Public Service Pensions Bill

Session 2012 - 13
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Other Bills before Parliament

Public Service Pensions Bill

LORDS amendments to the
Public Service Pensions Bill
[The page and line references are to HL Bill 67, the bill as first printed for the Lords.]
Clause 1
1
Page 1, line 4, leave out “in public service” and insert “specified in subsection (2)”
2
Page 1, leave out line 5 and insert “Those persons are—”
3
Page 1, line 8, after “workers” insert “for England, Wales and Scotland”
4
Page 1, line 9, after “teachers” insert “for England, Wales and Scotland”
5
Page 1, line 10, after “workers” insert “for England, Wales and Scotland”
6
Page 1, line 11, after “workers” insert “for England, Wales and Scotland”
7
Page 1, line 12, after “forces” insert “for England, Wales and Scotland”
Clause 2
8
Page 1, line 19, leave out “in public service” and insert “specified in section 1(2)”
Clause 3
9
Page 2, line 6, at end insert “in relation to the scheme or any provision of this Act”
10
Page 2, line 10, leave out paragraph (b)
11
Page 2, line 12, at end insert “(but see section (Procedure for retrospective provision))”
12
Page 2, line 13, at end insert—

“( )
The consequential provision referred to in subsection (2)(b) includes

consequential provision amending any primary legislation passed before

or in the same session as this Act (as well as consequential provision

amending any secondary legislation).”
13
Page 2, leave out lines 22 to 29

Bill 142 55/2

2

Clause 5
14
Page 3, line 9, at end insert “(or each scheme manager)”
15
Page 3, line 30, at end insert—

“( )
requiring the board to include employer representatives and

member representatives in equal numbers.”
16
Page 3, line 35, at end insert—

“( )
In subsection (4)(c)—

(a)
“employer representatives” means persons appointed to the board

for the purpose of representing employers for the scheme and any

connected scheme;

(b)
“member representatives” means persons appointed to the board

for the purpose of representing members of the scheme and any

connected scheme.”
17
Page 3, line 39, leave out subsection (7)
After Clause 6
18
Insert the following new Clause—

“Scheme advisory board

(1)
Scheme regulations for a scheme under section 1 which is a defined benefits

scheme must provide for the establishment of a board with responsibility

for providing advice to the responsible authority, at the authority’s

request, on the desirability of changes to the scheme.

(2)
Where, by virtue of section 4(5), there is more than one scheme manager for

a scheme mentioned in subsection (1) (and accordingly there is more than

one pension board for the scheme), the regulations may also provide for the

board to provide advice (on request or otherwise) to the scheme managers

or the scheme’s pension boards in relation to the effective and efficient

administration and management of—

(a)
the scheme and any statutory pension scheme that is connected

with it, or

(b)
any pension fund of the scheme and any connected scheme.

(3)
A person to whom advice is given by virtue of subsection (1) or (2) must

have regard to the advice.

(4)
The regulations must include provision—

(a)
requiring the responsible authority—

(i)
to be satisfied that a person to be appointed as a member of

the board does not have a conflict of interest, and

(ii)
to be satisfied from time to time that none of the members of

the board has a conflict of interest;

(b)
requiring a member of the board, or a person proposed to be

appointed as a member of the board, to provide the responsible

authority with such information as the authority reasonably

requires for the purposes of provision under paragraph (a).

(5)
In subsection (4)(a) “conflict of interest”, in relation to a person, means a

financial or other interest which is likely to prejudice the person’s exercise

3

of functions as a member of the board (but does not include a financial or

other interest arising merely by virtue of membership of the scheme or any

connected scheme).

(6)
In this Act, a board established under this section is called a “scheme

advisory board”.”
Clause 8
19
Page 5, line 13, leave out “the negative Commons procedure” and insert “—

(a)
the affirmative Commons procedure, if the order specifies a

percentage decrease for the purposes of subsection (2), and

(b)
the negative Commons procedure, in any other case.”
Clause 9
20
Page 6, line 9, leave out from “1995” to end of line 13
Clause 12
21
Page 8, line 20, leave out subsection (8)
Before Clause 13
22
Insert the following new Clause—

“Information about benefits

(1)
Scheme regulations must require the scheme manager for a scheme under

section 1 which is a defined benefits scheme to provide benefit information

statements to each person in pensionable service under the scheme in

accordance with this section.

(2)
A benefit information statement must include—

(a)
a description of the benefits earned by the person in respect of his

or her pensionable service, and

(b)
such other information as Treasury directions may specify.

(3)
The information included in a benefit information statement must comply

with such requirements as Treasury directions may specify.

(4)
A benefit information statement must be provided—

(a)
no later than the relevant date, and

(b)
at least once in each year ending with the anniversary of that date.

(5)
The relevant date is the last day of the period of 17 months beginning with

the day on which scheme regulations establishing the scheme come into

force.

(6)
A benefit information statement must be provided in such manner as

Treasury directions may specify.”
Clause 14
23
Page 9, line 5, leave out from “State” to end of line 8

4

Clause 15
24
Page 9, line 15, leave out “Part 1 of”
25
Page 9, line 18, leave out “that Part of”
26
Page 9, line 19, leave out subsection (3)
27
Page 9, line 25, leave out “subsections (2) and (3)” and insert “subsection (2)”
Clause 16
28
Page 10, line 2, leave out “1 April” and insert “31 March”
29
Page 10, line 4, leave out “5 April” and insert “31 March”
30
Page 10, line 28, leave out from “Wales” to end of line 30
Clause 18
31
Page 10, line 41, leave out “which are closed under section 16” and insert “to which

section 16(1) applies”
Clause 20
32
Page 11, line 16, leave out from “period” to end of line 20
33
Page 11, line 28, leave out “In the case referred to in subsection (1)(a),”
34
Page 11, line 35, at end insert “or the Lord Chancellor”
35
Page 11, line 40, leave out paragraph (d)
36
Page 11, line 42, leave out from second “period” to end of line 43 and insert

“beginning with the coming into force of this section and ending with 31 March

2040;”
After Clause 20
37
Insert the following new Clause—

“Procedure for retrospective provision

(1)
Where the responsible authority proposes to make scheme regulations

containing retrospective provision which appears to the authority to have

significant adverse effects in relation to the pension payable to or in respect

of members of the scheme, the authority must first obtain the consent of the

persons referred to in subsection (3).

(2)
Where the responsible authority proposes to make scheme regulations

containing retrospective provision which appears to the authority—

(a)
not to have significant adverse effects as specified in subsection (1),

but

(b)
to have significant adverse effects in any other way in relation to

members of the scheme (for example, in relation to injury or

compensation benefits),


the authority must first consult the persons specified in subsection (3) with

a view to reaching agreement with them.

5

(3)
The persons referred to in subsections (1) and (2) are the persons (or

representatives of the persons) who appear to the responsible authority to

be likely to be affected by the provision if it were made.

(4)
The responsible authority must, in a case falling within subsection (1) or (2),

lay a report before the appropriate legislature (as defined in section 20).

(5)
In a case falling within subsection (1) or (2) there is no requirement to

consult under section 19(1).”
Clause 21
38
Page 12, line 13, leave out paragraph (b) and insert—

“(b)
section (Procedure for retrospective provision)(1) or (2) (procedure for

retrospective provision having significant adverse effects) applies.”
39
Page 12, line 15, at end insert “, or

(c)
they are scheme regulations for a scheme relating to the judiciary,

unless the pension board for that scheme has stated that it considers

the regulations to be minor or wholly beneficial.”
Clause 22
40
Page 12, line 24, leave out “in public service” and insert “specified in section 1(2)”
41
Page 12, line 26, leave out “that section” and insert “section 1”
42
Page 12, line 28, leave out “in public service” and insert “specified in section 1(2)”
43
Page 12, line 30, leave out “not in public service” and insert “, not being persons

specified in section 1(2),”
44
Page 12, line 32, leave out “not in public service” and insert “(other than persons

specified in section 1(2))”
45
Page 12, line 36, leave out subsections (6) and (7) and insert—

“(6)
By virtue of a determination under subsection (5) the scheme regulations

then apply to the persons to whom the determination relates as they apply

to other persons to or in respect of whom pensions and other benefits are

provided under the scheme (or such class of other persons as may be

specified in the determination).

(7)
Subsection (6) is subject to—

(a)
any special provision made in the scheme regulations, and

(b)
a direction under subsection (7A).

(7A)
Scheme regulations made under subsection (2) or (3) in relation to any

persons may include provision authorising the responsible authority by

direction to modify provisions of the regulations in their application to

those persons for the purpose of—

(a)
securing appropriate protection against additional costs to the

scheme that might result from the application of the scheme

regulations to those persons,

(b)
obtaining information about those persons, their employers and

other relevant persons, or

(c)
taking appropriate account of—

6

(i)
the arrangements under which those persons are employed,

and

(ii)
the organisational structures of their employers.”
46
Page 13, line 4, at end insert—

“( )
Where, by virtue of section 4(5), there is more than one scheme manager for

a scheme under section 1, the responsible authority may delegate its

functions under subsection (5) or (8) to the scheme managers, subject to

such conditions as the responsible authority considers appropriate.”
Clause 23
47
Page 13, line 9, leave out “persons to whom the scheme relates” and insert “—

(a)
persons within the description of persons specified in section 1(2)

for which the responsible authority may make the scheme, and

(b)
any other persons to whom the scheme relates by virtue of section

22.”
48
Page 13, line 9, at end insert—

“( )
Subsection (1) is subject to any provision made in the scheme regulations

for the scheme that restricts or otherwise affects the power to make

payments under that subsection.”
Clause 25
49
Page 13, line 16, leave out from “Wales” to end of line 18
50
Page 13, line 26, leave out “or (as the case may be) Northern Ireland”
Clause 26
51
Page 13, line 31, leave out from “1972” to “(schemes” in line 33 and insert “so as to

extend access to schemes under section 1 of that Act’”
Clause 27
52
Page 14, line 12, leave out “13 and” and insert “(Information about benefits) to”
53
Page 14, line 21, leave out from “Treasury” to end of line 28
54
Page 14, line 28, at end insert—

“( )
This section does not apply to a new public body pension scheme which

relates to a devolved body or office.”
Clause 28
55
Page 15, line 2, leave out “the scheme” and insert “a scheme to which subsection

(2) applies”
56
Page 15, line 10, leave out “the scheme” and insert “a scheme to which subsection

(2) applies”
57
Page 15, line 14, leave out “this section” and insert “subsection (2)”
58
Page 15, line 22, at end insert—

7

“but may not add a devolved body or office.”
59
Page 15, line 30, leave out “which are closed under this section” and insert “to

which subsection (2) applies”
Clause 29
60
Page 15, line 44, at end insert—

“( )
This section does not apply to a public body pension scheme which relates

to a devolved body or office.”
Clause 31
61
Page 16, line 33, at end insert “Part 1 of”
Clause 32
62
Page 17, line 23, after “in” insert “Part 1 of”
Clause 33
63
Page 17, line 42, leave out “has the meaning” and insert “and “the affirmative

Commons procedure” have the meanings”
64
Page 18, line 14, at end insert—

““devolved”: a body or office is “devolved” if or to the extent that

provision about pensions payable to or in respect of members or

staff of the body, or a holder of the office—

(a)
would be within the legislative competence of the Northern

Ireland Assembly were that provision contained in an Act of

the Assembly, or

(b)
is not a reserved matter within the meaning of the Scotland

Act 1998;”
65
Page 18, leave out line 15
66
Page 18, line 44, at end insert—

““local authority” means—

(a)
a local authority in England and Wales within the meaning

of Part 1 of the Local Government and Housing Act 1989;

(b)
a council constituted under section 2 of the Local

Government etc. (Scotland) Act 1994;”
67
Page 18, leave out line 49
68
Page 18, line 50, at end insert—

““pension board” has the meaning given by section 5(8);”
69
Page 19, line 22, at end insert—

““scheme advisory board” has the meaning given by section (Scheme

advisory board)(6);”
Clause 34
70
Page 19, line 46, leave out paragraph (b)