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

Public Service Pensions and Judicial Offices Bill [HL]Page 40

(a)which are attributable (directly or indirectly) to a pension credit, and

(b)the value of which was determined (to any extent) by reference to the
value of benefits payable in respect of the remediable service in a
judicial office of another member.

(3)5In this section “the corresponding pension debit member”, in relation to a
relevant pension credit member, means the member mentioned in subsection
(2)(b).

(4)The provision that may be made under subsection (1) includes provision under
which—

(a)10the pension debit of the corresponding pension debit member is
adjusted where a legacy scheme election or a 2015 scheme election is
made in respect of a member;

(b)the pension credit of a relevant pension credit member is adjusted on
the assumption that a legacy scheme election or a 2015 scheme election
15is made in respect of the corresponding pension debit member
(regardless of whether it in fact is).

(5)Provision made under subsection (1) must include provision under which, in a
case in which the corresponding pension debit member in relation to a relevant
pension credit member has mixed service, any pension credit retained by the
20relevant pension credit member under the scheme is of a value determined by
reference to the value of benefits payable under only one judicial scheme.

(6)For the purposes of this section a person’s remediable service in a judicial office
is “mixed service” if, disregarding any legacy scheme election or 2015 scheme
election made in respect of the person—

(a)25some of the service is pensionable service under a judicial legacy
scheme, and

(b)some of the service is pensionable service under a judicial 2015 scheme.

(7)In this section—

  • “pension debit” means a debit under section 29(1)(a) of WPRA 1999 or
    30Article 26(1)(a) of WRP(NI)O 1999;

  • “pension credit” means a credit under section 29(1)(b) of WPRA 1999 or
    Article 26(1)(b) of WRP(NI)O 1999.

55 Further powers to make provision about special cases

(1)Scheme regulations for a judicial scheme may make further provision relating
35to a member who has remediable service in a judicial office.

(2)The provision that may be made under subsection (1) includes, in particular—

(a)provision about cases in which a member has paid voluntary
contributions to the scheme during any period of remediable service;

(b)provision about the calculation or payment of transfer values on the
40transfer out of the rights of a member who has remediable service in a
judicial office;

(c)provision about the benefits payable to or in respect of a member who
has remediable service in a judicial office and has transferred in to the
scheme an amount in respect of rights accrued under another pension
45scheme;

(d)provision about the benefits payable to or in respect of a member who
has remediable service in a judicial office that is mixed service;

Public Service Pensions and Judicial Offices Bill [HL]Page 41

(e)provision about the benefits payable to or in respect of a member
where, disregarding any legacy scheme election or 2015 scheme
election made in respect of the member, the member—

(i)has remediable service in a judicial office that is pensionable
5service under a judicial 2015 scheme, and

(ii)has a right under that scheme, if they retire before normal
pension age, on the making of a payment to the scheme, to the
reduction or elimination of the actuarial reduction that would
otherwise have been made to the benefits payable to or in
10respect of the member in respect of that remediable service;

(f)provision about the benefits payable to or in respect of a person who
has partially retired;

(g)provision about the benefits payable to or in respect of a person in
relation to whom an amount of tax has been paid by the scheme
15manager of a judicial scheme in satisfaction of a liability by virtue of
sections 237A to 237E of FA 2004 (scheme pays).

(3)The provision that may be made by scheme regulations under this section, or
under section 54, includes, in particular—

(a)provision corresponding to any provision of this Chapter, or

(b)20provision 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 Chapter “voluntary contributions” means amounts that are paid to a
pension scheme by a member of the scheme on a voluntary basis, in accordance
25with the scheme, for the purpose of securing additional benefits, or securing
the earlier payment of benefits, under the scheme.

(5)For the purposes of this section a person’s remediable service in a judicial office
is “mixed service” if, disregarding any legacy scheme election or 2015 scheme
election made in respect of the person—

(a)30some of the service is pensionable service under a judicial legacy
scheme, and

(b)some of the service is—

(i)pensionable service under a judicial 2015 scheme, or

(ii)PPA opted-out service.

35Compensation

56 Power to pay compensation

(1)The scheme manager for a judicial scheme may pay amounts by way of
compensation in respect of compensatable losses incurred by members.

(2)Scheme regulations for a judicial scheme may make provision under which an
40employer in relation to the scheme is required to reimburse the scheme
manager for amounts paid under subsection (1).

(3)For the purposes of this section a loss incurred by a member is
“compensatable” if and to the extent that—

(a)either of the following conditions is met, and

(b)45the loss is of a description specified in Treasury directions.

Public Service Pensions and Judicial Offices Bill [HL]Page 42

(4)The first condition is that the loss is attributable to, or is reasonably regarded
as attributable to, a relevant breach of a non-discrimination rule.

(5)The second condition is that the loss is attributable to the application of any
provision of, or made under, this Chapter.

(6)5In this section (subject to subsection (8)) “loss” includes a loss of any kind
including, in particular, a Part 4 tax loss.

(7)In this section “Part 4 tax loss”, in relation to a member, means a loss arising as
a result of the member—

(a)incurring a charge, or incurring an increased charge, under Part 4 of FA
102004, or

(b)not being entitled to a relief, or being entitled to less relief, under that
Part of that Act.

(8)In this section “loss” does not include an amount that is payable under this
Chapter or under regulations made by virtue of this Chapter.

(9)15In this section “non-discrimination rule” means a rule that is, or at any time
was, included in a judicial scheme by virtue of—

(a)section 61 of EA 2010, or

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

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

(a)an 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.

(11)25Subsection (1) does not confer power to pay amounts by way of compensation
in respect of compensatable losses so far as—

(a)the member has already received amounts by way of compensation in
respect of them, or

(b)amounts that the member has paid the scheme have been reduced by
30amounts in respect of them,

whether pursuant to an order of a court or tribunal or otherwise.

Further provision about corrections and compensation

57 Interest and process

(1)Scheme regulations for a judicial scheme may make provision—

(a)35under which interest is required to be calculated and paid on relevant
amounts;

(b)about the process by which relevant amounts (and any interest on
them) are to be paid.

(2)Scheme regulations made by virtue of subsection (1)(b) may, in particular,
40include provision—

(a)about when relevant amounts (and any interest on them) are to be paid
(including provision under which they are paid in instalments);

(b)under which relevant amounts (and any interest on then) owed by the
scheme to a person may be paid only on the making of an application;

Public Service Pensions and Judicial Offices Bill [HL]Page 43

(c)for the netting off of relevant amounts (and any interest on them) owed
to a person by the scheme against relevant amounts (and any interest
on them) owed by the person to the scheme;

(d)conferring rights of appeal against decisions taken under the
5regulations.

(3)In this section “relevant amounts” means any amounts that are payable by a
member to the scheme, or by the scheme to a member, under or by virtue of
this Chapter.

58 Treasury directions

(1)10The powers mentioned in subsection (2) must be exercised in accordance with
Treasury directions.

(2)The powers are—

(a)the power to make scheme regulations by virtue of section 52 (power to
reduce benefits) and any powers exercisable by virtue of such
15regulations;

(b)the powers to make scheme regulations by virtue of section 53 (powers
to reduce or waive liabilities) and any powers exercisable by virtue of
such regulations;

(c)the power to make scheme regulations by virtue of section 54 (pension
20credit members) and any powers exercisable by virtue of such
regulations;

(d)the power to make scheme regulations by virtue of section 55 (further
powers to make provision about special cases) and any powers
exercisable by virtue of such regulations;

(e)25the power of the scheme manager under section 56(1) (power to pay
compensation);

(f)the power to make scheme regulations by virtue of section 56(2) (power
to require employer to reimburse compensation paid by scheme
manager) and any powers exercisable by virtue of such regulations;

(g)30the power to make scheme regulations by virtue of section 57 (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)35taking 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
40directions, may only be made after the Treasury has consulted the Government
Actuary.

(5)For the definition of “Treasury directions”, see section 71.

Public Service Pensions and Judicial Offices Bill [HL]Page 44

Miscellaneous

59 Scheme rules that prohibit unauthorised payments

(1)Subsection (2) applies where—

(a)a payment from a judicial scheme is permitted or required to be made
5under 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
payments.

(2)The payment may be made only if it falls within a description of payments
10specified for the purposes of this section in Treasury directions.

(3)Subsection (4) applies where—

(a)in the course of taking the step mentioned in section 38(3)(a) or (6)(a)
(requirement to transfer assets held in partnership pension account) a
payment is made from a partnership pension account,

(b)15the payment, if made, would be an unauthorised payment, and

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

(4)The payment may be made notwithstanding the rule mentioned in subsection
(3)(c).

(5)20In 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)
of that Act).

60 Information statement

(1)Before the beginning of the election period, the relevant authority must, in
25relation to each person (“P”) in respect of whom a legacy scheme election or a
2015 scheme election may be made, prepare a statement and send it to the
appropriate person.

(2)The statement must contain—

(a)a description of the benefits that would be available in respect of P’s
30remediable service if a legacy scheme election were made in respect of
P (specifying the judicial legacy scheme or schemes under which those
benefits would be available),

(b)if a 2015 scheme election may be made in respect of P, a description of
the benefits that would be available in respect of P’s remediable service
35if the election were made (specifying the judicial 2015 scheme or
schemes under which those benefits would be available),

(c)a description of the benefits (if any) that would be available in respect
of P’s remediable service if no legacy scheme election or 2015 scheme
election is made in respect of P (specifying the judicial scheme or
40schemes under which any benefits would be available), and

(d)such other information as the relevant authority considers relevant to
the appropriate person’s decision as to whether to make a legacy
scheme election or 2015 scheme election in respect of P.

(3)In this section “the appropriate person” means the person who may make a
45legacy scheme election or 2015 scheme election in respect of P (see section 43).

Public Service Pensions and Judicial Offices Bill [HL]Page 45

61 Power to delegate

(1)The Lord Chancellor may delegate to another person any of the Lord
Chancellor’s functions under this Chapter.

(2)The Department of Justice in Northern Ireland may delegate to another person
5any of its functions under this Chapter.

62 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
10to 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 judicial 2015 scheme, or

(b)15is pensionable service under a judicial legacy scheme,

it ceases to have effect (to that extent) at the end of the election period.

Immediate detriment cases

63 Application of Chapter to immediate detriment cases

(1)Subject as follows, nothing in sections 37 to 62 applies in relation to a person’s
20remediable service in a judicial office if the person has benefited from an
immediate detriment remedy in relation to the service.

(2)Scheme regulations for a judicial scheme may make provision for the purpose
of putting persons who have benefited from an immediate detriment remedy
in relation to their remediable service in a judicial office, so far as possible, in
25the 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 37 to 62, or

(b)provision applying any provision of this Chapter in its application to
30persons 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
was, included in a judicial scheme by virtue of—

(a)section 61 of EA 2010, or

(b)35paragraph 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)an exception to section 18(1) of PSPA 2013 made under section 18(5) to
(7) of that Act, or

(b)40an exception to section 18(1) of PSPA(NI) 2014 made under section
18(5) to (8) of that Act.

Public Service Pensions and Judicial Offices Bill [HL]Page 46

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

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

(2)5The first condition is that—

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

(b)the scheme manager of the scheme has—

(i)10paid any benefits or compensation in accordance with the
determination, or

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

(3)The second condition is that—

(a)15the scheme manager of a judicial legacy scheme and the person have
agreed that, as a result of a non-discrimination rule, the person has any
rights under 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
20agreement, or

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

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

(a)25section 61 of EA 2010, or

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

Interpretation

65 Meaning of “the election period”

(1)In this Chapter “the election period” means (subject to subsection (2)) the
30period of three months beginning with such date as is specified for the
purposes of this section by the relevant authority.

(2)The relevant authority may extend the period mentioned in subsection (1) in
relation to a particular person if the relevant authority considers it just and
equitable to do so.

66 35Meaning of “a judicial scheme” etc

(1)“A judicial scheme” means—

(a)a judicial 2015 scheme, or

(b)a judicial legacy scheme.

(2)“A judicial 2015 scheme” means—

(a)40the Judicial Pensions Regulations 2015 (S.I. 2015/182), or

(b)the Judicial Pensions Regulations (Northern Ireland) 2015 (S.R. (N.I.)
2015 No. 76).

Public Service Pensions and Judicial Offices Bill [HL]Page 47

(3)“A judicial legacy scheme” means—

(a)a judicial legacy salaried scheme, or

(b)the judicial legacy fee-paid scheme.

(4)“A judicial legacy salaried scheme” means—

(a)5an existing scheme (within the meaning of PSPA 2013) mentioned in
any of paragraphs 2 to 11, or paragraph 15, of Schedule 5 to that Act
(judicial schemes), or

(b)an existing scheme (within the meaning of PSPA(NI) 2014) mentioned
in paragraph 2 of Schedule 5 to that Act (judicial schemes).

(5)10“The judicial legacy fee-paid scheme” means the scheme constituted by Parts 1
to 11 of the Judicial Pensions (Fee-Paid Judges) Regulations 2017 (S.I. 2017/
522).

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

67 Meaning of “judicial office” etc

(1)15“Judicial office” means—

(a)an office specified in an order made under paragraph 2(1) of Schedule
1 to PSPA 2013,

(b)an office specified in regulation 3(2) of the Judicial Pensions
Regulations 2015 (S.I. 2015/182), or

(c)20an office specified in an order made under paragraph 2(1) of Schedule
1 to PSPA(NI) 2014.

(2)“Salaried judicial office” means a judicial office held by a person whose service
in that office is remunerated by the payment of salary.

(3)“Fee-paid judicial office” means a judicial office held by a person whose service
25in that office is remunerated by the payment of fees (as opposed to the payment
of salary).

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

68 Meaning of “the relevant authority”

In this Chapter “the relevant authority” means—

(a)30in relation to a person who has remediable service in a judicial office
within section 67(1)(a) or (b), the Lord Chancellor;

(b)in relation to any other person, the Department of Justice in Northern
Ireland.

69 Meaning of “opted-out service” and “PPA opted-out service”

(1)35A person’s remediable service in a judicial office is “opted-out service” if and
to the extent that the service meets the second condition in section 36 by virtue
of the application of paragraph (b) of subsection (4) of that section.

(2)A person’s remediable service in a judicial office is “PPA opted-out service”
if—

(a)40it is opted-out service, and

(b)the person has rights under a partnership pension account that are
referable to contributions made in respect of it.

Public Service Pensions and Judicial Offices Bill [HL]Page 48

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

70 Scheme regulations

(1)In this Chapter “scheme regulations”—

(a)in relation to a judicial scheme within section 66(2)(a), (4)(a) or (5) has
5the same meaning as in PSPA 2013 (see section 1(4) of that Act);

(b)in relation to a judicial scheme within section 66(2)(b) or (4)(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 judicial legacy scheme—

(a)10is to be exercised by the responsible authority for the judicial 2015
scheme that is connected with the judicial legacy scheme, and

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

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

(a)in relation to a judicial scheme within section 66(2)(a), (4)(a) or (5) has
15the same meaning as in PSPA 2013 (see section 2 of that Act);

(b)in relation to a judicial scheme within section 66(2)(b) or (4)(b), has the
same meaning as in PSPA(NI) 2014 (see section 2 of that Act).

71 Interpretation of Chapter

In this Chapter—

  • 20“2015 scheme election” has the meaning given by section 41(1);

  • “benefited from an immediate detriment remedy” has the meaning given
    by section 64;

  • “connected”: a judicial 2015 scheme and a judicial legacy scheme are
    “connected” if—

    (a)

    25they 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
    section 4(6) and (7) of that Act);

  • “the election period” has the meaning given by section 65;

  • 30“fee-paid judicial office” has the meaning given by section 67;

  • “a judicial 2015 scheme” has the meaning given by section 66;

  • “the judicial legacy fee-paid scheme” has the meaning given by section 66;

  • “a judicial legacy salaried scheme” has the meaning given by section 66;

  • “a judicial legacy scheme” has the meaning given by section 66;

  • 35“judicial office” has the meaning given by section 67;

  • “a judicial scheme” has the meaning given by section 66;

  • “legacy scheme election” has the meaning given by section 37(1);

  • “opted-out service” has the meaning given by section 69;

  • “PPA opted-out service” has the meaning given by section 69;

  • 40“the relevant authority”, in relation to a person who has remediable
    service in a judicial office, has the meaning given by section 68;

  • “the relevant judicial legacy salaried scheme”, in relation to a person’s
    remediable service in a salaried judicial office, has the meaning given
    by section 40;

  • 45“remediable service” has the meaning given by section 36;

Public Service Pensions and Judicial Offices Bill [HL]Page 49

  • “salaried judicial office” has the meaning given by section 67;

  • “scheme regulations” has the meaning given by section 70;

  • “Treasury directions” means—

    (a)

    in relation to a judicial scheme within section 66(2)(a), (4)(a) or
    5(5), directions given by the Treasury;

    (b)

    in relation to a judicial scheme within section 66(2)(b) or (4)(b),
    directions given by the Department of Finance in Northern
    Ireland;

  • “voluntary contributions” has the meaning given by section 55.

72 10Modifications of Chapter in relation to fee-paid judicial offices

(1)In this Chapter—

(a)a reference to a person’s service in an office is, in relation to a fee-paid
judicial office, a reference to the person’s holding of the office;

(b)a reference to a period in which a person’s service in an office takes
15place is, in relation to a fee-paid judicial office, a reference to a period
in which the person holds the office;

(c)a reference to a person accruing pensionable service under the judicial
legacy fee-paid scheme is a reference to the person being an active
member of the scheme in relation to any office;

(d)20a reference to a person’s service in a fee-paid judicial office being
“pensionable service” under the judicial legacy fee-paid scheme is a
reference to the person being, during the period in which the service
takes place, an active member of the scheme in relation to that office.

(2)Where, at any time in a specified period—

(a)25a person holds a specified judicial fee-paid office, and

(b)the person was not (apart from this subsection) at that time an active
member of the judicial legacy fee-paid scheme in relation to that office,

the person is treated for the purposes of this Chapter as having been, at that
time, an active member of that scheme in relation to that office.

(3)30In subsection (2) “specified” means specified by the Lord Chancellor by notice.

(4)The Lord Chancellor must publish any notice under subsection (3).

(5)In this section “active member” has the same meaning as in the Judicial
Pensions (Fee-Paid Judges) Regulations 2017 (S.I. 2017/522) (see regulation
9(3) of those regulations).

35Chapter 3 Local government schemes

73 Meaning of “remediable service”

(1)For the purposes of this Chapter a person’s service in an employment or office
is “remediable service” in that employment or office if the following four
40conditions are met.

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