Pensions Bill (HC Bill 222)

periodic compensation under paragraph 4 or 6 may elect to
postpone the commencement of periodic compensation under
that paragraph.

(2) Where the commencement of periodic compensation under
5paragraph 4 or 6 ceases to be postponed, the Board must
determine—

(a) the relevant amount, as at the time the periodic
compensation would have commenced if its
commencement had not been postponed, and

(b) 10the amount in paragraph (a), increased in accordance with
actuarial factors published by the Board.

(3) References in this Schedule to the amount of an actuarial increase
under this paragraph are to the difference between the amounts in
sub-paragraphs (2)(a) and (2)(b).

(4) 15In sub-paragraph (2) the “relevant amount” means (as
appropriate)—

(a) the amount mentioned in paragraph 4(3)(a), or

(b) the aggregate of the amounts mentioned in paragraph
6(3)(a) and (b).”

31 (1) 20In paragraph 4(3) (periodic compensation for transferee over pension
compensation age on transfer day)—

(a) omit “and” at the end of paragraph (a), and

(b) after that paragraph insert—

“(aa) if the commencement of periodic compensation
25under this paragraph has been postponed for any
period by virtue of paragraph 16A, the amount of
the actuarial increase under that paragraph, and”.

(2) In paragraph 4(4) (provisions to which paragraph 4 is subject) after “subject
to” insert “paragraph 16A (postponement of compensation) and”.

(3) 30In paragraph 6(3) (periodic compensation for transferee under pension
compensation age on transfer day)—

(a) omit “and” at the end of paragraph (b), and

(b) after that paragraph insert—

“(ba) if the commencement of periodic compensation
35under this paragraph has been postponed for any
period by virtue of paragraph 16A, the amount of
the actuarial increase under that paragraph, and”.

(4) In paragraph 6(4) (provisions to which paragraph 6 is subject)—

(a) omit the entry for paragraph 11,

(b) 40omit “and” at the end of the entry for paragraph 15, and

(c) after that entry insert—

• “paragraph 16A (postponement of compensation),
  and”.

32 (1) In paragraph 5 (periodic compensation for widow etc of transferee over
45pension compensation age on transfer day)—

(a) in sub-paragraph (3) after “(including” insert “any actuarial increase
under paragraph 16A and”, and

(b) after sub-paragraph (3) insert—

“(3A) If, on the day the transferee (“T”) died, commencement of
T’s periodic compensation under paragraph 4 was
postponed by virtue of paragraph 16A, assume for the
5purposes of sub-paragraph (3) that the periodic
compensation commenced immediately before the date of
T’s death.”

(2) In paragraph 7 (periodic compensation for widow etc of transferee under
pension compensation age on transfer day)—

(a) 10in sub-paragraph (3)(a) after “(see paragraph 8)” insert “, any
actuarial increase under paragraph 16A”,

(b) in sub-paragraph (3)(b) after sub-paragraph (ii) insert—

“(none) (assuming commencement of the periodic
compensation was not postponed by virtue of
15paragraph 16A).”, and

(c) after sub-paragraph (3) insert—

“(3A) For the purposes of sub-paragraph (3)(a), if on the day the
transferee (“T”) died commencement of T’s periodic
compensation under paragraph 6 was postponed by virtue
20of paragraph 16A, assume that the periodic compensation
commenced immediately before the date of T’s death.”

33 In paragraph 9(1) (commutation of periodic compensation) for “becomes
payable” substitute “commences”.

34 (1) In paragraph 12 (eligibility for terminal illness lump sum)—

(a) 25in sub-paragraph (4) in the definition of “relevant age”—

(i) in paragraph (a) omit “or deferred” and “or (as the case may
be) 11”, and

(ii) in paragraph (b) omit “or deferred”, and

(b) after sub-paragraph (4) insert—

“(5) 30Sub-paragraph (6) applies where the commencement of a
person’s periodic compensation under paragraph 6 is
postponed by virtue of paragraph 16A.

(6) This paragraph applies as if—

(a) the person first becomes entitled to compensation
35under paragraph 6 immediately after the period of
postponement ends, and

(b) in sub-paragraph (1)(b), for “if the transferee lived
to the relevant age, he or she would become
entitled on attaining that age” there were
40substituted “if the period of postponement ended,
the transferee would become entitled”.”

(2) In paragraph 15 (effect of successful application for terminal illness lump
sum) after sub-paragraph (3) insert—

“(4) Where on the granting of the application the commencement of a
45person’s periodic compensation under paragraph 6 is postponed
by virtue of paragraph 16A, this paragraph applies as if the

references to the transferee attaining the relevant age were
references to the period of postponement ending.”

35 (1) Paragraph 17 (annual increase in periodic compensation) is amended as
follows.

(2) 5In sub-paragraph (4) in the definition of “the underlying rate”—

(a) omit “and” at the end of paragraph (a), and

(b) after that paragraph insert—

“(aa) so much of any actuarial increase under paragraph
16A as relates to the amount in paragraph (a), and”.

(3) 10In sub-paragraph (7)—

(a) after “references in” insert “paragraph (a) of”, and

(b) at the end insert “(and paragraph (aa) of the definition applies
accordingly).”

(4) After sub-paragraph (7) insert—

“(7A) 15Where the commencement of periodic compensation has been
postponed by virtue of paragraph 16A, this paragraph applies as
if the transferee first becomes entitled to the periodic
compensation on the day on which the periodic compensation
commences.”

36 20In paragraph 20 (Board’s power to alter rates of revaluation and indexation)
after sub-paragraph (5) insert—

“(5A) A determination under sub-paragraph (1)(b) which has effect as
mentioned in sub-paragraph (5)(b)(ii) may provide that, where the
payment of periodic compensation to the transferee is postponed
25by virtue of paragraph 16A, the determination applies as if the
transferee first becomes entitled to the periodic compensation on
the day on which the periodic compensation commences.”

Calculation of compensation: admissible rules etc

37 (1) Schedule 7 to the Pensions Act 2004 (pension compensation provisions) is
30amended as follows.

(2) In paragraph 3(6) (pensions in payment at assessment date) for “35(3)”
substitute “35(3A)”.

(3) In paragraph 5(5) (pensions postponed at assessment date) for “35(3)”
substitute “35(3A)”.

(4) 35In paragraph 35 (admissible rules, recent discretionary increases etc)—

(a) for sub-paragraph (3) substitute—

“(3) This sub-paragraph applies to a scheme if, in calculating
the protected liabilities in relation to the scheme at the
relevant time, the effect of taking into account any recent
40rule changes is that those liabilities are greater than they
otherwise would be.

(3A) This sub-paragraph applies to a scheme if, in calculating
the protected liabilities in relation to the scheme at the
relevant time, the effect of taking into account any recent

discretionary increases is that those liabilities are greater
than they otherwise would be.”, and

(b) in sub-paragraph (4) for “sub-paragraph (3)” substitute “sub-
paragraphs (3) and (3A)”.

Section 28

5SCHEDULE 5 Contributions towards cost of judicial pensions etc

Part 1 Contributions towards cost of judicial pensions

District Judges (Magistrates’ Courts) Pensions Act (Northern Ireland) 1960 (c. 2 (N.I.))

1 (1) 10The District Judges (Magistrates’ Courts) Pensions Act (Northern Ireland)
1960 is amended as follows.

(2) Before section 9 (and after the heading “Contributions”) insert—

“8A Contributions towards cost of pension etc

(1) The Lord Chancellor may, by regulations made with the consent of
15the Treasury, make provision for and in connection with requiring
contributions to be made towards the cost of the liability for relevant
benefits.

(2) The prescribed contributions are to be—

(a) made by the person to or in respect of whom the relevant
20benefits are to be, or may be, provided;

(b) made for the person’s period of relevant service;

(c) in the form of deductions from the salary payable for that
service.

(3) But no contribution is to be made by a person—

(a) 25for any period of service during which an election under
section 2A is in force in respect of the person;

(b) for any period of service after the person has completed, in
the aggregate, 20 years’ relevant service;

(c) for any other prescribed period of service;

(d) 30in any prescribed circumstances.

(4) For the purposes of subsection (3)(b), it does not matter whether the
person’s relevant service was service before or after the
commencement of paragraph 1 of Schedule 5 to the Pensions Act
2011 (but no contribution is to be made for a person’s service before
35that commencement).

(5) In this section—

• “prescribed” means specified in, or determined in accordance
  with, regulations;

• “relevant benefits” means—

  (a)

  40a pension under section 2;

  Pensions BillPage 44

  (b)

  a lump sum under section 3;

• “relevant service” means service as a district judge (magistrates’
  courts) in Northern Ireland.

(6) Regulations under this section may make provision for
5consequential, transitional and incidental matters.

(7) Regulations made under this section shall be subject to annulment in
like manner as a statutory instrument and section 5 of the Statutory
Instruments Act 1946 shall apply accordingly.”

(3) In section 10(a) (district judges (magistrates’ courts) serving again after
10retirement) after “any contribution” insert “by virtue of section 9”.

Judicial Pensions Act 1981 (c. 20)1981 (c. 20)

2 (1) The Judicial Pensions Act 1981 is amended as follows.

(2) In section 25(1)(a) (persons serving again after retirement) after “any
contribution” insert “by virtue of section 23”.

(3) 15After section 33 insert—

“33ZA Contributions towards cost of certain judicial pensions etc

(1) The appropriate Minister may, by regulations made with the
concurrence of the Treasury, make provision for and in connection
with requiring contributions to be made towards the cost of the
20liability for relevant benefits.

(2) The prescribed contributions are to be—

(a) made by the person to or in respect of whom the relevant
benefits are to be, or may be, provided;

(b) made for the person’s period of relevant service;

(c) 25in the form of deductions from the salary payable for that
service.

(3) But no contribution is to be made by a person—

(a) for any period of service during which an election under
section 14A is in force in respect of the person;

(b) 30for any period of service after the person has completed, in
the aggregate, 20 years’ relevant service;

(c) for any other prescribed period of service;

(d) in any prescribed circumstances.

(4) For the purposes of subsection (3)(b), it does not matter whether the
35person’s relevant service was service before or after the
commencement of paragraph 2 of Schedule 5 to the Pensions Act
2011 (but no contribution is to be made for a person’s service before
that commencement).

(5) In this section—

• 40“the appropriate Minister” means—

  (a)

  in relation to offices existing only in Scotland, the
  Secretary of State, or

  (b)

  subject to paragraph (a), the Lord Chancellor;

Pensions BillPage 45

• “prescribed” means specified in, or determined in accordance
  with, regulations;

• “relevant benefits” means—

  (a)

  a pension under section 7 or Schedule 1;

  (b)

  5a pension for a sheriff (but not a sheriff principal)
  under section 1 of the Sheriffs’ Pensions (Scotland)
  Act 1961;

  (c)

  a lump sum under section 17, so far as relating to a
  pension within paragraph (a) or (b);

• 10“relevant service”—

  (a)

  in relation to a pension under section 7 or a lump sum
  under section 17 so far as relating to such a pension,
  means service as a stipendiary magistrate in England
  or Wales;

  (b)

  15in relation to a pension for service in an office in
  paragraph 1 of Schedule 1 (except where under
  paragraph 3 of that Schedule this section does not
  apply) or a lump sum under section 17 so far as
  relating to such a pension, means relevant service as
  20defined in paragraph 2 of that Schedule in relation to
  the office;

  (c)

  in relation to a pension for a sheriff (but not a sheriff
  principal) under section 1 of the Sheriffs’ Pensions
  (Scotland) Act 1961 or a lump sum under section 17 so
  25far as relating to such a pension, means service as a
  sheriff (but not a sheriff principal).

(6) Regulations under this section—

(a) are to be made by statutory instrument;

(b) may make different provision for different cases or classes of
30case;

(c) may make provision for consequential, transitional and
incidental matters.

(7) A statutory instrument containing regulations under this section is
subject to annulment in pursuance of a resolution of either House of
35Parliament.”

(4) In Schedule 1 (certain Senior Courts and county court officers and President
of Transport Tribunal) in paragraph 3(2)(b) after “Part II” insert “and section
33ZA”.

Constitutional Reform Act 2005 (c. 4)2005 (c. 4)

3 (1) 40Paragraph 4 of Schedule 7 to the Constitutional Reform Act 2005 (Lord
Chancellor’s protected functions) is amended as follows.

(2) In the entries relating to the Judicial Pensions Act 1981 at the appropriate
place insert “Section 33ZA.”

(3) In the entries relating to the Judicial Pensions and Retirement Act 1993 at the
45appropriate place insert “Section 9A.”

(4) In the entries relating to the District Judges (Magistrates’ Courts) Pensions
Act (Northern Ireland) 1960 at the appropriate place insert “Section 8A.”

Part 2 Minor amendments relating to judicial pensions

Sheriffs’ Pensions (Scotland) Act 1961 (c. 42)1961 (c. 42)

4 In section 9A of the Sheriffs’ Pensions (Scotland) Act 1961 (appeals) after
5subsection (4) insert—

“(4A) Regulations under subsection (3) are to be made by statutory
instrument.

(4B) A statutory instrument containing regulations under subsection (3)
is subject to annulment in pursuance of a resolution of either House
10of Parliament.”

Judicial Pensions Act 1981 (c. 20)1981 (c. 20)

5 In section 32A of the Judicial Pensions Act 1981 (appeals) after subsection (5)
insert—

“(5A) Regulations under subsection (4) are to be made by statutory
15instrument.

(5B) A statutory instrument containing regulations under subsection (4)
is subject to annulment in pursuance of a resolution of either House
of Parliament.”