a direction under section 29(6) of that Act (direction to implement proposals in a resolution plan), (pe) the power to give a direction under section 39(4) of that Act (direction to submit implementation strategy), and

15

In section 97(5) (special procedure: applicable cases), after paragraph (tf) insert—

(tg) the power under section 30 of the Pension Schemes Act 2021 to withdraw authorisation of a collective money purchase scheme; (th) the power to make a pause order under section 44 of that Act; (ti) the power to make an order under paragraph 2(2) of Schedule 2 to that Act extending the period for which a pause order has effect; (tj) the power to make an order under paragraph 3 of that Schedule validating action taken in contravention of a pause order; (tk) the power to make an order under paragraph 4(3) of that Schedule directing the notification of members or employers;

16

In section 126 (schemes eligible for pension protection), after subsection (1) insert—

(1A) Where a scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this Part as a separate money purchase scheme.

17

In section 249A (requirement for an effective system of governance), in subsection (3) (exceptions), after paragraph (e) insert—

(f) an authorised collective money purchase scheme within the meaning of Part 1 of the Pension Schemes Act 2021.

18

In section 254 (representative of non-European scheme to be treated as trustee), in subsection (3)—

(a) omit the “or” at the end of paragraph (d);

(b) after paragraph (e) insert

, or (f) Part 1 of the Pension Schemes Act 2021.

19

In section 291 (duty of trustees or managers to act consistently with law of host member State), in subsection (4)—

(a) omit the “or” at the end of paragraph (d);

(b) after paragraph (e) insert

, or (f) Part 1 of the Pension Schemes Act 2021.

20

In section 318 (general interpretation), in subsection (3)—

(a) in paragraph (a), after sub-paragraph (xiii) insert—

(xiv) regulations under section 18(4) of or paragraph 1(6) of Schedule 2 to the Pension Schemes Act 2021; (xv) sections 34, 39, 41, 42 and 45 of the Pension Schemes Act 2021;

;

(b) in paragraph (b), after sub-paragraph (xi) insert—

(xii) sections 18(7)(b), 34(5), 39(6), 41(6), 42(2) and 45(5) of and paragraph 1(7) of Schedule 2 to the Pension Schemes Act 2021.

21

In Schedule 2 (the reserved regulatory functions), after Part 4A insert—

(44H) The power to give a direction under section 23(2) (direction to obtain actuarial valuation or take other steps to remedy or mitigate failure in relation to a collective money purchase scheme). (44I) The power to give a direction under section 29(6) (direction to implement proposals in a resolution plan). (44J) The power under section 30 to withdraw authorisation of a collective money purchase scheme. (44K) The power to give a direction under section 41(4) (direction to pursue a continuity option). (44L) The power to make a pause order under section 44. (44M) The power to make an order under paragraph 2(2) of Schedule 2 extending the period for which a pause order has effect. (44N) The power to make an order under paragraph 3 of Schedule 2 validating action taken in contravention of a pause order. (44O) The power to make an order under paragraph 4(3) of Schedule 2 directing the notification of members or employers.

Pensions Act 2008 (c. 30)

22

In section 31 of the Pensions Act 2008 (effect of freezing order, assessment period or pause order: qualifying schemes), in subsection (3) (meaning of “freezing event” and “relevant provision”)—

(a) in the definition of “freezing event”—

(i) omit the “or” at the end of each of paragraphs (a) and (b);

(ii) at the end of paragraph (c) insert

, or (d) the making of a pause order under section 44 of the Pension Schemes Act 2021;

;

(b) in the definition of “relevant provision”, in paragraph (c), after “2017” insert “ or (as the case may be) section 44 of the Pension Schemes Act 2021 ”.

Pensions Act 2014 (c. 19)

23

The Pensions Act 2014 is amended as follows.

24

In section 54(2) (regulations subject to affirmative procedure), omit the “or” after paragraph (e) and at the end of paragraph (f) insert

, or (g) the first regulations under paragraph 1 or 3 of that Schedule that make provision in relation to collective money purchase schemes within the meaning of Part 1 of the Pension Schemes Act 2021 (see section 1 of that Act).

25

(1) Schedule 18 (power to restrict charges or impose requirements in relation to schemes) is amended as follows.

(2) In paragraph 1(1) (power to restrict charges), in each of paragraphs (a) and (b), for “a member” substitute “ members ”.

(3) In paragraph 4 (interpretation), after sub-paragraph (2) insert—

(3) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this Schedule as a separate scheme.

SCHEDULE 4

Building Societies Act 1986 (c. 53)

1

In Schedule 10A to the Building Societies Act 1986 (disclosures about directors, other officers and employees in notes to accounts), in paragraph 1(2), in the definition of “collective money purchase benefit” (inserted by Schedule 1 to this Act), after “section 1” insert “ or 52 ”.

Pension Schemes (Northern Ireland) Act 1993 (c. 49)

2

The Pension Schemes (Northern Ireland) Act 1993 is amended as follows.

3

(1) Section 176(1) (general interpretation) is amended as follows.

(2) At the appropriate place insert—

“collective money purchase benefit” has the meaning given by section 52 of the Pension Schemes Act 2021;

(3) In the definition of “money purchase benefits”—

(a) for “means benefits” substitute

means— (a) benefits

;

(b) at the end insert

, and (b) collective money purchase benefits;

4

In section 176B(1) (money purchase benefits: supplementary), for “the definition” substitute “ paragraph (a) of the definition ”.

Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13 (N.I.))

5

The Pensions (No. 2) Act (Northern Ireland) 2008 is amended as follows.

6

(1) Section 78 (interpretation of Part 1: pension scheme membership for jobholders) is amended as follows.

(2) At the appropriate place insert—

“collective money purchase benefit” has the meaning given by section 52 of the Pension Schemes Act 2021;

(3) In the definition of “money purchase benefits”—

(a) for “means benefits” substitute

means— (a) benefits

;

(b) at the end insert

, and (b) collective money purchase benefits;

7

In section 78A(1) (money purchase benefits: supplementary), for “the definition” substitute “ paragraph (a) of the definition ”.

SCHEDULE 5

Consequences of a pause order

1

(1) If a pause order is made in relation to a collective money purchase scheme, any action taken in contravention of the order is void, except to the extent that the action is validated by an order under paragraph 3.

(2) If a pause order contains a direction under section 95(5)(b) that no further payments (or no further payments of a specified description) are to be made towards a scheme during the period for which the order has effect—

(a) any payments that are the subject of the direction and would otherwise be due to be made towards the scheme during that period are to be treated as if they do not fall due, and

(b) any obligation to make those payments (including any obligation under Article 49(8) of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) to pay amounts deducted corresponding to such payments) is to be treated as if it does not arise.

(3) If a pause order contains a direction under section 95(5)(d) (no payment of benefits or benefits of a specified description under the scheme rules) and an amount of benefit under the scheme rules was not paid as a result of the direction—

(a) the direction does not affect any entitlement to that benefit, and

(b) any benefit to which a member, or a person in respect of a member, remains entitled at the end of the period for which the pause order had effect is an amount that falls due to the member or (as the case may be) the person at the end of that period.

(4) If a pause order contains a direction under section 95(5)(e) (no transfers etc of members' rights) it does not prevent—

(a) a pension sharing order or provision having effect, or

(b) a pension earmarking order having effect in a case where—

(i) the order requires a payment to be made if a payment in respect of any benefits under the scheme becomes due to a person, and

(ii) a direction under section 95(5)(d) does not prevent the payment becoming due.

(5) In sub-paragraph (4)—

“pension sharing order or provision” means an order or provision falling within Article 25(1) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11)) (activation of pension sharing);

“pension earmarking order” means—an order under Article 25 of the Matrimonial Causes (Northern Ireland) Order 1978 (S.I. 1978/1045 (N.I. 15)) so far as it includes provision made by virtue of Article 27B or 27C of that Order (powers to include provision about pensions),an order under Part 1 of Schedule 15 to the Civil Partnership Act 2004 (financial provision in connection with dissolution, nullity or separation: Northern Ireland) so far as it includes provision made by virtue of paragraphs 20 and 21 of Part 5 of that Schedule (powers to include provision about pensions),an order under section 23 of the Matrimonial Causes Act 1973 (financial provision orders in connection with divorce etc) so far as it includes provision made by virtue of section 25B or 25C of that Act (powers to include provision about pensions),an order under Part 1 of Schedule 5 to the Civil Partnership Act 2004 (financial provision in connection with dissolution, nullity or separation) so far as it includes provision made by virtue of paragraphs 25 and 26 of Part 6 of that Schedule (powers to include provision about pensions), oran order under section 12A(2) or (3) of the Family Law (Scotland) Act 1985 (powers in relation to pension lump sums when making a capital sum order).

(6) The Department may make regulations modifying any provision of—

(a) Chapter 1 of Part 4ZA of the Pension Schemes (Northern Ireland) Act 1993 (transfer rights: general), or

(b) Chapter 2 of that Part (early leavers: cash transfer sums and contribution refunds),

in their application to a collective money purchase scheme in relation to which a pause order has effect containing a direction under section 95(5)(e) (no transfers etc of members' rights).

(7) Regulations under sub-paragraph (6) override any provision of the collective money purchase scheme, to the extent that there is a conflict.

(8) Disregarding sub-paragraph (1), if a pause order made in relation to a collective money purchase scheme is not complied with, Article 10 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (civil penalties) applies to any trustee of the scheme who has failed to take all reasonable steps to secure compliance.

(9) Sub-paragraph (8) does not apply in the case of non-compliance with a direction under section 95(5)(c) (direction that certain deducted payments are to be repaid by employer).

(10) In such a case, Article 10 of the Pensions (Northern Ireland) Order 1995 (civil penalties) applies to an employer who, without reasonable excuse, fails to repay an amount as required by the direction.

(11) Regulations under sub-paragraph (6) are subject to negative resolution.

Period of effect etc of pause order

2

(1) A pause order must specify the period for which it has effect, which must not exceed three months.

(2) The Pensions Regulator may on one or more occasions by order extend the period for which the pause order has effect for a further three months.

(3) A pause order that is in effect at the end of the triggering event period ceases to have effect at the end of that period.

Validation of action in contravention of pause order

3

(1) If a pause order is made in relation to a collective money purchase scheme, the Pensions Regulator may by order validate action taken in contravention of the order.

(2) Any of the following persons may apply to the Regulator for an order under this paragraph validating particular action—

(a) the trustees of the scheme;

(b) any person directly affected by the action.

Notification of trustees, employers and members

4

(1) This paragraph applies where—

(a) a pause order is made in relation to a collective money purchase scheme,

(b) an order is made under paragraph 2(2) extending the period for which a pause order made in relation to a collective money purchase scheme has effect, or

(c) an order is made under paragraph 3 validating action taken in contravention of a pause order made in relation to a collective money purchase scheme.

(2) The Pensions Regulator must, as soon as reasonably practicable after the order has been made, notify the trustees of the scheme of the fact that the order has been made and of its effect.

(3) The Pensions Regulator may by order direct the trustees of the scheme to notify the following persons of the fact that the order has been made and of its effect—

(a) all of the members of the scheme or such members as are of a description specified in the order;

(b) all employers by which the scheme is used, or such employers as are of a description specified in the order;

(c) all relevant former employers who, but for the pause order, would be liable to make payments towards the scheme, or such of them as are of a description specified in the order.

(4) The trustees must give the notification within the period and in the manner specified in the order under sub-paragraph (3).

(5) If the trustees of a scheme fail to comply with a direction to them contained in an order under sub-paragraph (3), Article 10 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (civil penalties) applies to a trustee who has failed to take all reasonable steps to secure compliance.

Supplementary

5

(1) A pause order, or an order made under any of paragraphs 2, 3 and 4, may be made in relation to a collective money purchase scheme—

(a) in spite of any statutory provision or rule of law, or any rule of the scheme, that would otherwise operate to prevent the order being made, and

(b) without regard to any statutory provision, rule of law or rule of the scheme that would otherwise require, or might otherwise be taken to require, the implementation of any procedure or the obtaining of any consent, with a view to making the order.

(2) Sub-paragraph (1) does not have effect to authorise the Pensions Regulator to make an order as mentioned in that sub-paragraph if its doing so would be unlawful as a result of section 6(1) of the Human Rights Act 1998 (unlawful for public authority to act in contravention of a Convention right).

SCHEDULE 6

Pension Schemes (Northern Ireland) Act 1993 (c. 49)

1

The Pension Schemes (Northern Ireland) Act 1993 is amended as follows.

2

(1) Section 80 (basis of revaluation of accrued benefits) is amended as follows.

(2) In subsection (3), after “money purchase benefit” insert “ other than a collective money purchase benefit ”.

(3) After subsection (3A) insert—

(3AA) If any such benefit as is mentioned in section 79(1)(a) is a collective money purchase benefit, the benefit shall be revalued using the cash balance method.

3

In section 97AI (right to cash transfer sum and contribution refund: further provisions), in subsection (7)—

(a) in paragraph (a), at the end insert—

(xii) regulations made under section 69(4) of or paragraph 1(6) of Schedule 5 to the Pension Schemes Act 2021; (xiii) sections 85, 90, 92, 93 and 96 of the Pension Schemes Act 2021;

;

(b) in paragraph (b), at the end insert—

(x) sections 69(7)(b), 85(5), 90(6), 92(6), 93(2) and 96(5) of and paragraph 1(7) of Schedule 5 to the Pension Schemes Act 2021.

4

In section 181 (Assembly, etc. control of regulations and orders), in subsection (2) (regulations and orders subject to confirmatory procedure), after “20B(5)” insert “ , 95(2)(c), 95A(2)(b) ”.

5

In Schedule 2 (methods of revaluing accrued pension benefits), in paragraph 3A (the cash balance method), for “cash balance benefit” substitute “ benefit ”.

Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22))

6

The Pensions (Northern Ireland) Order 1995 is amended as follows.

7

In Article 51 (annual increase in rate of pension), after paragraph (1) insert—

(1A) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 2 of the Pension Schemes Act 2021 (see section 52(2)(b) of that Act) is to be treated for the purposes of this Article as a separate occupational pension scheme which is a money purchase scheme.

8

In Article 75 (deficiencies in the assets of certain occupational pension schemes), after paragraph (1) insert—

(1A) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 2 of the Pension Schemes Act 2021 (see section 52(2)(b) of that Act) is to be treated for the purposes of this Article as a separate occupational pension scheme which is a money purchase scheme.

9

In Article 85 (schedules of payments to money purchase schemes), after paragraph (1) insert—

(1A) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 2 of the Pension Schemes Act 2021 (see section 52(2)(b) of that Act) is to be treated for the purposes of this Article and Article 86 as an occupational pension scheme which is a money purchase scheme.

10

In Article 87 (application of further provisions to money purchase schemes), at the end insert—

(3) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 2 of the Pension Schemes Act 2021 (see section 52(2)(b) of that Act) is to be treated for the purposes of this Article as a separate money purchase scheme.

Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1))

11

The Pensions (Northern Ireland) Order 2005 is amended as follows.

12

In Article 2 (general interpretation), in paragraph (4)—

(a) in sub-paragraph (a), after head (ix) insert—

(x) regulations made under section 69(4) of or paragraph 1(6) of Schedule 5 to the Pension Schemes Act 2021; (xi) sections 85, 90, 92, 93 and 96 of the Pension Schemes Act 2021;

;

(b) in sub-paragraph (b), after head (vii) insert—

(viii) sections 69(7)(b), 85(5), 90(6), 92(6), 93(2) and 96(5) of and paragraph 1(7) of Schedule 5 to the Pension Schemes Act 2021.

13

In Article 9 (improvement notices), in paragraph (7)—

(a) omit the “or” at the end of sub-paragraph (f);

(b) after sub-paragraph (g) insert

, or (h) Part 2 of the Pension Schemes Act 2021.

14

(1) Article 85 (codes of practice) is amended as follows.

(2) In paragraph (2) (matters on which the Pensions Regulator must issue codes of practice), after sub-paragraph (j) insert—

(ja) the process for making an application under Part 2 of the Pension Schemes Act 2021 for authorisation of a collective money purchase scheme; (jb) the matters that the Regulator expects to take into account in deciding whether it is satisfied that a pension scheme meets the authorisation criteria under that Part (see section 60 of the Pension Schemes Act 2021);

(3) In paragraph (6), in the definition of “the pensions legislation”—

(a) omit the “or” at the end of sub-paragraph (e);

(b) after sub-paragraph (f) insert

, or (g) Part 2 of the Pension Schemes Act 2021.

15

In Article 88(2) (regulatory functions of the Pensions Regulator)—

(a) omit the “and” at the end of sub-paragraph (p);

(b) after sub-paragraph (p) insert—

(pa) the power to give a direction under section 74(2) of the Pension Schemes Act 2021 (direction to obtain actuarial valuation or take other steps to remedy or mitigate failure in relation to a collective money purchase scheme), (pb) the power to give a notice under section 80(1) or (4) of that Act (risk notices), (pc) the power to give a direction under section 80(6) of that Act (direction to implement proposals in a resolution plan), (pd) the power to give a direction under section 90(4) of that Act (direction to submit implementation strategy), and

16

In Article 92(5) (special procedure: applicable cases), after sub-paragraph (ta) insert—

(tb) the power under section 81 of the Pension Schemes Act 2021 to withdraw authorisation of a collective money purchase scheme; (tc) the power to make a pause order under section 95 of that Act; (td) the power to make an order under paragraph 2(2) of Schedule 5 to that Act extending the period for which a pause order has effect; (te) the power to make an order under paragraph 3 of that Schedule validating action taken in contravention of a pause order; (tf) the power to make an order under paragraph 4(3) of that Schedule directing the notification of members or employers;

17

In Article 110 (schemes eligible for pension protection), after paragraph (1) insert—

(1A) Where a scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 2 of the Pension Schemes Act 2021 (see section 52(2)(b) of that Act) is to be treated for the purposes of this Part as a separate money purchase scheme.

18

In Article 226A (requirement for an effective system of governance), in paragraph (3) (exceptions), after sub-paragraph (d) insert—

(e) an authorised collective money purchase scheme within the meaning of Part 2 of the Pension Schemes Act 2021.

19

In Article 231 (representative of non-European scheme to be treated as trustee), in paragraph (3)—

(a) omit the “or” at the end of sub-paragraph (d);

(b) after sub-paragraph (e) insert

, or (f) Part 2 of the Pension Schemes Act 2021.

20

In Article 267 (duty of trustees or managers to act consistently with law of host EEA State), in paragraph (4)—

(a) omit the “or” at the end of sub-paragraph (d);

(b) after sub-paragraph (e) insert

, or (f) Part 2 of the Pension Schemes Act 2021.

21

In Schedule 2 (the reserved regulatory functions), after Part 4 insert—

(44A) The power to give a direction under section 74(2) (direction to obtain actuarial valuation or take other steps to remedy or mitigate failure in relation to a collective money purchase scheme). (44B) The power to give a direction under section 80(6) (direction to implement proposals in a resolution plan). (44C) The power under section 81 to withdraw authorisation of a collective money purchase scheme. (44D) The power to give a direction under section 92(4) (direction to pursue a continuity option). (44E) The power to make a pause order under section 95. (44F) The power to make an order under paragraph 2(2) of Schedule 5 extending the period for which a pause order has effect. (44G) The power to make an order under paragraph 3 of Schedule 5 validating action taken in contravention of a pause order. (44H) The power to make an order under paragraph 4(3) of Schedule 5 directing the notification of members or employers.

Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13 (N.I.))

22

(1) Section 31 of the Pensions (No. 2) Act (Northern Ireland) 2008 (effect of freezing order or assessment period: qualifying schemes) is amended as follows.

(2) In the heading, for “or assessment period” substitute “ , assessment period or pause order ”.

(3) In subsection (3) (meaning of “freezing event” and “relevant provision”)—

(a) in the definition of “freezing event”—

(i) omit the “or” at the end of paragraph (a);

(ii) at the end of paragraph (b) insert

, or (c) the making of a pause order under section 95 of the Pension Schemes Act 2021;

;

(b) in the definition of “relevant provision”, after paragraph (b) insert—

(c) in relation to a pause order, provision contained in the order or the provision made with respect to the order by section 95 of the Pension Schemes Act 2021.

Pensions Act (Northern Ireland) 2015 (c. 5 (N.I.))

23

The Pensions Act (Northern Ireland) 2015 is amended as follows.

24

In section 51(4) (regulations subject to confirmatory procedure), omit the “or” after paragraph (e) and at the end of paragraph (f) insert

, or (g) the first regulations under paragraph 1 or 3 of that Schedule that make provision in relation to collective money purchase schemes within the meaning of Part 2 of the Pension Schemes Act 2021 (see section 52 of that Act).

25

(1) Schedule 18 (power to restrict charges or impose requirements in relation to schemes) is amended as follows.

(2) In paragraph 1(1) (power to restrict charges), in each of paragraphs (a) and (b), for “a member” substitute “ members ”.

(3) In paragraph 4 (interpretation), after sub-paragraph (2) insert—

(3) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 2 of the Pension Schemes Act 2021 (see section 52(2)(b) of that Act) is to be treated for the purposes of this Schedule as a separate scheme.

SCHEDULE 7

Pensions Act 1995 (c. 26)

1

In section 10 of the Pensions Act 1995 (civil penalties), after subsection (9) insert—

(10) The Authority may not require a person to pay a penalty under this section in respect of an act or omission if the Authority have issued a notice to the person under section 88A of the Pensions Act 2004 (financial penalties) in respect of the same act or omission.

Pensions Act 2004 (c. 35)

2

The Pensions Act 2004 is amended as follows.

3

In section 38B (section 38 contribution notice issued by reference to material detriment test: defence), in subsection (12), for paragraph (b) substitute—

(b) a reference to a party to an act or failure to act includes a reference to a person who knowingly assists in the act or failure;

4

In section 75 (inspection of premises: powers of inspectors), in subsection (1)—

(a) after “subsection (1),” insert “ (2A), ”;

(b) for “(3) or (4)” substitute “ (3), (4) or (5A) ”.

5

(1) Section 76 (inspection of premises: supplementary) is amended as follows.

(2) In subsection (3)(a)—

(a) after “virtue of”, in the second place it occurs, insert “ section 77A, 77B or 88A of this Act, ”;

(b) for “either of them” substitute “ any of those provisions ”.

(3) In subsection (9)—

(a) after “(1),” insert “ (2A), ”;

(b) for “(3) or (4)” substitute “ (3), (4) or (5A) ”.

6

In section 78 (warrants), in subsection (1)(c)(iii)—

(a) after “virtue of”, in the first place it occurs, insert “ section 77A, 77B or 88A of this Act, ”;

(b) for “either of them” substitute “ any of those provisions ”.

7

(1) Section 80 (offences of providing false or misleading information) is amended as follows.

(2) In subsection (1)(a), after sub-paragraph (iii) insert—

(iiia) section 72A (interviews),

(3) In subsection (1)(c), for “under this Act or the Pensions Act 1995 (c. 26)” substitute

under— (i) the Pensions Act 1995, (ii) this Act, (iii) the Pensions Act 2008, (iv) Schedule 18 to the Pensions Act 2014, (v) the Pension Schemes Act 2017, or (vi) Part 1 of the Pension Schemes Act 2021

8

In section 90 (codes of practice), in subsection (2)—

(a) in paragraph (aa), after “test” insert “ , the employer insolvency test or the employer resources test ”;

(b) after paragraph (b) insert—

(ba) the discharge of the duties imposed by section 69A (duty to give notices and statements to the Regulator in respect of certain events);

9

(1) Section 96 (the Regulator's standard procedure in relation to its regulatory functions) is amended as follows.

(2) In subsection (1A)(b), after “test” insert “ , the employer insolvency test or the employer resources test ”.

(3) In subsection (1B)—

(a) in paragraph (a), after “38B,” insert “ 38D or 38F (as the case may be) ”;

(b) in paragraph (b), for “subsection (2) of that section” substitute “ section 38B(2), 38D(2) and (3) or 38F(2) (as the case may be) ”.

10

In section 256 (no indemnification for fines or civil penalties), in subsection (1)(b), after “virtue of” insert “ section 77A, 77B or 88A of this Act, ”.

11

(1) Section 310 (admissibility of statements) is amended as follows.

(2) In subsection (3)(b)—

(a) after “financial penalty” insert “ on a relevant ground ”;

(b) after “virtue of—” insert—

(ai) section 88A (financial penalties),

;

(i) section 168 of the Pension Schemes Act 1993 (breach of regulations), (ia) section 10 of the Pensions Act 1995 (civil penalties), (ib) paragraph 10 of Schedule 17 to the Pensions Act 2014 (penalties for contravention of regulations etc), (ic) paragraph 3 of Schedule 18 to that Act (penalties for contravention of regulations etc),

;

(d) for sub-paragraph (ii) substitute—

(ii) section 164 of the Pension Schemes (Northern Ireland) Act 1993 (c. 49) (breach of regulations), (iii) Article 10 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (civil penalties), (iv) Article 83A of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)) (financial penalties), (v) Article 215G of that Order (penalties for contravention of regulations under Article 215D), (vi) paragraph 10 of Schedule 17 to the Pensions Act (Northern Ireland) 2015 (c. 5 (N.I.)) (penalties for contravention of regulations etc), or (vii) paragraph 3 of Schedule 18 to that Act (penalties for contravention of regulations etc).

(3) After subsection (3) insert—

(3A) For the purposes of this section a financial penalty is payable on a relevant ground if it is payable otherwise than under— (a) section 88A as it applies by virtue of— (i) section 80A (financial penalty for providing false or misleading information to Regulator), or (ii) section 80B (financial penalty for providing false or misleading information to trustees or managers), or (b) Article 83A of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)) as it applies by virtue of— (i) Article 75A of that Order (financial penalty for providing false or misleading information to Regulator), or (ii) Article 75B of that Order (financial penalty for providing false or misleading information to trustees or managers).

(4) In subsection (4), in the definition of “information requirement”, after paragraph (c) insert—

("ca) section 72A (requirement to attend interview etc);

12

(1) Section 316 (Parliamentary control of subordinate legislation) is amended as follows.

(2) In subsection (2) (regulations and orders subject to affirmative procedure), after paragraph (za) insert—

(zaa) regulations under section 38E(2)(a) (section 38 contribution notice: constitution of resources of employer); (zab) regulations under section 38E(2)(b) (section 38 contribution notice: valuation of resources of employer);

(3) In subsection (2), after paragraph (zb) insert—

(zc) regulations under section 58A(1) (offence of avoidance of employer debt: power to except certain schemes); (zd) regulations under section 58B(1) (offence of conduct risking accrued scheme benefits: power to except certain schemes); (ze) regulations under section 58C(1) (financial penalty for avoidance of employer debt: power to except certain schemes); (zf) regulations under section 58D(1) (financial penalty for conduct risking accrued scheme benefits: power to except certain schemes); (zg) regulations under section 73(5B)(a) (inspection of premises: power to specify provisions by reference to which there may be inspection); (zh) regulations under section 88A(3) (financial penalties: power to amend maximum amount of penalty);

13

(1) In Schedule 1 (the Pensions Regulator), in Part 4 (proceedings and delegation etc), paragraph 21(2) is amended as follows.

(2) After paragraph (d) insert—

(da) the power to issue a notice under section 72A; (db) the power to issue a fixed penalty notice under section 77A; (dc) the power to issue an escalating penalty notice under section 77B; (dd) the power to require payment of a penalty under section 88A;

(3) After paragraph (o) insert—

(p) the power to issue a fixed penalty notice under section 17 of the Pension Schemes Act 2017; (q) the power to issue an escalating penalty notice under section 18 of that Act.

14

In Schedule 2 (the reserved regulatory functions), after paragraph 41 insert—

(41A) The power to require a person to pay a penalty under section 88A.

Pensions Act 2008 (c. 30)

15

The Pensions Act 2008 is amended as follows.

16

In section 40 (fixed penalty notices), in subsection (1)—

(a) omit the “or” after paragraph (c);

(b) after paragraph (d) insert

, or (e) a notice issued under section 72A of that Act (interviews), so far as relevant to the exercise of any of its functions under or by virtue of this Part.

17

In section 41 (escalating penalty notices), in subsection (1)—

(a) omit the “or” after paragraph (c);

(b) after paragraph (d) insert

, or (e) a notice issued under section 72A of that Act (interviews), so far as relevant to the exercise of any of its functions under or by virtue of this Part.

Pension Schemes Act 2017 (c. 17)

18

The Pension Schemes Act 2017 is amended as follows.

19

(1) Section 17 (fixed penalty notice for failure to comply with request for information) is amended as follows.

(2) In the title, at the end insert “ etc ”.

(3) In subsection (1)—

(a) for “with a” substitute

with— (a) a

;

(b) after “Part” insert

, or (b) a notice issued under section 72A of that Act (interviews), so far as relevant to the exercise of any of the Regulator's functions under or by virtue of this Part

20

(1) Section 18 (escalating penalty notice for failure to comply with request for information) is amended as follows.

(2) In the title, at the end insert “ etc ”.

(3) In subsection (1)—

(a) for “with a” substitute

with— (a) a

;

(b) after “notice”)” insert

, or (b) a notice issued under section 72A of that Act (interviews), so far as relevant to the exercise of any of the Regulator's functions under or by virtue of this Part (a “section 72A notice”)

(4) In subsection (2)(a), after “72 notice” insert “ or the section 72A notice ”.

(5) In subsection (3), after “72 notice” insert “ or a section 72A notice ”.

(6) In subsection (6)—

(a) in paragraph (b), after “notice” insert “ or the section 72A notice ”;

(b) in paragraph (e), after “notice” insert “ or the section 72A notice ”.

SCHEDULE 8

PART 1 — Amendments of the Pensions (Northern Ireland) Order 2005

Introductory

1

The Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)) is amended as follows.

Grounds for issuing an Article 34 contribution notice

2

(1) In Article 34 (contribution notices where avoidance of employer debt)—

(a) in paragraph (5)(a)—

(i) after “test” insert “ , the employer insolvency test or the employer resources test ”;

(ii) for “Article 34A)” substitute “ Articles 34A, 34C and 34E) ”;

(b) in paragraph (12)(c), after “test” insert “ , the employer insolvency test or the employer resources test ”.

(2) After Article 34B insert—

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