Pension Schemes Bill (HC Bill 114)
SCHEDULE 2 continued
Pension Schemes BillPage 30
7
(1)
Section 98 (variation and loss of rights under section 94) is amended as
follows.
(2)
In subsection (1), for “other than a salary related scheme” substitute “to
which section 93A does not apply”.
(3)
5In subsection (1A), for “a salary related occupational pension scheme”
substitute “an occupational pension scheme to which section 93A applies”.
(4) In subsection (3)—
(a)
in paragraph (a), for “salary related scheme” substitute “scheme to
which section 93A applies”;
(b)
10in paragraph (aa), for “a salary related occupational pension scheme”
substitute “an occupational pension scheme to which section 93A
applies”.
(5)
In subsection (5), after “member of” insert “an occupational pension scheme
or”.
(6) 15In subsection (8), after “In this section—” insert—
-
““guaranteed cash equivalent”, in relation to a member of a
scheme who has applied for a statement of entitlement under
section 93A, means the cash equivalent amount stated in the
statement of entitlement;”.
8 (1) 20Section 99 (trustees’ duties after exercise of option) is amended as follows.
(2) In subsection (2), for paragraphs (a) to (c) substitute—
“(a)
in the case of a member of a scheme to which section 93A
applies—
(i)
within 6 months beginning with the guarantee date,
25or
(ii)
where the scheme is an occupational pension scheme,
by the date (if earlier) on which the member attains
normal pension age;
(b)
in the case of a member of an occupational pension scheme to
30which section 93A does not apply, within 6 months
beginning with the date on which they receive the
application or (if earlier) by the date on which the member
attains normal pension age;
(c)
in the case of a member of a personal pension scheme to
35which section 93A does not apply, within 6 months
beginning with the date on which they receive the
application.”
9
Omit the following provisions of the Pensions Act 1995, which are no longer
needed given the earlier provisions of this Schedule—
(a) 40section 154(1) to (3) and (5);
(b) in Schedule 6, paragraphs 4(a), 5(a) and 6(a).
Pension credits: transfer values
10
Chapter 2 of Part 4A of the Pension Schemes Act 1993 (pension credit
benefit: transfer values) is amended as follows.
Pension Schemes BillPage 31
11
In section 101F (power to give transfer notice), in subsection (4)(a), for
“salary related occupational pension scheme” substitute “scheme to which
section 101H applies”.
12
In section 101G (restrictions on power to give transfer notice), in subsection
5(1), for “salary related occupational pension scheme” substitute “scheme to
which section 101H applies”.
13
(1)
Section 101H (salary related schemes: statements of entitlement) is amended
as follows.
(2) For subsection (1) substitute—
“(1) 10This section applies to a qualifying scheme that is—
(a) a defined benefits scheme,
(b) a shared risk scheme, or
(c)
a defined contributions scheme that is not a scheme under
which all the benefits that may be provided are money
15purchase benefits,
other than a scheme that falls within a prescribed class.
(1A)
The trustees or managers of a scheme to which this section applies
must, on the application of any eligible member, provide the
member with a written statement of the amount of the cash
20equivalent of the member’s pension credit benefit under the
scheme.”
(3) In subsections (2) and (3), for “(1)” substitute “(1A)”.
(4) In subsection (4)—
(a)
for “to whom subsection (1)” substitute “of a scheme to which this
25section”;
(b) for “that subsection” substitute “subsection (1A)”.
(5)
In the heading, for “Salary related schemes” substitute “Schemes with a
promise or target”.
14
(1)
Section 101J (time for compliance with transfer notice) is amended as
30follows.
(2) In subsection (1), for paragraphs (a) and (b) substitute—
“(a)
in the case of a scheme to which section 101H applies, within
6 months of the valuation date, and
(b)
in the case of any other scheme, within 6 months of the date
35on which the notice is given.”
(3) For subsection (7) substitute—
“(7)
In subsection (1)(a), “valuation date” means the date by reference to
which the amount shown in the relevant statement under section
101H is determined.”
15 (1) 40Section 101P (interpretation) is amended as follows.
(2) Omit subsection (2).
(3)
In subsection (3), for “salary related occupational pension scheme”
substitute “scheme to which that section applies”.
Pension Schemes BillPage 32
Section 42
SCHEDULE 3 Other amendments to do with Parts 1 and 2
Pension Schemes Act 1993 (c. 48)Pension Schemes Act 1993 (c. 48)
1 The Pension Schemes Act 1993 is amended as follows.
2
5In 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
provided are money purchase benefits,”.
3 (1) 10Section 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
may be provided are money purchase benefits,”.
(3)
15In 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
subsection (2), for paragraph (a) (but not the “and” at the end) substitute—
“(a)
20it 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
but not all of the benefits that may be provided are money purchase
25benefits”.
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
under which all the benefits that may be provided are money
30purchase 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
be the lesser of the amounts mentioned in paragraphs (a) and (c) of
35that 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, or
(c)
a shared risk scheme under which all the benefits that may be
40provided are money purchase benefits or collective benefits.”
8 (1) In section 181 (interpretation), subsection (1) is amended as follows.
Pension Schemes BillPage 33
(2) At the appropriate places insert—
-
““collective benefit” has the meaning given by section 8 of the
Pension Schemes Act 2014;” -
““defined benefits scheme” has the meaning given by section 2
5of 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
Pension Schemes Act 2014;”.
(3) 10Omit 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 37 (payment of surplus to employer), in subsection (1A)—
(a) after “does not apply in the case of” insert “—
(a)”;
(b) at the end insert—
“(b)
any payments out of funds held for the purposes of
providing collective benefits under the scheme (but
see section 21 of the Pension Schemes Act 2014).”
11
20In section 38 (power to defer winding up), in subsection (3), for
paragraph (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,”.
12
In section 51 (annual increase in rate of pension), in subsection (1)(a)(iii), for
25“is not a money purchase scheme” substitute “is not a defined contributions
scheme”.
13
In section 51A (restrictions on increase where annuity tied to investments),
in subsection (1), for “money purchase scheme” substitute “defined
contributions scheme”.
14
30In section 73 (preferential liabilities on winding up), for subsection (2)
substitute—
“(2) This section applies to a pension scheme that is—
(a) an occupational defined benefits scheme,
(b) an occupational shared risk scheme, or
(c) 35an occupational defined contributions scheme,
unless subsection (2A) provides for the scheme to be exempt.
(2A) A scheme is exempt from this section if it is—
(a)
a scheme under which all the benefits that may be provided
are money purchase benefits, or
(b) 40a prescribed scheme or a scheme of a prescribed description.”
15
In section 75 (employer debt where deficiency in assets on winding up etc),
for subsection (1) substitute—
“(1) This section applies in relation to a pension scheme that is—
(a) an occupational defined benefits scheme,
Pension Schemes BillPage 34
(b) an occupational shared risk scheme, or
(c) an occupational defined contributions scheme,
unless subsection (1A) provides for the scheme to be exempt.
(1A) A scheme is exempt from this section if it is—
(a)
5a scheme under which all the benefits that may be provided
are money purchase benefits,
(b)
a scheme under which all the benefits that may be provided
are collective benefits,
(c)
a scheme under which all the benefits that may be provided
10are money purchase benefits or collective benefits, or
(d) a prescribed scheme or a scheme of a prescribed description.
(1B) Where—
(a)
some of the benefits that may be provided under a scheme
are collective benefits and some are not, and
(b)
15the scheme does not fall within paragraph (c) or (d) of
subsection (1A),
the scheme is to be treated for the purposes of this Part as two
separate schemes, one relating to the collective benefits and the other
relating to the other benefits.”
16
(1)
20Section 87 (schedules of payments to money purchase schemes) is amended
as follows.
(2) For subsection (1) substitute—
“(1)
This section applies to an occupational pension scheme that is a
scheme under which —
(a)
25all the benefits that may be provided are money purchase
benefits, or
(b)
all the benefits that may be provided are money purchase
benefits or collective benefits,
other than a scheme falling within a prescribed class or description.”
(3)
30In subsection (2)(a), after “members of the scheme” insert “in respect of
money purchase benefits”.
(4)
In the heading, for “to money purchase schemes” substitute “in respect of
money purchase benefits under certain schemes”.
17
For the italic cross-heading above section 87 substitute “Schemes providing
35money purchase benefits”.
18
In the heading to section 88 (schedules of payments to money purchase
schemes: supplementary), for “to money purchase schemes” substitute “in
respect of money purchase benefits under certain schemes”.
19
(1)
Section 89 (application of further provisions to money purchase schemes) is
40amended as follows.
(2)
In subsection (1), for “money purchase schemes” substitute “schemes under
which 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
45which all the benefits that may be provided are money purchase benefits”.
Pension Schemes BillPage 35
20
In section 124 (interpretation), in subsection (1), at the appropriate places
insert—
-
““collective benefit” has the meaning given by section 8 of the
Pension Schemes Act 2014;” -
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;” -
““occupational”, in relation to a defined benefits scheme, shared
10risk scheme or defined contributions scheme, means an
occupational pension scheme of that description;” -
““shared risk scheme” has the meaning given by section 3 of the
Pension Schemes Act 2014;”.
21 (1) Section 125 (interpretation of Part 1: supplementary) is amended as follows.
(2)
15In subsection (1), for paragraph (a) (but not the “and” at the end)
substitute—
“(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
20but not all of the benefits that may be provided are money purchase
benefits”.
Welfare Reform and Pensions Act 1999 (c. 30)Welfare Reform and Pensions Act 1999 (c. 30)
22
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
25end) substitute—
“(a)
a 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)
23 The Financial Services and Markets Act 2000 is amended as follows.
24
30In section 137FA (FCA general rules: disclosure of information about
pension scheme transaction costs etc), in subsection (8)—
(a) at the appropriate place insert—
-
““money purchase benefit” has the meaning given by
section 181(1) of the Pension Schemes Act 1993;”;
(b) 35omit the definition of “money purchase scheme”;
(c)
in the definition of “relevant scheme” for “money purchase scheme”
substitute “scheme under which all the benefits that may be
provided are money purchase benefits and”.
25
(1)
Section 142X (interpretation of provisions about ring-fencing) is amended as
40follows.
(2)
In subsection (2), for “money purchase scheme” substitute “scheme under
which all the benefits that may be provided are money purchase benefits”.
(3)
In subsection (4), for “Money purchase scheme” substitute “Money purchase
benefits”.
Pension Schemes BillPage 36
Pensions Act 2004 (c. 35)Pensions Act 2004 (c. 35)
26 The Pensions Act 2004 is amended as follows.
27
In section 17 (power of the Regulator to recover unpaid contributions), in
subsection (3)—
(a)
5in paragraph (b) of the definition of “due date”, for “to money
purchase schemes” substitute “in respect of money purchase benefits
under certain schemes”;
(b)
in paragraph (a) of the definition of “employer contribution”, for “to
money purchase schemes” substitute “in respect of money purchase
10benefits under certain schemes”.
28 (1) Section 23 (freezing orders) is amended as follows.
(2)
In subsection (1), for “which is not a money purchase scheme” substitute
“unless it is excluded by subsection (1A)”.
(3) After that subsection insert—
“(1A) 15A scheme is excluded if—
(a)
all the benefits that may be provided under the scheme are
money purchase benefits, and
(b)
the scheme does not provide for there to be a third party
promise about the rate or amount of any benefit at a time
20before the benefit comes into payment (see
subsection (10A)).”
(4)
In subsection (2), for “such a scheme” substitute “a scheme to which this
section applies”.
(5) After subsection (10) insert—
“(10A)
25For the purposes of subsection (1A)(b), a scheme provides for there
to be a third party promise if the scheme—
(a) requires the promise to be obtained from a third party, or
(b)
provides for the member to be given the option of requiring
a promise to be obtained from a third party (whether or not
30the option is subject to conditions).”
29
In section 38 (contribution notices where avoidance of employer debt), for
subsection (1) substitute—
“(1) This section applies in relation to a pension scheme that is—
(a) an occupational defined benefits scheme,
(b) 35an occupational shared risk scheme, or
(c) an occupational defined contributions scheme,
unless subsection (1A) provides for the scheme to be exempt.
(1A) A scheme is exempt from this section if it is—
(a)
a scheme under which all the benefits that may be provided
40are money purchase benefits,
(b)
a scheme under which all the benefits that may be provided
are collective benefits,
(c)
a scheme under which all the benefits that may be provided
are money purchase benefits or collective benefits, or
Pension Schemes BillPage 37
(d) a prescribed scheme or a scheme of a prescribed description.
(1B) Where—
(a)
some of the benefits that may be provided under a scheme
are collective benefits and some are not, and
(b)
5the scheme does not fall within paragraph (c) or (d) of
subsection (1A),
the scheme is to be treated for the purposes of this section and
sections 38A to 42 as two separate schemes, one relating to the
collective benefits and the other relating to the other benefits.”
30 (1) 10Section 43 (financial support directions) is amended as follows.
(2) For subsection (1) substitute—
“(1) This section applies in relation to a pension scheme that is—
(a) an occupational defined benefits scheme,
(b) an occupational shared risk scheme, or
(c) 15an occupational defined contributions scheme,
unless subsection (1A) provides for the scheme to be exempt.
(1A) A scheme is exempt from this section if it is—
(a)
a scheme under which all the benefits that may be provided
are money purchase benefits,
(b)
20a scheme under which all the benefits that may be provided
are collective benefits,
(c)
a scheme under which all the benefits that may be provided
are money purchase benefits or collective benefits, or
(d) a prescribed scheme or a scheme of a prescribed description.
(1B) 25Where—
(a)
some of the benefits that may be provided under a scheme
are collective benefits and some are not, and
(b)
the scheme does not fall within paragraph (c) or (d) of
subsection (1A),
30the scheme is to be treated for the purposes of this section and
sections 43A to 51 as two separate schemes, one relating to the
collective benefits and the other relating to the other benefits.”
(3)
In subsection (2), for “such a scheme” substitute “a scheme to which this
section applies”.
31
35In section 52 (restoration orders where transactions at an undervalue), for
subsection (1) substitute—
“(1) This section applies in relation to a pension scheme that is—
(a) an occupational defined benefits scheme,
(b) an occupational shared risk scheme, or
(c) 40an occupational defined contributions scheme,
unless subsection (1A) provides for the scheme to be exempt.
(1A) A scheme is exempt from this section if it is—
(a)
a scheme under which all the benefits that may be provided
are money purchase benefits,
Pension Schemes BillPage 38
(b)
a scheme under which all the benefits that may be provided
are collective benefits,
(c)
a scheme under which all the benefits that may be provided
are money purchase benefits or collective benefits, or
(d) 5a prescribed scheme or a scheme of a prescribed description.
(1B) Where—
(a)
some of the benefits that may be provided under a scheme
are collective benefits and some are not, and
(b)
the scheme does not fall within paragraph (c) or (d) of
10subsection (1A),
the scheme is to be treated for the purposes of this section and
sections 53 to 56 as two separate schemes, one relating to the
collective benefits and the other relating to the other benefits.”
32
In section 90 (codes of practice), in subsection (2)(i), for “money purchase
15schemes” substitute “certain schemes”.
33
In section 126 (schemes eligible for pension protection), for subsection (1)
substitute—
“(1)
Subject to the following provisions of this section, in this Part
references to an “eligible scheme” are to a pension scheme that is—
(a) 20an occupational defined benefits scheme,
(b) an occupational shared risk scheme, or
(c) an occupational defined contributions scheme.
(1A) A scheme is not an eligible scheme if it is—
(a)
a scheme under which all the benefits that may be provided
25are money purchase benefits,
(b)
a scheme under which all the benefits that may be provided
are collective benefits,
(c)
a scheme under which all the benefits that may be provided
are money purchase benefits or collective benefits, or
(d) 30a prescribed scheme or a scheme of a prescribed description.
(1B) Where—
(a)
some of the benefits that may be provided under a scheme
are collective benefits and some are not, and
(b)
the scheme does not fall within paragraph (c) or (d) of
35subsection (1A),
the scheme is to be treated for the purposes of this Part as two
separate schemes, one relating to the collective benefits and the other
relating to the other benefits.”
34 For section 221 (application of scheme funding rules) substitute—
“221 40Pension schemes to which this Part applies
(1) The provisions of this Part apply to a pension scheme that is—
(a) an occupational defined benefits scheme,
(b) an occupational shared risk scheme, or
(c) an occupational defined contributions scheme,
45unless subsection (2) provides for the scheme to be exempt.
Pension Schemes BillPage 39
(2) A scheme is exempt from this Part if it is—
(a)
a scheme under which all the benefits that may be provided
are money purchase benefits,
(b)
a scheme under which all the benefits that may be provided
5are collective benefits,
(c)
a scheme under which all the benefits that may be provided
are money purchase benefits or collective benefits, or
(d) a prescribed scheme or a scheme of a prescribed description.
(3) Where—
(a)
10some of the benefits that may be provided under a scheme
are collective benefits and some are not, and
(b)
the scheme does not fall within paragraph (c) or (d) of
subsection (2),
the scheme is to be treated for the purposes of this Part as two
15separate schemes, one relating to the collective benefits and the other
relating to the other benefits.
(4)
Regulations under subsection (2)(d) may provide for exemptions
from all or any of the provisions of this Part, but for the purposes of
subsection (3)(b) a scheme falls within subsection (2)(d) only if it is
20exempt from all of the provisions of this Part.”
35
In section 258 (pension protection on transfer of employment: form of
protection), in subsection (2)—
(a)
in paragraph (b), for “money purchase scheme” substitute “scheme
under which all the benefits that may be provided are money
25purchase benefits”;
(b)
in paragraph (c), for “money purchase scheme” substitute “scheme
under which all the benefits that may be provided are money
purchase benefits”.
36
In section 286 (financial assistance scheme for members of certain pension
30schemes), in subsection (2), for sub-paragraph (i) of paragraph (a) of the
definition of “qualifying pension scheme” (but not the “or” at the end)
substitute—
“(i)
a scheme under which all the benefits that may be
provided are money purchase benefits,”.
37
35In section 307 (modification of Pensions Act 2004 in relation to certain
categories of schemes), in subsection (4), for paragraph (a) of the definition
of “hybrid scheme” (but not the “but” at the end) substitute—
“(a)
which is not a scheme under which all the benefits that may
be provided are money purchase benefits,”.
38 (1) 40Section 318 (interpretation) is amended as follows.
(2) In subsection (1)—
(a) at the appropriate places insert—
-
““collective benefit” has the meaning given by section 8
of the Pension Schemes Act 2014;” -
45““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;” -
““occupational”, in relation to a defined benefits
scheme, shared risk scheme or defined contributions
scheme, means an occupational pension scheme of
that description;” -
5““shared risk scheme” has the meaning given by section
3 of the Pension Schemes Act 2014;”;
Pension Schemes BillPage 40
(b) omit the definition of “money purchase scheme”.
(3) In subsection (3)—
(a) in paragraph (a), after sub-paragraph (vii) insert—
“(viii)
10regulations made under Part 2 of the Pension
Schemes Act 2014;”;
(b) in paragraph (b), after sub-paragraph (v) insert—
“(vi)
regulations made under section 28 of the Pension
Schemes Act 2014.”
15Pensions Act 2008 (c. 30)2008 (c. 30)
39 The Pensions Act 2008 is amended as follows.
40
(1)
Section 20 (quality requirement: UK money purchase schemes) is amended
as follows.
(2)
In subsection (1), for “A money purchase scheme” substitute “An
20occupational defined contributions scheme”.
(3)
In the heading, for “money purchase schemes” substitute “occupational
defined contributions schemes”.
41
In section 21 (quality requirement: UK defined benefits schemes) for “A
defined benefits scheme” substitute “An occupational defined benefits
25scheme”.
42
In section 23A (alternative quality requirements for UK defined benefits
schemes), in subsection (1), for “a defined benefits scheme” substitute “an
occupational defined benefits scheme”.
43 (1) Section 24 (quality requirement: UK hybrid schemes) is amended as follows.
(2) 30In subsection (1)—
(a) for “A hybrid scheme” substitute “A shared risk scheme”;
(b)
in paragraph (a), for “a money purchase scheme” substitute “an
occupational defined contributions scheme”;
(c)
in paragraph (b), for “a defined benefits scheme” substitute “an
35occupational defined benefits scheme”;
(d) after paragraph (b) insert—
“(c)
the requirements under section 26 for a personal
pension scheme that is a defined contributions
scheme, subject to any prescribed modifications.”
(3) 40In subsection (2), for “hybrid scheme” substitute “shared risk scheme”.
(4) In the heading, for “hybrid schemes” substitute “shared risk schemes”.
44
(1)
Section 26 (quality requirement: UK personal pension schemes) is amended
as follows.
Pension Schemes BillPage 41
(2)
In subsection (1), after “personal pension scheme” insert “that is a defined
contributions scheme”.
(3)
Omit subsection (3) (requirement for all benefits to be money purchase
benefits).
(4) 5In subsection (4), for “second condition” substitute “first condition”.
(5) In subsection (6), for “third condition” substitute “second condition”.
(6) In subsection (7), for “fourth condition” substitute “third condition”.
45
(1)
Section 28 (certification that quality requirement or alternative requirement
is satisfied) is amended as follows.
(2) 10In subsection (3)—
(a)
in paragraph (a), for “a money purchase scheme” substitute “an
occupational defined contributions scheme”;
(b)
in paragraph (b), after “a personal pension scheme” insert “that is a
defined contributions scheme”;
(c) 15for paragraph (c) substitute—
“(c)
a shared risk scheme, to the extent that requirements
within section 24(1)(a) or (c) apply.”
(3) In subsection (3A)—
(a) for paragraph (a) substitute—
“(a)
20an occupational defined contributions scheme that is
within section 18(b);”
(b) for paragraph (c) substitute—
“(c)
an occupational shared risk scheme that is within
section 18(b), to the extent prescribed;”.
(4)
25In subsection (3B), for “a defined benefits scheme” substitute “an
occupational defined benefits scheme”.
46
For the heading to section 29 substitute “Transitional periods for certain
schemes”.
47
(1)
Section 30 (transitional period for defined benefits and hybrid schemes) is
30amended as follows.
(2) In subsection (1), for “hybrid schemes” substitute “shared risk schemes”.
(3)
In subsection (2)(b) and (c), for “a defined benefits scheme or a defined
benefits member of a hybrid scheme” substitute “an occupational defined
benefits scheme or a defined benefits member of a shared risk scheme”.
(4) 35In subsection (3)—
(a)
in the opening words, for “hybrid schemes” substitute “shared risk
schemes”;
(b)
in the substituted subsection (2), for paragraphs (a) and (b)
substitute—
“(a)
40an active member, with effect from the end of the
transitional period for defined benefits and shared
risk schemes, of an automatic enrolment scheme
which is an occupational defined benefits scheme, or
Pension Schemes BillPage 42
(b)
a defined benefits member, with effect from the end
of that period, of an automatic enrolment scheme
which is a shared risk scheme.”
(5) In subsection (4), for “hybrid schemes” substitute “shared risk schemes”.
(6) 5In subsection (5)—
(a)
in the substituted subsection (2)(a), for “a defined benefits scheme”
substitute “an occupational defined benefits scheme”;
(b)
in the substituted subsection (2)(aa), for “hybrid scheme” substitute
“shared risk scheme”;
(c) 10in the substituted subsection (2), for paragraph (b) substitute—
“(b)
becomes an active member, with effect from the
automatic enrolment date, of an automatic enrolment
scheme which is—
(i)
a personal pension scheme other than a
15shared risk scheme, or
(ii)
an occupational pension scheme under which
all the benefits that may be provided are
money purchase benefits or collective
benefits;”;
(d)
20in the substituted subsection (2)(c), for “hybrid scheme” substitute
“shared risk scheme”;
(e)
in the substituted subsection (2)(d), for “a defined benefits scheme”
substitute “an occupational defined benefits scheme”;
(f)
in the substituted subsection (2)(e), for “hybrid scheme” substitute
25“shared risk scheme”.
(7)
In subsections (8) and (9), for “hybrid schemes” substitute “shared risk
schemes”.
(8)
In subsection (10)(a) and (b), for “hybrid scheme” substitute “shared risk
scheme”.
(9) 30In subsection (11)—
(a)
in paragraph (a), for “a defined benefits scheme” substitute “an
occupational defined benefits scheme”;
(b)
in paragraph (b), for “hybrid scheme” substitute “shared risk
scheme”.
(10) 35In the heading, for “hybrid schemes” substitute “shared risk schemes”.
48
In section 35 (compliance notices), in subsection (5), for “a defined benefits
scheme or a hybrid scheme” substitute “an occupational defined benefits
scheme or a shared risk scheme”.
49
In section 38 (calculation and payment of contributions), in subsection (2)(e),
40for “a money purchase scheme, a hybrid scheme or a personal pension
scheme” substitute “a defined contributions scheme or a shared risk
scheme”.
50 (1) Section 99 (interpretation) is amended as follows.
(2) At the appropriate places insert—
-
45““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;” -
““occupational”, in relation to a defined benefits scheme, shared
risk scheme or defined contributions scheme, means an
5occupational pension scheme of that description;” -
““shared risk scheme” has the meaning given by section 3 of the
Pension Schemes Act 2014;”.
Pension Schemes BillPage 43
(3) Omit the following definitions—
-
“defined benefits”;
-
10“defined benefits scheme”;
-
“hybrid scheme”;
-
“money purchase scheme”.
Pensions Act 2014 (c.19)2014 (c.19)
51
(1)
Schedule 17 to the Pensions Act 2014 (automatic transfer of pension benefits
15etc) is amended as follows.
(2)
In paragraph 1(2)(a) and (5)(a), for “money purchase scheme” substitute
“scheme under which all the benefits that may be provided are money
purchase benefits”.
(3) In paragraph 15(1) omit the definition of “money purchase scheme”.
Section 43
20SCHEDULE 4 Pensions guidance
1 The Financial Services and Markets Act 2000 is amended as follows.
2 After section 333 insert—
“Part 20A
Pensions guidance
333A Introduction and definitions
(1) 25This Part is about the giving of pensions guidance.
(2)
“Pensions guidance” means guidance given for the purpose of
helping a member of a pension scheme to make decisions about what
to do with the cash balance benefits or other money purchase
benefits that may be provided to the member.