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

Public Service Pensions and Judicial Offices Bill [HL]Page 60

  • Welfare Reform and Pensions Act 1999 (see section 1 of that
    Act).”

(4)Section 26 of PSPA(NI) 2014 (non-scheme benefits) is amended in accordance
with subsections (5) and (6).

(5)5In subsection (1), for paragraphs (a) and (b) substitute—

(a)persons 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
10scheme (or have failed to opt in to the scheme).”

(6)After 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
15the fact that the person had a partnership pension account.

(4)In this section—

  • “occupational defined contributions scheme” means a defined
    contributions scheme (within the meaning given by section 4 of
    the Pension Schemes Act (Northern Ireland) 2016) that is an
    20occupational pension scheme within the meaning of Pension
    Schemes (Northern Ireland) Act 1993 (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)

    25a personal pension scheme, or

    (c)

    an 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 (Northern Ireland) Act 1993 (see section 1 of
    30that Act);

  • “stakeholder pension scheme” means a scheme which is a
    stakeholder pension scheme for the purposes of Part 2 of the
    Welfare Reform and Pensions (Northern Ireland) Order 1999
    (see Article 3 of that Order).”

35Miscellaneous

84 Power of Treasury to make scheme for compensation

(1)The Treasury may by regulations make provision for a compensation scheme
under which amounts are paid by way of compensation in respect of
compensatable losses incurred by relevant members.

(2)40The provision that may be made under subsection (1) includes—

(a)provision appointing a body to administer the scheme;

(b)provision establishing a body for that purpose and making such
provision in relation to the appointment of members, staffing,
expenditure, procedure and otherwise as the Treasury consider
45appropriate;

Public Service Pensions and Judicial Offices Bill [HL]Page 61

(c)provision allowing the body administering the scheme to exercise a
discretion;

(d)provision conferring power on the Treasury to give guidance or
directions to the body administering the scheme;

(e)5any provision that could be included in—

(i)regulations made by virtue of section 23 (interest and process)
in relation to amounts payable under section 21 (power to pay
compensation), or

(ii)regulations made by virtue of section 57 (interest and process)
10in relation to amounts payable under section 56 (power to pay
compensation).

(3)In this section “compensatable loss” means—

(a)a compensatable loss for the purposes of section 21 (power to pay
compensation under Chapter 1), or

(b)15a compensatable loss for the purposes of section 56 (power to pay
compensation under Chapter 2).

(4)In this section “relevant member” means—

(a)a member of a Chapter 1 legacy scheme within section 30(2)(a) or (3)(a)
who has remediable service that is pensionable service under the
20scheme, or

(b)a member of a judicial scheme within section 66(2)(a), (4)(a) or (5) who
has remediable service that is pensionable service under the scheme.

(5)In subsection (4)

(a)in paragraph (a), “Chapter 1 legacy scheme” and “remediable service”
25have the same meaning as in Chapter 1;

(b)in paragraph (b), “judicial scheme” and “remediable service” have the
same meaning as in Chapter 2.

(6)Regulations under this section are subject to the negative procedure.

85 Power of Department of Finance to make scheme for compensation

(1)30The Department of Finance in Northern Ireland may by regulations make
provision for a compensation scheme under which amounts are paid by way
of compensation in respect of compensatable losses incurred by relevant
members.

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

(a)35provision appointing a body to administer the scheme;

(b)provision establishing a body for that purpose and making such
provision in relation to the appointment of members, staffing,
expenditure, procedure and otherwise as the Department of Finance in
Northern Ireland considers appropriate;

(c)40provision allowing the body administering the scheme to exercise a
discretion;

(d)provision conferring power on the Department of Finance in Northern
Ireland to give guidance or directions to the body administering the
scheme;

(e)45any provision that could be included in—

Public Service Pensions and Judicial Offices Bill [HL]Page 62

(i)regulations made by virtue of section 23 (interest and process)
in relation to amounts payable under section 21 (power to pay
compensation), or

(ii)regulations made by virtue of section 57 (interest and process)
5in relation to amounts payable under section 56 (power to pay
compensation).

(3)In this section “compensatable loss” means—

(a)a compensatable loss for the purposes of section 21 (power to pay
compensation under Chapter 1), or

(b)10a compensatable loss for the purposes of section 56 (power to pay
compensation under Chapter 2).

(4)In this section “relevant member” means—

(a)a member of a Chapter 1 legacy scheme within section 30(2)(b) or (3)(b)
who has remediable service that is pensionable service under the
15scheme, or

(b)a member of a judicial scheme within section 66(2)(b) or (4)(b) who has
remediable service that is pensionable service under the scheme.

(5)In subsection (4)

(a)in paragraph (a), “Chapter 1 legacy scheme” and “remediable service”
20have the same meaning as in Chapter 1;

(b)in paragraph (b), “judicial scheme” and “remediable service” have the
same meaning as in Chapter 2.

(6)Regulations under this section are subject to the negative procedure.

86 Power to make provision in relation to certain fee-paid judges

(1)25Scheme regulations for a judicial scheme may make provision for the purpose
of putting relevant fee-paid judges, so far as possible, in the position they
would have been in if they had always been recognised as being full protection
members of a judicial legacy scheme.

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

(a)30provision about the amount of benefits to which a person is or was
entitled in respect of pensionable service,

(b)provision about pension contributions a person is or was required to
pay to the scheme in respect of pensionable service,

(c)provision about cases in which voluntary contributions have been paid
35to a judicial 2015 scheme (including provision under which rights to
benefits referable to the contributions are retained in the judicial 2015
scheme);

(d)provision about cases in which a person has transferred rights into a
judicial 2015 scheme (including provision under which the rights are
40retained in the judicial 2015 scheme);

(e)provision about cases in which a person has a partnership pension
account;

(f)provision about cases in which a person has partially retired;

(g)provision enabling a scheme manager to pay amounts by way of
45compensation, including provision requiring an employer in relation to
the scheme to reimburse the scheme manager for such amounts;

Public Service Pensions and Judicial Offices Bill [HL]Page 63

(h)provision corresponding or similar to any provision of or made
under—

(i)section 50 (effective pension age payments);

(ii)section 51 (transitional protection allowance);

(iii)5section 52 (power to reduce benefits in lieu of paying liabilities
owed to the scheme);

(iv)section 53 (powers to reduce or waive liabilities);

(v)section 54 (pension credit members).

(3)For the purposes of this section a person (“P”) is a “relevant fee-paid judge” if—

(a)10on 31 March 2012—

(i)P held a fee-paid judicial office, and

(ii)did not hold a salaried judicial office,

(b)on 1 April 2012, P was aged 55 or over,

(c)at any time in the period beginning with 1 April 2012 and ending with
15the day before the relevant date, P held a salaried judicial office, and

(d)either—

(i)on the relevant date, P did not hold a fee-paid judicial office, or

(ii)the condition in regulation 8(2)(a) of the judicial legacy fee-paid
scheme (members) is not met in relation to P and the fee-paid
20judicial office mentioned in paragraph (a)(i).

(4)In this section “full protection member”—

(a)in relation to a judicial office within section 67(1)(a) or (b), has the same
meaning as in Schedule 2 to the Judicial Pensions Regulations 2015 (S.I.
2015/182) (see paragraph 1 of that Schedule), or

(b)25in relation to a judicial office within section 67(1)(c), has the same
meaning as in Schedule 2 to the Judicial Pensions Regulations
(Northern Ireland) 2015 (S.R. (N.I.) 2015 No. 76) (see paragraph 1 of
that Schedule).

(5)In this section “the relevant date”—

(a)30in relation to a judicial office within section 67(1)(a) or (b), means 2
December 2012;

(b)in relation to a judicial office within section 67(1)(c), means 1 February
2013.

(6)Expressions used in this section have the same meaning as in Chapter 2.

87 35HMRC information-sharing and other functions relating to compensation etc

(1)HMRC (or anyone acting on their behalf) may—

(a)exchange information with a relevant person for the purpose of
facilitating the exercise of any compensation function, or

(b)do anything else which they think necessary or expedient for that
40purpose.

(2)A person to whom HMRC discloses information under this section—

(a)may use it only for the purpose for which it was disclosed, and

(b)may not further disclose it without the consent of HMRC (which may
be general or specific).

Public Service Pensions and Judicial Offices Bill [HL]Page 64

(3)Where a person contravenes subsection (2)(b) by disclosing information
relating to a person whose identity—

(a)is specified in the disclosure, or

(b)can be deduced from it,

5section 19 of the Commissioners for Revenue and Customs Act 2005 (offence of
wrongful disclosure) applies in relation to the disclosure as it applies in
relation to a disclosure in contravention of section 20(9) of that Act.

(4)Nothing in this section authorises a disclosure of information if the disclosure
would contravene the data protection legislation or would be prohibited by the
10investigatory powers legislation (but in determining whether a disclosure
would do either of those things, the power conferred by this section is to be
taken into account).

(5)Nothing in this section limits the circumstances in which information may be
disclosed under section 18(2) of the Commissioners for Revenue and Customs
15Act 2005 or under any other enactment or rule of law.

(6)In this section—

  • “compensation function” means a function that relates to—

    (a)

    the payment of compensation, contributions, benefits or other
    amounts to or in respect of a person by virtue of a provision
    20made by or under this Part, or

    (b)

    the reduction or waiving of a person’s liability to pay an
    amount by virtue of such a provision;

  • “the data protection legislation” has the same meaning as in the Data
    Protection Act 2018 (see section 3 of that Act);

  • 25“the investigatory powers legislation” means Parts 1 to 7 and Chapter 1 of
    Part 9 of the Investigatory Powers Act 2016;

  • “relevant person” means a person—

    (a)

    who exercises a compensation function,

    (b)

    to or in respect of whom compensation, contributions, benefits
    30or other amounts is or are payable by virtue of a provision made
    by or under this Part, or

    (c)

    whose liability to pay an amount may be reduced or waived by
    virtue of such a provision.

88 Section 91 of the Pensions Act 1995

(1)35Subsection (2) applies in relation to any reference in section 91 of PA 1995 or
Article 89 of P(NI)O 1995 (inalienability of occupational pension) to—

(a)assigning, commuting or surrendering an entitlement to a pension or a
right to a future pension, or

(b)the exercise of a set-off in respect of such an entitlement or right.

(2)40The reference does not include—

(a)anything done under or by virtue of this Part of this Act, or

(b)the surrender of an entitlement or right under a pension scheme—

(i)for the purpose of meeting a condition by virtue of section
5(5)(b) (Chapter 1: surrender of rights required as condition for
45inclusion of opted-out service in remedy), or

Public Service Pensions and Judicial Offices Bill [HL]Page 65

(ii)in the course of taking the steps mentioned in section 38(3) or (6)
(Chapter 2: partnership pension account: requirement to
transfer asssets and surrender rights).

89 Minor amendment

5In JUPRA 1993, in section 2 (judicial officer’s entitlement to a pension), in
subsection (7A), for “(2)(c)” substitute “(7)(c)”.

90 Power to make consequential provision

(1)The Treasury may by regulations make provision that is consequential on this
Part.

(2)10Regulations under this section may amend, repeal, revoke or otherwise modify
provision made by an enactment.

(3)Regulations under this section that amend, repeal or revoke primary
legislation are subject to the affirmative procedure.

(4)Any other regulations under this section are subject to the negative procedure.

(5)15In this section “primary legislation” means—

(a)an Act;

(b)retained direct principal EU legislation;

(c)an Act of the Scottish Parliament;

(d)a Measure or Act of the National Assembly for Wales;

(e)20Northern Ireland legislation.

Interpretation of Part

91 Meaning of “member” etc

(1)In this Part “member”, in relation to a pension scheme, means a member of the
scheme of any description (whether or not in pensionable service or in receipt
25of a pension) and includes a deceased member.

(2)For the purposes of this Part a person is an “active member” of a pension
scheme in relation to their service in an employment or office if—

(a)there are presently arrangements made under the pension scheme for
the accrual of benefits to or in respect of the person that are calculated
30by reference to the person’s service in that employment or office, and

(b)the person is not a pensioner member of the scheme in relation to that
employment or office.

(3)For the purposes of this Part a person is a “pensioner member” of a pension
scheme in relation to their service in an employment or office if the person is
35entitled to the present payment of benefits under the scheme that are calculated
by reference to the person’s service in that employment or office.

(4)For the purposes of this Part a person is a “deferred member” of a pension
scheme in relation to their service in an employment or office if—

(a)the person has accrued rights under the pension scheme, and

(b)40the person is neither an active member of the scheme, nor a pensioner
member of the scheme, in relation to that employment or office.

Public Service Pensions and Judicial Offices Bill [HL]Page 66

92 Interpretation of Part

In this Part—

  • “accrual rate”, in relation to a pension scheme, means the rate at which
    rights to benefits accrue over time by reference to periods of
    5pensionable service;

  • “active member” has the meaning given by section 91;

  • “deferred member” has the meaning given by section 91;

  • “EA 2010” means the Equality Act 2010;

  • “EEAR(NI) 2006” means the Employment Eq uality (Age) Regulations
    10(Northern Ireland) 2006 (S.R. (N.I.) 2006 No. 261);

  • “employer”, in relation to a pension scheme, means—

    (a)

    any employer of persons to whom the scheme relates,

    (b)

    the person responsible for the remuneration of an office-holder
    to whom the scheme relates, or

    (c)

    15such other persons (in addition to, or instead of, any person
    falling within paragraph (a) or (b)) as scheme regulations or (in
    the case of a public body pension scheme) the rules of the
    scheme may provide;

  • “employment”: references to a person’s service in an employment
    20include, in relation to a health service worker, any service of the person
    that, if the person were in pensionable service under a scheme under
    section 1 of PSPA 2013, or section 1 of PSPA(NI) 2014, for health service
    workers, would be pensionable service under the scheme;

  • “enactment” includes—

    (a)

    25an enactment comprised in subordinate legislation (within the
    meaning given by section 21 of the Interpretation Act 1978),

    (b)

    an enactment comprised in, or in an instrument made under, a
    Measure or Act of the National Assembly for Wales,

    (c)

    an enactment comprised in, or in an instrument made under, an
    30Act of the Scottish Parliament, and

    (d)

    an enactment comprised in, or in an instrument made under,
    Northern Ireland legislation;

  • “entitled”: section 165(3)(b) of FA 2004 (time when person becomes
    “entitled” to pension) applies for the purposes of this Part as it applies
    35for the purposes of Part 4 of that Act (reading the reference to a
    registered pension scheme as a reference to any pension scheme);

  • “FA 2004” means the Finance Act 2004;

  • “health service workers” means—

    (a)

    health service workers within the meaning of PSPA 2013 (see
    40paragraph 5 of Schedule 1 to that Act), or

    (b)

    health service workers within the meaning of PSPA(NI) 2014
    (see paragraph 5 of Schedule 1 to that Act);

  • HMRC” means Her Majesty’s Revenue and Customs;

  • “JUPRA 1993” means the Judicial Pensions and Retirement Act 1993;

  • 45“member” has the meaning given by section 91;

  • “normal pension age” means normal pension age within the meaning of
    PSPA 2013 (see section 10(5) of that Act) or PSPA(NI) 2014 (see section
    10(10) of that Act);

  • “occupational defined contributions scheme” means—

Public Service Pensions and Judicial Offices Bill [HL]Page 67

  • (a)

    a defined contributions scheme (within the meaning given by
    section 4 of PSA 2015) that is an occupational pension scheme
    within the meaning of PSA 1993 (see section 1 of that Act), or

    (b)

    a defined contributions scheme (within the meaning given by
    5section 4 of PSA(NI) 2016) that is an occupational pension
    scheme within the meaning of PS(NI)A 1993 (see section 1 of
    that Act);

  • “PA 1995” means the Pensions Act 1995;

  • “P(NI)O 1995” means the Pensions (Northern Ireland) Order 1995 (S.I.
    101995/3213 (N.I. 22));

  • “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)

    15an occupational defined contributions scheme,

    to which the person‘s employer is paying contributions;

  • “pension contributions”, in relation to a pension scheme, means
    contributions that a member of the scheme or the employer is required
    under the scheme to pay to the scheme;

  • 20“pension scheme” means a scheme for the payment of pensions or other
    benefits to or in respect of persons with service of a particular
    description;

  • “pensionable earnings”, in relation to a pension scheme and a member of
    it, means earnings by reference to which a pension or other benefits
    25under the scheme are calculated;

  • “pensionable service”, in relation to a pension scheme, means service
    which qualifies a person to a pension or other benefits under that
    scheme;

  • “pensioner member” has the meaning given by section 91;

  • 30“personal pension scheme” means a personal pension scheme within the
    meaning of PSA 1993 (see section 1 of that Act) or PS(NI)A 1993 (see
    section 1 of that Act);

  • “PSA 1993” means the Pension Schemes Act 1993;

  • “PS(NI)A 1993” means the Pension Schemes (Northern Ireland) Act 1993;

  • 35“PSA 2015” means the Pension Schemes Act 2015;

  • “PSA(NI) 2016” means the Pension Schemes Act (Northern Ireland) 2016
    (c.1 (N.I.));

  • “PSPA 2013” means the Public Service Pensions Act 2013;

  • “PSPA(NI) 2014” means the Public Service Pensions Act (Northern
    40Ireland) 2014 (c. 2 (N.I.));

  • “public body pension scheme” means a scheme which is a public body
    pension scheme for the purposes of PSPA 2013 (see section 30(5) of that
    Act) or PSPA(NI) 2014 (see section 31(4) of that Act);

  • SA 1972” means the Superannuation Act 1972;

  • 45“scheme manager” has the meaning given by section 4 of PSPA 2013 or
    section 4 of PSPA(NI) 2014;

  • “stakeholder pension scheme” means a scheme which is a stakeholder
    pension scheme for the purposes of Part 1 of WRPA 1999 (see section 1
    of that Act) or Part 2 of WRP(NI)O 1999 (see Article 3 of that Order);

  • 50WRPA 1999” means the Welfare Reform and Pensions Act 1999;

Public Service Pensions and Judicial Offices Bill [HL]Page 68

  • “WRP(NI)O 1999” means the Welfare Reform and Pensions (Northern
    Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11)).

Part 2 Pensions and Banking (Special Provisions) Act 2008 Bodies

5New public pension schemes

93 Establishment of new public schemes and transfer of rights

(1)The Treasury may by regulations establish one or more schemes (“new public
schemes”) which provide for pensions or other benefits to be payable to or in
respect of persons who are or have been members of the BBS Pension Scheme
10or the NRAM Pension Scheme.

(2)The Treasury may by regulations make provision for the transfer of qualifying
accrued rights to a new public scheme (without the need for any approval or
consent to the transfer).

(3)Regulations under subsection (2) may include provision for the discharge of
15liabilities in respect of qualifying accrued rights that are transferred.

(4)In this Part—

  • “qualifying accrued rights” means—

    (a)

    any right to future benefits under the BBS Pension Scheme or
    the NRAM Pension Scheme which, at the qualifying time, has
    20accrued to or in respect of a member of that scheme,

    (b)

    any entitlement under the BBS Pension Scheme or the NRAM
    Pension Scheme to the present payment of a pension or other
    benefit which a member of the BBS Pension Scheme or the
    NRAM Pension Scheme has at the qualifying time, or

    (c)

    25any entitlement to benefits, or right to future benefits, under the
    BBS Pension Scheme or the NRAM Pension Scheme which a
    survivor of a member of the BBS Pension Scheme or the NRAM
    Pension Scheme has at the qualifying time in respect of the
    member;

  • 30“the qualifying time” means the time immediately before the date
    specified or described in regulations made by the Treasury.

(5)For the purposes of the definition of “qualifying accrued rights”—

(a)references to pensions or other benefits (including future benefits)
includes money purchase benefits, and

(b)35references to a right include a pension credit right.

Regulations under subsection (4) specifying or describing a date for the
purposes of the definition of “the qualifying time” may make provision for the
purposes of transfers of qualifying accrued rights generally, transfers of a
particular description or a particular transfer.

94 40New public schemes: further provision

(1)A new public scheme may include provision—

(a)for pensions or other benefits to be payable to or in respect of some or
all persons described in section 93(1);

Public Service Pensions and Judicial Offices Bill [HL]Page 69

(b)for the provision of money purchase benefits or benefits that are not
money purchase benefits (or both);

(c)for increasing in particular circumstances the amounts payable in
respect of qualifying accrued rights;

(d)5for the payment or receipt of transfer values or other lump sum
payments for the purpose of creating rights to benefits under a new
public scheme or otherwise.

(2)Regulations under section 93(1) may—

(a)provide for a new public scheme to be treated as an occupational
10pension scheme, a previously contracted-out scheme or another type of
occupational pension scheme for the purposes of an enactment
specified or described in the regulations;

(b)provide for the enactment to apply in relation to a new public scheme
subject to modifications specified in the regulations.

(3)15Regulations under section 93(1) amending a new public scheme may make
retrospective provision.

(4)Regulations under section 93(1) may—

(a)confer functions on the Treasury or another person;

(b)provide for a person to exercise a discretion in dealing with a matter.

(5)20The Treasury may—

(a)make arrangements for a new public scheme to be administered by any
person;

(b)delegate to any person a function exercisable by the Treasury under a
new public scheme.

(6)25In this section, a “previously contracted-out scheme” means a scheme that
before 6 April 2016 was a salary related contracted-out scheme within the
meaning of Part 3 of the Pension Schemes Act 1993.

95 Protection against adverse treatment: transfer of rights

(1)When making regulations under section 93 which transfer qualifying accrued
30rights to a new public scheme, the Treasury must ensure that the following
requirements are met in respect of each person whose qualifying accrued
rights are transferred—

(a)the general scheme requirement (see subsection (2)), and

(b)where the qualifying accrued rights transferred are a person’s rights or
35entitlements to money purchase benefits other than pensions in
payment, the money purchase requirement (see subsection (3)).

(2)The general scheme requirement is that, so far as relevant to the qualifying
accrued rights transferred by the regulations, the provision in the new public
scheme immediately after the regulations are made is in all material respects at
40least as good as the provision in the BBS Pension Scheme or the NRAM Pension
Scheme (as appropriate) immediately before that time.

(3)The money purchase requirement is that the value of the rights or entitlements
to money purchase benefits, other than pensions in payment, that a person has
under the new public scheme immediately after, and as a result of, the transfer
45is at least equivalent to the value of the qualifying accrued rights of the person
that are transferred.