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

Public Service Pensions and Judicial Offices Bill [HL]Page 50

(3)The first condition is that the service in question takes place in the period
beginning with the day after the closing date and ending with 31 March 2022.

(4)The second condition is that the service in question is pensionable service
under a local government new scheme.

(5)5The third condition is that the person was, on 31 March 2012, in pensionable
service under—

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

(b)a judicial legacy scheme (within the meaning of Chapter 2), or

(c)a local government legacy scheme.

(6)10The fourth condition is that there is no disqualifying gap in service falling
within the period—

(a)beginning with 1 April 2012, and

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

(7)In subsection (3) “the closing date” means—

(a)1531 March 2014 in relation to service which is pensionable service under
regulations under section 7 of SA 1972 which relate to persons in
England and Wales;

(b)31 March 2015 in relation to service which is pensionable service under
any other local government new scheme.

(8)20In subsection (6) “disqualifying gap in service” means a period longer than 5
years at no time during which is the person in pensionable service under—

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

(b)a judicial scheme (within the meaning of Chapter 2), or

(c)a local government scheme.

74 25Power to pay benefits equivalent to final salary benefits

(1)Scheme regulations for a local government new scheme may make provision
under which the benefits payable under the scheme, so far as they are
determined by reference to a member’s remediable service in any employment
or office, are equivalent to final salary benefits.

(2)30Scheme regulations for a local government new scheme may make provision
under which the benefits payable under the scheme, so far as they are
determined by reference to pensionable service to which subsection (3) applies,
are equivalent to final salary benefits.

(3)This subsection applies to pensionable service on or after 1 April 2022 which is
35transferred in from a pension scheme which is not a scheme under section 1 of
PSPA 2013 or section 1 of PSPA(NI) 2014.

(4)Except as provided by subsections (1) to (3), scheme regulations for a local
government new scheme may not make provision under which the benefits
payable under the scheme that are determined by reference to a member’s
40pensionable service in any employment or office are equivalent to final salary
benefits.

(5)In this section “scheme regulations” means—

(a)scheme regulations within the meaning of PSPA 2013 (see section 1(4)
of that Act), or

Public Service Pensions and Judicial Offices Bill [HL]Page 51

(b)scheme regulations within the meaning of PSPA(NI) 2014 (see section
1(4) of that Act).

(6)For the purposes of this section, benefits payable under a local government
new scheme are “equivalent to final salary benefits” if they are calculated by
5reference to the member’s pensionable earnings, or highest, average or
representative pensionable earnings, in a specified period ending at, or defined
by reference to—

(a)the time when the member’s pensionable service in relation to the local
government new scheme ends, or

(b)10the time when the member attains normal pension age under a local
government legacy scheme.

75 Meaning of “local government scheme” etc

(1)In this Chapter “local government scheme” means—

(a)a local government new scheme, or

(b)15a local government legacy scheme.

(2)In this Chapter “local government new scheme” means—

(a)a scheme under section 1 of PSPA 2013 (schemes for persons in public
service) which is a defined benefits scheme for local government
workers (within the meaning of that Act), or

(b)20a scheme under section 1 of PSPA(NI) 2014 (schemes for persons in
public service) which is a defined benefits scheme for local government
workers (within the meaning of that Act).

(3)In this Chapter “local government legacy scheme” means—

(a)an existing scheme (within the meaning of PSPA 2013) mentioned in
25paragraph 16 or 17 of Schedule 5 to PSPA 2013 (local government
workers), or

(b)an existing scheme (within the meaning of PSPA(NI) 2014) mentioned
in paragraph 3 of Schedule 5 to PSPA(NI) 2014 (local government
workers).

30Chapter 4 General

Restriction of schemes in relation to service after 31 March 2022

76 Restriction of existing schemes

(1)PSPA 2013 is amended in accordance with subsections (2) and (3).

(2)35In section 18 (restriction of existing pension schemes)—

(a)in subsection (4), omit the words after paragraph (b);

(b)after subsection (4) insert—

(4A)Subsection (1) does not apply, and is treated as never having
applied, in relation to a person’s service that is pensionable
40service under an existing scheme by virtue of—

Public Service Pensions and Judicial Offices Bill [HL]Page 52

(a)section 2(1) of PSPJOA 2021 (remediable service treated
as pensionable service under Chapter 1 legacy scheme),
or

(b)section 39(2) of that Act (remediable service treated as
5pensionable service under judicial legacy scheme).

For further provision affecting the application of subsection (1),
see section 77(1) of that Act.”;

(c)omit subsections (5) to (8).

(3)In section 31 (restriction of certain existing public body pension schemes) in
10subsection (4) omit the words from “, and section 18(6) and (7)” to the end.

(4)PSPA(NI) 2014 is amended in accordance with subsections (5) and (6).

(5)In section 18 (restriction of existing pension schemes)—

(a)in subsection (4), omit “This is subject to subsection (8).”;

(b)after subsection (4) insert—

(4A)15Subsection (1) does not apply, and is treated as never having
applied, in relation to a person’s service that is pensionable
service under an existing scheme by virtue of—

(a)section 2(1) of PSPJOA 2021 (remediable service treated
as pensionable service under Chapter 1 legacy scheme),
20or

(b)section 39(2) of that Act (remediable service treated as
pensionable service under judicial legacy scheme).

For further provision affecting the application of subsection (1),
see section 77(4) of that Act.”;

(c)25omit subsections (5) to (9).

(6)In section 32 (restriction of certain existing public body pension schemes), in
subsection (4) omit the words from “and section 18(7) and (8)” to the end.

(7)In consequence of the amendments made by the preceding provisions of this
section, in JUPRA 1993, in section 18A (pension scheme for fee-paid judges),
30omit subsections (4) and (5).

77 Restriction of existing schemes: savings and transitional provision

(1)The repeal made by section 76(2)(c) of section 18(5) to (8) of PSPA 2013 (which
removes the power to provide for exceptions to section 18(1) of that Act and
which, accordingly, has the effect that any exceptions previously provided for
35under the power lapse) is subject to the following savings and transitional
provision.

(2)The repeal does not affect—

(a)the continued operation of any scheme regulations made before the
coming into force of the repeal so far as they provide for benefits to be
40provided under an existing scheme to or in respect of a person in
relation to the person’s service before 1 April 2022;

(b)any power to make scheme regulations under which benefits are
provided to or in respect of a person in relation to service on or after 1
April 2022 which is transferred in from a pension scheme which is not
45a scheme under section 1 of PSPA 2013 or section 1 of PSPA(NI) 2014;

Public Service Pensions and Judicial Offices Bill [HL]Page 53

(c)any power to make scheme regulations under which benefits are
provided to or in respect of a person in relation to service before 1 April
2022 where the accrual rate is affected by the length of the person’s
period of service (including a period after that date).

(3)5In subsection (2)

  • “existing scheme” has the same meaning as in PSPA 2013 (see section
    18(2) of that Act);

  • “scheme regulations” has the same meaning as in PSPA 2013 (see section
    1(4) of that Act).

(4)10The repeal made by section 76(5)(c) of section 18(5) to (9) of PSPA(NI) 2014
(which removes the power to provide for exceptions to section 18(1) of that Act
and which, accordingly, has the effect that any exceptions previously provided
for under the power lapse) is subject to the following savings and transitional
provision.

(5)15The repeal does not affect—

(a)the continued operation of any scheme regulations made before the
coming into force of the repeal so far as they provide for benefits to be
provided under an existing scheme to or in respect of a person in
relation to the person’s service before 1 April 2022;

(b)20any power to make scheme regulations under which benefits are
provided to or in respect of a person in relation to service on or after 1
April 2022 which is transferred in from a pension scheme which is not
a scheme under section 1 of PSPA(NI) 2014 or section 1 of PSPA 2013;

(c)any power to make scheme regulations under which benefits are
25provided to or in respect of a person in relation to service before 1 April
2022 where the accrual rate is affected by the length of the person’s
period of service (including a period after that date).

(6)In subsection (5)

  • “existing scheme” has the same meaning as in PSPA(NI) 2014 (see section
    3018(2) of that Act);

  • “scheme regulations” has the same meaning as in PSPA(NI) 2014 (see
    section 1(4) of that Act).

78 Restriction of other schemes

(1)No benefits are to be provided under a relevant scheme to or in respect of a
35person in relation to the person’s service after 31 March 2022.

(2)In subsection (1), “relevant scheme” means—

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

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

(c)40the scheme constituted by Parts 1 to 11 of the Judicial Pensions (Fee-
Paid Judges) Regulations 2017 (S.I. 2017/522), or

(d)the pension scheme established for certain employees of the Secret
Intelligence Service which came into operation on 1st January 1946 and
was amended on 1st September 1957 and 1st July 1964.

(3)45In subsection (1), the reference to benefits in relation to a person’s service
includes benefits relating to the person’s death in service.

Public Service Pensions and Judicial Offices Bill [HL]Page 54

Other amendments of PSPA 2013 and PSPA(NI) 2014

79 Amendments relating to scheme regulations

(1)Section 3 of PSPA 2013 (scheme regulations) is amended in accordance with
subsections (2) to (6).

(2)5In subsection (1) after “this Act” insert “and Part 1 of PSPJOA 2021”.

(3)In subsection (2), after paragraph (b) insert—

(c)consequential, supplementary, incidental or transitional
provision in relation to any provision of Part 1 of PSPJOA 2021.”

(4)After subsection (4) insert—

(4A)10In subsection (2)(c)—

(a)the reference to consequential provision includes consequential
provision amending any primary legislation passed before or in
the same session as PSPJOA 2021 (as well as consequential
provision amending any secondary legislation);

(b)15the reference to supplementary, incidental or transitional
provision includes supplementary, incidental or transitional
provision amending an existing scheme contained in primary
legislation (as well as supplementary, incidental or transitional
provision amending any secondary legislation).

(4B)20See sections 34 and 70 of PSPJOA 2021 for provision under which
certain powers to make provision under Part 1 of that Act by means of
scheme regulations may be exercised by amending existing schemes.”

(5)In subsection (6) omit paragraph (b).

(6)After subsection (6) insert—

(7)25A Treasury order may amend this section so as to add, remove or vary
exceptions to the requirement in subsection (5).

(8)A Treasury order under subsection (7) is subject to the negative
procedure.”

(7)In section 21 of PSPA 2013 (consultation), after subsection (3) insert—

(4)30Subsection (1) may, in relation to provision contained in scheme
regulations—

(a)under any provision contained in Part 1 of PSPJOA 2021, or

(b)under section 3(2)(c) of this Act (consequential etc provision in
relation to Part 1 of PSPJOA 2021),

35be satisfied by consultation before, as well as after, the coming into
force of the provision mentioned in paragraph (a) or (b).”

(8)In section 23 of PSPA 2013 (procedure for retrospective provision), after
subsection (5) insert—

(6)This section does not apply in relation to provision contained in scheme
40regulations that is made—

(a)under any provision contained in Part 1 of PSPJOA 2021, or

(b)under section 3(2)(c) of this Act (consequential etc provision in
relation to Part 1 of PSPJOA 2021).”

Public Service Pensions and Judicial Offices Bill [HL]Page 55

(9)In section 37 of PSPA 2013 (general interpretation), at the appropriate place
insert—

  • “PSPJOA 2021” means the Public Service Pensions and Judicial Offices
    Act 2021;”.

(10)5Section 3 of PSPA(NI) 2014 (scheme regulations) is amended in accordance
with subsections (11) to (13).

(11)In subsection (1), after “this Act” insert “and Part 1 of PSPJOA 2021”.

(12)In subsection (2), after paragraph (b) insert—

(c)consequential, supplementary, incidental or transitional
10provision in relation to any provision of Part 1 of PSPJOA 2021.”

(13)After subsection (4) insert—

(4A)In subsection (2)(c)—

(a)the reference to consequential provision includes consequential
provision amending any primary legislation made or passed
15before or within the period of 12 months from the date on which
PSPJOA 2021 receives Royal Assent (as well as consequential
provision amending any secondary legislation);

(b)the reference to supplementary, incidental or transitional
provision includes supplementary, incidental or transitional
20provision amending an existing scheme contained in primary
legislation (as well as supplementary, incidental or transitional
provision amending any secondary legislation).

(4B)See sections 34 and 70 of PSPJOA 2021 for provision under which
certain powers to make provision under Part 1 of that Act by means of
25scheme regulations may be exercised by amending existing schemes.”

(14)In section 21 of PSPA(NI) 2014 (consultation), after subsection (3) insert—

(4)Subsection (1) may, in relation to provision contained in scheme
regulations—

(a)under any provision contained in Part 1 of PSPJOA 2021, or

(b)30under section 3(2)(c) of this Act (consequential etc provision in
relation to Part 1 of PSPJOA 2021),

be satisfied by consultation before, as well as after, the coming into
force of the provision mentioned in paragraph (a) or (b).”

(15)In section 23 of PSPA(NI) 2014 (procedure for retrospective provision), after
35subsection (5) insert—

(6)This section does not apply in relation to provision contained in scheme
regulations that is made—

(a)under any provision contained in Part 1 of PSPJOA 2021, or

(b)under section 3(2)(c) of this Act (consequential etc provision in
40relation to Part 1 of PSPJOA 2021).”

(16)In section 34 of PSPA(NI) 2014 (general interpretation), at the appropriate place
insert—

  • “PSPJOA 2021” means the Public Service Pensions and Judicial Offices
    Act 2021;”.

Public Service Pensions and Judicial Offices Bill [HL]Page 56

80 Amendments relating to employer cost cap

(1)Section 12 of PSPA 2013 (employer cost cap) is amended in accordance with
subsections (2) and (3).

(2)After subsection (7) insert—

(7A)5Treasury directions may require that provision contained in scheme
regulations under subsection (6) permits steps to be—

(a)agreed by virtue of paragraph (a) of that subsection, or

(b)determined by virtue of paragraph (b) of that subsection,

only after the scheme actuary has certified that, in the scheme actuary’s
10view, the steps would, if taken, achieve the target cost for the scheme.

(7B)In subsection (7A) “the scheme actuary”, in relation to a pension
scheme, means the person appointed under section 47(1)(b) of the
Pensions Act 1995 (professional advisers) in relation to the scheme.”

(3)After subsection (9) insert—

(10)15Treasury regulations under subsection (5)(a) are of no effect, and are
treated as never having had effect, so far as they would otherwise
require the 2016/17 cost of a scheme to remain within a specified
margin above the employer cost cap.

(11)Accordingly—

(a)20provision contained in Treasury regulations under subsection
(5)(b) that specifies a target cost for cases where the 2016/17 cost
of a scheme goes beyond a specified margin above the employer
cost cap is of no effect, and is treated as never having had effect;

(b)provision made under subsection (6)(a) or (b) is of no effect, and
25is treated as never having had effect, for a case in which the
2016/17 cost of the scheme goes beyond a margin above the
employer cost cap.

(12)In subsections (10) and (11), “2016/17 cost”, in relation to a scheme,
means the cost of the scheme (and any connected scheme) calculated by
30reference to a valuation of the scheme the effective date of which is—

(a)in the case of the Local Government Pension Scheme (Scotland)
Regulations 2014 (S.S.I. 2014/164), 31 March 2017;

(b)in any other case, 31 March 2016.”

(4)Section 12 of PSPA(NI) 2014 (employer cost cap) is amended in accordance
35with subsections (5) and (6).

(5)After subsection (7) insert—

(7A)Directions given by the Department of Finance may require that
provision contained in scheme regulations under subsection (6)
permits steps to be—

(a)40agreed by virtue of paragraph (a) of that subsection, or

(b)determined by virtue of paragraph (b) of that subsection,

only after the scheme actuary has certified that, in the scheme actuary’s
view, the steps would, if taken, achieve the target cost for the scheme.

(7B)In subsection (7A) “the scheme actuary”, in relation to a pension
45scheme, means the person appointed under Article 47(1)(b) of the

Public Service Pensions and Judicial Offices Bill [HL]Page 57

Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22))
(professional advisers) in relation to the scheme.”

(6)After subsection (10) insert—

(11)Regulations made by the Department of Finance under subsection
5(5)(a) are of no effect, and are treated as never having had effect, so far
as they would otherwise require the 2016 cost of a scheme to remain
within a specified margin above the employer cost cap.

(12)Accordingly—

(a)provision contained in regulations made by the Department of
10Finance under subsection (5)(b) that specifies a target cost for
cases where the 2016 cost of a scheme goes beyond a specified
margin above the employer cost cap is of no effect and is treated
as never having had effect;

(b)provision made under subsection (6)(a) or (b) is of no effect, and
15is treated as never having had effect, for a case in which the 2016
cost of the scheme goes beyond a margin above the employer
cost cap.

(13)In subsections (11) and (12), “2016 cost” in relation to a scheme, means
the cost of the scheme (and any connected scheme) calculated by
20reference to a valuation of the scheme the effective date of which is 31
March 2016.”

(7)The actuarial valuation as at 31 March 2016 carried out in 2018 under
regulation 123 of the Local Government Pension Scheme Regulations
(Northern Ireland) 2014 (S.R. (N.I.) 2014 No. 188) is of no effect.

81 25Amendments relating to the Secret Intelligence Service etc

(1)PSPA 2013 is amended in accordance with subsections (2) to (4).

(2)In section 18 (restriction of existing pension schemes)—

(a)in subsection (4), after paragraph (a) insert—

(aa)31 March 2016 for an existing scheme which is a relevant
30Agency scheme, and”;

(b)in subsection (10) after “subsection (4)” insert “—

  • “relevant Agency scheme” means regulations under
    section 1 of the Superannuation Act 1972 which relate to
    staff of the Secret Intelligence Service or Security
    35Service;”.

(3)In Schedule 5 (existing schemes), in paragraph 1 omit “other than a scheme
which relates to staff of the Secret Intelligence Service or Security Service”.

(4)In Schedule 10 (public bodies whose pension schemes must be restricted) omit
paragraphs 10 and 11.

(5)40In consequence of the amendment made by subsection (3), in PSA 2015 omit
section 80 (public service pension schemes).

(6)Any provision of subordinate legislation that—

(a)was, at any time before the coming into force of this section, made (or
purportedly made) in relation to a relevant Agency scheme under—

Public Service Pensions and Judicial Offices Bill [HL]Page 58

(i)section 18 of PSPA 2013 (restriction of existing pension
schemes), or

(ii)section 31 of that Act (restriction of certain existing public body
pension schemes), and

(b)5could have been made under section 18 of that Act if the amendments
made by subsections (1) to (4) had been in force at that time,

is treated as having been made under section 18 of that Act.

(7)In subsection (6) “relevant Agency scheme” means regulations under section 1
of SA 1972 which relate to staff of the Secret Intelligence Service or Security
10Service.

82 Amendments relating to the judiciary

(1)PSPA 2013 is amended in accordance with subsections (2) and (3).

(2)After section 25 (extension of schemes) insert—

25A Extension of schemes where definition of “the judiciary” expanded

(1)15Subsection (2) applies where—

(a)scheme regulations come into force establishing a scheme under
section 1 for the judiciary, and

(b)subsequently, an order is made under paragraph 2(1) of
Schedule 1 (order specifying judicial offices for the purposes of
20the definition of “the judiciary”).

(2)Scheme regulations for the scheme mentioned in subsection (1)(a) may
make provision under which any right or obligation of a member
holding an office specified in the order mentioned in subsection (1)(b)
is determined by reference to service which takes place before (as well
25as after) the order comes into force.

(3)This section is without prejudice to the generality of section 3(3)(b)
(power to make retrospective provision in scheme regulations).”

(3)In Schedule 1 (persons in public service: definitions), in paragraph 2
(judiciary), for sub-paragraphs (2) and (3) substitute—

(2)30An order under sub-paragraph (1) that specifies a devolved
office in or as regards Scotland or Northern Ireland may only
be made at the request of the relevant national authority.

(3)In sub-paragraph (2), “relevant national authority” means—

(a)in relation to a devolved office within paragraph (a)
35of the definition of “devolved office” in section 37, the
Department of Justice in Northern Ireland;

(b)in relation to a devolved office within paragraph (b)
of the definition of “devolved office” in section 37, the
Scottish Ministers.

(4)40An order under sub-paragraph (1) is subject to the negative
procedure.”

(4)PSPA(NI) 2014 is amended in accordance with subsection (5).

Public Service Pensions and Judicial Offices Bill [HL]Page 59

(5)After section 25 (extension of schemes) insert—

25A Extension of schemes where definition of “the judiciary” expanded

(1)Subsection (2) applies where—

(a)scheme regulations come into force establishing a scheme under
5section 1 for holders of judicial office, and

(b)subsequently, an order is made under paragraph 2(1) of
Schedule 1 (order specifying judicial offices for the purposes of
the definition of “holders of judicial office”).

(2)Scheme regulations for the scheme mentioned in subsection (1)(a) may
10make provision under which any right or obligation of a member
holding an office specified in the order mentioned in subsection (1)(b)
is determined by reference to service which takes place before (as well
as after) the order comes into force.

(3)This section is without prejudice to the generality of section 3(3)(b)
15(power to make retrospective provision in scheme regulations).”

83 Amendments relating to non-scheme benefits

(1)Section 26 of PSPA 2013 (non-scheme benefits) is amended in accordance with
subsections (2) and (3).

(2)In subsection (1), for paragraphs (a) and (b) substitute—

(a)20persons to whom the scheme relates (including any to whom
the scheme relates by virtue of section 25), and

(b)persons to whom the scheme would have related but for the fact
that, in accordance with the scheme, they have opted out of the
scheme (or have failed to opt in to the scheme).”

(3)25After subsection (2) insert—

(3)For the purposes of subsection (1)(b), a person is treated as having
opted out of a scheme if the scheme would have related to the person
(or would have done so if the person had opted that it should) but for
the fact that the person had a partnership pension account.

(4)30In this section—

  • “occupational defined contributions scheme” means a defined
    contributions scheme (within the meaning given by section 4 of
    the Pension Schemes Act 2015) that is an occupational pension
    scheme within the meaning of the Pension Schemes Act 1993
    35(see section 1 of that Act);

  • “partnership pension account”, in relation to a person in service in
    an employment or office, means—

    (a)

    a stakeholder pension scheme,

    (b)

    a personal pension scheme, or

    (c)

    40an occupational defined contributions scheme,

    to which the person’s employer is paying contributions;

  • “personal pension scheme” has the same meaning as in the
    Pension Schemes Act 1993 (see section 1 of that Act);

  • “stakeholder pension scheme” means a scheme which is a
    45stakeholder pension scheme for the purposes of Part 1 of the