(i) the percentage increase in the retail prices index for the
reference period, being a period determined, in relation
to each periodic increase, under the rules, or

(ii) if lower, the default percentage for that period.

(4ZD) 5Subsection (4) applies as if for paragraphs (a) and (b) there were
substituted “the percentage increase which is the result of—

“(a) increasing the part of the annual rate of the pension mentioned
in subsection (4ZC)(b) by—

(i) the percentage increase in the retail prices index for the
10reference period, being a period determined, in relation
to each periodic increase, under the rules, or

(ii) if lower, the default percentage for that period,

while

(b) increasing the rest of the annual rate by—

(i) 15the percentage increase in the consumer prices index for
the reference period, or

(ii) if lower, the default percentage for that period.”

(4ZE) In subsections (4ZA) and (4ZC) “the relevant time” means—

(a) in relation to a pension which was in payment before 2011, the
20beginning of 2011;

(b) in any other case, the time when the pension becomes a pension
in payment.

(4ZF) If only part of the pension is attributable to pensionable service or, as
the case may be, to payments in respect of employment carried on on
25or after the appointed day, in subsections (4) to (4ZD) references to the
annual rate of the pension are references to so much of that rate as is
attributable to that part.

(4ZG) For the purposes of subsections (4) to (4ZD) the default percentage for
a period is the percentage for that period which corresponds to—

(a) 30in the case of a category X pension, 5% per annum, and

(b) in the case of a category Y pension, 2.5% per annum.

(4ZH) In subsections (4) to (4ZD)—

• “consumer prices index” means—

  (a)

  the general index of consumer prices (for all items)
  35published by the Statistics Board, or

  (b)

  where that index is not published for a month, any
  substituted index or figures published by the Board;

• “retail prices index” means—

  (a)

  the general index of retail prices (for all items) published
  40by the Statistics Board, or

  (b)

  where that index is not published for a month, any
  substituted index or figures published by the Board.”

(6) Section 40 of the Welfare Reform and Pensions Act 1999 (indexation of certain
pensions giving effect to pension credit rights) is amended as follows.

(7) 45In subsection (1) for “increases in the retail prices index” substitute “relevant
percentage increases”.

(8) After subsection (2A) insert—

“(2AA) In subsection (1) “relevant percentage increases” means percentage
increases estimated by the Secretary of State from time to time for the
purposes of paragraph 2(3)(a) of Schedule 3 to the Pension Schemes Act
51993 for revaluation periods of 12 months.”

16 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) 10In 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
15percentage” 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-
20paragraph (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
25periodic 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) 30For 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) 35The Secretary of State must publish any decision made under sub-
paragraph (4A).”

17 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) 40In 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) 5first comes into payment on or after the day on which section 17
of the Pensions Act 2011 comes into force.

(8) An occupational pension scheme is a “relevant occupational pension
scheme” if—

(a) it has not, on or after the appointed day, been contracted-out by
10virtue 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
no person is entitled to receive, or has accrued rights to, benefits
under the scheme attributable to the period when it was so
15contracted-out.”

(4) After section 51ZA of the Pensions Act 1995 insert—

“51ZB Meaning of “cash balance benefit”

(1) For 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
20benefit” 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
scheme for the provision of benefits to or in respect of the member.

(3) Condition 2 is that under the scheme—

(a) 25there 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) The promise mentioned in subsection (3)(a) includes in particular a
promise about the change in the value of, or the return from, payments
30made 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) includes a promise that the amount of the available sum will be
sufficient to provide benefits of a particular rate or amount;

(b) 35does 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
rate or amount, or

(ii) will represent a proportion of the available sum.”

40Pension Protection Fund

18 Pension Protection Fund

Schedule 4 (which makes provision relating to the Pension Protection Fund)
has effect.

Financial assistance scheme

19 Financial assistance scheme: amount of payments

(1) In section 286 of the Pensions Act 2004 (financial assistance scheme) after
subsection (1B) insert—

“(1C) 5Regulations under subsection (1) may prescribe circumstances in which
subsection (1A) does not apply.”

(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) 10prescribe circumstances in which subsections (5) and (6) do not
apply 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
15in those circumstances,

and, 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)”.

20 20Financial assistance scheme: transfer of assets

In 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”.

25Miscellaneous

21 Payment 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) 30which is one to which section 37 of the Pensions Act 1995
applies, and

(b)”.

(3) After subsection (2) insert—

“(2A) But subsection (2) does not apply in the case of any of the payments
35listed in paragraphs (c) to (f) of section 175 of the Finance Act 2004
(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) 40In subsection (6)—

(a) after 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) 5in paragraph (b) for “only be exercised once” substitute “be exercised,
after the commencement of section 21 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”.

(6) 10After subsection (6) insert—

“(6A) A resolution passed under this section after the commencement of
section 21 of the Pensions Act 2011 may amend or revoke a resolution
passed under this section before 6 April 2011.”

(7) The amendments made by this section do not affect the continued operation of
15any resolution passed under section 251(3) or (4) of the 2004 Act before
6 April 2011.

22 Contribution notices and financial support directions

(1) Section 38 of the Pensions Act 2004 (contribution notices where avoidance of
employer debt) is amended as follows.

(2) 20In 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) In this section “a warning notice” means a notice given as mentioned in
25section 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
issue” substitute “giving of a warning notice in respect of”.

(6) 30After 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:
standard procedure) after subsection (6) insert—

“(6A) 35Subsection (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) Regulations may provide that no determination notice in respect of the
40contribution 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.”

23 Technical amendment to Schedule 4 to the Pensions Act 2007

In 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) 5in the definition of “the percentage for contributing
earners”—

(i) omit the words “(a) in relation to a salary related
contracted-out scheme,”;

(ii) omit paragraph (b) and the preceding “and”;

(c) 10in the definition of “the percentage for non-contributing
earners”—

(i) omit the words “(a) in relation to a salary related
contracted-out scheme,”;

(ii) omit paragraph (b) and the preceding “and”.”

24 15Technical 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
“the percentage for non-contributing earners” in paragraph 2(5)”.

(2) 20After 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-
contributing earners” were a reference to paragraph (a) of either of
25those definitions.”

Part 4 Judicial pensions

25 Contributions towards cost of judicial pensions etc

(1) After section 9 of the Judicial Pensions and Retirement Act 1993 insert—

30“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
requiring contributions to be made towards the cost of the liability for
35relevant 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) made for the person’s period of service in qualifying judicial
40office;

(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) for 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
5aggregate, 20 years’ service in qualifying judicial office;

(c) for any other prescribed period of service;

(d) in any prescribed circumstances.

(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
10the commencement of section 25(1) of the Pensions Act 2011 (but no
contribution is to be made for a person’s service before that
commencement).

(5) In this section—

• “prescribed” means specified in, or determined in accordance
  15with, regulations;

• “relevant benefits” means—

  (a)

  a pension under section 2;

  (b)

  a lump sum under section 4;

  (c)

  payments by way of pension or lump sum under section
  2019, so far as relating to a pension or lump sum within
  paragraph (a) or (b).”

(2) Schedule 5 (which makes provision for contributions towards the cost of
certain other judicial pensions etc) has effect.

Part 5 25Miscellaneous and general

Miscellaneous

26 Grants 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) 30After subsection (2) insert—

“(3) The Secretary of State may make grants on such terms and conditions
as 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) 35For the heading substitute “Grants to advisory bodies etc”.

27 Service of documents and electronic working

(1) After 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
5and electronic working) references to that Act are to be treated as
including references to the following provisions of this Act—

• Chapters 2 and 3 of Part 1;

• section 60(1)(c);

• Chapter 1 of Part 3.”

(2) 10In 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
notification requesting them”.

(3) In section 150 of that Act (extent) in subsection (2)(f) for “143 to 146” substitute
“143, 144, 145 and 146”.

15General

28 Extent

An amendment or repeal by this Act has the same extent as the enactment
amended or repealed.

29 Commencement

(1) 20Any provision of Part 2 that amends another Act so as—

(a) to modify a power to make an order or regulations, or

(b) to 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) 25The following provisions of this Act come into force on that day—

(a) section 28;

(b) this section;

(c) section 30.

(3) The following provisions of this Act come into force at the end of the period of
302 months beginning with that day—

(a) section 1 (and Schedule 1);

(b) section 21;

(c) section 23;

(d) section 24.

(4) 35The other provisions of this Act come into force in accordance with provision
made by order by the Secretary of State.

(5) An order under subsection (4) may appoint different days for different
purposes.

(6) The Secretary of State may by order make transitional, transitory or saving
40provision 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.

30 Short title

This Act may be cited as the Pensions Act 2011.

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”.