requires the trustees or managers to use a cash equivalent for acquiring
flexible benefits under the rules of another pension scheme the cash
equivalent must be reduced by an amount determined in accordance
with the regulations.

(2) 5Regulations under subsection (1) may not require a reduction in cases
where a scheme ceases to be a designated scheme before the date on
which the trustees or managers do what is needed to carry out what the
member requires.

(3) Regulations under subsection (1) may produce the result (alone or in
10conjunction with regulations under section 93) that the amount by
which a cash equivalent is to be reduced is such an amount that a
member has no right to receive anything.

(4) In subsection (1), “designated scheme” means a funded public service
defined benefits scheme, or part of such a scheme, that (on the date of
15the application under section 91(1)) is designated under section 93A.”

71 Public service defined benefits schemes: consequential amendments:
Northern Ireland

(1) In the Pension Schemes (Northern Ireland) Act 1993, in section 176 (general
interpretation), in subsection (1), in the definition of “regulations”, after
20“means” insert “, unless the context otherwise requires,”.

(2) In that Act, in section 181 (Assembly etc control of regulations and orders)—

(a) in subsection (2) (regulations and orders subject to confirmatory
procedure), at the end insert “and to regulations made by the
Department of Finance and Personnel under section 93A(10)”;

(b) 25in subsection (4) (regulations and orders subject to negative resolution),
for “shall” substitute “and regulations made by the Department of
Finance and Personnel under section 91 or 93B shall”.

(3) In the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)S.I. 2005/255 (N.I. 1)), in Article
14 (pension liberation: interpretation), in paragraph (4)(a) (meaning of
30“authorised way”), omit “subsection (2) or, as the case may be, subsection (3)
of”.

CHAPTER 5 Interpretation of Part 4

72 Meaning of “flexible benefit”

In this Part “flexible benefit”, in relation to a member of a pension scheme,
35means—

(a) a money purchase benefit,

(b) a cash balance benefit, or

(c) a benefit, other than a money purchase benefit or cash balance benefit,
calculated by reference to an amount available for the provision of
40benefits to or in respect of the member (whether the amount so
available is calculated by reference to payments made by the member
or any other person in respect of the member or any other factor).

73 Meaning of “cash balance benefit”

(1) In this Part “cash balance benefit”, in relation to a member of a pension scheme,
means a benefit calculated by reference to an amount available for the
provision of benefits to or in respect of the member (“the available amount”)
5where there is a promise about that amount.

(2) But a benefit is not a “cash balance benefit” if, under the scheme—

(a) a pension may be provided from the available amount to or in respect
of the member, and

(b) there is a promise about the rate of that pension.

(3) 10The promise mentioned in subsection (1) includes, in particular, a promise
about the change in the value of, or the return from, payments made by the
member or any other person in respect of the member.

(4)
The promise mentioned in subsection (2)(b) includes a promise that—

(a) the available amount will be sufficient to provide a pension of a
15particular rate;

(b) the rate of a pension will represent a particular proportion of the
available amount.

(5) A benefit is not excluded from the definition of “cash balance benefit” by
subsection (2) merely because under the scheme there is a promise that—

(a) 20the rate or amount of the benefit payable in respect of a deceased
member will be a particular proportion of the rate or amount of the
benefit which was (or would have been) payable to the member, or

(b) the amount of a lump sum payable to a member, or in respect of a
deceased member, will represent a particular proportion of the
25available amount.

74 Interpretation of Part 4

UK definitions

(1) In this Part—

• “cash balance benefit” has the meaning given by section 73;

• 30“dependants’ drawdown pension”, in relation to a survivor, has the
  meaning given by paragraph 18 of Schedule 28 to the Finance Act 2004;

• “drawdown pension”, in relation to a member, has the meaning given by
  paragraph 4 of Schedule 28 to the Finance Act 2004;

• “flexible benefit” has the meaning given by section 72;

• 35“normal pension age”, in relation to a benefit for a member of a pension
  scheme or a survivor of a member, means—

  (a)

  the earliest age at which, or earliest occasion on which, the
  member or survivor is entitled to receive the benefit without
  adjustment for taking it early or late (disregarding any special
  40provision as to early payment on the grounds of ill health or
  otherwise), or

  (b)

  if there is no such age or occasion, normal minimum pension
  age as defined by section 279(1) of the Finance Act 2004;

• “subsisting right”—

  (a)

  45in relation to a member of a pension scheme means—

  (i)

  any right which has accrued to or in respect of the
  member to future benefits under the scheme, or

  Pension Schemes BillPage 42

  (ii)

  any entitlement to benefits under the scheme,

  (b)

  in relation to a survivor of a member of a pension scheme,
  means any right to future benefits, or entitlement to benefits,
  which the survivor has under the scheme in respect of the
  5member;

• “survivor”, in relation to a member of an occupational pension scheme,
  means a person who has survived the member and has a right to future
  benefits, or is entitled to benefits, under the scheme in respect of the
  member;

• 10“trustees or managers” means—

  (a)

  in relation to a scheme established under a trust, the trustees,
  and

  (b)

  in relation to any other scheme, the managers.

Great Britain only definitions

(2)
15In any provision of this Part as it extends to England and Wales and Scotland—

• “money purchase benefits” has the meaning given by section 181 of the
  Pension Schemes Act 1993;

• “occupational pension scheme” has the meaning given by section 1 of the
  Pension Schemes Act 1993;

• 20“pension scheme” has the meaning given by section 1(5) of the Pension
  Schemes Act 1993.

Northern Ireland only definitions

(3)
In any provision of this Part as it extends to Northern Ireland—

• “money purchase benefits” has the meaning given by section 176 of the
  25Pension Schemes (Northern Ireland) Act 1993;

• “occupational pension scheme” has the meaning given by section 1 of the
  Pension Schemes (Northern Ireland) Act 1993;

• “pension scheme” has the meaning given by section 1(5) of the Pension
  Schemes (Northern Ireland) Act 1993.

30Part 5 Miscellaneous

Remploy

75 Payments into Remploy Limited Pension and Assurance Scheme

The Secretary of State may make payments into the Remploy Limited Pension
35and Assurance Scheme.

Judicial pensions

76 Pension scheme for fee-paid judges

(1) In the Judicial Pensions and Retirement Act 1993, after Part 1 insert—

“PART 1A

18A Pension scheme for fee-paid judges

(1) 5The appropriate Minister may by regulations establish a scheme for the
payment of pensions and other benefits to or in respect of fee-paid
judges.

(2) The scheme may make provision for payments to or in respect of a
person in relation to the person’s service before the scheme is
10established.

(3) No benefits are to be provided under a new public service pension
scheme in relation to service in relation to which benefits are to be
provided under a scheme under this section.

“New public service pension scheme” means a scheme under—

(a) 15section 1 of the Public Service Pensions Act 2013, or

(b) section 1 of the Public Service Pensions Act (Northern Ireland)
2014 (c. 2)2014 (c. 2).

(4) The power under section 18(5) of the Public Service Pensions Act 2013
is to include power to provide for exceptions in the case of a person
20who—

(a) served as a fee-paid judge before 1 April 2012, and

(b) has been notified by the appropriate Minister that he or she will
potentially be eligible for benefits under a scheme under this
section in relation to that service,

25(and section 18(6) to (8) of the 2013 Act apply accordingly).

(5) The power under section 18(5) of the Public Service Pensions Act
(Northern Ireland) 2014 is to include power to provide for exceptions in
the case of a person who—

(a) served as a fee-paid judge before 1 April 2012, and

(b) 30has been notified by the appropriate Minister that he or she will
potentially be eligible for benefits under a scheme under this
section in relation to that service,

(and section 18(7) to (9) of the 2014 Act apply accordingly).

(6) Regulations under this section may, in particular, include provision
35corresponding or similar to—

(a) any provision made by Part 1, section 20 or Schedule 2 or 2A;

(b) any provision that may be made by regulations under Part 1,
section 20 or Schedule 2 or 2A.

(7) In this section—

• 40“judge” means a person who holds an office specified in the
  regulations;

• “fee-paid judge” means a judge whose service is remunerated by
  the payment of fees (as opposed to the payment of a salary).”

(2) Schedule 5 contains related amendments.

77 Judicial pensions: pension sharing on divorce etc

In paragraph 1(5) of Schedule 2A to the Judicial Pensions and Retirement Act
1993 (pension credits), for the words from “in respect of the office” to the end
5substitute “in respect of the rights from which the pension credit is derived”.

Marriage of same sex couples

78 Extension to Scotland of certain provisions about marriage of same sex
couples

Sections 17(11), 24D(5), 37(7) and 38A of the Pension Schemes Act 1993
10(regulations about relevant gender change cases) extend to Scotland.

Pension sharing

79 Pension sharing and normal benefit age

(1) The Pension Schemes Act 1993 is amended as follows.

(2) In section 101B (interpretation), for the definition of “normal benefit age”
15substitute—

• ““normal benefit age”, in relation to a pension credit benefit for a member
  of a scheme, is the earliest age at which the member is entitled to receive
  the benefit without adjustment for taking it early or late (disregarding
  any special provision as to early payment on the grounds of ill-health
  20or otherwise);

• “normal pension age”, in relation to a benefit for a member of a scheme,
  means the earliest age at which the member is entitled to receive the
  benefit without adjustment for taking it early or late (disregarding any
  special provision as to early payment on the grounds of ill-health or
  25otherwise);”.

(3) In section 101C (basic principle as to pension credit benefit), for subsection (1)
substitute—

“(1) The normal benefit age in relation to a pension credit benefit for a
member of a scheme—

(a) 30must not be lower than 60, and

(b) must not be higher than the permitted maximum.

(1A) The “permitted maximum” is 65 or, if higher, the highest normal
pension age for any benefit that is payable under the scheme to or in
respect of any of the members by virtue of rights which are not
35attributable (directly or indirectly) to a pension credit.”

Part 6 General

80 Power to make consequential amendments

(1) The Secretary of State or the Treasury may by regulations make provision that
5is consequential on any provision made by this Act.

(2) Regulations under this section may amend, repeal, revoke or otherwise modify
any legislation (whenever passed or made).

(3) “Legislation” means—

(a) an Act, or

(b) 10subordinate legislation as defined by section 21(1) of the Interpretation
Act 1978.

81 Regulations

(1) Regulations made by the Secretary of State or the Treasury under this Act are
to be made by statutory instrument.

(2) 15A power of the Department for Social Development in Northern Ireland to
make regulations under this Act is exercisable by statutory rule for the
purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573S.I. 1979/1573
(N.I. 12)).

(3) A statutory instrument containing regulations under section 80 that amend,
20repeal or otherwise modify a provision of an Act (whether alone or with other
provision) may not be made unless a draft of the instrument has been laid
before and approved by a resolution of each House of Parliament.

(4) Any other statutory instrument containing regulations under this Act is subject
to annulment in pursuance of a resolution of either House of Parliament.

(5) 25Subsection (4) does not apply to a statutory instrument containing regulations
under section 84(4) or (6) only.

(6) Regulations made by the Department for Social Development in Northern
Ireland under this Act are subject to negative resolution within the meaning of
section 41(6) of the Interpretation Act (Northern Ireland) 1954 (c. 33 (N.I.)).

(7) 30A power to make regulations under this Act may be used—

(a) to make different provision for different purposes;

(b) in relation to all or only some of the purposes for which it may be used.

(8) Regulations under this Act may include incidental, supplementary,
consequential, transitional, transitory or saving provision.

82 35Crown application

(1) In this section “the relevant provisions” means—

(a) Part 2,

(b) section 36,

(c) section 37,

(d) 40in Chapter 2 of Part 4, sections 48, 49, 51 and 52, and

(e) in Chapter 3 of Part 4, sections 55 to 57 and 60 to 62.

(2) The relevant provisions apply to a pension scheme managed by or on behalf of
the Crown as they apply to other pension schemes.

(3) Accordingly, references in those provisions 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.

(4) References in the relevant provisions to a person in the person’s capacity as an
employer include the Crown, or a person acting on behalf of the Crown, in that
capacity.

(5) 10Nothing in the relevant provisions applies to Her Majesty in Her private
capacity (within the meaning of the Crown Proceedings Act 1947).

83 Extent

(1) This Act extends to England and Wales and Scotland only, subject to the
following provisions of this section.

(2) 15Any amendment or repeal made by this Act has the same extent as the
enactment to which it relates.

(3) Section 78 extends to Scotland only.

(4) The following extend also to Northern Ireland—

(a) section 54(3);

(b) 20Chapter 5 of Part 4;

(c) this Part.

(5) The following extend to Northern Ireland only—

(a) in Chapter 2 of Part 4, sections 51 and 52;

(b) in Chapter 3 of Part 4, sections 60 to 62;

(c) 25section 69(8) and (9).

84 Commencement

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

(a) section 47 and Schedule 3;

(b) section 54;

(c) 30in Chapter 3 of Part 4, sections 56, 57, 61 and 62;

(d) in Chapter 4 of Part 4, sections 65, 67(1) and (4), 68, 70(1) and (4) and 71
and Schedule 4;

(e) Chapter 5 of Part 4;

(f) sections 76 and 77 and Schedule 5;

(g) 35this Part.

(2) Section 79 comes into force on 1 April 2015.

(3) The following come into force on 6 April 2015—

(a) in Chapter 2 of Part 4, sections 48 to 53;

(b) in Chapter 3 of Part 4, sections 55, 58, 59, 60, 63 and 64;

(c) 40in Chapter 4 of Part 4. sections 66, 67(2) and (3), 69 and 70(2) and (3).

(4) The following come into force on such day or days as may be appointed by
regulations made by the Secretary of State—

(a) Parts 1 to 3;

(b) sections 75 and 78.

(5) 5Regulations under subsection (4) may appoint different days for different
purposes.

(6) The Secretary of State or the Department for Social Development in Northern
Ireland may by regulations make transitional, transitory or saving provision in
connection with the coming into force of any provision of this Act.

85 10Short title

This Act may be cited as the Pension Schemes Act 2014.

SCHEDULES

Section 40

SCHEDULE 1 Early leavers: revaluation of accrued benefits

1 The Pension Schemes Act 1993 is amended as follows.

2 5Before section 83 insert—

“82A Overview and meaning of “relevant commencement date”

(1) This Chapter is about the revaluation of benefits for early leavers.

(2) The table contains an overview of the contents of this Chapter.

(3) 20In this Chapter “the 2014 Act commencement date” means the date
on which paragraph 2 of Schedule 1 to the Pension Schemes Act 2014
comes into force.”

3 In section 83, for subsection (1A) substitute—

“(1A) In subsection (1) “relevant benefits” means benefits that are—

(a) 25retirement benefits payable to a member, or

(b) benefits payable in respect of a member.

(1AA) This Chapter does not apply to any benefits payable by virtue of
pension credit rights except, in the case of a salary related
occupational pension scheme, to the extent that they involve the

member being credited by the scheme with notional pensionable
service.

(1AB) Where this Chapter applies in relation to a benefit payable by virtue
of a pension credit right, then—

(a) 5if entitlement to the relevant pension credit arose before the
2014 Act commencement date, the benefit is to be treated for
the purposes of sections 84(1) and 84B(1) as attributable to
pensionable service before that date;

(b) if entitlement to the relevant pension credit arose on or after
10the 2014 Act commencement date, the benefit is to be treated
for the purposes of sections 84(1) and 84B(1) as attributable to
pensionable service on or after that date.

(1AC) “Pension credit rights” means rights that are attributable (directly or
indirectly) to a pension credit.”

4 15For section 84 substitute—

“84 Old basis of revaluation: occupational pension schemes

(1) A benefit of the kind mentioned in section 83(1)(a) must be revalued
in accordance with this section if it is attributable to pensionable
service before the 2014 Act commencement date.

(2) 20The benefit must be revalued using the final salary method unless it
is—

(a) a money purchase benefit (see subsection (3)),

(b) an average salary benefit revalued in accordance with
subsection (4), or

(c) 25a flat rate benefit revalued in accordance with subsection (5).

(3) If the benefit is a money purchase benefit it must be revalued using
the money purchase method.

(4) If the benefit is an average salary benefit it must be revalued using
the average salary method if the trustees or managers of the scheme
30consider the average salary method to be more appropriate than the
final salary method.

(5) If the benefit is a flat rate benefit it must be revalued using the default
method if the trustees or managers of the scheme consider the
default method to be more appropriate than the final salary method.

84A 35Old basis of revaluation: personal pension schemes

(1) A benefit of the kind mentioned in section 83(1)(b) must be revalued
in accordance with this section if it is attributable to contributions
received before the 2014 Act commencement date.

(2) The benefit must be revalued using the money purchase method.

84B 40New basis of revaluation: occupational pension schemes

(1) A benefit of the kind mentioned in section 83(1)(a) that is a collective
benefit must be revalued using the default method.

(2) A benefit of the kind mentioned in section 83(1)(a) that is not a
collective benefit must be revalued in accordance with the following