Public Service Pensions Bill (HL Bill 86)

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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 (pensions board:
conflicts of interest and representation) 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
35the publication of information about governance and
administration;

(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
40that Act and other duties relating to record-keeping;

(k) such 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
45code.

(4) A 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 and
representation), 6 (pension board: information), 14
(information about benefits) and 16 (records) of the Public
25Service Pensions Act 2013.

(9) Sections 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) 30In subsection (1), after “code of practice” there is inserted “under section 90
or 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
35paragraph (b) there is inserted—

(ba) the 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
40“(within the meaning of the Pension Schemes Act 1993)”.

19 After 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
45pension board of a public service pension scheme.

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

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(a) the rules of the scheme, and

(b) any document recording policy about the administration of
the scheme which is for the time being adopted in relation to
the scheme.

(3) 5An individual to whom this section applies must have knowledge
and understanding of—

(a) the law relating to pensions, and

(b) such other matters as may be prescribed.

(4) The degree of knowledge and understanding required by subsection
10(3) is that appropriate for the purposes of enabling the individual
properly to exercise the functions of a member of the pension board.

20 In section 249A (requirement for internal controls), in subsection (3)—

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

(za) a public service pension scheme;;

(b) 15in paragraph (a) for “a scheme” there is substituted “any other
scheme”.

21 After section 249A there is inserted—

249B Requirement for internal controls: public service pension schemes

(1) The scheme manager of a public service pension scheme must
20establish and operate internal controls which are adequate for the
purpose of securing that the scheme is administered and managed—

(a) in accordance with the scheme rules, and

(b) in accordance with the requirements of the law.

(2) Nothing in this section affects any other obligations of the scheme
25manager to establish or operate internal controls, whether imposed
by or by virtue of any enactment, the scheme rules or otherwise.

(3) In this section, “enactment” and “internal controls” have the same
meanings as in section 249A.

22 (1) Section 318 (interpretation) is amended as follows.

(2) 30In subsection (1), after the definition of “occupational pension scheme” there
is inserted—

  • “pension board” has the same meaning as in the Public Service
    Pensions Act 2013 (see section 5 of that Act);.

(3) After the definition of “professional adviser” in that subsection there is
35inserted—

  • “public service pension scheme” means, subject to subsection
    (6)—

    (a)

    a scheme under section 1 of the Public Service
    Pensions Act 2013 (new public service schemes);

    (b)

    40a new public body pension scheme (within the
    meaning of that Act);

    (c)

    any statutory pension scheme which is connected
    with a scheme referred to in paragraph (a) or (b) (and
    for this purpose “statutory pension scheme” and
    45“connected” have the meanings given in that Act);.

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(4) After the definition of “the Regulator” in that subsection there is inserted—

  • “scheme manager”, in relation to a public service pension
    scheme, has the same meaning as in the Public Service
    Pensions Act 2013 (see section 4 of that Act);.

(5) 5After subsection (5) there is inserted—

(6) A scheme which would otherwise fall within the definition of
“public service pension scheme” in subsection (1) does not fall within
that definition if—

(a) it is an injury or compensation scheme (within the meaning
10of the Public Service Pensions Act 2013), or

(b) it is specified in an order made by the Secretary of State after
consulting the Treasury.

Section 18

SCHEDULE 5 Existing pension schemes

15Civil servants

1 A scheme under section 1 of the Superannuation Act 1972.

Judiciary

2 A scheme constituted by section 20 of the Sheriff Courts (Scotland) Act 1907.

3 A scheme constituted by paragraph 23 of Schedule 9 to the Agriculture Act
201947, so far as relating to payment of pension benefits.

4 A scheme constituted by or made under any provision of Part XIII of the
County Courts Act (Northern Ireland) 1959 (c. 25 (N.I.)).

5 A scheme constituted by or made under any provision of District Judges
(Magistrates’ Courts) Pensions Act (Northern Ireland) 1960 (c. 2 (N.I.)).

6 25A scheme constituted by or made under any provision of the Sheriffs’
Pensions (Scotland) Act 1961.

7 A scheme under paragraph 7A of Schedule 10 to the Rent Act 1977.

8 A scheme constituted by or made under any provision of the Judicial
Pensions Act 1981.

9 30A scheme constituted by paragraph 9 of Schedule 4 to the Rent (Scotland)
Act 1984.

10 A scheme constituted by or made under any provision of Part 1 or section 19
of the Judicial Pensions and Retirement Act 1993.

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11 A scheme constituted by paragraph 4(1) of Schedule 1 to the Scottish Land
Court Act 1993.

12 A scheme constituted by or made under paragraph 6 of Schedule 2 to the
Mental Health (Care and Treatment) (Scotland) Act 2003 (asp 13)2003 (asp 13).

13 5A scheme constituted by or made under paragraph 9 of Schedule 1 to the
Education (Additional Support for Learning) (Scotland) Act 2004 (asp 4)2004 (asp 4).

14 A scheme constituted by paragraph 2(1)(b) of Schedule 2 to the Charities and
Trustee Investment (Scotland) Act 2005 (asp 10)2005 (asp 10), so far as relating to
payment of pension benefits.

15 10A scheme constituted by paragraph 6(3) of Schedule 11 to the Welsh
Language (Wales) Measure 2011 (nawm 1).

Local government workers

16 A scheme constituted by paragraph 2 of Schedule 1 to the Coroners Act 1988.

17 Regulations under section 7 of the Superannuation Act 1972.

15Teachers

18 Regulations under section 9 of the Superannuation Act 1972.

Health service workers

19 Regulations under section 10 of the Superannuation Act 1972.

Fire and rescue workers

20 20A scheme under section 26 of the Fire Services Act 1947.

21 A scheme under section 34 of the Fire and Rescue Services Act 2004.

Members of police forces

22 Regulations under section 1 of the Police Pensions Act 1976.

23 A scheme under section 48 of the Police and Fire Reform (Scotland) Act 2012
25(asp 8).

Armed forces

24 The scheme constituted by the Royal Warrant of 19 December 1949 (see
Army Order 151 of 1949).

25 An Order in Council under section 3 of the Naval and Marine Pay and
30Pensions Act 1865.

26 An order under section 2 of the Pensions and Yeomanry Pay Act 1884.

27 An order under section 2 of the Air Force (Constitution) Act 1917.

28 Orders or regulations under section 4 of the Reserve Forces Act 1996
containing provision made under section 8 of that Act.

29 (1) 35A scheme under section 1(1) of the Armed Forces (Pensions and
Compensation) Act 2004.

(2) For the purposes of sub-paragraph (1), “compensation benefits” includes
benefits by way of payments for resettlement or retraining.

Section 19

SCHEDULE 6 40Existing injury and compensation schemes

Civil servants

1 A scheme under section 1 of the Superannuation Act 1972.

Judiciary

2 A scheme under paragraph 7A of Schedule 10 to the Rent Act 1977.

3 45A scheme constituted by or made under Part 3 of Schedule 1 to the Judicial
Pensions Act 1981.

4 A scheme constituted by section 11(b) of the Judicial Pensions Act 1981.

Local government workers

5 Regulations under section 7 of the Superannuation Act 1972.

50Teachers

6 Regulations under section 9 of the Superannuation Act 1972.

Health service workers

7 Regulations under section 10 of the Superannuation Act 1972.

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Fire and rescue workers

8 A scheme under section 34 of the Fire and Rescue Services Act 2004.

Members of police forces

9 Regulations under section 1 of the Police Pensions Act 1976.

10 5A scheme under section 48 of the Police and Fire Reform (Scotland) Act 2012
(asp 8).

Armed forces

11 The scheme constituted by the Royal Warrant of 19 December 1949 (see
Army Order 151 of 1949).

12 10An Order in Council under section 3 of the Naval and Marine Pay and
Pensions Act 1865.

13 An order under section 2 of the Pensions and Yeomanry Pay Act 1884.

14 An order under section 2 of the Air Force (Constitution) Act 1917.

15 An order or regulations under section 4 of the Reserve Forces Act 1996
15containing provision made under section 8 of that Act.

16 (1) A scheme under section 1(1) of the Armed Forces (Pensions and
Compensation) Act 2004.

(2) For the purposes of sub-paragraph (1), “compensation benefits” includes
benefits by way of payments for resettlement or retraining.

17 20A scheme under section 1(2) of the Armed Forces (Pensions and
Compensation) Act 2004.

Compensation schemes for loss of office etc

18 Regulations under section 24 of the Superannuation Act 1972.

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Sections 20 and 31

SCHEDULE 7 Final salary link

Persons who remain in an old scheme for past service

1 (1) This paragraph applies in a case where—

(a) 5a person is a member of an existing scheme to which section 18(1)
applies or a scheme to which section 31(2) applies (“the old scheme”)
by virtue of his or her pensionable service for that scheme (“the old
scheme service”), and

(b) the person is also a member of a scheme under section 1 or a new
10public body pension scheme (“the new scheme”) by virtue of his or
her pensionable service for that scheme (“the new scheme service”).

(2) If, in a case where this paragraph applies—

(a) the old scheme service and the new scheme service are continuous,
and

(b) 15the person’s employer in relation to the old scheme service is the
person’s employer in relation to the new scheme service (or any
other employer in relation to the new scheme),

then, in determining the person’s final salary for any purpose of the old
scheme—

(i) 20the old scheme service is to be regarded as having ended when the
new scheme service ended, and

(ii) such earnings as scheme regulations for the new scheme may
specify, being earnings derived by the person from the new scheme
service, are to be regarded as derived from the old scheme service
25(subject to sub-paragraph (3)).

(3) The amount of the earnings that are to be regarded as derived from the old
scheme service must not be materially less than the amount of the earnings
that would have been the person’s pensionable earnings derived from that
service had it ended when the new scheme service ended.

30Persons whose benefits under an old scheme are transferred to another closed scheme

2 (1) This paragraph applies in a case where—

(a) a person has been a member of an existing scheme to which section
18(1) applies or a scheme to which section 31(2) applies (“the old
scheme”) by virtue of his or her pensionable service for that scheme
35(“the old scheme service”),

(b) the person is also a member of a scheme under section 1 or a new
public body pension scheme (“the new scheme”) by virtue of his or
her pensionable service for that scheme (“the new scheme service”),

(c) the person’s rights to benefit under the old scheme have been
40transferred after the date referred to in section 18(1) or 31(2) to an
existing scheme to which section 18(1) applies or a scheme to which
section 31(2) applies (“the transfer scheme”), and

(d) the old scheme service is treated, by virtue of that transfer, as
pensionable service of the person for the transfer scheme (“the
45deemed transfer scheme service”).

(2) If, in a case where this paragraph applies—

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(a) the deemed transfer scheme service and the new scheme service are
continuous, and

(b) the person’s employer in relation to the new scheme service is an
employer in relation to the transfer scheme,

5then, in determining the person’s final salary for any purpose of the transfer
scheme—

(i) the deemed transfer scheme service is to be regarded as having
ended when the new scheme service ended, and

(ii) such earnings as scheme regulations for the new scheme may
10specify, being earnings derived by the person from the new scheme
service, are to be regarded as derived from the deemed transfer
scheme service (subject to sub-paragraph (3)).

(3) The amount of the earnings that are to be regarded as derived from the
deemed transfer scheme service must not be materially less than the amount
15of the earnings that would have been the person’s pensionable earnings
derived from that service had it ended when the new scheme service ended.

(4) In sub-paragraph (1)(c), the reference to a transfer of rights to benefit
includes the making of a transfer payment in respect of such rights.

Continuity of employment

3 (1) 20For the purposes of paragraphs 1(2)(a) and 2(2)(a), there are to be
disregarded—

(a) any gap in service where the person was in pensionable public
service;

(b) a single gap of service where the person was not in pensionable
25public service, if that gap does not exceed five years;

(c) two or more gaps in service where the person was not in pensionable
public service, if none of the gaps exceeds five years.

(2) In this paragraph, “pensionable public service” means service which is
pensionable service in relation to—

(a) 30a scheme under section 1, or

(b) a new public body pension scheme.

Movement between new schemes

4 Where the condition in sub-paragraph (1)(b) of paragraph 1 or 2 applies by
virtue of periods of pensionable service for two or more different schemes—

(a) 35identify the last period of pensionable service by virtue of which that
paragraph applies and the scheme to which that service relates, and

(b) disregard, for the purposes of that sub-paragraph, periods of
pensionable service relating to other schemes.

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Section 27

SCHEDULE 8 Consequential and minor amendments

County Courts Act (Northern Ireland) 1959 (c. 25 (N.I.))

1 In section 116 of the County Courts Act (Northern Ireland) 1959 (pensions of
5judges), at the end there is inserted—

(8) This Part is subject to section 18 of the Public Service Pensions Act
2013 (restrictions on benefits provided under existing schemes).

District Judges (Magistrates’ Courts) Pensions Act (Northern Ireland) 1960 (c. 2 (N.I.))

2 In section 2 of the District Judges (Magistrates’ Courts) Pensions Act
10(Northern Ireland) 1960, after subsection (1A) there is inserted—

(1B) This Act is subject to section 18 of the Public Service Pensions Act
2013 (restrictions on benefits provided under existing schemes).

Sheriffs’ Pensions (Scotland) Act 1961 (c. 2)1961 (c. 2)

3 In section 1 of the Sheriffs’ Pensions (Scotland) Act 1961, after subsection (1)
15there is inserted—

(1A) This Act is subject to section 18 of the Public Service Pensions Act
2013 (restrictions on benefits provided under existing schemes).

Pensions (Increase) Act 1971 (c. 56)1971 (c. 56)

4 (1) Schedule 2 to the Pensions (Increase) Act 1971 (official pensions) is amended
20as follows.

(2) After paragraph 4 there is inserted—

4ZA A pension payable under a scheme made by the Minister for the
Civil Service under section 1 of the Public Service Pensions Act
2013 by virtue of section 1(2)(a) of that Act (civil servants).

(3) 25After paragraph 4A there is inserted—

4B A pension payable under a scheme made by the Minister for the
Civil Service under section 1 of the Public Service Pensions Act
2013 by virtue of section 1(2)(b) of that Act (judiciary).

(4) After paragraph 15A there is inserted—

15B 30A pension payable by the Secretary of State under a scheme made
by the Secretary of State under section 1 of the Public Service
Pensions Act 2013 by virtue of section 1(2)(g) of that Act (members
of police forces) to or in respect of such a person as is referred to in
paragraph 15 above.

(5) 35After paragraph 16A there is inserted—

16B A pension payable by the Secretary of State under a scheme made
by the Secretary of State under section 1 of the Public Service
Pensions Act 2013 by virtue of section 1(2)(f) of that Act (fire and
rescue workers).

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(6) After paragraph 20A there is inserted—

20B A pension payable by the Secretary of State under a scheme made
by the Secretary of State under section 1 of the Public Service
Pensions Act 2013 by virtue of section 1(2)(d) of that Act (teachers).

20C 5A pension payable under a scheme made by the Scottish Ministers
under section 1 of the Public Service Pensions Act 2013 by virtue
of section 1(2)(d) of that Act (teachers).

(7) After paragraph 22 there is inserted—

22A A pension payable by the Secretary of State under a scheme made
10by the Secretary of State under section 1 of the Public Service
Pensions Act 2013 by virtue of section 1(2)(e) of that Act (health
service workers).

22B A pension payable under a scheme made by the Scottish Ministers
under section 1 of the Public Service Pensions Act 2013 by virtue
15of section 1(2)(e) of that Act (health service workers).

(8) After paragraph 29 there is inserted—

A pension payable under a scheme made under section 1 of the
Public Service Pensions Act 2013 by virtue of section 1(2)(h) of that
Act (armed forces).

(9) 20After paragraph 39 there is inserted—

39A A pension payable under a defined benefits scheme, within the
meaning of the Public Service Pensions Act 2013, made by the
Secretary of State or the Scottish Ministers under section 1 of that
Act by virtue of section 1(2)(c) of that Act (local government
25workers).

(10) After paragraph 43 there is inserted—

43A A pension payable under a defined benefits scheme, within the
meaning of the Public Service Pensions Act 2013, made by the
Secretary of State or the Scottish Ministers under section 1 of that
30Act by virtue of section 1(2)(g) of that Act (police).

(11) After paragraph 44 there is inserted—

44A A pension payable under a defined benefits scheme, within the
meaning of the Public Service Pensions Act 2013, made by the
Secretary of State, the Scottish Ministers or the Welsh Ministers
35under section 1 of that Act by virtue of section 1(2)(f) of that Act
(fire and rescue workers).