Pensions Bill (HC Bill 6)

automatic transfer scheme to be merged into a current pension account of
the member.

(2) The regulations may not require a dormant pension account to be merged
unless the accrued rights to benefits to which the account relates would be
5transferable benefits of the member if—

(a) all other accrued rights to benefits of the member, and any relevant
contributions, were ignored, and

(b) any other prescribed matter were ignored.

(3) The regulations may in particular—

(a) 10make provision for determining into which current pension account
(if the member has more than one) a dormant pension account is to
be merged;

(b) provide that the rules of the scheme that are to apply to a merged
pension account are those that apply to the current pension account
15into which a dormant pension account is being merged;

(c) require the trustees or managers of the scheme to make a transfer of
assets representing the accrued rights to benefits to which a dormant
pension account relates;

(d) include provision corresponding or similar to any provision which
20may be made by regulations under Part 1 of this Schedule.

(4) In this paragraph “pension account”, in relation to a member of a scheme,
means an account relating to the member’s accrued rights to benefits in
respect of a particular period of employment; and a pension account—

(a) is “dormant” if relevant contributions in relation to the period of
25employment to which the account relates have ceased; and

(b) is “current” if such contributions have not ceased.

(5) In this paragraph—

(a) references to “accrued rights to benefits”, in relation to a member of
a scheme, are to accrued rights to benefits under the applicable rules
30(within the meaning given by paragraph 1(6));

(b) “employment” has the prescribed meaning;

(c) “relevant contributions”, in relation to a member of a scheme, means
contributions to the scheme by, or on behalf or in respect of, the
member.

35Part 3 Interpretation etc

Interpretation etc

17 (1) In this Schedule—

• “active member”—

  (a)

  40in relation to an occupational pension scheme, has the
  meaning given by section 124(1) of the Pensions Act 1995,
  and

  (b)

  in relation to a personal pension scheme, means a member of
  the scheme in respect of whom contributions are being paid
  45into the scheme;

Pensions BillPage 91

• “administration charges”, in relation to a member of a pension scheme,
  means any of the following to the extent that they may be used to
  meet the administrative expenses of the scheme, to pay commission
  or in any other way that does not result in the provision of pension
  5benefits for or in respect of members—

  (a)

  any payments made to the scheme by, or on behalf or in
  respect of, the member,

  (b)

  any income or capital gain arising from the investment of
  such payments, or

  (c)

  10the value of the member’s rights under the scheme;

• “automatic transfer scheme” has the meaning given by paragraph 1(2);

• “managers”, in relation to a pension scheme (other than a scheme
  established under a trust), means the persons responsible for the
  management of the scheme;

• 15“member”, in relation to a pension scheme, does not include a person
  who has become entitled under the scheme to the present payment
  of pension or other benefits;

• “money purchase benefits” has the meaning given by section 181(1) of
  the Pension Schemes Act 1993;

• 20“money purchase scheme” has the meaning given by section 181(1) of
  the Pension Schemes Act 1993;

• “occupational pension scheme” has the meaning given by section 1 of
  the Pension Schemes Act 1993;

• “pension scheme” means—

  (a)

  25an occupational pension scheme, or

  (b)

  a personal pension scheme;

• “personal pension scheme” has the meaning given by section 1 of the
  Pension Schemes Act 1993;

• “prescribed” means prescribed by regulations made by the Secretary of
  30State;

• “qualifying member” has the meaning given by paragraph 1(3);

• “the Regulator” means the Pensions Regulator;

• “transferable benefits”, and references to a person having transferable
  benefits, are to be read in accordance with paragraph 1(4);

• 35“transferable benefits scheme” has the meaning given by paragraph
  1(5);

• “transfer notice” means a notice given under regulations made because
  of paragraph 3;

• “work-based pension scheme” means—

  (a)

  40an occupational pension scheme,

  (b)

  a personal pension scheme where direct payment
  arrangements (within the meaning of section 111A of the
  Pension Schemes Act 1993) exist in respect of one or more
  members of the scheme who are workers, or

  (c)

  45a personal pension scheme which is or has been registered
  under section 2 of the Welfare Reform and Pensions Act 1999
  (stakeholder pension schemes);

• “worker” means a person—

  (a)

  who is a worker for the purposes of Part 1 of the Pensions Act
  502008, or

  Pensions BillPage 92

  (b)

  to whom a provision of Part 1 of that Act applies as if the
  person were a worker because of a provision of Chapter 8 of
  that Part;

  but for the purposes of paragraph (b), ignore section 92 of that Act.

(2) 5The Secretary of State may by regulations make provision about when
contributions to a pension scheme are to be regarded as having ceased for
the purposes of paragraph 1(4)(c) or 16(4).

Crown application

18 (1) This Schedule applies to a pension scheme managed by or on behalf of the
10Crown as it applies to other pension schemes.

(2) Accordingly, references in this Schedule to a person in the person’s capacity
as a trustee or manager of a pension scheme include the Crown, or a person
acting on behalf of the Crown, in that capacity.

(3) This Schedule applies to persons employed by or under the Crown as it
15applies to persons employed by a private person.

Overriding provision

19 (1) Regulations under this Schedule may provide that specified provisions
override any provision of an automatic transfer scheme or transferable
benefits scheme to the extent that it conflicts with them.

(2) 20A “specified provision” is a provision of regulations under this Schedule
specified in the regulations for the purposes of this paragraph.

Other provision relating to regulations under this Schedule

20 (1) Regulations under this Schedule may amend or otherwise modify any
enactment (whenever passed or made).

(2) 25Regulations made because of sub-paragraph (1) may in particular amend section
175(1) of the Pension Schemes Act 1993 (levies towards certain expenditure) so as
to include expenditure of the Secretary of State under the regulations.

(3) In this paragraph “enactment” includes an enactment contained in
subordinate legislation within the meaning of the Interpretation Act 1978.

21 30Before making any regulations under this Schedule, the Secretary of State
must consult such persons as the Secretary of State considers appropriate.

Amendments

22 (1) The Pension Schemes Act 1993 is amended as follows.

(2) In section 94(2A) (right to cash equivalent)—

(a) 35in paragraph (a), after sub-paragraph (vii) insert—

“(viii) regulations made under Schedule 16 to the
Pensions Act 2013;”;

(b) in paragraph (b), after sub-paragraph (v) insert—

“(vi) regulations made under paragraph 19 of
40Schedule 16 to the Pensions Act 2013.”

(3) In section 101AI(8) (rights to cash transfer sum and contribution refund:
further provisions)—

(a) in paragraph (a), after sub-paragraph (vii) insert—

“(viii) regulations made under Schedule 16 to the
5Pensions Act 2013;”;

(b) in paragraph (b), after sub-paragraph (v) insert—

“(vi) regulations made under paragraph 19 of
Schedule 16 to the Pensions Act 2013.”

Section 40

SCHEDULE 17 10Prohibition orders: consequential amendments

Pensions Act 1995 (c. 26)1995 (c. 26)

1 The Pensions Act 1995 is amended as follows.

2 In section 6 (removal or suspension of trustees: consequences)—

(a) in subsections (1) and (3), after “section 3” insert “or 3A”;

(b) 15in subsection (4), after “section 3” insert “, 3A”.

3 In section 7 (appointment of trustees), in subsection (1), after “section 3,”
insert “by section 3A”.

4 In section 9 (removal and appointment of trustees: property), after “a
trustee” insert “or a trustee is removed under section 3A”.

20Pensions Act 2004 (c. 35)2004 (c. 35)

5 The Pensions Act 2004 is amended as follows.

6 In section 10 (functions exercisable by the Determinations Panel), in
subsection (6), after paragraph (e) insert—

“(ea) section 3A(3) of that Act (application for waiver of
25prohibition);”.

7 In section 66 (register of prohibited trustees), in subsection (1), for the words
from “of all” to the end substitute “(“the prohibition register”) of—

“(a) all persons who are prohibited under section 3 of the
Pensions Act 1995, and

(b) 30all persons appearing to the Regulator to be prohibited under
section 3A of that Act.”

8 In section 96 (Pensions Regulator’s regulatory functions: standard
procedure), in subsection (6), after paragraph (i) insert—

“(ia) the power under section 3A(3) of that Act to give a notice
35waiving a prohibition;”.

9 In section 97 (Pensions Regulator’s regulatory functions: special procedure),
in subsection (5), after paragraph (j) insert—

“(ja) the power under section 3A(3) of that Act to give a notice
waiving a prohibition;”.

10 (1) Schedule 2 (Pensions Regulator’s reserved regulatory functions) is amended
as follows.

(2) After paragraph 5 insert—

“5A The power under section 3A(3) to give a notice waiving a
5prohibition.”

(3) In paragraph 9(a), after “orders)” insert “or by section 3A”.