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Public Service Pensions BillPage 10

(4) The closing date is—

(a) 1 April 2014 for an existing scheme which is a relevant local
government scheme, and

(b) 5 April 2015 in any other case.

5This is subject to subsection (7).

(5) Scheme regulations may provide for exceptions to subsection (1) in the case
of—

(a) persons who were members of an existing scheme, or who were eligible
to be members of such a scheme, immediately before 1 April 2012, and

(b) 10such other persons as the regulations may specify, being persons who
before that date had ceased to be members of an existing scheme or to
be eligible for membership of such a scheme.

(6) Exceptions under subsection (5) may, in particular, be framed by reference to
the satisfaction of a specified condition (for example, the attainment of normal
15pension age under the existing scheme or another specified age) before a
specified date.

(7) Where an exception to subsection (1) is framed by reference to the satisfaction
of a specified condition before a specified date, scheme regulations may also
provide for a different closing date for persons in whose case the condition—

(a) 20is not satisfied before the specified date, but

(b) is satisfied no more than 4 years after that date.

(8) Provision made under subsection (5) or (7) may in particular be made by
amending the relevant existing scheme.

(9) In subsection (1), the reference to benefits in relation to a person’s service
25includes benefits relating to the person’s death in service.

(10) In subsection (4), “relevant local government scheme” means—

(a) regulations under section 7 of the Superannuation Act 1972 which
relate to persons in England and Wales, or

(b) regulations under Article 9 of the Superannuation (Northern Ireland)
30Order 1972 (S.I. 1972/1073 (N.I. 10)S.I. 1972/1073 (N.I. 10)).

17 Closure of existing injury and compensation schemes

(1) Scheme regulations for a scheme under section 1 may secure that no benefits
are to be provided under a scheme listed in Schedule 6 that is connected with it.

(2) Where Schedule 6 specifies particular benefits in relation to a scheme, the
35power under subsection (1) is exercisable only in relation to those benefits.

(3) Scheme regulations may provide for exceptions to subsection (1).

(4) Provision made under this section may in particular be made by amending the
connected scheme.

18 Final salary link

40Schedule 7 contains provision for a “final salary link” in relation to schemes
which are closed under section 16 (and see section 28(14)).

Public Service Pensions BillPage 11

Procedure for scheme regulations

19 Consultation

(1) Before making scheme regulations the responsible authority must consult such
persons (or representatives of such persons) as appear to the authority likely to
5be affected by them.

(2) The responsible authority must publish a statement indicating the persons that
the authority would normally expect to consult under subsection (1) (and keep
the statement up-to-date).

(3) Subsection (1) may be satisfied by consultation before, as well as by
10consultation after, the coming into force of this section.

20 Consultation and report

(1) This section applies where—

(a) after the coming into force of scheme regulations establishing a scheme
under section 1, the responsible authority proposes to make further
15scheme regulations containing provision changing the protected
elements of the scheme within the protected period, or

(b) the responsible authority proposes to make scheme regulations
containing retrospective provision which appears to the responsible
authority to have significant adverse effects in relation to members of
20the scheme.

(2) The responsible authority must—

(a) consult the persons specified in subsection (3) with a view to reaching
agreement with them, and

(b) lay a report before the appropriate legislature.

(3) 25The persons referred to in subsection (2)(a) are the persons (or representatives
of the persons) who appear to the responsible authority to be likely to be
affected by the regulations if they were made.

(4) In the case referred to in subsection (1)(a), the report under subsection (2)(b)
must set out why the responsible authority proposes to make the regulations,
30having regard to the desirability of not making a change to the protected
elements of a scheme under section 1 within the protected period.

(5) In this section—

(6) 5In this section, references to a change to the protected elements do not include
a change appearing to the responsible authority to be required by or
consequential upon section 11 (employer cost cap).

(7) In a case where this section applies, there is no requirement to consult under
section 19(1).

21 10Other procedure

(1) Scheme regulations are subject to the affirmative procedure if—

(a) they amend primary legislation, or

(b) they contain retrospective provision which appears to the responsible
authority to have significant adverse effects in relation to members of
15the scheme.

(2) Scheme regulations are subject to the negative procedure in any other case.

(3) If scheme regulations otherwise subject to the negative procedure are
combined with scheme regulations subject to the affirmative procedure, the
combined regulations are subject to the affirmative procedure.

20New schemes: supplementary

22 Extension of schemes

(1) Scheme regulations for a scheme under section 1 may make provision for the
payment of pensions and other benefits to or in respect of—

(a) persons who are in public service, but

(b) 25in relation to whom the responsible authority could not otherwise
make a scheme under that section.

(2) Scheme regulations for a scheme under section 1 may make provision to deem
persons of any description to fall within a given description of persons in
public service.

(3) 30Scheme regulations for a scheme under section 1 may specify persons not in
public service as persons to whom the scheme may potentially relate.

(4) The persons specified under subsection (3) may be any persons not in public
service that the responsible authority considers appropriate.

(5) The responsible authority may then at any time determine that the scheme is
35to relate to some or all of those persons.

(6) By virtue of such a determination the provisions of the scheme regulations for
the payment of pensions and other benefits then apply in relation to the
persons to whom the determination relates.

(7) Subsection (6) is subject to any special provision made in the scheme
40regulations for the persons in question.

Public Service Pensions BillPage 13

(8) The responsible authority for a scheme under section 1 must publish a list of
the persons to whom the scheme relates by virtue of determinations under
subsection (5) (and keep the published list up-to-date).

(9) A determination under subsection (5) may have retrospective effect.

23 5Non-scheme benefits

The scheme manager or employer for a scheme under section 1 may make such
payments as the scheme manager or employer considers appropriate towards
the provision, otherwise than by virtue of the scheme, of pensions and other
benefits to or in respect of persons to whom the scheme relates.

24 10Consequential and minor amendments

Schedule 8 contains consequential and minor amendments.

Existing schemes: supplementary

25 Existing local government schemes

(1) This section applies in relation to—

(a) 15regulations under section 7 of the Superannuation Act 1972 which
relate to persons in England and Wales, and

(b) regulations under Article 9 of the Superannuation (Northern Ireland)
Order 1972 (S.I. 1972/1073 (N.I. 10)S.I. 1972/1073 (N.I. 10)),

which are in force immediately before the coming into force of this section.

(2) 20To the extent that—

(a) such regulations make provision for the payment of pensions and other
benefits to or in respect of a person in relation to the person’s service on
or after 1 April 2014, and

(b) that provision could be made under scheme regulations,

25the regulations are to have effect as if they were scheme regulations relating to
local government workers in England and Wales or (as the case may be)
Northern Ireland.

(3) Accordingly, to that extent a scheme under such regulations is to have effect as
a scheme under section 1.

26 30Existing schemes for civil servants: extension of access

Schedule 9 amends the Superannuation Act 1972 and the Superannuation
(Northern Ireland) Order 1972 (1972/1073 (N.I. 10)) so as to extend access to
schemes under section 1 of that Act and Article 3 of that Order (schemes as
respects civil servants, etc).

Public Service Pensions BillPage 14

Public body pension schemes

27 New public body pension schemes

(1) The following provisions of this Act apply in relation to a new public body
pension scheme (and any statutory pension scheme that is connected with it)
5as to a scheme under section 1 (and any connected scheme)—

(a) section 3(1) and (2) and Schedule 3 (scheme regulations);

(b) section 4 (scheme manager);

(c) sections 5 and 6 (pension board), if the scheme has more than one
member;

(d) 10sections 7 to 9 (scheme design);

(e) sections 10 and 11 (cost control);

(f) sections 13 and 14 (information and records).

(2) For the purposes of subsection (1), the provisions referred to in that subsection
are to be read with the following modifications—

(a) 15references to scheme regulations are to be read as references to the rules
of the scheme;

(b) references to the responsible authority are to be read as references to the
public authority which established the scheme.

(3) A new public body pension scheme, and any variation to the rules of the
20scheme, requires the consent of—

(a) the Treasury, or

(b) if the scheme relates to members or staff of a Northern Ireland body or
the holder of a Northern Ireland office, the Department of Finance and
Personnel in Northern Ireland.

(4) 25For the purposes of subsection (3)(b), a body or office is a Northern Ireland
body or office if provision relating to it would be within the legislative
competence of the Northern Ireland Assembly were that provision contained
in an Act of the Assembly.

(5) In this Act—

28 Restriction of certain existing public body pension schemes

(1) This section applies to a public body pension scheme which relates to members
or staff of a body, or the holder of an office, listed in Schedule 10.

(2) The public authority responsible for the scheme must make provision to secure
40that no benefits are provided under the scheme to or in respect of a person in
relation to the person’s service after a date determined by the authority.

(3) Subsection (2) does not apply—

(a) in relation to a public body pension scheme which is a defined
contributions scheme, or

Public Service Pensions BillPage 15

(b) to injury or compensation benefits.

(4) The public authority responsible for the scheme may provide for exceptions to
the provision made under subsection (2) and section 16(6) and (7) apply in
relation to any such exceptions (reading references to scheme regulations as
5references to rules of the scheme).

(5) Provision made under subsection (2) or (4) may in particular be made by
amending the public body pension scheme.

(6) In subsection (2), the reference to benefits in relation to a person’s service
includes benefits relating to the person’s death in service.

(7) 10If any of the persons to whom the scheme relates are not eligible for
membership of a scheme under section 1, the public authority responsible for
the scheme may establish a new scheme for the payment of pensions or other
benefits to or in respect of those persons (and see section 27).

(8) Where a scheme to which this section applies was established in exercise of a
15statutory function or other power, the function or power may not be exercised
again so as to establish a new defined benefits scheme in relation to the body
or office.

(9) In the case of a scheme established by deed of trust, subsections (2) and (4)
apply irrespective of the provisions of the deed or the law relating to trusts.

(10) 20A Treasury order may amend Schedule 10 so as to—

(a) remove any body or office specified there;

(b) add any body or office to it (by name or description).

(11) A Treasury order under subsection (10) may make consequential or
supplementary provision, including in particular provision made by
25amending any legislation.

(12) A Treasury order under subsection (10) is subject to the negative procedure.

(13) It is immaterial for the purposes of subsection (1) whether a scheme is made
before or after the coming into force of this section.

(14) Schedule 7 contains provision for a “final salary link” in relation to schemes
30which are closed under this section.

29 Existing public body pension schemes: pension age

(1) A public body pension scheme established before the coming into force of this
section may include—

(a) provision securing that the normal and deferred pension age of a
35person under the scheme is—

(i) the same as the person’s state pension age, or

(ii) 65, if that is higher, and

(b) provision securing that changes in the person’s normal or deferred
pension age occurring in consequence of provision under paragraph (a)
40apply in relation to relevant accrued benefits (as well as other benefits).

(2) In subsection (1)(b) “relevant accrued benefits”, in relation to a person and a
scheme, means benefits accrued after the coming into force of the provision
under subsection (1) which may be paid to or in respect of the person under the
scheme and to which the normal or deferred pension age is relevant.

Public Service Pensions BillPage 16

Parliamentary and other pension schemes

30 Great offices of state

Schedule 11 makes provision about pension arrangements for the offices of—

(a) Prime Minister and First Lord of the Treasury,

(b) 5Lord Chancellor, and

(c) Speaker of the House of Commons.

31 Parliamentary and other pension schemes: pension age

In Schedule 6 to the Constitutional Reform and Governance Act 2010
(Parliamentary and other pensions), after paragraph 29 there is inserted—

10Pension age

29A (1) Where the scheme provides for the normal or deferred pension age
of a person under the scheme to be the same as the person’s state
pension age, provision for a change in the person’s normal or
deferred pension age in consequence of such provision to apply in
15relation to relevant accrued benefits (as well as other benefits).

(2) Accordingly, paragraph 19(2) (protection of accrued rights) is to be
disregarded in relation to any such provision.

(3) In this paragraph—

(a) “normal pension age”, in relation to a person and a scheme,
20means the earliest age at which a person with relevant service
is entitled to receive benefits (without actuarial adjustment)
on leaving that service (and disregarding any special
provision as to early payment of benefits on the grounds of
ill-health or otherwise);

(b) 25“deferred pension age”, in relation to a person and a scheme,
means the earliest age at which a person with relevant service
is entitled to receive benefits under the scheme (without
actuarial adjustment) after leaving that service at a time
before normal pension age (and disregarding any special
30provision as to early payment of benefits on the grounds of
ill-health or otherwise);

(c) “state pension age”, in relation to a person, means the
person’s pensionable age as specified from time to time in
Schedule 4 to the Pensions Act 1995;

(d) 35“relevant accrued benefits”, in relation to a scheme, means
benefits accrued after the coming into force of provision
under sub-paragraph (1) which may be paid to or in respect
of the person under the scheme and to which the normal or
deferred pension age is relevant.

32 40Members of the European Parliament

In section 4 of the European Parliament (Pay and Pensions) Act 1979 (pensions

Public Service Pensions BillPage 17

of MEPs), after subsection (3A) there is inserted—

(3B) Where a scheme under this section provides for the normal or deferred
pension age of a person under the scheme to be the same as the person’s
state pension age, the scheme may make provision for a change in the
5person’s normal or deferred pension age in consequence of such
provision to apply in relation to relevant accrued benefits (as well as
other benefits).

(3C) In subsection (3B)—

(a) “normal pension age”, in relation to a person and a scheme,
10means the earliest age at which a person with service as a
Representative is entitled to receive benefits (without actuarial
adjustment) on ceasing service as a Representative (and
disregarding any special provision as to early payment of
benefits on the grounds of ill-health or otherwise);

(b) 15“deferred pension age”, in relation to a person and a scheme,
means the earliest age at which a person with service as a
Representative is entitled to receive benefits under the scheme
(without actuarial adjustment) after ceasing service as a
Representative at a time before normal pension age (and
20disregarding any special provision as to early payment of
benefits on the grounds of ill-health or otherwise);

(c) “state pension age”, in relation to a person, means the person’s
pensionable age as specified from time to time in Schedule 4 to
the Pensions Act 1995;

(d) 25“relevant accrued benefits”, in relation to a scheme, means
benefits accrued after the coming into force of provision under
subsection (3B) which may be paid to or in respect of the person
under the scheme and to which the normal or deferred pension
age is relevant.

(3D) 30A scheme under this section may provide for any statutory provision
relating to any matter connected with the pensions payable to or in
respect of Members to have effect with respect to or in connection with
Representatives, with such additions, omissions, amendments or other
modifications as may be specified in the scheme.

35In this subsection “statutory provision” means any provision contained
in an Act or in any instrument made under an Act (including an Act or
instrument passed or made after the coming into force of this
subsection).

General

33 40General interpretation

In this Act—

34 Regulations, orders and directions

(1) For the purposes of this Act—

(a) any power of the Secretary of State, the Minister of the Civil Service, the
Treasury, the Lord Chancellor or the Welsh Ministers to make
45regulations or an order is exercisable by statutory instrument;

(b) any power of a Northern Ireland department to make regulations or an
order is exercisable by statutory rule for the purposes of the Statutory
Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)S.I. 1979/1573 (N.I. 12)).

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