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Public Service Pensions BillPage 20

Final

37 Financial provision

(1) Scheme regulations may provide for any pension or other sum payable under
the regulations to or in respect of a person who has held an office specified in
5Part 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
of the Crown, and

(b) 10any increase attributable to this Act in the sums payable under or by
virtue of any other Act out of money so provided.

38 Extent

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amended or repealed.

(2) 15That aside, this Act extends to England and Wales, Scotland and Northern
Ireland.

39 Commencement

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

(a) 20section 28 and Schedule 9 (existing schemes for civil servants: extension
of access);

(b) section 32 and Schedule 11 (great offices of state);

(c) sections 35 to 38, this section and section 40.

(2) The other provisions of this Act come into force on such day or days as may be
25appointed by Treasury order.

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

(a) appoint different days for different purposes;

(b) make transitional, transitory or saving provision.

40 Short title

30This Act may be cited as the Public Service Pensions Act 2013.

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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 (not including the civil service of Northern Ireland).

Judiciary

2 (1) In this Act, “the judiciary” means holders of an office specified in an order
made by—

(a) 10the 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.

(2) An order under sub-paragraph (1) may only specify an office in or as regards
Scotland or Northern Ireland if the office is not a devolved office.

(3) 15An 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
government service and specified in scheme regulations.

(2) In this paragraph, “local government service” means service specified in
20scheme regulations.

Teachers

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

(a) in a capacity connected with education which to a substantial extent
25involves 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
education, and

who are specified in scheme regulations.

30Health service workers

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

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(2) In 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) 5a fire and rescue authority in England or Wales, or

(b) the Scottish Fire and Rescue Service.

Police forces

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

(a) in relation to England and Wales, includes special constables and
10police cadets;

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

Armed forces

8 In this Act, “the armed forces” means the naval, military and air forces of the
15Crown.

Transitional provision

9 In 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
20relevant authority (as defined in section 6 of the Fire (Scotland) Act 2005 (asp
5)).

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
25meaning of the Police (Scotland) Act 1967.

Section 2(1)

SCHEDULE 2 Responsible authorities

Civil servants and judiciary

1 (1) Scheme regulations for—

(a) 30civil servants, and

(b) the judiciary,

may be made by the Minister for the Civil Service.

(2) Before making scheme regulations which affect only the judiciary, the
Minister must consult—

(a) 35the 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.

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Local government workers

2 Scheme 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.

5Teachers

3 Scheme 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.

Health service workers

4 10Scheme 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.

Fire and rescue workers

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

(a) 15the Secretary of State, in or as regards England;

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

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

Police forces

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

(a) 20the Secretary of State, in or as regards England and Wales;

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

Armed forces

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

Section 3(2)(a)

25SCHEDULE 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
30regulations 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
35relates (whether before, at or after normal pension age);

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(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.

5Those 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 10The conditions subject to which benefits are payable.

5 The assignment of benefits, including restrictions on assignment.

6 The forfeiture or suspension of benefits.

7 The recovery of overpaid benefits.

8 The exclusion of double recovery of compensation or damages.

15This includes—

(a) exclusion or modification of rights to compensation or damages in
respect 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
20where compensation or damages are received in respect of the same
matter from another source.

9 Contributions, including—

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

(b) contribution rates;

(c) 25interest on late payment of contributions;

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

10 The 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 30Pension funds (for schemes which have them).

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

12 The administration and management of the scheme, including—

(a) the giving of guidance or directions by the responsible authority to
35the scheme manager (where those persons are different);

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

(c) the 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
40authority;

(b) further delegation of functions by any delegatee.

14 The payment by an employer of—

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(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 5The 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).

Section 17(1)

SCHEDULE 4 Regulatory oversight

1 10The 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) 15In 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
20(pension board: information), 14 (information about
benefits) or 16 (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) 25The Regulator may, if it considers it desirable for the purpose of
ensuring 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
30to the Regulator to have the necessary skills.

(3) The 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) 35In subsection (1) “pensions legislation” has the same meaning as in
section 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) 40in paragraph (b), the final “and” is repealed;

Public Service Pensions BillPage 26

(b) after 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) 5In the definition of “employer contribution”—

(a) in paragraph (a)—

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

(ii) the final “and” is repealed;

(b) 10after paragraph (b) there is inserted “and

(c) in 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) 15after paragraph (a) there is inserted—

(aa) a 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 20After section 70 there is inserted—

Reporting 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
25by or on behalf of an employer in relation to the scheme by
way 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
30in the exercise of any of its functions,

the 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
35report under this section.

This 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
40obligation imposed on him by this section.

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

(2) In subsection (1)—

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

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

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

(c) 5in 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)
there is inserted—

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

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

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

(da) section 16 of the Public Service Pensions Act 2013;;

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

11 15In section 89 (reports), at the end there is inserted—

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

12 After section 89 there is inserted—

89A 20Reports about misappropriation etc in public service pension schemes

(1) If the Regulator has reasonable grounds to suspect or believe that a
member 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) 25has a conflict of interest in relation to investment of assets of
the scheme,

the 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
30reporting is shown to be made with malice.

(3) For the purposes of subsection (1)(b) a person does not have a
conflict 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) 35In subsection (4), after “code of practice” (where first occurring) there is
inserted “issued under this section”.

(3) In 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
40relation to a public service pension scheme (but see section 90A).

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14 After section 90 there is inserted—

90A Codes of practice: public service pension schemes

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

(a) 5containing practical guidance in relation to the exercise of
functions under relevant pensions legislation, and

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

(2) The Regulator must issue one or more such codes of practice relating
10to the following matters—

(a) the discharge of the duties imposed by sections 70 and 70A
(duties to report breaches of the law and late payment of
employer contributions);

(b) the obligations imposed by section 248A (requirements for
15knowledge and understanding: pension boards of public
service pension schemes);

(c) the discharge of the duty imposed by section 249B (internal
controls);

(d) the discharge of duties imposed under section 113 of the
20Pension Schemes Act 1993 (disclosure of information to
members);

(e) the discharge of the duty imposed by section 49(9)(b) of the
Pensions Act 1995 (duty of trustees or managers of
occupational pension schemes to report material failures by
25employers to pay contributions deducted from employee’s
earnings timeously);

(f) the discharge of the duty imposed by section 50 of the
Pensions Act 1995 (internal dispute resolution);

(g) the discharge of duties imposed by virtue of section 5(4) of
30the Public Service Pensions Act 2013 and other duties relating
to conflicts of interest;

(h) the discharge of duties imposed under section 6 (pension
board: information) of that Act and other duties relating to
the publication of information about governance and
35administration;

(i) the discharge of duties imposed under section 14 of that Act
(information about benefits);

(j) the discharge of duties imposed under section 16 (records) of
that Act and other duties relating to record-keeping;

(k) 40such other matters as are prescribed for the purposes of this
section.

(3) The Regulator may from time to time revise the whole or any part of
a code of practice issued under this section and issue that revised
code.

(4) 45A failure on the part of any person to observe any provision of a code
of practice issued under this section does not of itself render that
person liable to any legal proceedings.

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This is subject to section 13(3)(a) and (8) (power for improvement
notice to direct that person complies with code of practice and civil
penalties for failure to comply).

5This is subject to section 13(3)(a) and (8) (power for improvement
notice to direct that person complies with code of practice and civil
penalties for failure to comply).

(5) A code of practice issued under this section is admissible in evidence
in any legal proceedings (within the meaning of section 90) and, if
10any provision of such a code appears to the court or tribunal
concerned to be relevant to any question arising in the proceedings,
it must be taken into account in determining that question.

(6) A code of practice issued under this section may be—

(a) combined with a code of practice issued under section 90;

(b) 15combined with one or more other codes of practice issued
under this section.

(7) A code of practice issued under this section may relate to all public
service pension schemes or any one or more of them.

(8) In this section, “relevant pensions legislation” means—

(a) 20the enactments constituting “pensions legislation” within the
meaning of section 90, and

(b) sections 5(4) (pension board: conflicts of interest), 6 (pension
board: information), 14 (information about benefits) and 16
(records) of the Public Service Pensions Act 2013.

(9) 25Sections 91 and 92 make provision about the procedure to be
followed when a code of practice is issued or revoked under this
section.

15 (1) Section 91 (procedure for codes) is amended as follows.

(2) In subsection (1), after “code of practice” there is inserted “under section 90
30or 90A”.

(3) In subsections (4)(a) and (10), after “90” there is inserted “or 90A”.

(16) In section 92 (revocation of codes), in subsection (1), after “code of practice” there is inserted “under section 90 or 90A”.

17 In section 93 (procedure for regulatory functions), in subsection (2), after
paragraph (b) there is inserted—

(ba) 35the power to appoint a skilled person in relation to a public
service pension scheme under section 14A,.

18 In section 154 (requirement to wind up schemes with sufficient assets), in
subsection (14), after “public service pension scheme” there is inserted
“(within the meaning of the Pension Schemes Act 1993)”.

19 40After section 248 there is inserted—

248A Requirement for knowledge and understanding: pension boards of
public service pension schemes

(1) This section applies to every individual who is a member of the
pension board of a public service pension scheme.

(2) 45An individual to whom this section applies must be conversant
with—

(a) the rules of the scheme, and

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