(c) set out matters to which the actuary must have regard;

(d) require the trustees or managers to provide a copy of the actuary’s
certificate to a specified person.

(4) In this section “target” means a target, relating to the rate or amount of a
5benefit, that is unenforceable.

Contributions

21 Payment schedule

(1) Regulations may require the trustees or managers of a pension scheme to
prepare a payment schedule showing—

(a) 10the contributions payable to the scheme in respect of any collective
benefits under the scheme, and

(b) the dates on which the contributions are due.

(2) The regulations may require the payment schedule to include other amounts
payable to the scheme and the dates on which they are due.

(3) 15The regulations may, in particular—

(a) make further provision about the content of the payment schedule;

(b) make provision about revising the payment schedule.

(4) The regulations may, in particular, make provision corresponding or similar to
any provision made by section 87 of the Pensions Act 1995 (payment schedules
20for certain kinds of scheme).

22 Overdue contributions and other payments

(1) Regulations—

(a) may require the trustees or managers of a pension scheme to notify a
specified person of any relevant payments that are overdue;

(b) 25may make provision for the recovery of those payments.

(2) In subsection (1) “relevant payment” means a payment shown in a payment
schedule required by regulations under section 21.

(3) The regulations may, in particular, make provision corresponding or similar to
any provision made by section 88 of the Pensions Act 1995 (failure to comply
30with payment schedule for certain kinds of scheme).

Investment

23 Statement of investment strategy

(1) Regulations may require the trustees or managers of a pension scheme to
prepare a statement of their investment strategy in connection with any
35collective benefit investments.

(2) The regulations may, in particular, make provision about—

(a) the content of the statement;

(b) reviewing and revising the statement.

(3) The regulations may, in particular—

(a) make provision corresponding or similar to any provision made by
section 35 of the Pensions Act 1995 (investment principles for
occupational trust-based schemes);

(b) disapply that section in relation to any investments to which the
5regulations apply.

24 Choosing investments

(1) Regulations may impose requirements on the trustees or managers of a
pension scheme, or any other person, about the use of powers of investment in
connection with collective benefit investments.

(2) 10The regulations may, in particular—

(a) make provision corresponding or similar to any provision made by
section 36 of the Pensions Act 1995 (choosing investments for
occupational trust-based schemes);

(b) disapply that section in relation to any investments to which the
15regulations apply.

25 Investment performance reports

(1) Regulations may require the trustees or managers of a pension scheme to
obtain reports about the performance of any collective benefit investments.

(2) The regulations may, in particular, make provision about—

(a) 20the content of reports;

(b) how often reports must be obtained;

(c) the person from whom reports must be obtained.

Valuation

26 Valuation reports

(1) 25Regulations may require the trustees or managers of a pension scheme to
obtain a report prepared by an actuary—

(a) valuing the assets held by the scheme for the purposes of providing
collective benefits, and

(b) assessing the probability of the scheme meeting the targets in relation
30to those benefits.

(2) A report required by regulations under this section is referred to in this Part as
a “valuation report”.

(3) The regulations may, in particular—

(a) require the trustees or managers to obtain the report from an actuary
35who has specified qualifications or meets other specified requirements;

(b) require the actuary to certify whether, in the opinion of the actuary, the
probability of the scheme meeting the targets is equal to or higher or
lower than the required probability;

(c) make further provision about the content of valuation reports;

(d) 40make provision about how often valuation reports must be obtained.

27 Valuation process

(1) Regulations may make provision about the methods or assumptions to be used
by an actuary valuing assets, or assessing the probability of a scheme meeting
a target in relation to a collective benefit, for the purposes of a valuation report.

(2) 5The regulations may, in particular—

(a) require the trustees or managers of the scheme to determine the
methods or assumptions to be used by the actuary;

(b) set out matters that the trustees or managers must take into account, or
principles they must follow, in determining methods or assumptions.

(3) 10The regulations may require an actuary preparing a valuation report to certify
that, in the opinion of the actuary, any methods or assumptions determined in
accordance with the regulations have been followed.

(4) Regulations—

(a) may require an actuary to have regard to guidance issued from time to
15time by a specified person when preparing a valuation report;

(b) may impose other requirements on an actuary when preparing a
valuation report.

Dealing with deficits and surpluses

28 Policy for dealing with a deficit or surplus

(1) 20Regulations may require the trustees or managers of a pension scheme—

(a) to have a policy for dealing with a deficit or surplus in respect of any
collective benefits that may be provided by the scheme, and

(b) to follow that policy if a valuation report shows a deficit or surplus.

(2) For the purposes of this Part—

(a) 25there is a “deficit” in respect of a collective benefit if the probability of
the scheme meeting a target in relation to the benefit is lower than the
required probability, and

(b) there is a “surplus” in respect of a collective benefit if the probability of
the scheme meeting a target in relation to the benefit is higher than the
30required probability.

(3) Regulations under subsection (1)(a) may, in particular—

(a) require the trustees or managers to consult about the policy;

(b) make provision about the content of the policy;

(c) make provision about reviewing and revising the policy.

(4) 35The regulations may, in particular, require the policy—

(a) to be formulated with a view to achieving results described in the
regulations within a period or periods described in the regulations;

(b) to contain provision for a deficit or surplus to be dealt with in one or
more of a range of ways described in the regulations;

(c) 40to contain an explanation of the possible effect of the policy on
members in different circumstances.

29 Deficits attributable to an offence or the imposition of a levy

(1) Regulations may provide for an amount to be treated as a debt due from an
employer to the trustees or managers of a pension scheme that provides
collective benefits in cases where there is a deficit that is attributable to a
5specified offence or the imposition of a specified levy.

(2) The regulations may, in particular, make provision corresponding or similar to
any provision made by section 75 of the Pensions Act 1995 (amounts deemed
to be debts due from an employer).

(3) For the purposes of this section—

• 10“employer” has the meaning given by section 318 of the Pensions Act
  2004;

• “deficit” has the meaning given by the regulations (and the meaning need
  not be the same as in section 28).

Transfer values

30 15Transfer value: policy for calculating cash equivalent of benefits

(1) Regulations may require the trustees or managers of a pension scheme—

(a) to have a policy about the calculation and verification of the cash
equivalent of any collective benefit that may be provided by the
scheme;

(b) 20to follow that policy in calculating or verifying any cash equivalent.

(2) In this section “cash equivalent” means the cash equivalent mentioned in
section 93A(1ZB) of the Pension Schemes Act 1993.

(3) The regulations may, in particular—

(a) require the trustees or managers to consult about the policy;

(b) 25require the trustees or managers to ensure that the policy is consistent
with any requirements imposed by regulations under section 97 of the
Pension Schemes Act 1993;

(c) make other provision about the content of the policy;

(d) make provision about reviewing and revising the policy.

30Winding up

31 Winding up

Regulations may—

(a) disapply or modify the application of any of sections 73, 73A, 73B and
74 of the Pensions Act 1995 (winding up) in relation to collective
35benefits;

(b) make provision in relation to collective benefits corresponding or
similar to any provision made by those sections.

Regulations under Part 3: general

32 Requirement to obtain actuarial advice

(1) Regulations may require the trustees or managers of a pension scheme to
obtain advice from the scheme actuary before making a specified decision or
5taking other specified steps required by regulations under this Part.

(2) The regulations—

(a) may require the scheme actuary to have regard to guidance issued from
time to time by a specified person when advising on those matters;

(b) may impose other requirements on the scheme actuary when advising
10on those matters.

(3) In this section “the scheme actuary” has the meaning given by the regulations.

33 Sub-delegation

Regulations under this Part may confer a discretion on a person.

34 Publication etc of documents

15Regulations under this Part requiring the trustees or managers of a pension
scheme to prepare or obtain any document may impose requirements about—

(a) the publication of the document;

(b) the sending of copies to persons specified in the regulations.

35 Enforcement

20Regulations under this Part—

(a) may confer functions on a specified person in connection with enforcement of
the regulations;

(b) may provide for section 10 of the Pensions Act 1995 (civil penalties) to
apply to a person who fails to comply with the regulations.

25Interpretation of Part 3 and amendments

36 Interpretation of Part 3

(1) In this Part—

• “collective benefit” has the meaning given by section 19;

• “collective benefit investments”, in relation to a scheme, means
  30investments held for the purposes of the provision of any collective
  benefits under the scheme;

• “money purchase benefit” has the meaning given by section 181 of the
  Pension Schemes Act 1993;

• “pension scheme” has the meaning given by section 1(5) of the Pension
  35Schemes Act 1993;

• “required probability” means the level of probability specified in
  regulations under section 20(2)(c);

• “target” means a target required by regulations under section 20;

• “valuation report” has the meaning given by section 26.

(2) A power conferred by this Part to make provision corresponding or similar to
any provision made by a section of another Act includes a power to make
provision corresponding or similar to any provision that may be made by
regulations under that section.

37 5Collective benefits: amendments to other legislation

Schedule 4 contains amendments to do with collective benefits.

Part 4 Miscellaneous and general

Remploy

38 10 Payments into Remploy Limited Pension and Assurance Scheme

The Secretary of State may make payments into the Remploy Limited Pension and
Assurance Scheme.

Consequential amendments etc

39 References to “pensions legislation”: amendments to include this Act etc

(1) 15The Pensions Act 2004 is amended as follows.

(2) In section 13 (improvement notices), in subsection (7)—

(a) omit the “or” at the end of paragraph (d);

(b) after paragraph (e) insert “, or

(f) the Pension Schemes Act 2014.”

(3) 20In section 90 (codes of practice), in the definition of “the pensions legislation”
in subsection (6)—

(a) omit the “or” at the end of paragraph (c);

(b) after paragraph (d) insert—

“(e) Schedule 18 to the Pensions Act 2014, or

(f) 25the Pension Schemes Act 2014.”

(4) In section 254 (representative of non-European scheme to be treated as trustee),
in subsection (3)—

(a) omit the “or” at the end of paragraph (c);

(b) after paragraph (d) insert “, or

(e) 30the Pension Schemes Act 2014.”

(5) In section 291 (duty of trustees or managers to act consistently with law of host
member state), in subsection (4)—

(a) omit the “or” at the end of paragraph (c);

(b) after paragraph (d) insert “, or

(e) 35the Pension Schemes Act 2014.”

40 Power to make consequential amendments

(1) The Secretary of State may by regulations make provision that is consequential
on any provision made by this Act.

(2) Regulations under this section may amend, repeal, revoke or otherwise modify
5any legislation (whenever passed or made).

(3) “Legislation” means—

(a) an Act, or

(b) subordinate legislation as defined by section 21(1) of the Interpretation
Act 1978.

10General

41 Regulations

(1) A power to make regulations under this Act is exercisable by the Secretary of
State.

(2) Regulations under this Act are to be made by statutory instrument.

(3) 15A statutory instrument containing regulations under section 40 that amend or
repeal a provision of an Act (whether alone or with other provision) may not
be made unless a draft of the instrument has been laid before and approved by
a resolution of each House of Parliament.

(4) Any other statutory instrument containing regulations under this Act is subject
20to annulment in pursuance of a resolution of either House of Parliament.

(5) A power to make regulations under this Act may be used—

(a) to make different provision for different purposes;

(b) in relation to all or only some of the purposes for which it may be used.

(6) Regulations under this Act may include incidental, supplementary,
25consequential, transitional, transitory or saving provision.

42 Crown application

(1) In this section “the relevant provisions” means—

(a) section 9 (pensions promise obtained from third party), and

(b) Part 3 (collective benefits).

(2) 30The relevant provisions apply to a pension scheme managed by or on behalf of
the Crown as they apply to other pension schemes.

(3) Accordingly, references in those provisions 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.

(4) 35References in the relevant provisions to a person in the person’s capacity as an
employer include the Crown, or a person acting on behalf of the Crown, in that
capacity.

(5) Nothing in the relevant provisions applies to Her Majesty in Her private
capacity (within the meaning of the Crown Proceedings Act 1947).

43 Extent

(1) This Act extends to England and Wales and Scotland only, subject to the
following provisions of this section.

(2) Any amendment or repeal made by this Act has the same extent as the
5enactment to which it relates.

(3) This Part, apart from sections 38 and 39, extends also to Northern Ireland.

44 Commencement

(1) The provisions of this Part, other than sections 38 and 39, come into force on
the day on which this Act is passed.

(2) 10The following come into force on such day or days as may be appointed by
regulations—

(a) Parts 1, 2, and 3;

(b) in this Part, sections 38 and 39.

(3) Regulations under subsection (2) may appoint different days for different
15purposes.

(4) Regulations may make transitional, transitory or saving provision in
connection with the coming into force of any provision of this Act.

45 Short title

This Act may be cited as the Pension Schemes Act 2014.

SCHEDULES

Section 8

SCHEDULE 1 Amendments to do with Part 1

Pension Schemes Act 1993 (c. 48)Pension Schemes Act 1993 (c. 48)

1 5The Pension Schemes Act 1993 is amended as follows.

2 In section 83 (scope of provisions about revaluation of benefits excluding
guaranteed minimum pensions), in subsection (4), for paragraph (a) (but not
the “and” at the end) substitute—

“(a) it is not a scheme under which all the benefits that may be
10provided are money purchase benefits,”.

3 (1) Section 93 (scope of provisions about transfer values) is amended as follows.

(2) In subsection (1A), for paragraph (a) (but not the “and” at the end)
substitute—

“(a) the scheme is not a scheme under which all the benefits that
15may be provided are money purchase benefits,”.

(3) In subsection (1B)(b), for sub-paragraphs (i) and (ii) substitute “under which
some but not all of the benefits that may be provided are money purchase
benefits”.

4 In section 101P (interpretation of Chapter about transfer values), in
20subsection (2), for paragraph (a) (but not the “and” at the end) substitute—

“(a) it is not a scheme under which all the benefits that may be
provided are money purchase benefits,”.

5 In section 101Q (power to modify Chapter about transfer values in relation
to hybrid schemes), for paragraphs (a) and (b) substitute “under which some
25but not all of the benefits that may be provided are money purchase
benefits”.

6 In section 113 (disclosure of information about schemes to members etc), in
subsection (10), for the definition of “relevant scheme” substitute—

• ““relevant scheme” means an occupational pension scheme
  30under which all the benefits that may be provided are money
  purchase benefits.”

7 In section 124 (duty of Secretary of State to pay unpaid contributions to
schemes), for subsection (3A) substitute—

“(3A) The sum payable under this section by virtue of subsection (3) shall
35be the lesser of the amounts mentioned in paragraphs (a) and (c) of
that subsection in any case where the scheme is—

(a) a defined contributions scheme,

(b) a shared risk scheme under which all the benefits that may be
provided are money purchase benefits,”.

8 (1) In section 181 (interpretation), subsection (1) is amended as follows.

(2) At the appropriate places insert—

• 5““defined benefits scheme” has the meaning given by section 2
  of the Pension Schemes Act 2014;”

• ““defined contributions scheme” has the meaning given by
  section 4 of the Pension Schemes Act 2014;”

• ““shared risk scheme” has the meaning given by section 3 of the
  10Pension Schemes Act 2014;”.

(3) Omit the definition of “money purchase scheme”.

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

9 The Pensions Act 1995 is amended as follows.

10 In section 38 (power to defer winding up), in subsection (3), for
15paragraph (a) (but not the “or” at the end) substitute—

“(a) a scheme under which all the benefits that may be provided
are money purchase benefits,”.

11 In section 51 (annual increase in rate of pension), in subsection (1)(a)(iii), for
“is not a money purchase scheme” substitute “is not a defined contributions
20scheme”.

12 In section 51A (restrictions on increase where annuity tied to investments),
in subsection (1), for “money purchase scheme” substitute “defined
contributions scheme”.

13 In section 73 (preferential liabilities on winding up), in subsection (2), for
25paragraph (a) and the “or” at the end substitute—

“(a) a scheme under which all the benefits that may be provided
are money purchase benefits,”.

14 (1) In section 75 (employer debt where deficiency in assets on winding up etc),
in subsection (1), for paragraph (a) and the “or” at the end substitute—

“(a) 30a scheme under which all the benefits that may be provided
are money purchase benefits,”.

15 (1) Section 89 (application of further provisions to money purchase schemes) is
amended as follows.

(2) In subsection (1), for “money purchase schemes” substitute “schemes under
35which all the benefits that may be provided are money purchase benefits
and that are schemes”.

(3) In subsection (2), for “money purchase schemes” substitute “schemes under
which all the benefits that may be provided are money purchase benefits”.

16 In section 124 (interpretation), in subsection (1), at the appropriate places
40insert—

• ““defined benefits scheme” has the meaning given by section 2
  of the Pension Schemes Act 2014;”

• ““defined contributions scheme” has the meaning given by
  section 4 of the Pension Schemes Act 2014;”

Pension Schemes BillPage 20

• ““shared risk scheme” has the meaning given by section 3 of the
  Pension Schemes Act 2014;”.

17 (1) Section 125 (interpretation of Part 1: supplementary) is amended as follows.

(2) In subsection (1), for paragraph (a) (but not the “and” at the end)
5substitute—

“(a) the scheme is not a scheme under which all the benefits that
may be provided are money purchase benefits,”.

(3) In subsection (2), for paragraphs (a) and (b) substitute “under which some
but not all of the benefits that may be provided are money purchase
10benefits”.

Welfare Reform and Pensions Act 1999 (c. 30)Welfare Reform and Pensions Act 1999 (c. 30)

18 In section 38 of the Welfare Reform and Pensions Act 1999 (treatment in
winding up), in subsection (2A), for paragraph (a) (but not the “or” at the
end) substitute—

“(a) 15a scheme under which all the benefits that may be provided
are money purchase benefits,”.

Financial Services and Markets Act 2000 (c. 8)Financial Services and Markets Act 2000 (c. 8)

19 The Financial Services and Markets Act 2000 is amended as follows.