Public Service Pensions BillPage 10
(3) Subsection (1) does not apply—
(a)
in relation to an existing scheme which is a defined contributions
scheme;
(b) to benefits excepted by Schedule 5 (injury and compensation benefits).
(4) 5The closing date is—
(a)
1 April 2014 for an existing scheme which is a relevant local
government scheme, and
(b) 5 April 2015 in any other case.
This is subject to subsection (7).
(5)
10Scheme regulations may provide for exceptions to subsection (1) in the case
of—
(a)
persons who were members of an existing scheme, or who were eligible
to be members of such a scheme, immediately before 1 April 2012, and
(b)
such other persons as the regulations may specify, being persons who
15before 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
the satisfaction of a specified condition (for example, the attainment of normal
pension age under the existing scheme or another specified age) before a
20specified 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
provide for a different closing date for persons in whose case the condition—
(a) is not satisfied before the specified date, but
(b) 25is 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)
In subsection (1), the reference to benefits in relation to a person’s service
includes benefits relating to the person’s death in service.
(10) 30In 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)
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)).
(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)
Where Schedule 6 specifies particular benefits in relation to a scheme, the
power under subsection (1) is exercisable only in relation to those benefits.
(3) 40Scheme regulations may provide for exceptions to subsection (1).
(4)
Provision made under this section may in particular be made by amending the
connected scheme.
Public Service Pensions BillPage 11
Schedule 7 contains provision for a “final salary link” in relation to schemes
which are closed under section 16.
(1)
Before 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
10the authority would normally expect to consult under subsection (1) (and keep
the 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.
(1) 15This section applies where—
(a)
after 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)
20the responsible authority proposes to make scheme regulations
containing 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)
25consult the persons specified in subsection (3) with a view to reaching
agreement 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
30affected by the regulations if they were made.
(4)
In 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) 35In this section—
“the appropriate legislature” means—
Parliament, where the responsible authority is the Secretary of
State or the Minister for the Civil Service;
the Scottish Parliament, where the responsible authority is the
40Scottish Ministers;
the National Assembly for Wales, where the responsible
authority is the Welsh Ministers;
Public Service Pensions BillPage 12
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
2015;
5“protected elements”, in relation to a scheme under section 1, means—
the extent to which the scheme is a career average revalued
earnings scheme;
members’ contribution rates under the scheme;
benefit accrual rates under the scheme.
(6)
10In 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
section 19(1).
(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
authority to have significant adverse effects in relation to members of
20the 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
combined regulations are subject to the affirmative procedure.
(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) persons who are in public service, but
(b)
30in 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
public service.
(3)
35Scheme 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)
The responsible authority may then at any time determine that the scheme is
40to relate to some or all of those persons.
Public Service Pensions BillPage 13
(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)
Subsection (6) is subject to any special provision made in the scheme
5regulations 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) A determination under subsection (5) may have retrospective effect.
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
benefits to or in respect of persons to whom the scheme relates.
Schedule 8 contains consequential and minor amendments.
(1) This section applies in relation to—
(a)
20regulations 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)),
which are in force immediately before the coming into force of this section.
(2) 25To 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) that provision could be made under scheme regulations,
30the 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
a scheme under section 1.
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
respects civil servants, etc).
Public Service Pensions BillPage 14
(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)
5as 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) 10sections 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)
15references 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
20scheme, requires the consent of—
(a) 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)
25For the purposes of subsection (3)(b), a body or office is a Northern Ireland
body 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—
30“public body pension scheme” means a scheme (other than an existing
scheme) 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
35established after the coming into force of this section.
(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 responsible for the scheme must make provision to secure
40that no benefits are provided under the scheme to or in respect of a person in
relation to the person’s service after a date determined by the authority.
(3) Subsection (2) does not apply—
(a)
in relation to a public body pension scheme which is a defined
contributions scheme, or
Public Service Pensions BillPage 15
(b) to injury or compensation benefits.
(4)
The public authority responsible for the scheme may provide for exceptions to
the provision made under subsection (2) and section 16(6) and (7) apply in
relation to any such exceptions (reading references to scheme regulations as
5references to rules of the scheme).
(5)
Provision made under subsection (2) or (4) may in particular be made by
amending the public body pension scheme.
(6)
In subsection (2), the reference to benefits in relation to a person’s service
includes benefits relating to the person’s death in service.
(7)
10If any of the persons to whom the scheme relates are not eligible for
membership of a scheme under section 1, the public authority responsible for
the scheme may establish a new scheme for the payment of pensions or other
benefits to or in respect of those persons (and see section 27).
(8)
Where a scheme to which this section applies was established in exercise of a
15statutory function or other power, the function or power may not be exercised
again so as to establish a new defined benefits scheme in relation to the body
or office.
(9)
In 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.
(10) 20A 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).
(11)
A Treasury order under subsection (10) may make consequential or
supplementary provision, including in particular provision made by
25amending any legislation.
(12) A Treasury order under subsection (10) is subject to the negative procedure.
(13)
It is immaterial for the purposes of subsection (1) whether a scheme is made
before or after the coming into force of this section.
(14)
Schedule 7 contains provision for a “final salary link” in relation to schemes
30which are closed under this section.
(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
35person under the scheme is—
(i) the 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)
40apply in relation to relevant accrued benefits (as well as other benefits).
(2)
In 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.
Public Service Pensions BillPage 16
Schedule 11 makes provision about pension arrangements for the offices of—
(a) Prime Minister and First Lord of the Treasury,
(b) 5Lord Chancellor, and
(c) Speaker of the House of Commons.
In Schedule 6 to the Constitutional Reform and Governance Act 2010
(Parliamentary and other pensions), after paragraph 29 there is inserted—
29A
(1)
Where the scheme 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, provision for a change in the person’s normal or
deferred pension age in consequence of such provision to apply in
15relation to relevant accrued benefits (as well as other benefits).
(2)
Accordingly, 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,
20means the earliest age at which a person with relevant service
is 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)
25“deferred pension age”, in relation to a person and a scheme,
means the earliest age at which a person with relevant service
is 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
30provision as to early payment of benefits 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)
35“relevant accrued benefits”, in relation to a scheme, means
benefits accrued after the coming into force of provision
under 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.”
In section 4 of the European Parliament (Pay and Pensions) Act 1979 (pensions
Public Service Pensions BillPage 17
of 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
5person’s normal or deferred pension age in consequence of such
provision 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,
10means the earliest age at which a person with service as a
Representative 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)
15“deferred pension age”, in relation to a person and a scheme,
means 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
20disregarding any special provision as to early payment of
benefits 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)
25“relevant accrued benefits”, in relation to a scheme, means
benefits 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)
30A scheme under this section may provide for any statutory provision
relating 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.
35In this subsection “statutory provision” means any provision contained
in 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).”
In 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
45example, a committee or board of trustees);
“career average revalued earnings scheme” has the meaning given in
section 7(4);
“civil servants” has the meaning given in Schedule 1;
Public Service Pensions BillPage 18
“compensation benefits” means benefits by way of compensation for loss
of office or employment;
“connected”, in relation to a scheme under section 1 and another statutory
pension scheme, or a new public body pension scheme and another
5statutory pension scheme, has the meaning given by section 4(6);
“defined contributions scheme”: a pension scheme is a “defined
contributions” scheme if or to the extent that the benefits that may be
provided under the scheme are money purchase benefits (within the
meaning of the Pension Schemes Act 1993);
10“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
the scheme are not money purchase benefits (within the meaning of the
Pension Schemes Act 1993) or injury and compensation benefits;
15“devolved judicial office” has the meaning given in Schedule 1;
“earnings” includes any remuneration or profit derived from an
employment;
“employer”, in relation to a pension scheme, means—
any employer of persons to whom the scheme relates,
20the person responsible for the remuneration of an office-holder
to whom the scheme relates, or
such other persons (in addition to, or instead of, any person
falling within paragraph (a) or (b)) as scheme regulations or (in
the case of a public body pension scheme) the rules of the
25scheme 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
under a pension scheme is payable, means the person’s earnings, or
highest, average or representative earnings, in a specified period
30ending at, or defined by reference to, the time when the person’s
pensionable service in relation to that scheme terminates;
“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
35determined to any extent by reference to the person’s final salary;
“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;
“injury or compensation scheme”: a pension scheme is an “injury or
40compensation scheme” if it provides only for injury or compensation
benefits (or both);
“judiciary” has the meaning given in Schedule 1;
“health service workers” has the meaning given in Schedule 1;
“legislation” means primary or secondary legislation;
45“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;
“non-devolved judicial office” has the meaning given in Schedule 1;
50“normal pension age” has the meaning given in section 9(5);
Public Service Pensions BillPage 19
“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;
“pensionable earnings”, in relation to a pension scheme and a member of
5it, 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
scheme;
10“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 Minister of the Crown (as defined by section 8 of the Ministers
15of the Crown Act 1975),
a statutory body or the holder of a statutory office, or
a person exercising a statutory function;
“public body pension scheme” and “new public body pension scheme”
have the meanings given in section 27(5);
20“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
meaning given in section 4(2);
25“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;
“state pension age” has the meaning given in section 9(5);
30“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—
a pension scheme which is established by or under any
35legislation, and
a public body pension scheme which is not so established;
“teachers” has the meaning given in Schedule 1;
“Treasury directions” means directions given by the Treasury;
“Treasury order” means an order made by the Treasury;
40“Treasury regulations” means regulations made by the Treasury.
(1) For the purposes of this Act—
(a)
any power of the Secretary of State, the Minister of the Civil Service, the
Treasury, the Lord Chancellor or the Welsh Ministers to make
45regulations 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
Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)S.I. 1979/1573 (N.I. 12)).