Public Service Pensions and Judicial Offices Bill [HL] (HL Bill 44)

Public Service Pensions and Judicial Offices Bill [HL]Page 20

(b)the power to make scheme regulations by virtue of section 17 (pension
credit members) and any powers exercisable by virtue of such
regulations;

(c)the power to make scheme regulations by virtue of section 18
5(voluntary contributions) and any powers exercisable by virtue of such
regulations;

(d)the power to make scheme regulations by virtue of section 19
(transfers) and any powers exercisable by virtue of such regulations;

(e)the power to make scheme regulations by virtue of section 20 (further
10powers to make provision about special cases) and any powers
exercisable by virtue of such regulations;

(f)the power of a scheme manager under section 21(1) (power to pay
compensation),

(g)the power to make scheme regulations by virtue of section 21(2) (power
15to require employer to reimburse compensation paid by scheme
manager) and any powers exercisable by virtue of such regulations;

(h)the power to make scheme regulations by virtue of section 22 (indirect
compensation) and any powers exercisable by virtue of such
regulations;

(i)20the power to make scheme regulations by virtue of section 23 (interest
and process) and any powers exercisable by virtue of such regulations.

(3)Treasury directions under this section may provide for amounts that are to be
paid by a scheme to a member or by a member to a scheme, or any reduction
or waiver of a liability to pay such amounts, to be determined—

(a)25taking into account the particular circumstances of the member, or

(b)without taking into account any or all of the particular circumstances of
the member.

(4)Treasury directions under this section given by the Treasury that relate to the
calculation and payment of interest, and variations and revocations of such
30directions, may only be made after the Treasury has consulted the Government
Actuary.

(5)For the definition of “Treasury directions”, see section 35(1).

Miscellaneous

25 Scheme rules that prohibit unauthorised payments

(1)35Subsection (2) applies where—

(a)a payment from a Chapter 1 scheme is permitted or required to be
made under or by virtue of this Chapter,

(b)the payment, if made, would be an unauthorised payment, and

(c)a rule of the scheme prohibits the scheme from making unauthorised
40payments.

(2)The payment may be made only if it falls within a description of payments
specified for the purposes of this section in Treasury directions.

(3)In this section “unauthorised payment” means a payment that is an
unauthorised payment for the purposes of Part 4 of FA 2004 (see section 160(5)
45of that Act).

Public Service Pensions and Judicial Offices Bill [HL]Page 21

26 Remediable service statements

(1)Scheme regulations for a Chapter 1 legacy scheme must make provision
requiring the scheme manager to provide a statement (a “remediable service
statement”) in respect of each member of the scheme who has relevant service
5in an employment or office.

(2)For the purposes of this section, service in an employment or office of a
member of a Chapter 1 legacy scheme is “relevant service” if either of the
following conditions is met in relation to the service.

(3)The first condition is that the service—

(a)10is opted-out service, and

(b)is service in respect of which—

(i)an application by virtue of subsection (5)(a) of section 5 (election
for retrospective provision to apply) has been made, but

(ii)no election by virtue of that section has been made.

(4)15The second condition is that the service is remediable service—

(a)that is pensionable service under the scheme (whether by virtue of
section 2(1) or otherwise), and

(b)in relation to which an election by virtue of section 6 or 9 (election for
new scheme benefits) has not been made.

(5)20A remediable service statement must include—

(a)a description of the benefits currently available under the scheme in
respect of the relevant service (if any),

(b)a description of the benefits that would be available under the scheme
in respect of the relevant service if any election under section 5, 6 or 9
25that could be made in relation to the service were made, and

(c)a description of when and how any election that could be made in
relation to the service may be made.

(6)Treasury directions may require—

(a)specified information (in addition to that specified in subsection (5)) to
30be included in a remediable service statement;

(b)information that is included in a remediable service statement to be in
a specified form;

(c)a remediable service statement to be provided to a specified person or
in a specified manner;

(d)35that a remediable service statement should accompany, or be combined
with, a benefit information statement provided under section 14 of
PSPA 2013 or section 14 of PSPA(NI) 2014 (benefit information
statements).

In this subsection “specified” means specified in Treasury directions.

(7)40Provision made under subsection (1) must require a remediable service
statement in respect of a member of the scheme to be provided on or before the
relevant date.

(8)Provision made under subsection (1) must also—

(a)in the case of a member of the scheme who has remediable service in an
45employment or office in relation to which the member is for the time
being an active member, require a remediable service statement in

Public Service Pensions and Judicial Offices Bill [HL]Page 22

respect of the member to be provided at least once in each year ending
with the anniversary of the relevant date;

(b)in the case of a member of the scheme who has remediable service in an
employment or office in relation to which the member is for the time
5being a deferred member, require a remediable service statement in
respect of the member to be provided on request.

(9)Only one request under subsection (8)(b) may be made during any period of 12
months.

(10)In this section “the relevant date” means—

(a)10the day after the final day of the period of 18 months beginning with the
day on which section 2(1) comes into force in relation to the Chapter 1
legacy scheme, or

(b)such later day as the scheme manager considers reasonable in all the
circumstances in the case of a particular member or a particular class of
15member.

(11)A requirement by virtue of this section to provide a remediable service
statement may be satisfied by providing it before this section or any other
provision of this Chapter comes into force (and for the purposes of any such
statement, references in this section to any provision of this Chapter are to be
20read as if the provision were in force).

27 Section 61 of the Equality Act 2010 etc

(1)In determining for the purposes of this Chapter whether any service is
pensionable service under a particular pension scheme, section 61 of EA 2010
and paragraph 2 of Schedule 1 to EEAR(NI) 2006 (non-discrimination rule) are
25to be disregarded.

(2)To the extent that section 61 of EA 2010 or paragraph 2 of Schedule 1 to
EEAR(NI) 2006 has the effect (apart from this subsection) that any remediable
service of a person—

(a)is not pensionable service under a Chapter 1 new scheme, or

(b)30is pensionable service under a Chapter 1 legacy scheme,

it ceases to have effect (to that extent) immediately before the coming into force
of section 2(1) in relation to the scheme.

Immediate detriment cases

28 Application of Chapter to immediate detriment cases

(1)35Subject as follows, nothing in sections 2 to 27 applies in relation to a person’s
remediable service in an employment or office if the person has benefited from
an immediate detriment remedy in relation to the service.

(2)Scheme regulations for a Chapter 1 scheme may make provision for the
purpose of putting persons who have benefited from an immediate detriment
40remedy in relation to their remediable service in an employment or office, so
far as possible, in the position that they would have been in if there had been
no relevant breach of a non-discrimination rule in relation to the service.

(3)The provision that may be made under subsection (2) includes, in particular—

(a)provision corresponding to any provision of sections 2 to 27, or

Public Service Pensions and Judicial Offices Bill [HL]Page 23

(b)provision applying any provision of this Chapter in its application to
persons of a description specified in the regulations,

with or without modifications.

(4)In this section “non-discrimination rule” means a rule that is, or at any time
5was, included in a Chapter 1 scheme by virtue of—

(a)section 61 of EA 2010, or

(b)paragraph 2 of Schedule 1 to EEAR(NI) 2006.

(5)For the purposes of this section a breach of a non-discrimination rule is
“relevant” if it arises from the application of—

(a)10an exception to section 18(1) of PSPA 2013 made under section 18(5) to
(7) of that Act, or

(b)an exception to section 18(1) of PSPA(NI) 2014 made under section
18(5) to (8) of that Act.

29 Persons who have “benefited from an immediate detriment remedy”

(1)15For the purposes of this Chapter a person has “benefited from an immediate
detriment remedy”, in relation to the person’s remediable service in an
employment or office, if either of the following conditions is met.

(2)The first condition is that—

(a)a court or tribunal has determined that, as a result of a non-
20discrimination rule, the person has any rights under a Chapter 1
scheme in respect of the remediable service, and

(b)the scheme manager of the scheme has—

(i)paid any benefits or compensation in accordance with the
determination, or

(ii)25taken any other step (for example, altering records) to
implement the determination.

(3)The second condition is that—

(a)the scheme manager of a Chapter 1 scheme and the person have agreed
that, as a result of a non-discrimination rule, the person has any rights
30under the scheme in respect of the remediable service, and

(b)the scheme manager of the scheme has—

(i)paid any benefits or compensation in accordance with the
agreement, or

(ii)taken any other step (for example, altering records) to
35implement the agreement.

(4)In this section “non-discrimination rule” means a rule that is, or at any time
was, included in a Chapter 1 scheme by virtue of—

(a)section 61 of EA 2010, or

(b)paragraph 2 of Schedule 1 to EEAR(NI) 2006.

40Interpretation

30 Meaning of “Chapter 1 scheme” etc

(1)“A Chapter 1 scheme” means—

(a)a Chapter 1 new scheme, or

Public Service Pensions and Judicial Offices Bill [HL]Page 24

(b)a Chapter 1 legacy scheme.

(2)“A Chapter 1 new scheme” means—

(a)a scheme under section 1 of PSPA 2013 (schemes for persons in public
service) which—

(i)5is a defined benefits scheme,

(ii)is not a scheme for holders of a judicial office, and

(iii)is not a scheme for local government workers (within the
meaning of that Act), or

(b)a scheme under section 1 of PSPA(NI) 2014 (schemes for persons in
10public service) which—

(i)is a defined benefits scheme,

(ii)is not a scheme for holders of a judicial office, and

(iii)is not a scheme for local government workers (within the
meaning of that Act).

(3)15“A Chapter 1 legacy scheme” means—

(a)an existing scheme (within the meaning of PSPA 2013), other than—

(i)a scheme mentioned in any of paragraphs 2 to 15 of Schedule 5
to that Act (judicial schemes), or

(ii)a scheme mentioned in paragraph 16 or 17 of that Schedule
20(local government workers), or

(b)an existing scheme (within the meaning of PSPA(NI) 2014), other
than—

(i)a scheme mentioned in paragraph 2 of Schedule 5 to that Act
(judicial schemes), or

(ii)25a scheme mentioned in paragraph 3 of that Schedule (local
government workers).

(4)In this section “judicial office” has the same meaning as in Chapter 2 (see
section 67).

(5)This section has effect for the purposes of this Chapter.

31 30Meaning of “new scheme benefits”

(1)Subsection (2) defines “new scheme benefits” in relation to the remediable
service in an employment or office of a member of a Chapter 1 legacy scheme
that is pensionable service under the scheme (whether or not by virtue of
section 2(1)).

(2)35“New scheme benefits” means the benefits that would be payable to or in
respect of the member if the remediable service were pensionable service
under the relevant Chapter 1 new scheme.

(3)Where—

(a)by virtue of section 6 or 9, the benefits payable to or in respect of a
40member of a Chapter 1 legacy scheme, so far as they are determined by
reference to the member’s remediable service, are new scheme benefits,
and

(b)the corresponding benefits, if payable under the relevant Chapter 1
new scheme, would have been payable only on the meeting of a
45condition (for example that the member attains a particular age or
makes a particular election),

Public Service Pensions and Judicial Offices Bill [HL]Page 25

the new scheme benefits are payable under the Chapter 1 legacy scheme to or
in respect of the member only on the meeting of that condition.

(4)In this section “the relevant Chapter 1 new scheme”, in relation to a Chapter 1
legacy scheme, means the Chapter 1 new scheme that is connected with the
5Chapter 1 legacy scheme.

(5)This section has effect for the purposes of this Chapter.

32 Meaning of “legacy scheme contributions” and “new scheme contributions”

(1)Subsections (2) and (3) apply in relation to a member of a Chapter 1 legacy
scheme who has remediable service in an employment or office that is
10pensionable service under the scheme (whether or not by virtue of section 2(1)).

(2)The member’s “legacy scheme contributions” for a tax year are the pension
contributions that would have been payable by the member under the scheme
in the tax year in respect of the remediable service if the service had, at the time
it took place, been pensionable service under the scheme.

(3)15The member’s “new scheme contributions” for a tax year are the pension
contributions that would have been payable by the member under the relevant
Chapter 1 new scheme in the tax year in respect of the remediable service if the
service had, at the time it took place, been pensionable service under that
scheme.

(4)20In this section “the relevant Chapter 1 new scheme”, in relation to a Chapter 1
legacy scheme, means the Chapter 1 new scheme that is connected with the
Chapter 1 legacy scheme.

(5)This section has effect for the purposes of this Chapter.

33 Meaning of “opted-out service”

(1)25A person’s service in an employment or office is “opted-out service” in that
employment or office if—

(a)the first, third, and fourth conditions in section 1 are met in relation to
the person and the service, and

(b)the second condition in that section is not met in relation to the service,
30but would have been met if the person had not opted that the service
should not be (or had opted that the service should be) pensionable
service under a Chapter 1 scheme.

(2)For the purposes of subsection (1)(b) a person is treated as having opted that
service should not be pensionable service under a Chapter 1 scheme if the
35service would have been pensionable service under that scheme (or would
have been if the person had opted that it should be) but for the fact that the
person had a partnership pension account.

(3)This section has effect for the purposes of this Chapter.

34 Scheme regulations

(1)40In this Chapter “scheme regulations”—

(a)in relation to a Chapter 1 scheme within section 30(2)(a) or (3)(a), has
the same meaning as in PSPA 2013 (see section 1(4) of that Act);

Public Service Pensions and Judicial Offices Bill [HL]Page 26

(b)in relation to a Chapter 1 scheme within section 30(2)(b) or (3)(b), has
the same meaning as in PSPA(NI) 2014 (see section 1(4) of that Act).

(2)A power under this Chapter to make provision by means of scheme
regulations for a Chapter 1 legacy scheme—

(a)5is to be exercised by the responsible authority for the Chapter 1 new
scheme that is connected with the Chapter 1 legacy scheme, and

(b)may be exercised by amending the Chapter 1 legacy scheme.

(3)In subsection (2) “responsible authority”—

(a)in relation to a Chapter 1 scheme within section 30(2)(a) or (3)(a), has
10the same meaning as in PSPA 2013 (see section 2 of that Act);

(b)in relation to a Chapter 1 scheme within section 30(2)(b) or (3)(b), has
the same meaning as in PSPA(NI) 2014 (see section 2 of that Act).

35 Interpretation of Chapter

(1)In this Chapter—

  • 15“Agency scheme” means—

    (a)

    a scheme under section 1 of PSPA 2013 which is a defined
    benefits scheme for staff of the Secret Intelligence Service or
    Security Service, or

    (b)

    a scheme under section 1 of SA 1972 which is a defined benefits
    20scheme and relates to staff of the Secret Intelligence Service or
    Security Service;

  • “benefited from an immediate detriment remedy” has the meaning given
    by section 29;

  • “Chapter 1 legacy scheme” has the meaning given by section 30(3);

  • 25“Chapter 1 new scheme” has the meaning given by section 30(2);

  • “Chapter 1 scheme” has the meaning given by section 30(1);

  • “the closing date” has the meaning given by section 1(8);

  • “compensation benefits” means benefits by way of compensation for loss
    of office or employment;

  • 30“connected”: a Chapter 1 new scheme and a Chapter 1 legacy scheme are
    “connected” if—

    (a)

    they are connected for the purposes of PSPA 2013 (see section
    4(6) and (7) of that Act), or

    (b)

    they are connected for the purposes of PSPA(NI) 2014 (see
    35section 4(6) and (7) of that Act);

  • “defined benefits scheme”: a pension scheme is a “defined benefits
    scheme” if or to the extent that the benefits that may be provided under
    the scheme are not—

    (a)

    money purchase benefits (within the meaning of PSA 1993 or
    40PS(NI)A 1993), or

    (b)

    injury and compensation benefits;

  • “the end of the section 6 election period”, in relation to a member of a
    Chapter 1 legacy scheme, has the meaning given by section 7(2);

  • “the end of the section 9 election period”, in relation to a member of a
    45Chapter 1 legacy scheme, has the meaning given by section 10(1);

  • “injury benefits” means benefits by way of compensation for incapacity or
    death as a result of injury or illness;

Public Service Pensions and Judicial Offices Bill [HL]Page 27

  • “judicial legacy scheme” has the same meaning as in Chapter 2 (see
    section 66);

  • “legacy scheme contributions” has the meaning given by section 32;

  • “mixed service” has the meaning given by section 17;

  • 5“new scheme benefits” has the meaning given by section 31;

  • “new scheme contributions” has the meaning given by section 32;

  • “opted-out service” has the meaning given by section 33;

  • “the relevant Chapter 1 legacy scheme”, in relation to a person’s
    remediable service in an employment or office, has the meaning given
    10by section 4;

  • “remediable service” has the meaning given by section 1;

  • “remediable service statement” has the meaning given by section 26;

  • “scheme regulations” has the meaning given by section 34;

  • “Treasury directions” means—

    (a)

    15in relation to a Chapter 1 scheme within section 30(2)(a) or
    (3)(a), directions given by the Treasury;

    (b)

    in relation to a Chapter 1 scheme within section 30(2)(b) or
    (3)(b), directions given by the Department of Finance in
    Northern Ireland.

(2)20Where—

(a)a member of a pension scheme has service in multiple employments or
offices that is pensionable service under the scheme, and

(b)the service is aggregated for the purpose of determining the amount of
any benefit under the scheme,

25the service is treated for the purposes of this Part as service in a single
employment or office (and references to the employment or office in relation to
the service are to be read accordingly).

Chapter 2 Judicial schemes

30Remediable service

36 Meaning of “remediable service”

(1)For the purposes of this Chapter a person’s service in a judicial office is
“remediable service” in that office if the following five conditions are met.

(2)In this section “the service in question” means the service mentioned in
35subsection (1).

(3)The first condition is that the service in question takes place in the period
beginning with 1 April 2015 and ending with 31 March 2022.

(4)The second condition is that the service in question—

(a)is pensionable service under a judicial scheme, or

(b)40would have been pensionable service under a judicial scheme but for
the fact that the person, in accordance with the scheme, opted that it
should not be (or failed to opt that it should be) pensionable service
under the scheme.

Public Service Pensions and Judicial Offices Bill [HL]Page 28

(5)The third condition is that the person was, on 31 March 2012 or any earlier day,
in service in an employment or office that is pensionable service under—

(a)a Chapter 1 legacy scheme (within the meaning of Chapter 1),

(b)a judicial legacy scheme, or

(c)5a local government legacy scheme (within the meaning of Chapter 3).

(6)The fourth condition is that there is no disqualifying gap in service falling
within the period—

(a)beginning with the most recent day in relation to which the third
condition is met, and

(b)10ending with the day before the first day of the service in question.

(7)The fifth condition is that the person was under the age of 55 on 1 April 2012.

(8)For the purposes of subsection (4)(b), a person is treated as having opted in
accordance with the scheme that service should not be pensionable service
under a judicial scheme if the service would have been pensionable service
15under that scheme (or would have been if the person had opted that it should
be) but for the fact that the person had a partnership pension account.

(9)In subsection (6) “disqualifying gap in service” means a period longer than 5
years at no time during which is the person in service in an employment or
office which is pensionable service under—

(a)20a Chapter 1 scheme (within the meaning of Chapter 1),

(b)a judicial scheme, or

(c)a local government scheme (within the meaning of Chapter 3).

(10)In determining for the purposes of this section whether any service is
pensionable service under a particular scheme, sections 2(1), 39(2) to (5) and
2542(2) (under which service may be treated as pensionable, or not pensionable,
under particular schemes) are to be disregarded.

See also section 62(1) (which requires section 61 of the Equality Act 2010 and
paragraph 2 of Schedule 1 to EEAR(NI) 2006 to be disregarded).

Options exercise

37 30Legacy scheme elections

(1)An election (“a legacy scheme election”) may be made in respect of a person
who has remediable service in a judicial office.

(2)Subsection (1) is subject to subsection (3) and section 38(2) and (5) (partnership
pension account: requirement to transfer and surrender rights).

(3)35A legacy scheme election may not be made in respect of a person if a 2015
scheme election has been made in respect of the person.

(4)A legacy scheme election—

(a)must be in writing,

(b)must be received by the relevant authority before the end of the election
40period,

(c)(subject to subsection (5)) takes effect at the end of the election period,
and

(d)is irrevocable.

Public Service Pensions and Judicial Offices Bill [HL]Page 29

(5)In a case in which—

(a)section 38(2) or (5) applies (election made in respect of a person with
PPA opted-out service), and

(b)the steps mentioned in section 38(3) or (6) have not been taken at the
5end of the election period,

the legacy scheme election takes effect immediately after the steps are taken.

38 Partnership pension account: requirement to transfer and surrender rights

(1)Subsection (2) applies where—

(a)a person (“P”) has remediable service in a salaried judicial office, and

(b)10any of the remediable service is PPA opted-out service.

(2)A legacy scheme election in respect of P may not be made unless—

(a)the relevant authority is satisfied that the steps mentioned in subsection
(3) have been taken, or

(b)P has notified the relevant authority that P intends to instigate and
15facilitate the taking of those steps.

(3)The steps are—

(a)the transfer of any relevant assets and liabilities held for the purposes
of the partnership pension account to the relevant judicial legacy
salaried scheme, and

(b)20the surrender of any entitlement to a pension under the relevant
judicial legacy salaried scheme, and any right to a future pension under
that scheme, that would otherwise arise under the rules of the scheme
in respect of the value of the assets and liabilities transferred.

(4)Subsection (5) applies where—

(a)25a person (“P”) has remediable service in a fee-paid judicial office, and

(b)any of the remediable service is PPA opted-out service.

(5)A legacy scheme election in respect of P may not be made unless—

(a)the relevant authority is satisfied that the steps mentioned in subsection
(6) have been taken, or

(b)30P has notified the relevant authority that P intends to instigate and
facilitate the taking of those steps.

(6)The steps are—

(a)the transfer of any relevant assets and liabilities held for the purposes
of the partnership pension account to the judicial legacy fee-paid
35scheme, and

(b)the surrender of any entitlement to a pension under the relevant
judicial legacy fee-paid scheme, and any right to a future pension under
that scheme, that would otherwise arise under the rules of the scheme
in respect of the value of the assets and liabilities transferred.

(7)40In this section “relevant assets and liabilities” means assets and liabilities that
are referable to pension contributions that were made by or on behalf of a
person in respect of the person’s PPA opted-out service.

(8)Where—

(a)the net value of pension contributions that were made by or on behalf
45of a person in respect of the person’s PPA opted-out service, exceeds