SCHEDULE 17 continued PART 1 continued
Pensions BillPage 100
(2) The regulations may in particular—
(a)
provide that a cash equivalent is to be increased or reduced in
prescribed circumstances;
(b)
make provision about the time by reference to which a cash
5equivalent is to be calculated for the purposes of a provision of the
regulations.
(3)
Regulations made because of sub-paragraph (2)(a) may provide for a cash
equivalent to be reduced to nil.
9 (1) 10The regulations must make provision about disclosure of information.
(2)
The regulations may in particular require a person to disclose information to
another person—
(a)
for the purposes of helping a person to comply with a duty imposed
on the person by the regulations, or
(b) 15otherwise for the purposes of a provision of the regulations.
(3)
The regulations may require the Secretary of State or the Regulator to
establish and operate a database containing information relating to people
who have or had transferable benefits for the purposes of helping the
trustees or managers of an automatic transfer scheme to comply with their
20duties under the regulations.
10
(1)
The regulations may make provision with a view to ensuring compliance
with any provision of the regulations.
(2) For this purpose the regulations may in particular—
(a)
25provide for the Regulator to issue a notice (a “compliance notice”) to
a person with a view to ensuring the person’s compliance with a
provision of the regulations;
(b)
provide for the Regulator to issue a notice (a “third party compliance
notice”) to a person with a view to ensuring another person’s
30compliance with a provision of the regulations;
(c)
provide for the Regulator to issue a notice (a “penalty notice”)
imposing a penalty on a person where the Regulator is of the opinion
that the person has failed to comply with a compliance notice or third
party compliance notice or has contravened a provision of the
35regulations;
(d)
provide for the making of a reference to the First-tier Tribunal or
Upper Tribunal in respect of the issue of a penalty notice or the
amount of a penalty;
(e) confer other functions on the Regulator.
(3)
40The regulations may make provision for determining the amount, or the
maximum amount, of a penalty in respect of a failure or contravention.
(4)
But the amount of a penalty imposed under the regulations in respect of a
failure or contravention must not exceed—
(a) £5,000, in the case of an individual, and
(b) 45£50,000, in any other case.
Pensions BillPage 101
11 (1) The regulations may require any person—
(a) to make records;
(b) to preserve records for a prescribed period;
(c) 5to provide records to the Regulator on request.
(2)
The regulations may provide that section 10 of the Pensions Act 1995 (civil
penalties) applies to a person who fails to comply with those requirements.
12 The regulations may—
(a)
10impose or confer other functions on the trustees or managers of an
automatic transfer scheme or transferable benefits scheme;
(b) confer a discretion on a person.
13
(1)
15The regulations must require the Secretary of State to review from time to
time the amount for the time being prescribed under paragraph 1(4)(f).
(2) The regulations must provide—
(a)
for the first review to be conducted no later than 5 years after the date
on which regulations under this Schedule first come into force;
(b)
20for subsequent reviews to be conducted no later than 5 years after the
previous review.
(3)
The regulations must require the Secretary of State, in conducting a review,
to have regard to—
(a) changes in the general level of prices in Great Britain;
(b) 25changes in the general level of earnings in Great Britain;
(c) any other factors the Secretary of State considers relevant.
(4)
The regulations must authorise the Secretary of State to estimate the general
level of prices or earnings for the purposes of the review in the manner the
Secretary of State thinks fit.
14
(1)
The Secretary of State may by regulations make provision for the purposes
of requiring dormant pension accounts of a qualifying member of an
automatic transfer scheme to be merged into a current pension account of
35the member.
(2)
The regulations may not require a dormant pension account to be merged
unless the accrued rights to benefits to which the account relates would be
transferable benefits of the member if—
(a)
all other accrued rights to benefits of the member, and any relevant
40contributions, were ignored, and
(b) any other prescribed matter were ignored.
Pensions BillPage 102
(3) The regulations may in particular—
(a)
make provision for determining into which current pension account
(if the member has more than one) a dormant pension account is to
be merged;
(b)
5provide that the rules of the scheme that are to apply to a merged
pension account are those that apply to the current pension account
into which a dormant pension account is being merged;
(c)
require the trustees or managers of the scheme to make a transfer of
assets representing the accrued rights to benefits to which a dormant
10pension account relates;
(d)
include provision corresponding or similar to any provision which
may be made by regulations under Part 1 of this Schedule.
(4)
In this paragraph “pension account”, in relation to a member of a scheme,
means an account relating to the member’s accrued rights to benefits in
15respect of a particular period of employment; and a pension account—
(a)
is “dormant” if relevant contributions in relation to the period of
employment to which the account relates have ceased; and
(b) is “current” if such contributions have not ceased.
(5) In this paragraph—
(a)
20references to “accrued rights to benefits”, in relation to a member of
a scheme, are to accrued rights to benefits under the applicable rules
(within the meaning given by paragraph 1(6));
(b) “employment” has the prescribed meaning;
(c)
“relevant contributions”, in relation to a member of a scheme, means
25contributions to the scheme by, or on behalf or in respect of, the
member.
15 (1) 30In this Schedule—
“active member”—
in relation to an occupational pension scheme, has the
meaning given by section 124(1) of the Pensions Act 1995,
and
35in relation to a personal pension scheme, means a member of
the scheme in respect of whom contributions are being paid
into the scheme;
“automatic transfer scheme” has the meaning given by paragraph 1(2);
“managers”, in relation to a pension scheme (other than a scheme
40established under a trust), means the persons responsible for the
management of the scheme;
“money purchase benefits” has the meaning given by section 181(1) of
the Pension Schemes Act 1993;
“money purchase scheme” has the meaning given by section 181(1) of
45the Pension Schemes Act 1993;
“occupational pension scheme” has the meaning given by section 1 of
the Pension Schemes Act 1993;
Pensions BillPage 103
“pension scheme” means—
an occupational pension scheme, or
a personal pension scheme;
“personal pension scheme” has the meaning given by section 1 of the
5Pension Schemes Act 1993;
“prescribed” means prescribed by regulations made by the Secretary of
State;
“qualifying member” has the meaning given by paragraph 1(3);
“the Regulator” means the Pensions Regulator;
10“transferable benefits”, and references to a person having transferable
benefits, are to be read in accordance with paragraph 1(4);
“transferable benefits scheme” has the meaning given by paragraph
1(5);
“transfer notice” means a notice given under regulations made because
15of paragraph 3;
“work-based pension scheme” means—
an occupational pension scheme,
a personal pension scheme where direct payment
arrangements (within the meaning of section 111A of the
20Pension Schemes Act 1993) exist in respect of one or more
members of the scheme who are workers, or
a personal pension scheme which is or has been registered
under section 2 of the Welfare Reform and Pensions Act 1999
(stakeholder pension schemes);
25“worker” means a person—
who is a worker for the purposes of Part 1 of the Pensions Act
2008, or
to whom a provision of Part 1 of that Act applies as if the
person were a worker because of a provision of Chapter 8 of
30that Part;
but for the purposes of paragraph (b), ignore section 92 of that Act.
(2)
The Secretary of State may by regulations make provision about when
contributions to a pension scheme are to be regarded as having ceased for
the purposes of paragraph 1(4)(c) or 14(4).
16
(1)
This Schedule applies to a pension scheme managed by or on behalf of the
Crown as it applies to other pension schemes.
(2)
Accordingly, references in this Schedule to a person in the person’s capacity
as a trustee or manager of a pension scheme include the Crown, or a person
40acting on behalf of the Crown, in that capacity.
(3)
This Schedule applies to persons employed by or under the Crown as it
applies to persons employed by a private person.
17
(1)
Regulations under this Schedule may provide that specified provisions
45override any provision of an automatic transfer scheme or transferable
benefits scheme to the extent that it conflicts with them.
Pensions BillPage 104
(2)
A “specified provision” is a provision of regulations under this Schedule
specified in the regulations for the purposes of this paragraph.
18
(1)
Regulations under this Schedule may amend or otherwise modify any
5enactment (whenever passed or made).
(2)
Regulations made because of sub-paragraph (1) may in particular amend
section 175(1) of the Pension Schemes Act 1993 (levies towards certain
expenditure) so as to include expenditure of the Secretary of State or the
Commissioners for Her Majesty’s Revenue and Customs under the
10regulations.
(3)
In this paragraph “enactment” includes an enactment contained in
subordinate legislation within the meaning of the Interpretation Act 1978.
19
Before making any regulations under this Schedule, the Secretary of State
must consult such persons as the Secretary of State considers appropriate.
20 (1) The Pension Schemes Act 1993 is amended as follows.
(2) In section 94(2A) (right to cash equivalent)—
(a) in paragraph (a), after sub-paragraph (vii) insert—
“(viii)
regulations made under Schedule 17 to the
20Pensions Act 2014;”;
(b) in paragraph (b), after sub-paragraph (v) insert—
“(vi)
regulations made under paragraph 17 of
Schedule 17 to the Pensions Act 2014;”.
(3)
In section 101AI(8) (rights to cash transfer sum and contribution refund:
25further provisions)—
(a) in paragraph (a), after sub-paragraph (vii) insert—
“(viii)
regulations made under Schedule 17 to the
Pensions Act 2014;”;
(b) in paragraph (b), after sub-paragraph (v) insert—
“(vi)
30regulations made under paragraph 17 of
Schedule 17 to the Pensions Act 2014;”.
21
In section 256 of the Pensions Act 2004 (no indemnification for fines or civil
penalties), in subsection (1)(b)—
(a) for “or section” substitute “, section”;
(b)
35after “2008” insert “or paragraph 10 of Schedule 17 to the Pensions
Act 2014”.
Pensions BillPage 105
Section 43
1 (1) The Secretary of State may by regulations make provision—
(a)
5prohibiting administration charges which are of a specified class or
description, or which exceed specified limits, from being imposed on
a member of a relevant scheme;
(b)
prohibiting a relevant scheme from containing provision under
which administration charges which are of a specified class or
10description, or which exceed specified limits, will or may be imposed
on a member of the scheme.
“Specified” means specified in the regulations.
(2) The regulations—
(a)
may make provision for the manner of, and criteria for, determining
15whether an administration charge is of a specified class or
description or exceeds specified limits;
(b)
may provide for the determination to be made in accordance with
guidance issued from time to time by the Secretary of State.
(3)
The regulations may impose duties on the trustees or managers of a relevant
20scheme or others.
(4)
The regulations may provide that a scheme is not a qualifying scheme in
relation to a jobholder for the purposes of Part 1 of the Pensions Act 2008 if
a provision of the regulations—
(a) is contravened, or
(b) 25is contravened in a way specified in the regulations.
(5) In this paragraph—
“administration charge”, in relation to a member of a pension scheme,
means any of the following to the extent that they may be used to
meet the administrative expenses of the scheme, to pay commission
30or in any other way that does not result in the provision of pension
benefits for or in respect of members—
any payments made to the scheme by, or on behalf or in
respect of, the member,
any income or capital gain arising from the investment of
35such payments, or
the value of the member’s rights under the scheme;
“relevant scheme” means a pension scheme of a description specified in
the regulations.
2
(1)
40The Secretary of State may by regulations impose requirements relating to
the administration or governance of a relevant scheme that must be satisfied
in relation to the scheme.
(2) The regulations—
(a)
may make provision for the manner of, and criteria for, determining
45whether a requirement is satisfied;
Pensions BillPage 106
(b)
may provide for the determination to be made in accordance with
guidance issued from time to time by the Secretary of State.
(3)
The regulations may impose duties on the trustees or managers of a relevant
scheme or others.
(4)
5The regulations may provide that a scheme is not a qualifying scheme in
relation to a jobholder for the purposes of Part 1 of the Pensions Act 2008 if
a provision of the regulations—
(a) is contravened, or
(b) is contravened in a way specified in the regulations.
(5)
10In this paragraph “relevant scheme” means a pension scheme of a
description specified in the regulations.
3
(1)
The Secretary of State may by regulations make provision with a view to
ensuring compliance with a provision of regulations under paragraph 1 or 2.
(2) 15The regulations may in particular—
(a)
provide for the Regulator to issue a notice (a “compliance notice”) to
a person with a view to ensuring the person’s compliance with a
provision of regulations under paragraph 1 or 2;
(b)
provide for the Regulator to issue a notice (a “third party compliance
20notice”) to a person with a view to ensuring another person’s
compliance with a provision of regulations under paragraph 1 or 2;
(c)
provide for the Regulator to issue a notice (a “penalty notice”)
imposing a penalty on a person where the Regulator is of the opinion
that the person has failed to comply with a compliance notice or third
25party compliance notice or has contravened a provision of
regulations under paragraph 1 or 2;
(d)
provide for the making of a reference to the First-tier Tribunal or
Upper Tribunal in respect of the issue of a penalty notice or the
amount of a penalty;
(e) 30confer other functions on the Regulator.
(3)
The regulations may make provision for determining the amount, or the
maximum amount, of a penalty in respect of a failure or contravention.
(4)
But the amount of a penalty imposed under the regulations in respect of a
failure or contravention must not exceed—
(a) 35£5,000, in the case of an individual, and
(b) £50,000, in any other case.
4
(1)
Expressions used in this Schedule and in Schedule 17 have the same
meaning in this Schedule as in that Schedule (see paragraph 15 of that
40Schedule).
(2)
In this Schedule “relevant scheme” is to be construed in accordance with
paragraphs 1(5) and 2(5).
Pensions BillPage 107
5
(1)
This Schedule applies to a pension scheme managed by or on behalf of the
Crown as it applies to other pension schemes.
(2)
Accordingly, a reference in this Schedule to a person in the person’s capacity
5as a trustee or manager of a pension scheme include the Crown, or a person
acting on behalf of the Crown, in that capacity.
(3)
This Schedule applies to persons employed by or under the Crown as it
applies to persons employed by a private person.
6
(1)
10The Secretary of State may by regulations provide that specified provisions
override any provision of a relevant scheme to the extent that it conflicts
with them.
(2)
A “specified provision” is a provision of regulations under this Schedule
specified in regulations made under sub-paragraph (1).
7
(1)
The Secretary of State may by regulations amend or otherwise modify any
enactment (whenever passed or made) in connection with any provision
made by regulations under the preceding provisions of this Schedule.
(2)
In this paragraph “enactment” includes an enactment contained in
20subordinate legislation within the meaning of the Interpretation Act 1978.
8
Before making any regulations under this Schedule, the Secretary of State
must consult such persons as the Secretary of State considers appropriate.
9 (1) The Pension Schemes Act 1993 is amended as follows.
(2) 25In section 94(2A) (right to cash equivalent)—
(a)
in paragraph (a), after sub-paragraph (viii) (inserted by Schedule 17
to this Act) insert—
“(ix)
regulations made under Schedule 18 to the
Pensions Act 2014;”;
(b)
30in paragraph (b), after sub-paragraph (vi) (inserted by Schedule 17 to
this Act) insert—
“(vii)
regulations made under paragraph 6 of
Schedule 18 to the Pensions Act 2014.”
(3)
In section 101AI(8) (rights to cash transfer sum and contribution refund:
35further provisions)—
(a)
in paragraph (a), after sub-paragraph (viii) (inserted by Schedule 17
to this Act) insert—
“(ix)
regulations made under Schedule 18 to the
Pensions Act 2014;”;
(b) 40in paragraph (b), after sub-paragraph (vi) (inserted by Schedule 17 to
Pensions BillPage 108
this Act) insert—
“(vii)
regulations made under paragraph 6 of
Schedule 18 to the Pensions Act 2014.”
10
In section 256 of the Pensions Act 2004 (no indemnification for fines or civil
5penalties), in subsection (1)(b), after “or paragraph 10 of Schedule 17 to the
Pensions Act 2014” (inserted by Schedule 17 to this Act) insert “or paragraph
3 of Schedule 18 to that Act”.
11
(1)
Section 16 of the Pensions Act 2008 (automatic enrolment: qualifying
schemes) is amended as follows.
(2) 10In subsection (3), omit paragraphs (a), (aa) and (ab).
(3) After subsection (3) insert—
“(3A)
See also paragraphs 1(4) and 2(4) of Schedule 18 to the Pensions Act
2014, which confer power to make regulations providing for a
scheme not to be a qualifying scheme in relation to a jobholder in
15certain circumstances.”
(4) Omit subsections (4) and (5).
12
In consequence of the amendments made by paragraph 11, section 10 of the
Pensions Act 2011 (qualifying schemes: administration charges) is repealed.
Section 46
1 The Pensions Act 1995 is amended as follows.
2 In section 6 (removal or suspension of trustees: consequences)—
(a) in subsections (1) and (3), after “section 3” insert “or 3A”;
(b) 25in subsection (4), after “section 3” insert “, 3A”.
3
In section 7 (appointment of trustees), in subsection (1), after “section 3,”
insert “by section 3A”.
4
In section 9 (removal and appointment of trustees: property), after “a
trustee” insert “or a trustee is removed under section 3A”.
5 The Pensions Act 2004 is amended as follows.
6
In section 10 (functions exercisable by the Determinations Panel), in
subsection (6), after paragraph (e) insert—
“(ea)
section 3A(3) of that Act (application for waiver of
35prohibition);”.
7 In section 66 (register of prohibited trustees), in subsection (1), for the words
Pensions BillPage 109
from “of all” to the end substitute “(“the prohibition register”) of—
“(a)
all persons who are prohibited under section 3 of the
Pensions Act 1995, and
(b)
all persons appearing to the Regulator to be prohibited under
5section 3A of that Act.”
8
In section 96 (Pensions Regulator’s regulatory functions: standard
procedure), in subsection (6), after paragraph (i) insert—
“(ia)
the power under section 3A(3) of that Act to give a notice
waiving a prohibition;”.
9
10In section 97 (Pensions Regulator’s regulatory functions: special procedure),
in subsection (5), after paragraph (j) insert—
“(ja)
the power under section 3A(3) of that Act to give a notice
waiving a prohibition;”.
10
(1)
Schedule 2 (Pensions Regulator’s reserved regulatory functions) is amended
15as follows.
(2) After paragraph 5 insert—
“5A
The power under section 3A(3) to give a notice waiving a
prohibition.”
(3) In paragraph 9(a), after “orders)” insert “or by section 3A”.
Section 50
1
Schedule 7 to the Pensions Act 2004 (pension compensation provisions) is
25amended as follows.
2
In paragraph 26 (the compensation cap), for the definition of “the
compensation cap” in sub-paragraph (7) substitute—
““the compensation cap” has the meaning given by
paragraph 26A;”.
3 30After paragraph 26 insert—
“26A
(1)
This paragraph gives the meaning of “the compensation cap” for
the purposes of paragraph 26.
(2)
The amount of the compensation cap for a person depends on the
person’s age and length of pensionable service at the time when
35the person first becomes entitled to the relevant compensation.
(3)
“The compensation cap” for a person who has 20 or fewer years of
pensionable service at that time is the standard amount.
(4)
“The compensation cap” for a person who has more than 20 years
of pensionable service at that time is—