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Public Service Pensions BillPage 20

(2) In this Act, the “affirmative procedure” means—

(a) in the case of regulations or an order of the Secretary of State or the
Minister of the Civil Service, that the regulations or order may not be
made unless a draft of the instrument containing them or it has been
5laid before, and approved by resolution of, each House of Parliament;

(b) in the case of regulations of the Welsh Ministers, that the regulations
may not be made unless a draft of the instrument containing them has
been laid before, and approved by resolution of, the National Assembly
for Wales;

(c) 10in the case of regulations or an order of a Northern Ireland department,
that the regulations or order may not be made unless a draft of the
statutory rule containing them or it has been laid before, and approved
by resolution of, the Northern Ireland Assembly.

(3)
In this Act, the “negative procedure” means—

(a) 15in the case of regulations or an order of the Secretary of State, the
Minister for the Civil Service, the Lord Chancellor or the Treasury, that
the instrument containing them or it is subject to annulment in
pursuance of a resolution of either House of Parliament;

(b) in the case of regulations or an order of the Welsh Ministers, that the
20instrument containing them or it is subject to annulment in pursuance
of a resolution of the National Assembly for Wales;

(c) in the case of regulations or an order of a Northern Ireland department,
that they are subject to negative resolution within the meaning of
section 41(6) of the Interpretation Act (Northern Ireland) 1954.

(4) 25In this Act, the “negative Commons procedure”, in relation to Treasury
regulations or a Treasury order, means that the instrument containing them or
it is subject to annulment in pursuance of a resolution of the House of
Commons.

(5) For regulations and orders of the Scottish Ministers, see Part 2 of the
30Interpretation and Legislative Reform (Scotland) Act 2010 (asp 10)2010 (asp 10).

(6) Treasury directions under this Act may be varied or revoked.

Final

35 Financial provision

(1) Scheme regulations may provide for any pension or other sum payable under
35the regulations to or in respect of a person who has held an office specified in
Part 1 of Schedule 1 to the Judicial Pensions and Retirement Act 1993 to be
charged on, and paid out of, the Consolidated Fund.

(2) There shall be paid out of money provided by Parliament—

(a) any expenditure incurred under or by virtue of this Act by a Minister
40of the Crown, and

(b) any increase attributable to this Act in the sums payable under or by
virtue of any other Act out of money so provided.

36 Extent

(1) An amendment or repeal in this Act has the same extent as the provision
45amended or repealed.

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(2) That aside, this Act extends to England and Wales, Scotland and Northern
Ireland.

37 Commencement

(1) The following provisions of this Act come into force on the day on which this
5Act is passed—

(a) section 26 and Schedule 9 (existing schemes for civil servants: extension
of access);

(b) section 30 and Schedule 11 (great offices of state);

(c) sections 33 to 36, this section and section 38.

(2) 10The other provisions of this Act come into force on such day or days as may be
appointed by Treasury order.

(3) An order under subsection (2) may—

(a) appoint different days for different purposes;

(b) make transitional, transitory or saving provision.

38 15Short title

This Act may be cited as the Public Service Pensions Act 2013.

Public Service Pensions BillPage 22

SCHEDULES

Section 1(3)

SCHEDULE 1 Persons in public service: definitions

Civil servants

1 5In this Act, “civil servants” means persons employed in the civil service of
the State (including the civil service of Northern Ireland).

Judiciary

2 (1) In this Act, “the judiciary” means—

(a) holders of non-devolved judicial office;

(b) 10holders of devolved judicial office.

(2) In this Act, “non-devolved judicial office” means an office which is specified
in an order made by—

(a) the Secretary of State, in relation to an office with a jurisdiction
exercised exclusively in relation to Scotland, or

(b) 15the Lord Chancellor, in any other case.

(3) In this Act, “devolved judicial office” means, in relation to Northern Ireland,
an office in or as regards Northern Ireland which is specified in an order
made by a Northern Ireland department.

Such an order may only specify an office which—

(a) 20is not mentioned in paragraph 11 of Schedule 2 to the Northern
Ireland Act 1998, and

(b) is not at any time specified in an order under sub-paragraph (2).

(4) In this Act, “devolved judicial office” means, in relation to Scotland, an office
in or as regards Scotland which is specified in an order made by the Scottish
25Ministers.

Such an order may only specify an office—

(a) if or to the extent that provision about pensions payable to or in
respect of a holder of the office is not a reserved matter within the
meaning of the Scotland Act 1998, and

(b) 30which is not at any time specified in an order under sub-paragraph
(2).

(5) An order under this paragraph is subject to the negative procedure.

Local government workers

3 (1) In this Act, “local government workers” means persons employed in local
35government service and specified in scheme regulations.

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(2) In this paragraph, “local government service” means service specified in
scheme regulations.

Teachers

4 In this Act, “teachers” includes persons who are employed otherwise than as
5teachers—

(a) in a capacity connected with education which to a substantial extent
involves the control or supervision of teachers, or

(b) in employment which involves the performance of duties in
connection with the provision of education or services ancillary to
10education, and

who are specified in scheme regulations.

Health service workers

5 (1) In this Act, “health service workers” means persons engaged in health
services and specified in scheme regulations.

(2) 15In this paragraph, “health services” means services specified in scheme
regulations.

Fire and rescue workers

6 In this Act, “fire and rescue workers” means persons employed by—

(a) a fire and rescue authority in England or Wales,

(b) 20the Scottish Fire and Rescue Service, or

(c) the Northern Ireland Fire and Rescue Service Board.

Police forces

7 In this Act “members of a police force”—

(a) in relation to England and Wales, includes special constables and
25police cadets;

(b) in relation to Scotland, means members of the Police Service of
Scotland and police cadets;

(c) in relation to Northern Ireland, means members of the Police Service
of Northern Ireland and of the Police Service of Northern Ireland
30Reserve, police trainees, police reserve trainees and police cadets.

Armed forces

8 In this Act, “the armed forces” means the naval, military and air forces of the
Crown.

Transitional provision

9 35In relation to a time before the coming into force of section 101 of the Police
and Fire Reform (Scotland) Act 2012 (asp 8)2012 (asp 8), the reference in paragraph 6(b)
to the Scottish Fire and Rescue Service is to be read as a reference to a
relevant authority (as defined in section 6 of the Fire (Scotland) Act 2005 (asp
5)).

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10 In relation to a time before the coming into force of section 6 of the Police and
Fire Reform (Scotland) Act 2012, the reference in paragraph 7(b) to the Police
Service of Scotland is to be read as a reference to a police force within the
meaning of the Police (Scotland) Act 1967.

Section 2(1)

5SCHEDULE 2 Responsible authorities

Civil servants and judiciary

1 (1) Scheme regulations for—

(a) civil servants, other than those employed in the civil service of
10Northern Ireland, and

(b) holders of non-devolved judicial office,

may be made by the Minister for the Civil Service.

(2) Before making scheme regulations which affect only holders of non-
devolved judicial office, the Minister must consult—

(a) 15the Secretary of State, in relation to an office with a jurisdiction
exercised exclusively in relation to Scotland, or

(b) the Lord Chancellor, in any other case.

(3) Scheme regulations for—

(a) civil servants employed in the civil service of Northern Ireland, and

(b) 20holders of devolved judicial office in Northern Ireland,

may be made by a Northern Ireland department.

(4) Scheme regulations for holders of devolved judicial office in Scotland may
be made by the Scottish Ministers.

Local government workers

2 25Scheme regulations for local government workers may be made by—

(a) the Secretary of State, in or as regards England and Wales;

(b) the Scottish Ministers, in or as regards Scotland;

(c) a Northern Ireland department, in or as regards Northern Ireland.

Teachers

3 30Scheme regulations for teachers may be made by—

(a) the Secretary of State, in or as regards England and Wales;

(b) the Scottish Ministers, in or as regards Scotland;

(c) a Northern Ireland department, in or as regards Northern Ireland.

Health service workers

4 35Scheme regulations for health service workers may be made by—

(a) the Secretary of State, in or as regards England and Wales;

(b) the Scottish Ministers, in or as regards Scotland;

(c) a Northern Ireland department, in or as regards Northern Ireland.

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Fire and rescue workers

5 Scheme regulations for fire and rescue workers may be made by—

(a) the Secretary of State, in or as regards England;

(b) the Welsh Ministers, in or as regards Wales;

(c) 5the Scottish Ministers, in or as regards Scotland;

(d) a Northern Ireland department, in or as regards Northern Ireland.

Police forces

6 Scheme regulations for members of a police force may be made by—

(a) the Secretary of State, in or as regards England and Wales;

(b) 10the Scottish Ministers, in or as regards Scotland;

(c) a Northern Ireland department, in or as regards Northern Ireland.

Armed forces

7 Scheme regulations for the armed forces may be made by the Secretary of
State.

Section 3(2)(a)

15SCHEDULE 3 Scope of scheme regulations: supplementary matters

1 Eligibility and admission to membership.

This includes—

(a) specifying who, of the persons in relation to whom the scheme
20regulations may be made, is eligible for membership;

(b) conditions of eligibility.

2 The benefits which must or may be paid under the scheme.

Those benefits may include—

(a) pensions and other benefits on leaving service to which the scheme
25relates (whether before, at or after normal pension age);

(b) benefits payable on death (in service or otherwise);

(c) compensation payments (including for death, injury or redundancy);

(d) discretionary payments and concessions.

3 The persons to whom benefits under the scheme are payable.

30Those persons may include—

(a) active, deferred and pensioner members of the scheme;

(b) pension credit members of the scheme;

(c) widows, widowers, surviving civil partners and surviving
dependants.

4 35The conditions subject to which benefits are payable.

5 The assignment of benefits, including restrictions on assignment.

6 The forfeiture or suspension of benefits.

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7 The recovery of overpaid benefits.

8 The exclusion of double recovery of compensation or damages.

This includes—

(a) exclusion or modification of rights to compensation or damages in
5respect of any matter in a case where benefits are paid under the
scheme in respect of the same matter;

(b) exclusion or modification of rights to benefits under the scheme
where compensation or damages are received in respect of the same
matter from another source.

9 10Contributions, including—

(a) the making of contributions by employers and members;

(b) contribution rates;

(c) interest on late payment of contributions;

(d) the return of contributions (with or without interest).

10 15The payment or receipt of transfer values or other lump sum payments for
the purpose of creating or restoring rights to benefits (under the scheme or
otherwise).

11 Pension funds (for schemes which have them).

This includes the administration, management and winding-up of any
20pension funds.

12 The administration and management of the scheme, including—

(a) the giving of guidance or directions by the responsible authority to
the scheme manager (where those persons are different);

(b) the person by whom benefits under the scheme are to be provided;

(c) 25the provision or publication of information about the scheme.

13 The delegation of functions under scheme regulations, including—

(a) delegation of functions by the scheme manager or responsible
authority;

(b) further delegation of functions by any delegatee.

14 30The payment by an employer of—

(a) any costs relating to the administration of the scheme;

(b) any costs incurred because of a failure by the employer to comply
with the employer’s obligations under the scheme;

(c) interest relating to payments to be made by virtue of this paragraph.

15 35The resolution of disputes and appeals (including the referral to a court of
law of questions of law which under the scheme fall to be determined by the
responsible authority).

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Section 15(1)

SCHEDULE 4 Regulatory oversight

Part 1 Oversight under Pensions Act 2004

1 5The Pensions Act 2004 is amended as follows.

2 In section 11 (annual reports), in subsection (3), at the end there is inserted—

(d) the exercise of the Regulator’s functions in relation to public
service pension schemes.

3 (1) Section 13 (improvement notices) is amended as follows.

(2) 10In subsection (3)(a), after “90” there is inserted “or 90A”.

(3) In subsection (7)—

(a) in paragraph (c), the final “or” is repealed;

(b) at the end there is inserted “or

(e) section 5(4) (pension board: conflicts of interest), 6
15(pension board: information) or 14 (records) of the
Public Service Pensions Act 2013.

4 After section 14 there is inserted—

14A Appointment of skilled person to assist public service pension scheme

(1) The Regulator may, if it considers it desirable for the purpose of
20ensuring compliance with pensions legislation, appoint a person to
assist the pension board of a public service pension scheme in the
discharge of its functions.

(2) A person appointed under this section may be any person appearing
to the Regulator to have the necessary skills.

(3) 25The pension board of a public service pension scheme must have
regard to the advice of a person appointed under this section.

(4) The costs of a person appointed under this section are to be met by
the scheme manager of the scheme.

(5) In subsection (1) “pensions legislation” has the same meaning as in
30section 13.

5 (1) In section 17 (power of the Regulator to recover unpaid contributions),
subsection (3) is amended as follows.

(2) In the definition of “due date”—

(a) in paragraph (b), the final “and” is repealed;

(b) 35after paragraph (c) there is inserted “and

(d) in relation to employer contributions payable under a
public service pension scheme, the date on which the
contributions are due under the scheme;.

(3) In the definition of “employer contribution”—

(a) 40in paragraph (a)—

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(i) after “occupational pension scheme” there is inserted “other
than a public service pension scheme”;

(ii) the final “and” is repealed;

(b) after paragraph (b) there is inserted “and

(c) 5in relation to a public service pension scheme, means
any contributions payable under the scheme by the
employer.

6 In section 70 (duty to report breaches of the law), in subsection (1)—

(a) after paragraph (a) there is inserted—

(aa) 10a member of the pension board of a public service
pension scheme;;

(b) in paragraph (b), for “such a scheme” there is substituted “an
occupational or personal pension scheme”.

7 After section 70 there is inserted—

15Reporting late payment of employer contributions

70A Duty to report late payment of employer contributions

(1) Where—

(a) any amount payable under a public service pension scheme
by or on behalf of an employer in relation to the scheme by
20way of contributions is not paid on or before the date on
which it is due under the scheme, and

(b) the scheme manager has reasonable cause to believe that the
failure is likely to be of material significance to the Regulator
in the exercise of any of its functions,

25the scheme manager must give a written report of the matter to the
Regulator as soon as reasonably practicable.

(2) No duty to which a person is subject is to be regarded as contravened
merely because of any information or opinion contained in a written
report under this section.

30This is subject to section 311 (protected items).

This is subject to section 311 (protected items).

(3) Section 10 of the Pensions Act 1995 (civil penalties) applies to any
person who, without reasonable excuse, fails to comply with an
obligation imposed on him by this section.

8 (1) 35Section 71 (reports by skilled persons) is amended as follows.

(2) In subsection (1)—

(a) in paragraph (b), the final “or” is repealed;

(b) after paragraph (b) there is inserted—

(ba) in the case of a work-based scheme which is a public
40service pension scheme, a member of the pension
board of the scheme, or;

(c) in paragraph (c), for “such a scheme” there is substituted “a work-
based pension scheme”.

9 In section 72 (provision of information), in subsection (2), after paragraph (a)

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there is inserted—

(aa) a member of the pension board of a public service pension
scheme,.

10 In section 73 (inspection of premises), in subsection (2)—

(a) 5after paragraph (d) there is inserted—

(da) section 14 of the Public Service Pensions Act 2013;;

(b) in paragraph (e), for “(d)” there is substituted “(da)”.

11 In section 89 (reports), at the end there is inserted—

(4) Before making a report under this section which relates to a public
10service pension scheme, the Regulator must notify the scheme
manager.

12 After section 89 there is inserted—

89A Reports about misappropriation etc in public service pension schemes

(1) If the Regulator has reasonable grounds to suspect or believe that a
15member of the pension board of a public service pension scheme—

(a) has misappropriated any assets of the scheme or is likely to
do so, or

(b) has a conflict of interest in relation to investment of assets of
the scheme,

20the Regulator must report the matter to the scheme manager.

(2) For the purposes of the law of defamation, the reporting of any
matter by the Regulator under subsection (1) is privileged unless the
reporting is shown to be made with malice.

(3) For the purposes of subsection (1)(b) a person does not have a
25conflict of interest in relation to investment of assets merely by virtue
of membership of the scheme.

13 (1) Section 90 (codes of practice) is amended as follows.

(2) In subsection (4), after “code of practice” (where first occurring) there is
inserted “issued under this section”.

(3) 30In subsection (7), at the end there is inserted “under this section”.

(4) At the end of the section there is inserted—

(8) The Regulator may not issue codes of practice under this section in
relation to a public service pension scheme (but see section 90A).

14 After section 90 there is inserted—

90A 35Codes of practice: public service pension schemes

(1) The Regulator may, in relation to public service pension schemes,
issue codes of practice—

(a) containing practical guidance in relation to the exercise of
functions under relevant pensions legislation, and

(b) 40regarding the standards of conduct and practice expected
from those who exercise such functions.

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