SCHEDULE 3 continued
Pensions BillPage 20
(4)
In paragraphs 5(b) and 7(1) for “and (c)” (in each place) substitute “, (c) and
(d)”.
(5)
In paragraph 6 for “6th April 2020” substitute “the date specified for the
purposes of section 45(2) of this Act”.
(6)
5In paragraph 7(1) for “6th April 2020” substitute “the date specified for the
purposes of section 45(2)”.
(7) In paragraph 7(2)—
(a) in paragraph (b) after “2(2)(b),” insert “5(2)(b),”;
(b) after paragraph (b) insert—
“(c)
10in Schedule 4B, paragraphs 4, 5(b), 8(3), 9(2)(b) and
(3) and 10(1)(b).”
(8) After paragraph 7(2) insert—
“(3)
Paragraph 1(1) of Schedule 4B applies as if a reference to the
relevant years within section 45(2)(d) were a reference to the
15relevant years falling within the period beginning with the flat
rate introduction year and ending immediately before the
consolidation date.”
8
(1)
Section 148AB of the Social Security Administration Act 1992 (revaluation of
20consolidated amount) (as inserted by paragraph 14 of Schedule 4 to the
Pensions Act 2008) is amended as follows.
(2)
In subsections (1) and (2) for “flat rate introduction” substitute “additional
pension consolidation”.
(3) After subsection (8) insert—
“(9)
25In this section “the additional pension consolidation year” has the
meaning given by section 122 of the Contributions and Benefits Act
(interpretation of Parts 1 to 6 etc).”
9 The Pension Schemes Act 1993 is amended as follows.
10
30In section 46 (effect of entitlement to guaranteed minimum pensions on
payment of social security benefits) in subsection (1A) (as inserted by section
103(2) of the Pensions Act 2008) for “in tax year after 5th April 2020”
substitute “on or after the date specified for the purposes of section 45(2) of
that Act”.
11
35In section 46A (retirement in tax year after 5th April 2020) (as inserted by
section 103(3) of the Pensions Act 2008)—
(a)
in subsection (1)(c) for “in tax year after 5th April 2020” substitute
“on or after the date specified for the purposes of section 45(2) of that
Act”;
(b)
40in the heading for “in tax year after 5th April 2020” substitute “on or
after the specified date”.
Pensions BillPage 21
12 The Pensions Act 2008 is amended as follows.
13
In section 102 (consolidation of additional pension) in subsection (7) for “6th
April 2020” substitute “the date specified for the purposes of section 45(2) of
5the 1992 Act”.
Section 17
1 The Pensions Act 2004 is amended as follows.
2
10In section 58(3) (right to apply under section 423 of the Insolvency Act
1986)—
(a)
for the words from “an actuarial” to the first “scheme” substitute “a
determination made, or actuarial valuation obtained, in respect of
the scheme by the Board of the Pension Protection Fund under
15section 143(2)”, and
(b) for “that section” substitute “section 143”.
3 (1) Section 141 (effect of review of ill-health pension) is amended as follows.
(2)
In subsection (4) after “which” insert “a determination under section
143(2)(a) or”.
(3)
20In subsection (5)(a) after “first” insert “makes a determination under section
143(2)(a) or”.
4
In section 142(1) (interpretation) in the definition of “scheme valuation” for
“143” substitute “143(2)(b)”.
5
(1)
Section 143 (Board’s obligation to obtain valuation of assets and protected
25liabilities) is amended as follows.
(2) For subsection (2) substitute—
“(2) The Board must, as soon as reasonably practicable—
(a)
determine whether the condition in subsection (2)(a) of the
section in question is satisfied, or
(b)
30for the purposes of determining whether that condition is
satisfied, obtain an actuarial valuation of the scheme as at the
relevant time.
(2A)
Before doing so, it must give a notice stating whether it will make a
determination under subsection (2)(a) or obtain an actuarial
35valuation under subsection (2)(b) to—
(a) the trustees or managers of the scheme, and
(b)
any insolvency practitioner in relation to the employer or, if
there is no such insolvency practitioner, the employer.”
(3)
In subsection (3) for “those purposes” substitute “the purposes of this
40section”.
Pensions BillPage 22
(4)
In subsection (4) for “this section” substitute “a determination made under
subsection (2)(a) or an actuarial valuation obtained under subsection (2)(b).”
(5)
In subsection (5B) for “mentioned in subsection (2)” substitute “of this
section”.
(6) 5After subsection (5B) insert—
“(5C)
The Board must issue a statement setting out how (subject to any
provision made under subsection (4)) it will make determinations
under subsection (2)(a).”
(7) In subsection (6)—
(a)
10after “subsection (4),” insert “for the purposes of an actuarial
valuation obtained under subsection (2)(b)”, and
(b)
for “paragraphs (a) and (b) of that subsection” substitute “subsection
(4)(a) and (b)”.
(8) In subsection (9)—
(a)
15for “requires the” substitute “requires a determination to be made, or
an”, and
(b) after “purposes of” insert “the determination or”.
(9)
In subsection (10) for “requires the” substitute “requires a determination to
be made, or an”.
(10)
20In subsection (11)(b)(ii) after “first” inserts “makes a determination under
subsection (2)(a) or”.
6 After section 143 insert—
(1)
Where the Board makes a determination under section 143(2)(a) it
25must give a copy of the determination to—
(a) the Regulator,
(b) the trustees or managers of the scheme, and
(c)
any insolvency practitioner in relation to the employer or, if
there is no such insolvency practitioner, the employer.
(2)
30For the purposes of this Chapter a determination under section
143(2)(a) is not binding until—
(a)
the period within which the determination may be reviewed
by virtue of Chapter 6 has expired, and
(b) if the determination is so reviewed—
(i) 35the review and any reconsideration,
(ii)
any reference to the PPF Ombudsman in respect of
the determination, and
(iii)
any appeal against the PPF Ombudsman’s
determination or directions,
40has been finally disposed of.
(3)
For the purposes of determining whether or not the condition in
section 127(2)(a) or, as the case may be, section 128(2)(a) (condition
that scheme assets are less than protected liabilities) is satisfied in
relation to a scheme, a binding determination under section 143(2)(a)
45is conclusive.
This subsection is subject to section 172(3) and (4) (treatment of fraud
compensation payments).
(4)
Where a determination under section 143(2)(a) becomes binding
under this section the Board must as soon as reasonably practicable
50give a notice to that effect together with a copy of the binding
determination to—
(a) the Regulator,
(b) the trustees or managers of the scheme, and
(c)
any insolvency practitioner in relation to the employer or, if
55there is no such insolvency practitioner, the employer.
(5)
A notice under subsection (4) must be in the prescribed form and
contain the prescribed information.”
7 (1) Section 144 (approval of valuation) is amended as follows.
(2) In subsection (1) for “143” substitute “143(2)(b)”.
(3) 60In subsection (2) for “that section” substitute “section 143”.
8 In section 145(1) (binding valuations) for “143” substitute “143(2)(b)”.
9
(1)
Section 151 (application for Board to assume responsibility for schemes) is
amended as follows.
(2)
In subsections (2)(b) and (3)(b) for the words from “the valuation” to
65“scheme” substitute “the determination made by the Board or valuation
obtained by the Board in respect of the scheme under section 143(2)”.
(3) In subsection (6)—
(a)
in paragraphs (a)(ii) and (b)(ii) after “binding” insert “determination
or”, and
(b) 70in paragraph (a)(ii) for “section” substitute “subsection”.
(4)
In subsection (10) for “under that section” substitute “under section
143(2)(b)”.
10
In section 154(5)(b) (requirement to wind up scheme) after “that the” insert
“determination made by the Board or”.
11
(1)
75Section 158 (Board’s duty to assume responsibility for closed schemes) is
amended as follows.
(2) For subsection (3) substitute—
“(3) The Board must, as soon as reasonably practicable—
(a)
determine whether the condition in subsection (1) is satisfied,
80or
(b)
for the purposes of determining whether that condition is
satisfied, obtain an actuarial valuation (within the meaning of
section 143) of the scheme as at the relevant time.
(3A)
Before doing so, it must give the trustees or managers of the scheme
85a notice stating whether it will make a determination under
subsection (3)(a) or obtain an actuarial valuation under subsection
(3)(b).”
Pensions BillPage 23
(3)
In subsection (4) for “those purposes as it applies for the purposes
mentioned in subsection (2)” substitute “the purposes of this section as it
applies for the purposes”.
(4) In subsection (5)—
(a)
5for “a valuation obtained under subsection (3)” substitute “a
determination made under subsection (3)(a) and a valuation
obtained under subsection (3)(b)”,
(b)
for “a valuation obtained under section 143” substitute “a
determination made under section 143(2)(a) and a valuation
10obtained under section 143(2)(b)”, and
(c) after paragraph (a) insert—
“(aa)
section 143A (determinations under section 143),
other than subsections (1)(c) and (4)(c) (duty to give
copy of determinations to employer’s insolvency
15practitioner);”.
(5) In subsection (6)—
(a) after “sections 143” insert “, 143A”,
(b) omit “and” at the end of paragraph (a), and
(c) after that paragraph insert—
“(aa)
20subsection (3) of section 143A applies as if the
reference to section 128(2)(a) included a reference
to subsection (1) of this section, and”.
12 (1) Section 160 (transfer notice) is amended as follows.
(2)
In subsection (3) for “valuation obtained under section 143” substitute
25“determination made or valuation obtained under section 143(2)”.
(3) In subsection (4) after “until the” insert “determination made or”.
13 (1) Schedule 9 (reviewable matters) is amended as follows.
(2) For paragraph 8 substitute—
“7B
A notice under section 143(2A) (whether Board will make a
30determination or obtain an actuarial valuation).
7C The failure by the Board either to—
(a) make a determination under section 143(2)(a), or
(b) obtain an actuarial valuation under section 143(2)(b).
7D
A determination by the Board under section 143(2)(a) (whether
35condition in section 127(2)(a) or 128(2)(a) satisfied).”
(3) After paragraph 14 insert—
“14A
A notice under section 158(3A) (whether Board will make a
determination or obtain an actuarial valuation).
14B The failure by the Board either to—
(a) 40make a determination under section 158(3)(a), or
(b) obtain an actuarial valuation under section 158(3)(b).
14C
A determination by the Board under section 158(3)(a) (whether
condition in section 158(1) satisfied).”
Pensions BillPage 24
14
In section 151(4)(a) of the Pensions Act 2004 (application for Board to assume
responsibility for scheme) after “form,” insert “or evidence in the prescribed
form which shows that the trustees or managers of the scheme have taken
5all reasonable steps to obtain a protected benefits quotation but were unable
to do so,”.
15
(1)
Section 152 of the Pensions Act 2004 (Board’s duty to assume responsibility
for scheme) is amended as follows.
(2) After subsection (1) insert—
“(1A)
10Subsection (2) applies where the application is accompanied by a
protected benefits quotation.”
(3) After subsection (2) insert—
“(2A) Subsection (2B) applies where—
(a)
the application is accompanied by evidence in the
15prescribed form which shows that the trustees or
managers of the scheme have taken all reasonable steps to
obtain a protected benefits quotation but were unable to do
so, and
(b) the Board is satisfied that that is the case.
(2B)
20The Board must assume responsibility for the scheme in
accordance with this Chapter if it is satisfied that the value of the
assets of the scheme at the reconsideration time is less than the
amount of the protected liabilities at that time.”
(4) In subsection (3)—
(a) 25after “subsection (2)” insert “or (2B)”, and
(b)
for “a determination notice” substitute “a notice to that effect (a
“determination notice”)”.
(5) Omit subsection (4).
(6) In subsection (5)—
(a) 30after “in subsection (2)” insert “or (2B)”, and
(b) for “under subsection (2)” substitute “under that subsection”.
(7) Omit subsection (8).
(8)
In subsection (10) for “Regulations” substitute “Where subsection (2)
applies, regulations”.
(9) 35After subsection (10) insert—
“(10A)
The Board may, for the purposes of subsection (2B), obtain its own
valuation of the assets of the scheme and the protected liabilities of
the scheme as at the reconsideration time (within the meaning of
section 151).
(10B)
40A valuation under subsection (10A) must be prepared in accordance
with such requirements as may be prescribed.
(10C)
Section 143(3) to (6) and (9) applies in relation to a determination
under subsection (2B) and a valuation under subsection (10A) as it
Pensions BillPage 25
applies in relation to a determination under section 143(2)(a) and an
actuarial valuation obtained under section 143(2)(b).
(10D) In the application of section 143 by virtue of subsection (10C)—
(a)
references to the relevant time are to be read as references to
5the reconsideration time (within the meaning of section 151),
(b)
references to the pre-approval period are to be read as
references to the period which begins immediately after the
reconsideration time, and ends immediately before the Board
first issues a determination notice under this section, and
(c)
10in section 143(9), the reference to section 143(2) is to be read
as a reference to subsection (2B) of this section.”
16 (1) The Pensions Act 2004 is amended as follows.
(2) In section 160(7) (transfer notice)—
(a) 15for “172(1) and (2)” substitute “172(2)”, and
(b) omit “within first 12 months of assessment period or”.
(3)
Omit section 172(1) (no transfer notice within first 12 months of assessment
period).
17
(1)
20Section 316(2) of the Pensions Act 2004 (subordinate legislation subject to
affirmative procedure) is amended as follows.
(2) Omit paragraph (a) (the administration levy).
(3)
In paragraph (f) (the levy ceiling) after “ceiling)” insert “which is made by
virtue of section 178(8)”.
(4)
25In paragraph (s) (the compensation cap) after “Fund)” insert “except an
order which is made by virtue of paragraph 27 of that Schedule”.
18
(1)
Schedule 7 to the Pensions Act 2004 (pension compensation provisions) is
amended as follows.
(2)
30For paragraph 21 (pension credit members under normal benefit age at
assessment date) substitute—
“21 (1) This paragraph applies to a person who—
(a)
is a pension credit member of the scheme immediately
before the assessment date, but
(b) 35has not attained normal benefit age before that date.
(2)
But it applies only to the extent that the member’s pension credit
rights do not involve the member being credited by the scheme
with notional pensionable service.
(3)
Paragraphs 15, 18 and 19 apply to the pension credit member as
40they apply to a deferred member who has not attained normal
Pensions BillPage 26
pension age before the assessment date, subject to the following
modifications.
(4) In paragraph 15—
(a)
in sub-paragraphs (1) and (2) the references to normal
5pension age are to be read as references to normal benefit
age,
(b)
in sub-paragraph (4) for the words from “the aggregate of”
to the end substitute “the accrued amount”, and
(c) for paragraph 15(5) substitute—
“(5)
10In sub-paragraph (4) “the accrued amount” means an
amount equal to the initial annual rate of the pension to
which the deferred member would have been entitled in
accordance with the admissible rules had the member
attained normal benefit age on the transfer day.”
(5) 15In paragraph 18—
(a) for sub-paragraph (1)(b) substitute—
“(b)
the pension was attributable (directly or indirectly)
to a pension credit to which the deferred member
became entitled under section 29(1)(b) of the
20Welfare Reform and Pensions Act 1999.”, and
(b)
in sub-paragraph (3) the references to normal pension age
are to be read as references to normal benefit age.
(6) In paragraph 19—
(a)
in sub-paragraphs (1) and (2) the references to normal
25pension age are to be read as references to normal benefit
age,
(b)
in sub-paragraph (4) for the words from “the aggregate of”
to the end substitute “the accrued amount”,
(c) for sub-paragraph (5) substitute—
“(5)
30In sub-paragraph (4) “the accrued amount” means an
amount equal to the amount of the scheme lump sum to
which the deferred member would have been entitled in
accordance with the admissible rules had the member
attained normal benefit age on the transfer day.”, and
(d) 35omit sub-paragraph (6).
(7)
In this paragraph “transfer day” has the meaning given by section
29 of the Welfare Reform and Pensions Act 1999 (creation of
pension debits and credits).
21A (1) This paragraph applies to a person who—
(a)
40is a pension credit member of the scheme immediately
before the assessment date, but
(b) has not attained normal benefit age before that date.
(2)
But it applies only to the extent that the member’s pension credit
rights involve the member being credited by the scheme with
45notional pensionable service.
(3)
Paragraphs 15 to 19 apply to the pension credit member as they
apply to a deferred member who has not attained normal pension
Pensions BillPage 27
age before the assessment date, subject to the following
modifications.
(4) In paragraph 15—
(a)
in sub-paragraphs (1) and (2) the references to normal
5pension age are to be read as references to normal benefit
age, and
(b) for sub-paragraph (5) substitute—
“(5)
In sub-paragraph (4) “the accrued amount” means an
amount equal to the initial annual rate of the pension to
10which the deferred member would have been entitled in
accordance with the admissible rules had the member
attained normal benefit age on the transfer day.”
(5)
In paragraph 16(2)(a) for the words from “day after” to “ended”
substitute “transfer day”.
(6)
15In paragraph 17(2)(b) the reference to normal pension age is to be
read as a reference to normal benefit age.
(7) In paragraph 18—
(a) for sub-paragraph (1)(b) substitute—
“(b)
the pension was attributable (directly or indirectly)
20to a pension credit to which the deferred member
became entitled under section 29(1)(b) of the
Welfare Reform and Pensions Act 1999.”, and
(b)
in sub-paragraph (3) the references to normal pension age
are to be read as references to normal benefit age.
(8) 25In paragraph 19—
(a)
in sub-paragraphs (1) and (2) the references to normal
pension age are to be read as references to normal benefit
age, and
(b) for sub-paragraph (5) substitute—
“(5)
30In sub-paragraph (4) “the accrued amount” means an
amount equal to the amount of the scheme lump sum to
which the deferred member would have been entitled in
accordance with the admissible rules had the member
attained normal benefit age on the transfer day.”
(9)
35In this paragraph “transfer day” has the meaning given by section
29 of the Welfare Reform and Pensions Act 1999 (creation of
pension debits and credits).”
(3)
In paragraph 36(5)(a) (meaning of “pensionable service”) after “credit” insert
“(except for the purposes of paragraphs 21 and 21A)”.
19
40In the Pensions Act 2008, omit paragraphs 10 and 11 of Schedule 8 (which
amend paragraph 21 of Schedule 7 to the Pensions Act 2004).
20
Schedule 7 to the Pensions Act 2004 (pension compensation provisions) is
amended as follows.
21 45For paragraph 25A (deferral of compensation) and the heading before it
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