Public Service Pensions Bill (HC Bill 95)

(2) The Regulator must issue one or more such codes of practice relating
to the following matters—

(a) the discharge of the duties imposed by sections 70 and 70A
(duties to report breaches of the law and late payment of
5employer contributions);

(b) the obligations imposed by section 248A (requirements for
knowledge and understanding: pension boards of public
service pension schemes);

(c) the discharge of the duty imposed by section 249B (internal
10controls);

(d) the discharge of duties imposed under section 113 of the
Pension Schemes Act 1993 (disclosure of information to
members);

(e) the discharge of the duty imposed by section 49(9)(b) of the
15Pensions Act 1995 (duty of trustees or managers of
occupational pension schemes to report material failures by
employers to pay contributions deducted from employee’s
earnings timeously);

(f) the discharge of the duty imposed by section 50 of the
20Pensions Act 1995 (internal dispute resolution);

(g) the discharge of duties imposed by virtue of section 5(4) of
the Public Service Pensions Act 2013 and other duties relating
to conflicts of interest;

(h) the discharge of duties imposed under section 6 (pension
25board: information) of that Act and other duties relating to
the publication of information about governance and
administration;

(i) the discharge of duties imposed under section 14 (records) of
that Act and other duties relating to record-keeping;

(j) 30such other matters as are prescribed for the purposes of this
section.

(3) The Regulator may from time to time revise the whole or any part of
a code of practice issued under this section and issue that revised
code.

(4) 35A failure on the part of any person to observe any provision of a code
of practice issued under this section does not of itself render that
person liable to any legal proceedings.

This is subject to section 13(3)(a) and (8) (power for improvement
notice to direct that person complies with code of practice and civil
40penalties for failure to comply).

This is subject to section 13(3)(a) and (8) (power for improvement
notice to direct that person complies with code of practice and civil
penalties for failure to comply).

(5) A code of practice issued under this section is admissible in evidence
45in any legal proceedings (within the meaning of section 90) and, if
any provision of such a code appears to the court or tribunal
concerned to be relevant to any question arising in the proceedings,
it must be taken into account in determining that question.

(6) A code of practice issued under this section may be—

(a) 50combined with a code of practice issued under section 90;

(b) combined with one or more other codes of practice issued
under this section.

(7) A code of practice issued under this section may relate to all public
service pension schemes or any one or more of them.

(8) In this section, “relevant pensions legislation” means—

(a) the enactments constituting “pensions legislation” within the
5meaning of section 90, and

(b) sections 5(4) (pension board: conflicts of interest), 6 (pension
board: information) and 14 (records) of the Public Service
Pensions Act 2013.

(9) Sections 91 and 92 make provision about the procedure to be
10followed when a code of practice is issued or revoked under this
section.”

15 (1) Section 91 (procedure for codes) is amended as follows.

(2) In subsection (1), after “code of practice” there is inserted “under section 90
or 90A”.

(3) 15In subsections (4)(a) and (10), after “90” there is inserted “or 90A”.

(16) In section 92 (revocation of codes), in subsection (1), after “code of practice” there is inserted “under section 90 or 90A”.

17 In section 93 (procedure for regulatory functions), in subsection (2), after
paragraph (b) there is inserted—

“(ba) the power to appoint a skilled person in relation to a public
20service pension scheme under section 14A,”.

18 In section 154 (requirement to wind up schemes with sufficient assets), in
subsection (14), after “public service pension scheme” there is inserted
“(within the meaning of the Pension Schemes Act 1993)”.

19 After section 248 there is inserted—

“248A 25 Requirement for knowledge and understanding: pension boards of
public service pension schemes

(1) This section applies to every individual who is a member of the
pension board of a public service pension scheme.

(2) An individual to whom this section applies must be conversant
30with—

(a) the rules of the scheme, and

(b) any document recording policy about the administration of
the scheme which is for the time being adopted in relation to
the scheme.

(3) 35An individual to whom this section applies must have knowledge
and understanding of—

(a) the law relating to pensions, and

(b) such other matters as may be prescribed.

(4) The degree of knowledge and understanding required by subsection
40(3) is that appropriate for the purposes of enabling the individual
properly to exercise the functions of a member of the pension board.”

20 In section 249A (requirement for internal controls), in subsection (3)—

(a) before paragraph (a) there is inserted—

“(za) a public service pension scheme;”;

(b) in paragraph (a) for “a scheme” there is substituted “any other
scheme”.

21 5After section 249A there is inserted—

“249B Requirement for internal controls: public service pension schemes

(1) The scheme manager of a public service pension scheme must
establish and operate internal controls which are adequate for the
purpose of securing that the scheme is administered and managed—

(a) 10in accordance with the scheme rules, and

(b) in accordance with the requirements of the law.

(2) Nothing in this section affects any other obligations of the scheme
manager to establish or operate internal controls, whether imposed
by or by virtue of any enactment, the scheme rules or otherwise.

(3) 15In this section, “enactment” and “internal controls” have the same
meanings as in section 249A.”

22 (1) Section 318 (interpretation) is amended as follows.

(2) In subsection (1), after the definition of “occupational pension scheme” there
is inserted—

• 20““pension board” has the same meaning as in the Public Service
  Pensions Act 2013 (see section 5 of that Act);”.

(3) After the definition of “professional adviser” in that subsection there is
inserted—

• ““public service pension scheme” means, subject to subsection
  25(6)—

  (a)

  a scheme under section 1 of the Public Service
  Pensions Act 2013 (new public service schemes),
  other than such a scheme made by a Northern Ireland
  department;

  (b)

  30a new public body pension scheme (within the
  meaning of that Act), other than a scheme established
  by a person who exercises functions only in or as
  regards Northern Ireland;

  (c)

  any statutory pension scheme which is connected
  35with a scheme referred to in paragraph (a) or (b) (and
  for this purpose “statutory pension scheme” and
  “connected” have the meanings given in that Act);”.

(4) After the definition of “the Regulator” in that subsection there is inserted—

• ““scheme manager”, in relation to a public service pension
  40scheme, has the same meaning as in the Public Service
  Pensions Act 2013 (see section 4 of that Act);”.

(5) After subsection (5) there is inserted—

“(6) A scheme which would otherwise fall within the definition of
“public service pension scheme” in subsection (1) does not fall within
45that definition if—

(a) it is an injury or compensation scheme (within the meaning
of the Public Service Pensions Act 2013), or

(b) it is specified in an order made by the Secretary of State after
consulting the Treasury.”

5Part 2 Oversight under Pensions (Northern Ireland) Order 2005

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

24 (1) Article 2 (general interpretation) is amended as follows.

(2) 10In paragraph (1), after the definition of “occupational pension scheme” there
is inserted—

• ““pension board” has the same meaning as in the Public Service
  Pensions Act 2013 (see section 5 of that Act);”.

(3) After the definition of “professional adviser” in that paragraph there is
15inserted—

• ““public service pension scheme” means, subject to paragraph
  (6A)—

  (a)

  a scheme made under section 1 of the Public Service
  Pensions Act 2013 by a Northern Ireland department;

  (b)

  20a new public body pension scheme (within the
  meaning of that Act), if the person who established
  the scheme exercises functions only in or as regards
  Northern Ireland;

  (c)

  any statutory pension scheme which is connected
  25with a scheme referred to in paragraph (a) or (b) (and
  for this purpose “statutory pension scheme” and
  “connected” have the meanings given in that Act);”.

(4) After the definition of “the Regulator” in that paragraph there is inserted—

• ““scheme manager”, in relation to a public service pension
  30scheme, has the same meaning as in the Public Service
  Pensions Act 2013 (see section 4 of that Act);”.

(5) After paragraph (6) there is inserted—

“(6A) A scheme which would otherwise fall within the definition of
“public service pension scheme” in paragraph (1) does not fall within
35that definition if—

(a) it is an injury or compensation scheme (within the meaning
of the Public Service Pensions Act 2013), or

(b) it is specified in an order made by the Department after
consulting the Department of Finance and Personnel.”

25 (1) 40Article 9 (improvement notices) is amended as follows.

(2) In paragraph (3)(a), after “85” there is inserted “or 85A”.

(3) In paragraph (7)—

(a) in sub-paragraph (c), the final “or” is repealed;

(b) at the end there is inserted “or

“(e) section 5(4) (pension board: conflicts of interest), 6
(pension board: information) or 14 (records) of the
Public Service Pensions Act 2013.”

26 5After Article 10 there is inserted—

“10A Appointment of skilled person to assist public service pension scheme

(1) The Regulator may, if it considers it desirable for the purpose of
ensuring compliance with pensions legislation, appoint a person to
assist the pension board of a public service pension scheme in the
10discharge of its functions.

(2) A person appointed under this Article may be any person appearing
to the Regulator to have the necessary skills.

(3) The pension board of a public service pension scheme must have
regard to the advice of a person appointed under this Article.

(4) 15The costs of a person appointed under this Article are to be met by
the scheme manager of the scheme.

(5) In paragraph (1) “pensions legislation” has the same meaning as in
Article 9.”

27 (1) In Article 13 (power of the Regulator to recover unpaid contributions),
20paragraph (3) is amended as follows.

(2) In the definition of “due date”—

(a) in paragraph (b), the final “and” is repealed;

(b) after paragraph (c) there is inserted “and

“(d) in relation to employer contributions payable under a
25public service pension scheme, the date on which the
contributions are due under the scheme;”.

(3) In the definition of “employer contribution”—

(a) in paragraph (a)—

(i) after “occupational pension scheme” there is inserted “other
30than a public service pension scheme”;

(ii) the final “and” is repealed;

(b) after paragraph (b) there is inserted “and

“(c) in relation to a public service pension scheme, means
any contributions payable under the scheme by the
35employer.”

28 In Article 65 (duty to report breaches of the law), in paragraph (1)—

(a) after sub-paragraph (a) there is inserted—

“(aa) a member of the pension board of a public service
pension scheme;”;

(b) 40in sub-paragraph (b), for “such a scheme” there is substituted “an
occupational or personal pension scheme”.

29 After Article 65 there is inserted—

“Reporting late payment of employer contributions

65A Duty to report late payment of employer contributions

(1) Where—

(a) 5any amount payable under a public service pension scheme
by or on behalf of an employer in relation to the scheme by
way of contributions is not paid on or before the date on
which it is due under the scheme, and

(b) the scheme manager has reasonable cause to believe that the
10failure is likely to be of material significance to the Regulator
in the exercise of any of its functions,

the scheme manager must give a written report of the matter to the
Regulator as soon as reasonably practicable.

(2) Subject to Article 283 (protected items), no duty to which a person is
15subject is to be regarded as contravened merely because of any
information or opinion contained in a written report under this
Article.

(3) Article 10 of the 1995 Order (civil penalties) applies to any person
who, without reasonable excuse, fails to comply with an obligation
20imposed on him by this Article.”

30 (1) Article 66 (reports by skilled persons) is amended as follows.

(2) In paragraph (1)—

(a) in sub-paragraph (b), the final “or” is repealed;

(b) after sub-paragraph (b) there is inserted—

“(ba) 25in the case of a work-based scheme which is a public
service pension scheme, a member of the pension
board of the scheme, or”;

(c) in sub-paragraph (c), for “such a scheme” there is substituted “a
work-based pension scheme”.

31 30In Article 67 (provision of information), in paragraph (2), after sub-
paragraph (a) there is inserted—

“(aa) a member of the pension board of a public service pension
scheme,”.

32 In Article 68 (inspection of premises), in paragraph (2), after sub-paragraph
35(d) there is inserted—

“(da) section 14 of the Public Service Pensions Act 2013;”.

33 In Article 84 (reports), at the end there is inserted—

“(4) Before making a report under this Article which relates to a public
service pension scheme, the Regulator must notify the scheme
40manager.”

34 After Article 84 there is inserted—

“84A Reports about misappropriation etc in public service pension schemes

(1) If the Regulator has reasonable grounds to suspect or believe that a
member of the pension board of a public service pension scheme—

(a) 5has misappropriated any assets of the scheme or is likely to
do so, or

(b) has a conflict of interest in relation to investment of assets of
the scheme,

the Regulator must report the matter to the scheme manager.

(2) 10For the purposes of the law of defamation, the reporting of any
matter by the Regulator under paragraph (1) is privileged unless the
reporting is shown to be made with malice.

(3) For the purposes of paragraph (1)(b) a person does not have a conflict
of interest in relation to investment of assets merely by virtue of
15membership of the scheme.”

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

(2) In paragraph (4), after “provision of a code of practice” there is inserted
“issued under this Article”.

(3) In paragraph (7), at the end there is inserted “under this Article”.

(4) 20At the end of the Article there is inserted—

“(8) The Regulator may not issue codes of practice under this Article in
relation to a public service pension scheme (but see Article 85A).”

36 After Article 85 there is inserted—

“85A Codes of practice: public service pension schemes

(1) 25The Regulator may, in relation to public service pension schemes,
issue codes of practice—

(a) containing practical guidance in relation to the exercise of
functions under relevant pensions legislation, and

(b) regarding the standards of conduct and practice expected
30from those who exercise such functions.

(2) The Regulator must issue one or more such codes of practice relating
to the following matters—

(a) the discharge of the duties imposed by Articles 65 and 65A
(duties to report breaches of the law and late payment of
35employer contributions);

(b) the obligations imposed by Article 225A (requirements for
knowledge and understanding: pension boards of public
service pension schemes);

(c) the discharge of the duty imposed by Article 226B (internal
40controls);

(d) the discharge of duties imposed under section 109 of the
Pension Schemes (Northern Ireland) Act 1993 (disclosure of
information to members);

(e) the discharge of the duty imposed by Article 49(9)(b) of the
45Pensions (Northern Ireland) Order 1995 (duty of trustees or

managers of occupational pension schemes to report material
failures by employers to pay contributions deducted from
employee’s earnings timeously);

(f) the discharge of the duty imposed by Article 50 of the
5Pensions (Northern Ireland) Order 1995 (internal dispute
resolution);

(g) the discharge of duties imposed under section 5(4) of the
Public Service Pensions Act 2013 and other duties relating to
conflicts of interest;

(h) 10the discharge of duties imposed by virtue of section 6
(pension board: information) of that Act and other duties
relating to the publication of information about governance
and administration;

(i) the discharge of duties imposed under section 14 (records) of
15that Act and other duties relating to record-keeping;

(j) such other matters as are prescribed for the purposes of this
Article.

(3) The Regulator may from time to time revise the whole or any part of
a code of practice issued under this Article and issue that revised
20code.

(4) Subject to Article 9(3)(a) and (8) (power for improvement notice to
direct that person complies with code of practice and civil penalties
for failure to comply), a failure on the part of any person to observe
any provision of a code of practice issued under this Article does not
25of itself render that person liable to any legal proceedings.

(5) A code of practice issued under this Article is admissible in evidence
in any legal proceedings (within the meaning of Article 85) and, if
any provision of such a code appears to the court or tribunal
concerned to be relevant to any question arising in the proceedings,
30it must be taken into account in determining that question.

(6) A code of practice issued under this Article may be—

(a) combined with a code of practice issued under Article 85;

(b) combined with one or more other codes of practice issued
under this Article.

(7) 35A code of practice issued under this Article may relate to all public
service pension schemes or any one or more of them.

(8) In this Article, “relevant pensions legislation” means—

(a) the statutory provisions constituting “pensions legislation”
within the meaning of Article 85, and

(b) 40sections 5(4) (pension board: conflicts of interest), 6 (pension
board: information) and 14 (records) of the Public Service
Pensions Act 2013.

(9) Articles 86 and 87 make provision about the procedure to be
followed when a code of practice is issued or revoked under this
45Article.”

37 (1) Article 86 (procedure for codes) is amended as follows.

(2) In paragraph (1), after “code of practice” there is inserted “under Article 85
or 85A”.

(3) In paragraphs (4)(a) and (9), after “85” there is inserted “or 85A”.

(38) In Article 87 (revocation of codes), in paragraph (1), after “code of practice” there is inserted “under Article 85 or 85A”.

39 In Article 88 (procedure for regulatory functions), in paragraph (2), after
sub-paragraph (b) there is inserted—

“(ba) 5the power to appoint a skilled person in relation to a public
service pension scheme under Article 10A,”.

40 In Article 138 (requirement to wind up schemes with sufficient assets), in
paragraph (14), after “public service pension scheme” there is inserted
“(within the meaning of the Pension Schemes (Northern Ireland) Act 1993)”.

41 10After Article 225 there is inserted—

“225A Requirement for knowledge and understanding: pension boards of
public service pension schemes

(1) This Article applies to every individual who is a member of the
pension board of a public service pension scheme.

(2) 15An individual to whom this Article applies must be conversant
with—

(a) the rules of the scheme, and

(b) any document recording policy about the administration of
the scheme which is for the time being adopted in relation to
20the scheme.

(3) An individual to whom this Article applies must have knowledge
and understanding of—

(a) the law relating to pensions, and

(b) such other matters as may be prescribed.

(4) 25The degree of knowledge and understanding required by paragraph
(3) is that appropriate for the purposes of enabling the individual
properly to exercise the functions of a member of the pension board.”

42 In Article 226A (requirement for internal controls), in paragraph (3)—

(a) before sub-paragraph (a) there is inserted—

“(za) 30a public service pension scheme;”;

(b) in sub-paragraph (a) for “a scheme” there is substituted “any other
scheme”.

43 After Article 226A there is inserted—

“226B Requirement for internal controls: public service pension schemes

(1) 35The scheme manager of a public service pension scheme must
establish and operate internal controls which are adequate for the
purpose of securing that the scheme is administered and managed—

(a) in accordance with the scheme rules, and

(b) in accordance with the requirements of the law.

(2) 40Nothing in this Article affects any other obligations of the scheme
manager to establish or operate internal controls, whether imposed
by or by virtue of any statutory provision, the scheme rules or
otherwise.

(3) In this Article “internal controls” has the same meaning as in Article
226A.”

Section 16

SCHEDULE 5 Existing pension schemes

5Civil servants

1 A scheme under section 1 of the Superannuation Act 1972.

2 A scheme under Article 3 of the Superannuation (Northern Ireland) Order
1972 (S.I. 1972/1073 (N.I. 10)S.I. 1972/1073 (N.I. 10)).

Judiciary

3 10A scheme constituted by section 20 of the Sheriff Courts (Scotland) Act 1907.

4 A scheme constituted by paragraph 23 of Schedule 9 to the Agriculture Act
1947, so far as relating to payment of pension benefits.

5 A scheme constituted by or made under any provision of Part XIII of the
County Courts Act (Northern Ireland) 1959.

6 15A scheme constituted by or made under any provision of District Judges
(Magistrates’ Courts) Pensions Act (Northern Ireland) 1960.

7 A scheme constituted by or made under any provision of the Sheriffs’
Pensions (Scotland) Act 1961.

8 A scheme constituted by or made under any provision of the Judicial
20Pensions Act 1981.

9 A scheme constituted by paragraph 9 of Schedule 4 to the Rent (Scotland)
Act 1984.

10 A scheme constituted by or made under any provision of Part 1 or section 19
of the Judicial Pensions and Retirement Act 1993.

11 25A scheme constituted by paragraph 4(1) of Schedule 1 to the Scottish Land
Court Act 1993.

12 A scheme constituted by or made under paragraph 6 of Schedule 2 to the
Mental Health (Care and Treatment) (Scotland) Act 2003 (asp 13)2003 (asp 13).

13 A scheme constituted by or made under paragraph 9 of Schedule 1 to the
30Education (Additional Support for Learning) (Scotland) Act 2004 (asp 4)2004 (asp 4).

14 A scheme constituted by paragraph 2(1)(b) of Schedule 2 to the Charities and
Trustee Investment (Scotland) Act 2005 (asp 10)2005 (asp 10), so far as relating to
payment of pension benefits.