PART 3 continued
Pensions BillPage 10
15 Pension compensation: annual increases in periodic compensation
(1)
In Schedule 7 to the Pensions Act 2004 (pension compensation provisions)
paragraph 28 (annual increase in periodic compensation) is amended as
follows.
(2)
5In sub-paragraph (3) in paragraph (a) of the definition of “appropriate
percentage” for “retail prices index” substitute “general level of prices in Great
Britain”.
(3) After sub-paragraph (3) insert—
“(3A)
For the purposes of paragraph (a) of the definition of “appropriate
10percentage” in sub-paragraph (3), the Secretary of State may (from
time to time) decide, as the Secretary of State thinks fit, the manner
in which percentage increases in the general level of prices in Great
Britain are to be determined.
(3B)
The Secretary of State must publish any decision made under sub-
15paragraph (3A).”
(4)
In paragraph 37(1) of that Schedule (definitions) omit the definition of “retail
prices index”.
(5)
In Schedule 5 to the Pensions Act 2008 (pension compensation payable on
discharge of pension compensation credit) paragraph 17 (annual increase in
20periodic compensation) is amended as follows.
(6)
In sub-paragraph (4) in paragraph (a) of the definition of “the appropriate
percentage” for “retail prices index” substitute “general level of prices in Great
Britain”.
(7) After sub-paragraph (4) insert—
“(4A)
25For the purposes of paragraph (a) of the definition of “the
appropriate percentage” in sub-paragraph (4), the Secretary of State
may (from time to time) decide, as the Secretary of State thinks fit, the
manner in which percentage increases in the general level of prices
in Great Britain are to be determined.
(4B)
30The Secretary of State must publish any decision made under sub-
paragraph (4A).”
16 Indexation requirements for cash balance benefits
(1)
Section 51 of the Pensions Act 1995 (annual increase in rate of certain pensions)
is amended as follows.
(2) 35In subsection (1) for “subsection (6)” substitute “subsections (6) and (7)”.
(3) After subsection (6) insert—
“(7)
This section does not apply to any pension (or part of a pension) under
a relevant occupational pension scheme which—
(a) is a cash balance benefit (see section 51ZB), and
(b)
40first comes into payment on or after the day on which section 16
of the Pensions Act 2011 comes into force.
(8)
An occupational pension scheme is a “relevant occupational pension
scheme” if—
Pensions BillPage 11
(a)
it has not, on or after the appointed day, been contracted-out by
virtue of satisfying section 9(2) of the Pension Schemes Act 1993,
or
(b)
it has, on or after the appointed day, been so contracted-out, but
5no person is entitled to receive, or has accrued rights to, benefits
under the scheme attributable to the period when it was so
contracted-out.”
(4) After section 51ZA of the Pensions Act 1995 insert—
“51ZB Meaning of “cash balance benefit”
(1)
10For the purposes of section 51(7)(a), a pension provided to or in respect
of a member of an occupational pension scheme is a “cash balance
benefit” if conditions 1 and 2 are met.
(2)
Condition 1 is that the rate of the pension is calculated by reference to
a sum of money (“the available sum”) which is available under the
15scheme for the provision of benefits to or in respect of the member.
(3) Condition 2 is that under the scheme—
(a) there is a promise about the amount of the available sum, but
(b)
there is no promise about the rate or amount of the benefits to
be provided.
(4)
20The promise mentioned in subsection (3)(a) includes in particular a
promise about the change in the value of, or the return from, payments
made under the scheme by the member or by any other person in
respect of the member.
(5) The promise mentioned in subsection (3)(b)—
(a)
25includes a promise that the amount of the available sum will be
sufficient to provide benefits of a particular rate or amount;
(b) does not include a promise that the rate or amount of a benefit—
(i)
will be a proportion of the rate or amount of another
benefit in relation to which there is no promise about the
30rate or amount, or
(ii) will represent a proportion of the available sum.”
Pension Protection Fund
17 Pension Protection Fund
Schedule 4 (which makes provision relating to the Pension Protection Fund)
35has effect.
Financial assistance scheme
18 Financial assistance scheme: amount of payments
(1)
In section 286 of the Pensions Act 2004 (financial assistance scheme) after
subsection (1B) insert—
“(1C)
40Regulations under subsection (1) may prescribe circumstances in which
subsection (1A) does not apply.”
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(2)
In section 18 of the Pensions Act 2007 (financial assistance scheme: increased
levels of payments) after subsection (9) insert—
“(9A) The Secretary of State may by regulations—
(a)
prescribe circumstances in which subsections (5) and (6) do not
5apply where the scheme manager has made a determination as
specified in subsection (4), and
(b)
make alternative provision for the amount of any initial
payment payable to the member or the survivor of the member
in those circumstances,
10and, accordingly, subsection (8) does not apply in those
circumstances.”
(3)
In that section in subsection (10) (affirmative resolution procedure) after
“subsection (9)” insert “or (9A)”.
19 Financial assistance scheme: transfer of assets
15In section 286 of the Pensions Act 2004 (financial assistance scheme) in
subsection (3)(c) (power to make provision for property, rights and liabilities
of qualifying pension schemes to be transferred to the scheme manager) for
“the scheme manager” substitute “a prescribed person”.
Miscellaneous
20 20Payment of surplus to employer: transitional power to amend scheme
(1)
Section 251 of the Pensions Act 2004 (payment of surplus to employer:
transitional power to amend scheme) is amended as follows.
(2) In subsection (1) after “scheme” insert—
“(a)
which is one to which section 37 of the Pensions Act 1995
25applies, and
(b)”.
(3) After subsection (2) insert—
“(2A)
But subsection (2) does not apply in the case of any of the payments
listed in paragraphs (c) to (f) of section 175 of the Finance Act 2004
30(authorised employer payments other than public service scheme
payments or authorised surplus payments).”
(4)
In subsection (3) for “then applied” substitute “applied immediately before the
commencement of section 250”.
(5) In subsection (6)—
(a) 35after paragraph (a) insert—
“(aa)
may be exercised even if the payments to which it relates
are, to any extent, payments to which subsection (2)
does not apply,”;
(b)
in paragraph (b) for “only be exercised once” insert “be exercised, after
40the commencement of section 20 of the Pensions Act 2011, only once
(whether or not also exercised before 6 April 2011)”;
(c)
in paragraph (c) for “five years after the commencement of this section”
substitute “on 6 April 2016”.
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(6) After subsection (6) insert—
“(6A)
A resolution passed under this section after the commencement of
section 20 of the Pensions Act 2011 may amend or revoke a resolution
passed under this section before 6 April 2011.”
(7)
5The amendments made by this section do not affect the continued operation of
any resolution passed under section 251(3) or (4) of the 2004 Act before
6 April 2011.
21 Contribution notices and financial support directions
(1)
Section 38 of the Pensions Act 2004 (contribution notices where avoidance of
10employer debt) is amended as follows.
(2)
In subsections (5)(c)(i) and (6)(b)(ii) for “determination by the Regulator to
exercise the power to issue” substitute “giving of a warning notice in respect
of”.
(3) After subsection (13) insert—
“(14)
15In this section “a warning notice” means a notice given as mentioned in
section 96(2)(a).”
(4)
Section 43 of the Pensions Act 2004 (financial support directions) is amended
as follows.
(5)
In subsection (9) for “determination by the Regulator to exercise the power to
20issue” substitute “giving of a warning notice in respect of”.
(6) After subsection (11) insert—
“(12)
In this section “a warning notice” means a notice given as mentioned in
section 96(2)(a).”
(7)
In section 96 of the Pensions Act 2004 (exercise of regulatory functions:
25standard procedure) after subsection (6) insert—
“(6A)
Subsection (6B) applies in relation to a warning notice given to a
person—
(a) in respect of a contribution notice under section 38, or
(b) in respect of a financial support direction under section 43.
(6B)
30Regulations may provide that no determination notice in respect of the
contribution notice or the financial support direction may be given after
the end of the prescribed period beginning with the day on which the
warning notice is given.”
22 Technical amendment to Schedule 4 to the Pensions Act 2007
35In Schedule 4 to the Pensions Act 2007 (abolition of contracting-out for defined
contribution pension schemes) in paragraph 60(4) for paragraphs (b) and (c)
substitute—
“(b)
in the definition of “the percentage for contributing
earners”—
(i)
40omit the words “(a) in relation to a salary related
contracted-out scheme,”;
(ii) omit paragraph (b) and the preceding “and”;
Pensions BillPage 14
(c)
in the definition of “the percentage for non-contributing
earners”—
(i)
omit the words “(a) in relation to a salary related
contracted-out scheme,”;
(ii) 5omit paragraph (b) and the preceding “and”.”
23 Technical amendment to section 42(6) of the Pension Schemes Act 1993
(1)
In section 42 of the Pension Schemes Act 1993 (review and alteration of rates of
contributions applicable under section 41) in subsection (6) for “paragraph
2(3)” substitute “the definition of “the percentage for contributing earners” or
10“the percentage for non-contributing earners” in paragraph 2(5)”.
(2) After that subsection insert—
“(7)
Until paragraph 60(4) of Schedule 4 to the Pensions Act 2007 comes into
force, subsection (6) has effect as if the reference to the definition of “the
percentage for contributing earners” or “the percentage for non-
15contributing earners” were a reference to paragraph (a) of either of
those definitions.”
Part 4 Judicial pensions
24 Contributions towards cost of judicial pensions etc
(1) 20After section 9 of the Judicial Pensions and Retirement Act 1993 insert—
“Contributions
9A Contributions towards cost of judicial pension etc
(1)
The appropriate Minister may, by regulations made with the
concurrence of the Treasury, make provision for and in connection with
25requiring contributions to be made towards the cost of the liability for
relevant benefits.
(2) The prescribed contributions are to be—
(a)
made by the person to or in respect of whom the relevant
benefits are to be, or may be, provided;
(b)
30made for the person’s period of service in qualifying judicial
office;
(c)
in the form of deductions from the salary payable for that
service.
(3) But no contribution is to be made by a person—
(a)
35for any period of service during which an election under
section 13 is in force in respect of the person;
(b)
for any period of service after the person has completed, in the
aggregate, 20 years’ service in qualifying judicial office;
(c) for any other prescribed period of service;
(d) 40in any prescribed circumstances.
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(4)
For the purposes of subsection (3)(b), it does not matter whether the
person’s service in qualifying judicial office was service before or after
the commencement of section 24(1) of the Pensions Act 2011 (but no
contribution is to be made for a person’s service before that
5commencement).
(5) In this section—
-
“prescribed” means specified in, or determined in accordance
with, regulations; -
“relevant benefits” means—
(a)10a pension under section 2;
(b)a lump sum under section 4;
(c)payments by way of pension or lump sum under section
19, so far as relating to a pension or lump sum within
paragraph (a) or (b).”
(2)
15Schedule 5 (which makes provision for contributions towards the cost of
certain other judicial pensions etc) has effect.
Part 5 Miscellaneous and general
Miscellaneous
25 20Grants by the Secretary of State to advisory bodies etc
(1)
Section 174 of the Pension Schemes Act 1993 (grants by the Pensions Regulator
to advisory bodies etc) is amended as follows.
(2) After subsection (2) insert—
“(3)
The Secretary of State may make grants on such terms and conditions
25as the Secretary of State thinks fit to any person or body of persons
providing advice or assistance, or carrying out other prescribed
functions, in connection with occupational or personal pensions.”
(3) For the heading substitute “Grants to advisory bodies etc”.
26 Service of documents and electronic working
(1) 30After section 144 of the Pensions Act 2008 insert—
“144A Service of documents and electronic working
In sections 303 to 305 of the Pensions Act 2004 (service of documents
and electronic working) references to that Act are to be treated as
including references to the following provisions of this Act—
-
35Chapters 2 and 3 of Part 1;
-
section 60(1)(c);
-
Chapter 1 of Part 3.”
(2)
In section 60 of that Act (requirement to keep records) in subsection (1)(c) for
“, on request, to the Regulator” substitute “to the Regulator on receiving a
40notification requesting them”.
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(3)
In section 150 of that Act (extent) in subsection (2)(f) for “143 to 146” substitute
“143, 144, 145 and 146”.
General
27 Extent
5An amendment or repeal by this Act has the same extent as the enactment
amended or repealed.
28 Commencement
(1) Any provision of Part 2 that amends another Act so as—
(a) to modify a power to make an order or regulations, or
(b) 10to confer any such power,
comes into force, for the purposes of the exercise of the power, on the day on
which this Act is passed.
(2) The following provisions of this Act come into force on that day—
(a) section 27;
(b) 15this section;
(c) section 29.
(3)
The following provisions of this Act come into force at the end of the period of
2 months beginning with that day—
(a) section 1 (and Schedule 1);
(b) 20section 20;
(c) section 22;
(d) section 23.
(4)
The other provisions of this Act come into force in accordance with provision
made by order by the Secretary of State.
(5)
25An order under subsection (4) may appoint different days for different
purposes.
(6)
The Secretary of State may by order make transitional, transitory or saving
provision in connection with the coming into force of any provision of this Act.
(7) An order under subsection (4) or (6) is to be made by statutory instrument.
29 30Short title
This Act may be cited as the Pensions Act 2011.
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SCHEDULES
Section 1
SCHEDULE 1
Equalisation of and increase in pensionable age for men and women:
consequential amendments
5Gas Act 1986 (c. 44)1986 (c. 44)
1
In section 48 of the Gas Act 1986 (interpretation of Part 1) in subsection
(2B)(b) for “6th April 1955” substitute “6th December 1953”.
Social Security Administration Act 1992 (c. 5)1992 (c. 5)
2 The Social Security Administration Act 1992 is amended as follows.
3
10In section 2A (claim or full entitlement to certain benefits conditional on
work-focused interview) in subsection (1A) for “6 April 1955” substitute “6
December 1953”.
4
In section 2AA (full entitlement to certain benefits conditional on work-
focused interview for partner) in subsection (1A) for “6 April 1955”
15substitute “6 December 1953”.
5
In section 2D (work-related activity) in subsection (9)(e) for “6 April 1955”
substitute “6 December 1953”.
Pensions Act 1995 (c. 26)1995 (c. 26)
6
In section 126 of the Pensions Act 1995 (equalisation of and increase in
20pensionable age etc) in paragraph (a) for the words from “progressively”
(where it appears first) to the end of the paragraph substitute “and then to
increase it”.
Consumers, Estate Agents and Redress Act 2007 (c. 17)2007 (c. 17)
7
In section 6 of the Consumers, Estate Agents and Redress Act 2007 (general
25provision about functions of National Consumer Council) in subsection
(10)(b) for “6 April 1955” substitute “6 December 1953”.
Pensions Act 2007 (c. 22)2007 (c. 22)
8 The Pensions Act 2007 is amended as follows.
9 In section 13 (increase in pensionable age for men and women)—
(a) 30in subsection (1) omit from “progressively” to the end;
(b) in subsection (3) for “6th April 2024” substitute “6th December 2018”.
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10
In Schedule 3 (increase in pensionable age for men and women) omit
paragraph 4(4).
Section 2
SCHEDULE 2
Abolition of certain additions to the state pension: consequential
5amendments etc
Social Security Contributions and Benefits Act 1992 (c. 4)1992 (c. 4)
1
The Social Security Contributions and Benefits Act 1992 is amended as
follows.
2
In section 55 (pension increase or lump sum where entitlement to retirement
10pension is deferred) in subsection (2) for “paragraphs 4 to 7 make” substitute
“paragraph 4 makes”.
3
(1)
Schedule 5 (pension increase or lump sum where entitlement to retirement
pension is deferred) is amended as follows.
(2) Omit paragraph A1(4).
(3) 15In paragraph 2(5)(a) omit “, 5, 5A, 6 or 6A”.
(4) Omit paragraph 2A.
(5) In paragraph 3B(5)(b)(i) omit “or paragraphs 5 to 6A of this Schedule”.
(6) Omit paragraph 3C(5).
(7)
In paragraph 4(1A) after “6A” (in each place) insert “(as those provisions
20have effect by virtue of section 2(7) of the Pensions Act 2011)”.
(8)
In paragraph 7B(5)(b)(i) after “Schedule” insert “(as those provisions have
effect by virtue of section 2(7) of the Pensions Act 2011)”.
Repeals of spent enactments
4 The following provisions are repealed—
(a)
25paragraph 40 of Schedule 1 to the Social Security (Incapacity for
Work) Act 1994;
(b) paragraph 21(15) and (16) of Schedule 4 to the Pensions Act 1995;
(c) paragraph 7 of Schedule 11 to the Pensions Act 2004;
(d) paragraph 20 of Schedule 1 to the Pensions Act 2007.
Section 3
30SCHEDULE 3 Consolidation of additional pension
Social Security Contributions and Benefits Act 1992 (c. 4)1992 (c. 4)
1
The Social Security Contributions and Benefits Act 1992 is amended as
follows.
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2
(1)
Section 45 (the additional pension in a Category A retirement pension) is
amended as follows.
(2)
In subsection (2) (as amended by section 102(3) of the Pensions Act 2008) for
“6th April 2020” substitute “a date specified for the purposes of this
5subsection by order (“the specified date”)”.
(3) In subsection (2A) (as inserted by section 102(4) of the Pensions Act 2008)—
(a)
in the opening words for “a tax year after 5th April 2020” substitute
“the tax year beginning with the specified date or a subsequent tax
year”;
(b)
10in paragraph (a) for “flat rate introduction” substitute “additional
pension consolidation”;
(c) for paragraph (b) substitute—
“(b)
in relation to the additional pension consolidation
year and subsequent years, the weekly equivalent of
15the amount calculated in accordance with
Schedule 4B to this Act.”
3
In section 46 (modifications of section 45 for calculating the additional
pension in certain benefits) in subsection (5)(a) (as inserted by paragraph
6(3) of Schedule 4 to the Pensions Act 2008) for “6th April 2020” substitute “a
20date specified for the purposes of this subsection by order (“the specified
date”)”.
4
In section 122(1) (interpretation of Parts 1 to 6) insert at the appropriate
place—
-
““the additional pension consolidation year” means such tax
25year as may be designated as such by order;”.
5 (1) Section 176 (Parliamentary control) is amended as follows.
(2) After subsection (3) insert—
“(3A)
Subsection (3) above does not apply to a statutory instrument by
reason only that it contains an order under section 45(2).”
(3)
30In subsection (4) after “flat rate introduction year” insert “or the additional
pension consolidation year”.
6
(1)
Schedule 4B (additional pension: accrual rates for purposes of section
45(2)(d)) is amended as follows.
(2) In paragraph 1—
(a)
35in sub-paragraph (1) in the opening words after “45(2)(d)” insert “or
(2A)(b)”;
(b)
in sub-paragraphs (1)(a) and (b) and (2) after “45(2)(d)” insert “or
(2A)(b) (as the case may be)”.
(3) In paragraph 11 after “45(2)(d)” insert “or (2A)(b)”.
7
(1)
40Schedule 4C (additional pension: calculation of revalued consolidated
amount) (as inserted by Schedule 3 to the Pensions Act 2008) is amended as
follows.
(2)
In paragraphs 1 and 2 for “flat rate introduction” substitute “additional
pension consolidation”.
(3) 45Omit paragraph 3.