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annual rate of the earlier service component of every pension under the scheme which is required to be increased under this paragraph to be so increased annually in the aggregate by at least the appropriate percentage of that rate, or

(b) the application of part only of the valuation surplus would be sufficient to secure that result,

this paragraph does not require that valuation surplus or, as the case may be, the remaining part of it, to be applied in the provision of increases under this paragraph.

(7) The power to make regulations conferred by sub-paragraph (1) above includes power to provide that the value of the scheme's assets or liabilities is to be calculated and verified--

(a) in such manner as may, in the particular case, be approved-- (i) by a prescribed person ;

(ii) by a person with prescribed professional qualifications or experience ; or

(iii) by a person approved by the Secretary of State ; (b) in accordance with guidance prepared by a prescribed body ; (c) in accordance with prescribed principles and requirements ; or (d) in accordance with principles determined by the person who performs the duties of calculation and verification.

(8) This paragraph is subject to paragraphs 4 to 6 below.

--Proportional increases where first periodis less than 12 months

4.--(1) Where a pension commenced to be paid less than twelve months before the the date on which its first increase under paragraph 2 above is to take effect, the amount of that first increase shall be determinied by the application of the formula--

where--

M is the number of months, rounded to the nearest whole month, in the period beginning with the commencement of the pension and ending immediately before that date ; and

I is the amount of the increase that would have been required by that paragraph, apart from this sub-paragraph.

(2) This paragraph shall apply in relation to the first increase of a pension by virtue of paragraph 3 above in consequence of each successive valuation surplus as it applies in relation to the first increase of a pension under paragraph 2 above.

--Restriction on increases where member is under 55

--5.--(1) No increase under paragraph 2 or 3 above is required to be paid to or for a member of a scheme whose pension has commenced but who has not attained the age of 55 at the time when the increase takes effect, unless--

(a) he is permanently incapacitated by mental or physical infirmity from engaging in regular full-time employment, or

(b) he has retired on account of mental or physical infirmity from the office or employment in respect of which, or on retirement from which, the pension is payable.

in which case the pension shall be payable at the annual rate at which it would have been payable apart from this sub-paragraph. (2) The rules of a scheme may provide that if, in a case where a pension has been paid to or for a member under the age of 55 at an increased rate in consequence of paragraph (a) or (b) of subsection (1) above, the member--

(a) ceases to suffer from the infirmity in question before he attains the age of 55, but

(b) continues to be entitled to the pension,

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any increases subsequently taking effect under paragraph 2 or 3 above in the annual rate of the pension shall not be paid or shall not be paid in full.

(3) In any case where--

(a) by virtue only of sub-paragraph (1) or (2) above, increases are not being paid to or for a member, but

(b) the member attains the age of 55 or, in a case falling with sub- paragraph (2) above, again satisfies the conditions set out in paragraph (a) or (b) of sub-paragraph (1) above,

his pension shall thereupon become payable at the annual rate at which it would have been payable apart from sub-paragraph (1) or (2) above.

--Regulations

--6.--(1) The Secretary of State may by regulations direct that section 58A and this Schedule shall have effect, in such cases as he may specify in the regulations, subject to such modifications as he may specify.

(2) In sub-paragraph (1) above "modification", without prejudice to the generality of that sub-paragraph, includes addition, omission and amendment.

--Overriding effect of the increase provisions

--7. The provisions of section 58A of this Act, this Schedule and any regulations made under it override any provision of a qualifying scheme, other than a protected provision (within the meaning of paragraph 7 of Schedule 1A to this Act), to the extent that it conflicts with them.".'.-- [Mr. Newton.]

Brought up, read the First and Second times.

Madam Deputy Speaker-- then proceeded, pursuant to the Order [28 March], to put forthwith the Question, That the new schedule be added to the Bill.

Question agreed to.

Schedule accordingly added to the Bill.

Madam Deputy Speaker-- then proceeded to put forthwith the Question on the remaining amendments, moved by a Member of the Government, of which notice had been given, to that part of the Bill to be concluded at Nine o'clock.

Schedule 2

The Pensions Ombudsman

Amendments made : No. 43, in page 23, line 37, after person', insert--

(a) who is or has been in pensionable service under the scheme, as defined in paragraph 3 of Schedule 16 to the 1973 Act or paragraph 3 of Schedule 3 to the Social Security Pensions (Northern Ireland) Order 1975, or

(b)'.

No. 53, in page 23, line 39, at end insert--

or under Article 2(5) of the Social Security Pensions (Northern Ireland) (S.I. 1975/1503 (N.I. 15)) Order 1975 as a member in relation to the scheme for the purposes of Part IV or V of that Order ;

"Northern Ireland public service pension scheme" means a public service pension scheme, within the meaning of Article 2(2) of that Order ;'.

No. 52, in page 22, line 20, after Act', insert

or any corresponding legislation having effect in Northern Ireland'.

No. 38, in page 22, line 31, at end insert

and any function of the Pensions Ombudsman, other than the determination of complaints made and disputes referred under this Part of this Act, may be performed by any member of that staff who is authorised for that purpose by the Pensions Ombudsman.'.

No. 39, in page 23, line 11, at end insert--

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(2(A) The Secretary of State may by regulations provide that, subject to any modifications or exceptions specified in the regulations, this Part of this Act shall apply in relationto-- (

(a) the employer in relation to any description or category of employment to which an occupational pension scheme relates or has related ; or

(b) any prescribed person or body of persons concerned with the financing or administration of, or the provision of benefits under, any occupational or personal pension scheme,

as it applies in relation to the trustees or managers of such a scheme.

(2B) The Pensions Ombudsman may investigate a complaint or dispute notwithstanding that it arose, or relates to a matter which arose, before the coming into force of this Part of this Act.'.

No 40, in page 23, line 31, at end insert (i)'.

No 41, in page 23, line 34, after first person' insert

; or

(ii) whether a person who claims to be entitled to become a member of the scheme is so entitled,',

No 42, in page 23, line 35, at end insert--

"employer", in relation to a pension scheme, includes a person-- ((a) who is or has been an employer in relation to the scheme, or (

(b) who is or has been treated under section 66(3) below as an employer in relation to the scheme for the purposes of Part III or IV of this Act, or under Article 2(4) of the Social Security Pensions (Northern Ireland) Order 1975 as an employer in relation to the scheme for the purposes of Part IV or V of that Order ;'. No. 54, in page 23, line 41, after scheme', insert

or a Northern Ireland public service pension scheme'.

No. 44, in page 25, line 34, leave out from making' to end of line 36 and insert

and investigation of complaints under this Part of this Act. (2A) Subsection (2) above is without prejudice to the powers conferred by section 10 of the Tribunal and Inquiries Act 1971 to make rules with respect to the procedure which is to be followed in connection with the reference and investigation of disputes under this Part of this Act.'.

No. 45, in page 25, line 37, after rules', insert

referred to in subsections (2) and (2A) above'.

No. 46, in page 25, line 38, leave out such an investigation' and insert

an investigation under this Part of this Act'.

No. 55, in page 25, line 44, after Act', insert

or under any corresponding legislation having effect in Northern Ireland'.

No. 47, in page 26, line 23, leave out

by way of case stated'.

No. 79, in page 26, line 29, at end insert--

(9) Subsections (4) and (5) above shall be construed, in their application to Scotland, as if contempt of court were in Scots law categorised as an offence.'.

No. 56, in page 26, line 39, after Act', insert

or under any corresponding legislation having effect in Northern Ireland'.

No. 48, in page 27, line 1, leave out

by way of case stated'.

No. 80, in page 27, line 7, after enforceable', insert-- (a) in England and Wales,'.

No. 81, in page 27, line 8, at end insert

; and

(b) in Scotland, by the sheriff, as if it were a judgment or order of the sheriff and whether or not the sheriff could himself have granted such judgment or order.'.

No. 49, in page 27, line 8, at end insert--

(6) If the Pensions Ombudsman considers it appropriate to do so in any particular case, he may publish in such form and manner as he thinks fit a report of any investigation under this Part of this Act and of the result of that investigation.

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(7) For the purposes of the law of defamation, the publication of any matter by the Pensions Ombudsman--

(a) in submitting or publishing a report under section 59B(6) or subsection (6) above, or

(b) in sending to any person a statement under subsection (1) above or a direction under subsection (2) above,

shall be absolutely privileged.'.-- [Mr. Newton.]

Schedule 3

Occupational and Personal Pension Schemes

Amendments made : No. 75, in page 27, line 39, after manager', insert , or the trustee,'.

No. 76, in page 28, line 3, after employer', insert or of the scheme'.

No. 75, in page 30, line 4, at end insert

and to be so paid in priority to all other claims falling to be met out of the scheme's resources.'.

No. 23, in page 31, line 1, leave out to line 7 on page 32 and insert--

Employer to make good deficiencies on winding up

2. The following section shall be inserted into the Pensions Act after the section 58A inserted by section [Annual increase of certain occupational pensions] above.'.

No. 58, in page 34, line 42, leave out pensionable' and insert normal pension'.

No. 59, in page 36, line 10, leave out paragraph (d) and insert-- (d) where the scheme provides that part of the earner's pension shall accrue after the termination of employment date by reason of employment after that date, the later earnings addition.".' No. 60, in page 36, line 18, leave out

on which he attained pensionable age'

and insert

after his termination of employment date'.

No. 61, in page 36, line 38, leave out paragraph (d) and insert-- (d) where the scheme provides that part of the widow's pension shall accrue after the termination of employment date by reason of the earner's employment after that date, the later earnings addition.".'.

No. 62, in page 36, line 46, leave out

on which he attained pensionable age'

and insert

after his termination of employment date'.

No. 78, in page 38, line 4, leave out (d)' and insert (e)'. No. 57, in page 39, line 30, at end insert--

Extension of certain pension scheme provisions to Northern Ireland 11A. In section 68(4) of the Pensions Act (provisions which extend to Northern Ireland) for the words "Section 57 of this Act extends" there shall be substituted the words "The following provisions of this Act, namely, sections 57, 59B, other than subsections (4) and (5)(b), and 59K(1), (2), other than paragraph (a)(ii), (3), (4) and (8) extend".'.-- [Mr. Newton.]

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