Postal Services Bill (HL Bill 70)

(a) the qualifying accrued rights in respect of P, and

(b) the amounts payable in respect of those rights,

are to be determined for the purposes of this Part on the assumption that P had
opted, immediately before the qualifying time, to terminate that service.

5Powers exercisable

17 Transfer of qualifying accrued rights to new public scheme

(1) The Secretary of State may by order establish a scheme (a “new public scheme”)
which, in respect of pensionable service under the RMPP before the qualifying
time, provides for pensions or other benefits to be payable to or in respect of
10persons who are or have been qualifying members of the RMPP.

(2) The Secretary of State may by order make provision for the transfer of
qualifying accrued rights to a new public scheme (without the need for any
approval or consent to the transfer).

(3) An order under subsection (2) may include provision for the discharge of
15liabilities in respect of the qualifying accrued rights that are transferred.

(4) A new public scheme may—

(a) include provision for increasing in particular circumstances the
amounts payable in respect of qualifying accrued rights,

(b) include provision in relation to any persons who are active members of
20the RMPP which (despite the effect of section 16(3)) differs from the
provision made in relation to persons who are deferred members of the
RMPP,

(c) include provision for the payment of transfer values, and

(d) include provision for the transfer of money purchase benefits under the
25RMPP into the scheme (whether or not the contributions to which those
benefits are attributable are made before or after the qualifying time)
and the conversion of those benefits into benefits under the scheme.

(5) An order under this section may include provision for treating a new public
scheme as an occupational pension scheme for the purposes of any provision
30made by or under any enactment specified, or of a description specified, in the
order.

(6) An order under this section may include provision for—

(a) treating a new public scheme as a salary-related contracted out scheme
for the purposes of Part 3 of the Pension Schemes Act 1993, and

(b) 35applying any provision of that Part with modifications.

(7) Provision made by an order under this section may have retrospective effect.

(8) The Secretary of State may—

(a) provide for a new public scheme to be administered by any person, and

(b) delegate to any person any functions exercisable by the Secretary of
40State under a new public scheme.

18 Division of the RMPP into different sections

(1) The Secretary of State may by order make provision for—

(a) the division of the RMPP into different sections,

(b) the participation of different companies in the different sections, and

(c) the allocation of assets, rights, liabilities or obligations between the
different sections.

(2) Provision made by an order under this section may have retrospective effect.

19 5Amendments of the RMPP

(1) The Secretary of State may by order make such amendments of the RMPP as
the Secretary of State considers appropriate in connection with any order made
under section 17 or 18.

(2) The provision that may be made by an order under this section includes
10provision authorising or requiring the amount of pensions or other benefits
payable to or in respect of qualifying members of the RMPP to be determined
in particular circumstances by reference to pensionable service under the
RMPP before and after the qualifying time.

(3) Provision made by an order under this section may have retrospective effect.

20 15Protection against adverse treatment

(1) Subsection (2) applies to the exercise by the Secretary of State of—

(a) the power to make an order under section 17 in a case where the order
contains provision establishing a new public scheme or transferring
qualifying accrued rights to a new public scheme, and

(b) 20the power to make an order under section 18 or 19.

(2) In exercising the power the Secretary of State must ensure that the relevant
pensions provision in respect of each person who is or has been a member of
the RMPP is, in all material respects, at least as good immediately after the
exercise of the power as it is immediately before the exercise of the power.

(3) 25“The relevant pensions provision” means the provision for the payment of
pensions or other benefits which is contained in the RMPP or in a new public
scheme.

(4) Subsections (1) to (3) do not require provision to be included in a new public
scheme if the Secretary of State is of the opinion that the provision would be
30incompatible with any enactment or EU obligation (including any enactment
applying as a result of any provision made under this Part).

(5) Nothing in subsections (1) to (3) is to be read as—

(a) requiring particular provisions of the RMPP or a new public scheme to
take the same or similar form,

(b) 35requiring a new public scheme to be established in a particular way,

(c) requiring any power or duty conferred or imposed by the RMPP or a
new public scheme to be exercised or performed in a particular way, or

(d) affecting any power of any person to amend the RMPP or a new public
scheme.

(6) 40The power of the Secretary of State to amend a new public scheme may not be
exercised in any manner which would or might adversely affect any provision
of the scheme made in respect of qualifying accrued rights unless—

(a) the consent requirements are satisfied in respect of the exercise of the
power in that manner, or

(b) the scheme is amended in the prescribed manner.

(7) The consent requirements are those prescribed for the purpose of obtaining the
consent of members of the scheme to its amendment.

21 Transfer of assets of the RMPP

(1) 5The Secretary of State may by order make provision for the transfer of assets of
the RMPP to—

(a) the Secretary of State,

(b) a nominee of the Treasury, or

(c) a fund established by the Secretary of State for the purpose of holding
10the assets pending their disposal.

(2) An order under this section may be made only if an order under section 17 is
being, or has been, made.

(3) An order under this section may include provision for—

(a) the delegation to any person of the administration and management of
15any fund within subsection (1)(c), and

(b) the making of payments into the Consolidated Fund.

(4) This section needs to be read with section 22 (which contains restrictions on the
exercise of the power to make a transfer under this section).

22 Restriction on power to transfer assets

(1) 20The power of the Secretary of State to make an order under section 21 (a
“transfer order”) must be exercised so as to secure that the ratio of assets to
liabilities of the RMPP immediately after the relevant time is at least equal to
the ratio of the assets to liabilities of the RMPP immediately before that time.

(2) “The relevant time” is the time at which the order under section 17 in
25consequence of which the transfer order is made has effect.

(3) For the purposes of this section any reference to the assets or liabilities of the
RMPP is to their amount or value determined, calculated and verified by a
prescribed person and in the prescribed manner.

(4) In calculating the value of any liabilities for those purposes, a provision of the
30RMPP that limits the amount of its liabilities by reference to the amount of its
assets is to be disregarded.

(5) For the purposes of this section as it applies in relation to the transfer of assets
after the relevant time by virtue of a transfer order—

(a) treat the assets as if they had been transferred at the relevant time, but

(b) 35disregard so much of the assets as were transferred to reflect the fact
that the assets were not actually transferred at the relevant time.

Supplementary provisions

23 Taxation

(1) The Treasury may by regulations make provision for varying the way in which
40any relevant tax would, apart from the regulations, have effect in relation to—

(a) a new public scheme,

(b) members of a new public scheme, or

(c) a fund within section 21(1)(c).

(2) Regulations under subsection (1) may include provision for treating a new
5public scheme as a registered pension scheme.

(3) The Treasury may by regulations make provision for varying the way in which
any relevant tax would, apart from the regulations, have effect in relation to, or
in connection with, anything done in relation to—

(a) the RMPP, or

(b) 10any members of the RMPP,

by or under, or in consequence of, an order made under this Part.

(4) Regulations under subsection (1) or (3) may include provision for any of the
following—

(a) a tax provision not to apply or to apply with modifications,

(b) 15anything done to have or not to have a specified consequence for the
purposes of a tax provision, and

(c) the withdrawal of relief and the charging of a relevant tax.

(5) Provision made by regulations under subsection (1) or (3), other than provision
withdrawing a relief or charging a relevant tax, may have retrospective effect.

(6) 20The Treasury may by regulations make provision, in relation to qualifying
accounting periods, for extinguishing such losses made in a trade as they
consider are attributable to deductions made for, or in connection with,
contributions in respect of qualifying members of the RMPP.

(7) A “qualifying” accounting period is one beginning on or after the date (“the
25trigger date”) on which an order under section 17 is made establishing a new
public scheme or transferring qualifying accrued rights to a new public
scheme.

(8) Regulations under subsection (6) have effect only if the company whose losses
are extinguished is wholly owned by the Crown (within the meaning of Part 1)
30on the day before the trigger date.

(9) In this section—

• “relevant tax” means—

  (a)

  income tax,

  (b)

  capital gains tax,

  (c)

  35corporation tax,

  (d)

  inheritance tax,

  (e)

  stamp duty and stamp duty reserve tax, and

  (f)

  stamp duty land tax,

• “registered pension scheme” has the same meaning as in Part 4 of the
  40Finance Act 2004,

• “tax provision” means any provision made by or under an enactment
  relating to a relevant tax.

24 Information

(1) The Secretary of State may by order make provision for requiring any
prescribed person to disclose any information (whether in the form of a
document or otherwise) to the Secretary of State for any purpose of this Part.

(2) 5Information that—

(a) relates to pensions or other benefits under the RMPP or a new public
scheme, or

(b) relates to the administration of the RMPP or a new public scheme in
respect of those pensions or other benefits,

10may be shared among relevant persons for the purpose of facilitating the
administration of the RMPP or new public scheme.

(3) “Relevant persons” means—

(a) the Secretary of State,

(b) any person who administers, or exercises functions under, a new public
15scheme,

(c) the trustee of the RMPP,

(d) any person who exercises functions on behalf of the trustee of the
RMPP, or

(e) any person who is or has been an employer of a qualifying member of
20the RMPP.

25 Orders and regulations

(1) Before making—

(a) an order under section 17 that contains provision establishing a new
public scheme or transferring qualifying accrued rights to a new public
25scheme, or

(b) any order under any other provision of this Part,

the Secretary of State must consult the trustee of the RMPP and a Royal Mail
company (within the meaning of Part 1).

(2) The Secretary of State may not make an order under any provision of this Part
30(apart from section 24) unless the Treasury have consented to its making.

(3) Any order under this Part is subject to negative resolution procedure.

(4) Any order under this Part may provide for it (or any of its provisions) to come
into force on a specified day.

(5) A “specified day” means a day specified in an order made by the Secretary of
35State under this subsection (and different days may be specified for different
purposes).

Subsections (1) to (3) do not apply to an order under this subsection.

(6) A statutory instrument containing regulations under section 23 is subject to
annulment in pursuance of a resolution of the House of Commons.

(7) 40Nothing in any provision of this Part that authorises the inclusion of any
particular kind of provision in any order, regulations or scheme is to be read as
restricting the generality of the provision that may be included in the order,
regulations or scheme.

26 Interpretation of Part 2

(1) In this Part—

• “active member” has the meaning given by section 124(1) of the Pensions
  Act 1995,

• 5“company” means any body corporate,

• “deferred member” has the meaning given by section 124(1) of the
  Pensions Act 1995,

• “enactment” includes an enactment whenever passed or made,

• “member” has the meaning given by section 124(1) of the Pensions Act
  101995,

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

• “new public scheme” has the meaning given by section 17,

• “occupational pension scheme” has the meaning given by section 1 of the
  15Pension Schemes Act 1993,

• “pensionable service” has the meaning given by section 124(1) of the
  Pensions Act 1995,

• “pension credit right” has the meaning given by section 124(1) of the
  Pensions Act 1995,

• 20“prescribed” means specified in, or determined in accordance with, an
  order made by the Secretary of State,

• “qualifying accrued rights”, in relation to qualifying members of the
  RMPP, has the meaning given by section 16,

• “qualifying member of the RMPP” has the meaning given by section 16,

• 25“the qualifying time” has the meaning given by section 16,

• “the RMPP” has the meaning given by section 16.

(2) Any reference in this Part to amending the RMPP includes—

(a) amending the trust deed or rules of the RMPP or any other instrument
relating to the constitution, management or operation of the RMPP, and

(b) 30amending any instrument relating to the provision of financial support
to or in relation to the RMPP.

Part 3 Regulation of postal services

Postal services

27 35Postal services, postal packets and postal operators

(1) “Postal services” means—

(a) the service of conveying postal packets from one place to another by
post,

(b) the incidental services of receiving, collecting, sorting and delivering
40postal packets, and

(c) any other service which relates to, and is provided in conjunction with,
any service within paragraph (a) or (b).

(2) “Postal packet” means a letter, parcel, packet or other article transmissible by
post.

(3) “Postal operator” means a person who provides—

(a) the service of conveying postal packets from one place to another by
post, or

(b) any of the incidental services of receiving, collecting, sorting and
5delivering postal packets.

(4) A person is not to be regarded as a postal operator merely as a result of
receiving postal packets in the course of acting as an agent for, or otherwise on
behalf of, another.

(5) The Secretary of State may make regulations prescribing circumstances in
10which subsection (4) is not to apply.

(6) Regulations under subsection (5) are subject to affirmative resolution
procedure.

28 General authorisation to provide postal services

(1) Persons may provide postal services without the need for any licence or
15authorisation, but the provision of those services by postal operators may be
subject to regulatory conditions that OFCOM may impose on them under this
Part.

(2) In this Part a “regulatory condition” means any of the following conditions—

(a) a designated USP condition (see sections 36 and 37),

(b) 20a USP access condition (see section 38 and Schedule 3),

(c) a USP accounting condition (see section 39),

(d) a notification condition (see section 41),

(e) a general universal service condition (see section 42),

(f) an essential condition (see section 49),

(g) 25a general access condition (see section 50 and Schedule 3), and

(h) a consumer protection condition (see sections 51 and 52).

The universal postal service

29 Duty to secure provision of universal postal service

(1) OFCOM must carry out their functions in relation to postal services in a way
30that they consider will secure the provision of a universal postal service.

(2) Accordingly, the power of OFCOM to impose access or other regulatory
conditions is subject to the duty imposed by subsection (1).

(3) In performing their duty under subsection (1) OFCOM must have regard to—

(a) the need for the provision of a universal postal service to be financially
35sustainable, and

(b) the need for the provision of a universal postal service to be efficient
before the end of a reasonable period and for its provision to continue
to be efficient at all subsequent times.

(4) The reference in subsection (3)(a) to the need for the provision of a universal
40postal service to be financially sustainable includes the need for a reasonable
commercial rate of return for any universal service provider on any
expenditure incurred by it for the purpose of, or in connection with, the
provision by it of a universal postal service.

(5) In subsection (3)(b) “a reasonable period” means such period beginning with
the day on which the provisions of this Part come generally into force as
OFCOM consider, in all the circumstances, to be reasonable.

(6) OFCOM’s duty under subsection (1) includes a duty to carry out their
5functions in relation to postal services in a way that they consider will secure
the provision of sufficient access points to meet the reasonable needs of users
of the universal postal service.

(7) The Secretary of State may direct OFCOM to take, or refrain from taking,
specified action for the purpose of securing that, in the opinion of the Secretary
10of State, sufficient access points are provided throughout the United Kingdom
to meet the interests of the public.

(8) The duty imposed on OFCOM as a result of subsection (6) is subject to any
direction given under this section.

(9) The action that may be specified in a direction under this section includes the
15imposition of a regulatory condition consisting of or including provision
specified in the direction.

(10) Before giving a direction under this section, the Secretary of State must consult
OFCOM.

(11) In this Part “access point” means any box, receptacle or other facility provided
20for the purpose of receiving postal packets, or any class of postal packets, for
onwards transmission by post.

30 The universal postal service

(1) OFCOM must by order (a “universal postal service order”) set out—

(a) a description of the services that they consider should be provided in
25the United Kingdom as a universal postal service, and

(b) the standards with which those services are to comply.

(2) A universal postal service must, as a minimum, include each of the services set
out in section 31 (as read with sections 32 and 33).

(3) Before making or modifying a universal postal service order, OFCOM must
30carry out an assessment of the extent to which the market for the provision of
postal services in the United Kingdom is meeting the reasonable needs of the
users of those services.

(4) Subsection (3) does not apply in relation to the making of the first universal
postal service order; but OFCOM must carry out an assessment of the kind
35mentioned in that subsection before the end of the period of 18 months
beginning with the day on which the provisions of this Part come generally
into force.

(5) The Secretary of State may direct OFCOM to secure that the first universal
postal service order does not include services of a description specified in the
40direction.

(6) OFCOM must notify the European Commission of—

(a) the universal postal service order, and

(b) any modifications of the order.

31 Minimum requirements

This section sets out the services that must, as a minimum, be included in a
universal postal service.

“Requirement 1: delivery of letters or other postal packets

(1) 5At least one delivery of letters every Monday to Saturday—

(a) to the home or premises of every individual or other person
in the United Kingdom, or

(b) to such identifiable points for the delivery of postal packets as
OFCOM may approve.

(2) 10At least one delivery of other postal packets every Monday to Friday
to the places within paragraph (1)(a) or (b).

(3) The references in this requirement to the delivery of letters or other
postal packets include the delivery of packets posted outside the
United Kingdom.”

15“Requirement 2: collection of letters or other postal packets

(1) At least one collection of letters every Monday to Saturday from
every access point in the United Kingdom used for the purpose of
receiving postal packets, or any class of them, for onwards
transmission in connection with the provision of a universal postal
20service.

(2) At least one collection of other postal packets every Monday to
Friday from every access point in the United Kingdom used for that
purpose.

(3) The references in this requirement to the onwards transmission of
25letters or other postal packets include their onwards transmission to
places outside the United Kingdom.”

“Requirement 3: service at affordable prices in accordance with uniform public tariff

(1) A service of conveying postal packets from one place to another by
post (including the incidental services of receiving, collecting,
30sorting and delivering them) at affordable prices determined in
accordance with a public tariff which is uniform throughout the
United Kingdom.

(2) The reference in this requirement to conveying postal packets from
one place to another includes conveying them to places outside the
35United Kingdom.”

“Requirement 4: registered items service

A registered items service at affordable prices determined in
accordance with a public tariff which is uniform throughout the
United Kingdom.”

“Requirement 5: insured items service

An insured items service at affordable prices determined in
accordance with a public tariff which is uniform throughout the
United Kingdom.”

5“Requirement 6: services to blind or partially sighted

The provision free of charge of such postal services as are specified
in the universal postal service order to such descriptions of blind or
partially sighted persons as are so specified.”

“Requirement 7: legislative petitions and addresses

10A service of conveying free of charge qualifying legislative petitions
and addresses.”

32 Section 31: definitions

(1) “Insured items service” means a service of conveying postal packets from one
place to another by post which, in the event of the theft or loss of or damage to
15the packets, provides for the payment of an amount up to the value of the
packets as declared by the sender.

(2) “Legislative petitions and addresses” means—

(a) petitions and addresses to Her Majesty meeting the weight and covers
requirements which are sent by post to a member of a legislative body,

(b) 20petitions meeting those requirements which are addressed to a
legislative body and are sent by post to a member of such a body or to
the Clerk of the Scottish Parliament, or

(c) petitions and addresses forwarded to Her Majesty or, in Northern
Ireland, to the Secretary of State.

(3) 25For the purposes of subsection (2)—

(a) a “legislative body” means either House of Parliament, the Scottish
Parliament, the National Assembly for Wales or the Northern Ireland
Assembly, and

(b) petitions or addresses meet the “weight and covers requirements” if
30they do not exceed 1 kilogram in weight and are sent without covers or
in covers open at the sides.