Public Service Pensions Bill (HC Bill 70)

(b) such other persons as the regulations may specify, being persons who
before that date had ceased to be members of an existing scheme or to
be eligible for membership of such a scheme.

(6) Exceptions under subsection (5) may, in particular, be framed by reference to
5the satisfaction of a specified condition (for example, the attainment of normal
pension age under the existing scheme or another specified age) before a
specified date.

(7) Where an exception to subsection (1) is framed by reference to the satisfaction
of a specified condition before a specified date, scheme regulations may also
10provide for a different closing date for persons in whose case the condition—

(a) is not satisfied before the specified date, but

(b) is satisfied no more than 4 years after that date.

(8) Provision made under subsection (5) or (7) may in particular be made by
amending the relevant existing scheme.

(9) 15In subsection (1), the reference to benefits in relation to a person’s service
includes benefits relating to the person’s death in service.

(10) In subsection (4), “relevant local government scheme” means—

(a) regulations under section 7 of the Superannuation Act 1972 which
relate to persons in England and Wales, or

(b) 20regulations under Article 9 of the Superannuation (Northern Ireland)
Order 1972 (S.I. 1972/1073 (N.I. 10)S.I. 1972/1073 (N.I. 10)).

17 Closure of existing injury and compensation schemes

(1) Scheme regulations for a scheme under section 1 may secure that no benefits
are to be provided under a scheme listed in Schedule 6 that is connected with it.

(2) 25Where Schedule 6 specifies particular benefits in relation to a scheme, the
power under subsection (1) is exercisable only in relation to those benefits.

(3) Scheme regulations may provide for exceptions to subsection (1).

(4) Provision made under this section may in particular be made by amending the
connected scheme.

18 30Final salary link

Schedule 7 contains provision for a “final salary link” in relation to schemes
which are closed under section 16.

Procedure for scheme regulations

19 Consultation

(1) 35Before making scheme regulations the responsible authority must consult such
persons (or representatives of such persons) as appear to the authority likely to
be affected by them.

(2) The responsible authority must publish a statement indicating the persons that
the authority would normally expect to consult under subsection (1) (and keep
40the statement up-to-date).

(3) Subsection (1) may be satisfied by consultation before, as well as by
consultation after, the coming into force of this section.

20 Consultation and report

(1) This section applies where—

(a) 5after the coming into force of scheme regulations establishing a scheme
under section 1, the responsible authority proposes to make further
scheme regulations containing provision changing the protected
elements of the scheme within the protected period, or

(b) the responsible authority proposes to make scheme regulations
10containing retrospective provision which appears to the responsible
authority to have significant adverse effects in relation to members of
the scheme.

(2) The responsible authority must—

(a) consult the persons specified in subsection (3) with a view to reaching
15agreement with them, and

(b) lay a report before the appropriate legislature.

(3) The persons referred to in subsection (2)(a) are the persons (or representatives
of the persons) who appear to the responsible authority to be likely to be
affected by the regulations if they were made.

(4) 20In the case referred to in subsection (1)(a), the report under subsection (2)(b)
must set out why the responsible authority proposes to make the regulations,
having regard to the desirability of not making a change to the protected
elements of a scheme under section 1 within the protected period.

(5) In this section—

• 25“the appropriate legislature” means—

  (a)

  Parliament, where the responsible authority is the Secretary of
  State or the Minister for the Civil Service;

  (b)

  the Scottish Parliament, where the responsible authority is the
  Scottish Ministers;

  (c)

  30the National Assembly for Wales, where the responsible
  authority is the Welsh Ministers;

  (d)

  the Northern Ireland Assembly, where the responsible
  authority is a Northern Ireland department;

• “protected period” means the period of 25 years beginning with 1 April
  352015;

• “protected elements”, in relation to a scheme under section 1, means—

  (a)

  the extent to which the scheme is a career average revalued
  earnings scheme;

  (b)

  members’ contribution rates under the scheme;

  (c)

  40benefit accrual rates under the scheme.

(6) In this section, references to a change to the protected elements do not include
a change appearing to the responsible authority to be required by or
consequential upon section 11 (employer cost cap).

(7) In a case where this section applies, there is no requirement to consult under
45section 19(1).

21 Other procedure

(1) Scheme regulations are subject to the affirmative procedure if—

(a) they amend primary legislation, or

(b) they contain retrospective provision which appears to the responsible
5authority to have significant adverse effects in relation to members of
the scheme.

(2) Scheme regulations are subject to the negative procedure in any other case.

(3) If scheme regulations otherwise subject to the negative procedure are
combined with scheme regulations subject to the affirmative procedure, the
10combined regulations are subject to the affirmative procedure.

New schemes: supplementary

22 Extension of schemes

(1) Scheme regulations for a scheme under section 1 may make provision for the
payment of pensions and other benefits to or in respect of—

(a) 15persons who are in public service, but

(b) in relation to whom the responsible authority could not otherwise
make a scheme under that section.

(2) Scheme regulations for a scheme under section 1 may make provision to deem
persons of any description to fall within a given description of persons in
20public service.

(3) Scheme regulations for a scheme under section 1 may specify persons not in
public service as persons to whom the scheme may potentially relate.

(4) The persons specified under subsection (3) may be any persons not in public
service that the responsible authority considers appropriate.

(5) 25The responsible authority may then at any time determine that the scheme is
to relate to some or all of those persons.

(6) By virtue of such a determination the provisions of the scheme regulations for
the payment of pensions and other benefits then apply in relation to the
persons to whom the determination relates.

(7) 30Subsection (6) is subject to any special provision made in the scheme
regulations for the persons in question.

(8) The responsible authority for a scheme under section 1 must publish a list of
the persons to whom the scheme relates by virtue of determinations under
subsection (5) (and keep the published list up-to-date).

(9) 35A determination under subsection (5) may have retrospective effect.

23 Non-scheme benefits

The scheme manager or employer for a scheme under section 1 may make such
payments as the scheme manager or employer considers appropriate towards
the provision, otherwise than by virtue of the scheme, of pensions and other
40benefits to or in respect of persons to whom the scheme relates.

24 Consequential and minor amendments

Schedule 8 contains consequential and minor amendments.

Existing schemes: supplementary

25 Existing local government schemes

(1) 5This section applies in relation to—

(a) regulations under section 7 of the Superannuation Act 1972 which
relate to persons in England and Wales, and

(b) regulations under Article 9 of the Superannuation (Northern Ireland)
Order 1972 (S.I. 1972/1073 (N.I. 10)S.I. 1972/1073 (N.I. 10)),

10which are in force immediately before the coming into force of this section.

(2) To the extent that—

(a) such regulations make provision for the payment of pensions and other
benefits to or in respect of a person in relation to the person’s service on
or after 1 April 2014, and

(b) 15that provision could be made under scheme regulations,

the regulations are to have effect as if they were scheme regulations relating to
local government workers in England and Wales or (as the case may be)
Northern Ireland.

(3) Accordingly, to that extent a scheme under such regulations is to have effect as
20a scheme under section 1.

26 Existing schemes for civil servants: extension of access

Schedule 9 amends the Superannuation Act 1972 and the Superannuation
(Northern Ireland) Order 1972 (1972/1073 (N.I. 10)) so as to extend access to
schemes under section 1 of that Act and Article 3 of that Order (schemes as
25respects civil servants, etc).

Public body pension schemes

27 New public body pension schemes

(1) The following provisions of this Act apply in relation to a new public body
pension scheme (and any statutory pension scheme that is connected with it)
30as to a scheme under section 1 (and any connected scheme)—

(a) section 3(1) and (2) and Schedule 3 (scheme regulations);

(b) section 4 (scheme manager);

(c) sections 5 and 6 (pension board), if the scheme has more than one
member;

(d) 35sections 7 to 9 (scheme design);

(e) sections 10 and 11 (cost control);

(f) sections 13 and 14 (information and records).

(2) For the purposes of subsection (1), the provisions referred to in that subsection
are to be read with the following modifications—

(a) 40references to scheme regulations are to be read as references to the rules
of the scheme;

(b) references to the responsible authority are to be read as references to the
public authority which established the scheme.

(3) A new public body pension scheme, and any variation to the rules of the
scheme, requires the consent of—

(a) 5 the Treasury, or

(b) if the scheme relates to members or staff of a Northern Ireland body or
the holder of a Northern Ireland office, the Department of Finance and
Personnel in Northern Ireland.

(4) For the purposes of subsection (3)(b), a body or office is a Northern Ireland
10body or office if provision relating to it would be within the legislative
competence of the Northern Ireland Assembly were that provision contained
in an Act of the Assembly.

(5) In this Act—

• “public body pension scheme” means a scheme (other than an existing
  15scheme) established by a public authority for the payment of pensions
  and other benefits to or in respect of members or staff of a statutory
  body or the holder of a statutory office;

• “new public body pension scheme” means a public body pension scheme
  established after the coming into force of this section.

28 20Closure of certain existing public body pension schemes

(1) This section applies to a public body pension scheme which relates to members
or staff of a body, or the holder of an office, listed in Schedule 10.

(2) The public authority must close the scheme in relation to service after a date
determined by the authority.

(3) 25The public authority may provide for exceptions to the closure and section
16(6) and (7) apply in relation to any such exceptions (reading references to
scheme regulations as references to rules of the scheme).

(4) If any of the persons to whom the scheme relates are not eligible for membership of a
scheme under section 1, the public authority may establish a new scheme for the
30payment of pensions or other benefits to or in respect of those persons (and see section
27).

(5) Where the scheme closed under subsection (2) was established in exercise of a
statutory function or other power, the function or power may not be exercised
again so as to establish a new scheme.

(6) 35In the case of a scheme established by deed of trust, subsections (2) and (3)
apply irrespective of the provisions of the deed or the law relating to trusts.

(7) A Treasury order may amend Schedule 10 so as to—

(a) remove any body or office specified there;

(b) add any body or office to it (by name or description).

(8) 40A Treasury order under subsection (7) may make consequential or
supplementary provision, including in particular provision made by
amending any legislation.

(9) A Treasury order under subsection (7) is subject to the negative procedure.

(10) It is immaterial for the purposes of subsection (1) whether a scheme is made
before or after the coming into force of this section.

(11) Schedule 7 contains provision for a “final salary link” in relation to schemes
which are closed under this section.

29 5Existing public body pension schemes: pension age

(1) A public body pension scheme established before the coming into force of this
section may include—

(a) provision securing that the normal and deferred pension age of a
person under the scheme is—

(i) 10the same as the person’s state pension age, or

(ii) 65, if that is higher, and

(b) provision securing that changes in the person’s normal or deferred
pension age occurring in consequence of provision under paragraph (a)
apply in relation to relevant accrued benefits (as well as other benefits).

(2) 15In subsection (1)(b) “relevant accrued benefits”, in relation to a person and a
scheme, means benefits accrued after the coming into force of the provision
under subsection (1) which may be paid to or in respect of the person under the
scheme and to which the normal or deferred pension age is relevant.

Parliamentary and other pension schemes

30 20Great offices of state

Schedule 11 makes provision about pension arrangements for the offices of—

(a) Prime Minister and First Lord of the Treasury,

(b) Lord Chancellor, and

(c) Speaker of the House of Commons.

31 25Parliamentary and other pension schemes: pension age

In Schedule 6 to the Constitutional Reform and Governance Act 2010
(Parliamentary and other pensions), after paragraph 29 there is inserted—

“Pension age

29A (1) Where the scheme provides for the normal or deferred pension age
30of a person under the scheme to be the same as the person’s state
pension age, provision for a change in the person’s normal or
deferred pension age in consequence of the state pension age link to
apply in relation to relevant accrued benefits (as well as other
benefits).

(2) 35Accordingly, paragraph 19(2) (protection of accrued rights) is to be
disregarded in relation to any such provision.

(3) In this paragraph—

(a) “normal pension age”, in relation to a person and a scheme,
means the earliest age at which a person with relevant service
40is entitled to receive benefits (without actuarial adjustment)
on leaving that service (and disregarding any special

provision as to early payment of benefits on the grounds of
ill-health or otherwise);

(b) “deferred pension age”, in relation to a person and a scheme,
means the earliest age at which a person with relevant service
5is entitled to receive benefits under the scheme (without
actuarial adjustment) after leaving that service at a time
before normal pension age (and disregarding any special
provision as to early payment of benefits on the grounds of
ill-health or otherwise);

(c) 10“state pension age”, in relation to a person, means the
person’s pensionable age as specified from time to time in
Schedule 4 to the Pensions Act 1995;

(d) “relevant accrued benefits”, in relation to a scheme, means
benefits accrued after the coming into force of provision
15under sub-paragraph (1) which may be paid to or in respect
of the person under the scheme and to which the normal or
deferred pension age is relevant.”

32 Members of the European Parliament

In section 4 of the European Parliament (Pay and Pensions) Act 1979 (pensions
20of MEPs), after subsection (3A) there is inserted—

“(3B) Where a scheme under this section provides for the normal or deferred
pension age of a person under the scheme to be the same as the person’s
state pension age, the scheme may make provision for a change in the
person’s normal or deferred pension age in consequence of the state
25pension age link to apply in relation to relevant accrued benefits (as
well as other benefits).

(3C) In subsection (3B)—

(a) “normal pension age”, in relation to a person and a scheme,
means the earliest age at which a person with service as a
30Representative is entitled to receive benefits (without actuarial
adjustment) on ceasing service as a Representative (and
disregarding any special provision as to early payment of
benefits on the grounds of ill-health or otherwise);

(b) “deferred pension age”, in relation to a person and a scheme,
35means the earliest age at which a person with service as a
Representative is entitled to receive benefits under the scheme
(without actuarial adjustment) after ceasing service as a
Representative at a time before normal pension age (and
disregarding any special provision as to early payment of
40benefits on the grounds of ill-health or otherwise);

(c) “state pension age”, in relation to a person, means the person’s
pensionable age as specified from time to time in Schedule 4 to
the Pensions Act 1995;

(d) “relevant accrued benefits”, in relation to a scheme, means
45benefits accrued after the coming into force of provision under
subsection (3B) which may be paid to or in respect of the person
under the scheme and to which the normal or deferred pension
age is relevant.

(3D) A scheme under this section may provide for any statutory provision
50relating to any matter connected with the pensions payable to or in

respect of Members to have effect with respect to or in connection with
Representatives, with such additions, omissions, amendments or other
modifications as may be specified in the scheme.

In this subsection “statutory provision” means any provision contained
5in an Act or in any instrument made under an Act (including an Act or
instrument passed or made after the coming into force of this
subsection).”

General

33 General interpretation

10In this Act—

• “the affirmative procedure” has the meaning given in section 34;

• “armed forces” has the meaning given in Schedule 1;

• “body” includes an unincorporated body or organisation of persons (for
  example, a committee or board of trustees);

• 15“career average revalued earnings scheme” has the meaning given in
  section 7(4);

• “civil servants” has the meaning given in Schedule 1;

• “compensation benefits” means benefits by way of compensation for loss
  of office or employment;

• 20“connected”, in relation to a scheme under section 1 and another statutory
  pension scheme, or a new public body pension scheme and another
  statutory pension scheme, has the meaning given by section 4(4);

• “defined contributions scheme”: a pension scheme is a “defined
  contributions” scheme if or to the extent that the benefits that may be
  25provided under the scheme are money purchase benefits (within the
  meaning of the Pension Schemes Act 1993);

• “deferred pension age” has the meaning given in section 9(5);

• “defined benefits scheme”: a pension scheme is a “defined benefits
  scheme” if or to the extent that the benefits that may be provided under
  30the scheme are not money purchase benefits (within the meaning of the
  Pension Schemes Act 1993);

• “devolved judicial office” has the meaning given in Schedule 1;

• “earnings” includes any remuneration or profit derived from an
  employment;

• 35“employer”, in relation to a pension scheme, means—

  (a)

  any employer of persons to whom the scheme relates,

  (b)

  the person responsible for the remuneration of an office-holder
  to whom the scheme relates, or

  (c)

  such other persons (in addition to, or instead of, any person
  40falling within paragraph (a) or (b)) as scheme regulations or (in
  the case of a public body pension scheme) the rules of the
  scheme may provide;

• “existing scheme” has the meaning given in section 16(2);

• “final salary”, in relation to a person to or in respect of whom a pension
  45under a pension scheme is payable, means the person’s earnings, or
  highest, average or representative earnings, in a specified period
  ending at, or defined by reference to, the time when the person’s
  pensionable service in relation to that scheme terminates;

Public Service Pensions BillPage 18

• “final salary scheme”: a pension scheme is a “final salary scheme” if
  entitlement to the pension payable to or in respect of a person which is
  based on the pensionable service of that person is or may be
  determined to any extent by reference to the person’s final salary;

• 5“fire and rescue workers” has the meaning given in Schedule 1;

• “injury benefits” means benefits by way of compensation for incapacity or
  death as a result of injury or illness;

• “judiciary” has the meaning given in Schedule 1;

• “health service workers” has the meaning given in Schedule 1;

• 10“legislation” means primary or secondary legislation;

• “local government workers” has the meaning given in Schedule 1;

• “members of a police force” has the meaning given in Schedule 1;

• “the negative procedure” and “the negative Commons procedure” have
  the meanings given in section 34;

• 15“non-devolved judicial office” has the meaning given in Schedule 1;

• “normal pension age” has the meaning given in section 9(5);

• “pension scheme” means a scheme for the payment of pensions or other
  benefits to or in respect of persons with service of a particular
  description;

• 20“pensionable earnings”, in relation to a pension scheme and a member of
  it, means earnings by reference to which a pension or other benefits
  under the scheme are calculated;

• “pensionable service”, in relation to a pension scheme, means service
  which qualifies a person to a pension or other benefits under that
  25scheme;

• “primary legislation” means an Act, Act of the Scottish Parliament, Act or
  Measure of the National Assembly for Wales or Northern Ireland
  legislation;

• “public authority” means—

  (a)

  30a Minister of the Crown (as defined by section 8 of the Ministers
  of the Crown Act 1975),

  (b)

  a statutory body or the holder of a statutory office, or

  (c)

  a person exercising a statutory function;

• “public body pension scheme” and “new public body pension scheme”
  35have the meanings given in section 27(5);

• “responsible authority”, in relation to a scheme under section 1, has the
  meaning given by section 2(2);

• “scheme” includes arrangements of any description;

• “scheme manager”, in relation to a scheme under section 1, has the
  40meaning given in section 4(2);

• “scheme regulations” has the meaning given in section 1(4);

• “secondary legislation” means an instrument made under primary
  legislation;

• “staff”, in relation to a body, includes any employee or officer of the body;

• 45“state pension age” has the meaning given in section 9(5);

• “statutory body” and “statutory office” mean a body or office established
  under any legislation;

• “statutory function” means a function conferred by any legislation;

• “statutory pension scheme” means—

  Public Service Pensions BillPage 19

  (a)

  a pension scheme which is established by or under any
  legislation, and

  (b)

  a public body pension scheme which is not so established;

• “teachers” has the meaning given in Schedule 1;

• 5“Treasury directions” means directions given by the Treasury;

• “Treasury order” means an order made by the Treasury;

• “Treasury regulations” means regulations made by the Treasury.

34 Regulations, orders and directions

(1) For the purposes of this Act—

(a) 10any power of the Secretary of State, the Minister of the Civil Service, the
Treasury, the Lord Chancellor or the Welsh Ministers to make
regulations or an order is exercisable by statutory instrument;

(b) any power of a Northern Ireland department to make regulations or an
order is exercisable by statutory rule for the purposes of the Statutory
15Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)S.I. 1979/1573 (N.I. 12)).

(2) In this Act, the “affirmative procedure” means—

(a) in the case of regulations or an order of the Secretary of State or the
Minister of the Civil Service, that the regulations or order may not be
made unless a draft of the instrument containing them or it has been
20laid before, and approved by resolution of, each House of Parliament;

(b) in the case of regulations of the Welsh Ministers, that the regulations
may not be made unless a draft of the instrument containing them has
been laid before, and approved by resolution of, the National Assembly
for Wales;

(c) 25in the case of regulations or an order of a Northern Ireland department,
that the regulations or order may not be made unless a draft of the
statutory rule containing them or it has been laid before, and approved
by resolution of, the Northern Ireland Assembly.

(3)
In this Act, the “negative procedure” means—

(a) 30in the case of regulations or an order of the Secretary of State, the
Minister for the Civil Service, the Lord Chancellor or the Treasury, that
the instrument containing them or it is subject to annulment in
pursuance of a resolution of either House of Parliament;

(b) in the case of regulations or an order of the Welsh Ministers, that the
35instrument containing them or it is subject to annulment in pursuance
of a resolution of the National Assembly for Wales;

(c) in the case of regulations or an order of a Northern Ireland department,
that they are subject to negative resolution within the meaning of
section 41(6) of the Interpretation Act (Northern Ireland) 1954.

(4) 40In this Act, the “negative Commons procedure”, in relation to Treasury
regulations or a Treasury order, means that the instrument containing them or
it is subject to annulment in pursuance of a resolution of the House of
Commons.

(5) For regulations and orders of the Scottish Ministers, see Part 2 of the
45Interpretation and Legislative Reform (Scotland) Act 2010 (asp 10)2010 (asp 10).

(6) Treasury directions under this Act may be varied or revoked.