Pensions Bill

House of Commons

Session 2003 - 04
Internet Publications
Other Bills before Parliament

Pensions Bill

Pensions Bill
Part 2 — The Board of the Pension Protection Fund
Chapter 6 — Reviews, appeals and maladministration
106

168
Review and reconsideration by Board of reviewable matters
(1)
Regulations must—
(a)
provide for the Board, on the written application of an interested
person, to give a decision (“a review decision”) on any reviewable
matter, and
5
(b)
require a committee of the Board constituted for the purposes of this
section (the “Reconsideration Committee”), on the written application
of an interested person following a review decision, to reconsider the
reviewable matter and give a decision (“a reconsideration decision”).
(2)
In subsection (1), “interested person” in relation to a reviewable matter, means
10
a person of a description prescribed in relation to reviewable matters of that
description.
(3)
Regulations under subsection (1) may—
(a)
permit a review decision in respect of a reviewable matter of a
prescribed description to be made otherwise than on an application,
15
and
(b)
permit a reconsideration decision in respect of such a matter to be made
otherwise than on an application.
(4)
Regulations under subsection (1) must provide for the Board’s powers on
making a review decision or reconsideration decision to include power—
20
(a)
to vary or revoke the determination, direction or other decision already
made by the Board in respect of the reviewable matter,
(b)
to substitute a different determination, direction or decision,
(c)
generally to deal with the matters arising on the review decision or
reconsideration decision as if they had arisen on the original
25
determination, direction or decision,
(d)
to pay such compensation as the Board considers appropriate to such
persons as it may determine, and
(e)
to make savings and transitional provision.
(5)
Regulations under subsection (1) must include provision—
30
(a)
about applications under the regulations for a review decision or
reconsideration decision in respect of a reviewable matter, including
the times by which they are to be made,
(b)
requiring notice—
(i)
of such applications, or
35
(ii)
of a decision of the Board or the Reconsideration Committee by
virtue of subsection (3) to give a review decision or reconsider a
reviewable matter otherwise than on such an application,

to be given to interested persons in relation to the matter,
(c)
with a view to securing that individuals concerned in giving a
40
reconsideration decision were not concerned in the reviewable matter
in respect of which the decision is to be made,
(d)
as to the procedure for reaching and giving decisions under the
regulations, including—
(i)
rights of interested persons to make representations to the
45
Reconsideration Committee on a reconsideration under
regulations made under subsection (1)(b), and
(ii)
the times by which decisions are to be given, and

Pensions Bill
Part 2 — The Board of the Pension Protection Fund
Chapter 6 — Reviews, appeals and maladministration
107

(e)
requiring notice of the review decision or the reconsideration decision
in respect of a reviewable matter to be given to interested persons in
relation to the matter.
(6)
Provision required by subsection (5)(c) may modify paragraphs 15 and 16 of
Schedule 5 (membership and procedure of committees of the Board).
5
169
Investigation by Board of complaints of maladministration
(1)
Regulations must make provision for dealing with relevant complaints.
(2)
For the purposes of this Chapter, “relevant complaint” means a complaint—
(a)
by a person who is or might become entitled to compensation under
Schedule 7 (pension compensation provisions), or
10
(b)
by a person who has or may make an application under section 144
(fraud compensation),

that he has sustained injustice in consequence of maladministration in
connection with any act or omission by the Board or any person exercising
functions on its behalf.
15
(3)
Regulations under subsection (1) must—
(a)
provide for the Board to investigate and give decisions on matters
complained of in relevant complaints, and
(b)
provide for a committee of the Board, on applications following such
decisions, to investigate matters complained of and give decisions on
20
them.
(4)
Such regulations may, in particular, make provision—
(a)
about the making of relevant complaints and applications under the
regulations, including the times by which they are to be made,
(b)
with a view to securing that individuals concerned in giving a decision
25
were not concerned in the matter which is the subject of the relevant
complaint in question,
(c)
as to the procedure for reaching and giving decisions under the
regulations, including—
(i)
rights of prescribed persons to make representations to the
30
Board, on an investigation under regulations made under
subsection (3)(b), and
(ii)
the times by which decisions are to be given, and
(d)
requiring notice—
(i)
of a relevant complaint under the regulations, or
35
(ii)
of a decision under the regulations in respect of the complaint,

to be given to prescribed persons in relation to the matter.
(5)
Regulations under subsection (1) may confer power on the Board to pay such
compensation as it considers appropriate to such persons as it considers have
sustained injustice in consequence of the matters complained of.
40
(6)
The power conferred by subsection (4)(b) includes power to modify
paragraphs 15 and 16 of Schedule 5 (membership and procedure of committees
of the Board).

Pensions Bill
Part 2 — The Board of the Pension Protection Fund
Chapter 6 — Reviews, appeals and maladministration
108

The PPF Ombudsman
170
The Ombudsman for the Board of the Pension Protection Fund
(1)
There is to be a commissioner to be known as the Ombudsman for the Board of
the Pension Protection Fund (in this Act referred to as “the PPF Ombudsman”).
(2)
The PPF Ombudsman is to be appointed by the Secretary of State on such terms
5
and conditions as are determined by the Secretary of State.
(3)
The PPF Ombudsman—
(a)
is to hold and vacate office in accordance with the terms and conditions
of his appointment, and
(b)
may resign or be removed from office in accordance with those terms
10
and conditions.
(4)
The Secretary of State may appoint one or more persons to act as deputy to the
PPF Ombudsman on such terms and conditions as are determined by the
Secretary of State.
(5)
The provisions of this section, sections 173 to 176 and any corresponding
15
provisions in force in Northern Ireland apply in relation to such a deputy as
they apply in relation to the PPF Ombudsman subject to such modifications as
may be prescribed.
(6)
The Secretary of State may by order make provision—
(a)
about the payment, or provision for payment, of remuneration,
20
compensation for loss of office, pension, allowances or gratuities to or
in respect of the PPF Ombudsman;
(b)
about the reimbursement of the PPF Ombudsman in respect of any
expenses incurred by him in the performance of his functions;
(c)
about the staff of the PPF Ombudsman and the provision of facilities
25
(including additional staff) to him;
(d)
authorising the PPF Ombudsman—
(i)
to charge such fees as are specified in the order;
(ii)
to charge fees sufficient to meet such costs as are specified in the
order;
30
(e)
conferring powers to enable the PPF Ombudsman to obtain such
information and documents as he may require for the performance of
his functions; and
(f)
about restrictions on the disclosure of information held by him.
(7)
An order under subsection (6)(d)—
35
(a)
may prescribe, or authorise the PPF Ombudsman to determine, the
time at which any fee is due, and
(b)
provide that any fee which is owed to the PPF Ombudsman by virtue
of an order under subsection (6)(d) may be recovered as a debt due to
the PPF Ombudsman.
40
(8)
The Secretary of State must pay to the PPF Ombudsman out of money provided by
Parliament such sums as may be required to be paid by the Secretary of State to or in
respect of the PPF Ombudsman by virtue of an order under subsection (6).

Pensions Bill
Part 2 — The Board of the Pension Protection Fund
Chapter 6 — Reviews, appeals and maladministration
109

171
Disqualification of PPF Ombudsman from certain offices
(1)
In Part 3 of Schedule 1 to the House of Commons Disqualification Act 1975
(c. 24) (other disqualifying offices), at the appropriate place insert—

“Ombudsman for the Board of the Pension Protection Fund”.
(2)
In Part 3 of Schedule 1 to the Northern Ireland Assembly Disqualification Act
5
1975 (c. 25) (other disqualifying offices), at the appropriate place insert—

“Ombudsman for the Board of the Pension Protection Fund”.
172
Annual reports to Secretary of State
(1)
The PPF Ombudsman must prepare a report on the discharge of his functions
for each financial year.
10
(2)
The PPF Ombudsman must send each report to the Secretary of State as soon
as practicable after the end of the financial year for which it is prepared.
(3)
The Secretary of State must arrange for the publication of each report sent to
him under subsection (2).
(4)
In this section “financial year” means—
15
(a)
the period beginning with the date on which the PPF Ombudsman is
established and ending with the next following 31st March, and
(b)
each successive period of 12 months.
References to the PPF Ombudsman
173
Reference of reviewable matter to the PPF Ombudsman
20
(1)
Regulations must make provision—
(a)
for a reviewable matter to be referred to the PPF Ombudsman
following a reconsideration decision under regulations made under
subsection (1)(b) or by virtue of subsection (3)(b) of section 168 in
respect of the matter, and
25
(b)
for the PPF Ombudsman—
(i)
to investigate and determine what (if any) is the appropriate
action for the Board to take in relation to the matter, and
(ii)
to remit the matter to the Board with directions for the purpose
of giving effect to his determination.
30
(2)
Regulations under subsection (1) must make provision about the making of
references to the PPF Ombudsman, including provision—
(a)
about the descriptions of persons who may make them,
(b)
about the manner of making such references, including the times by
which they are to be made, and
35
(c)
for prescribed persons to be notified of—
(i)
references made under the regulations, and
(ii)
determinations and directions given under the regulations.
(3)
Regulations under subsection (1) must—
(a)
require the PPF Ombudsman to conduct an oral hearing in relation to
40
any reviewable matter referred to him under the regulations or to
dispose of the matter on the basis of written representations,

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Part 2 — The Board of the Pension Protection Fund
Chapter 6 — Reviews, appeals and maladministration
110

(b)
enable the PPF Ombudsman to consider evidence relating to the matter
which was not available to the Board or the Reconsideration
Committee, and
(c)
make other provision about the procedure for conducting
investigations, and reaching and giving determinations, under the
5
regulations, including the times by which determinations are to be
given.
(4)
The provision that may be made by virtue of subsection (3)(c) includes
provision—
(a)
conferring rights on prescribed persons—
10
(i)
to make representations to the PPF Ombudsman in relation to a
reviewable matter referred to him by virtue of this section,
(ii)
to be heard or represented at any oral hearing by the PPF
Ombudsman in relation to such a matter,
(b)
about the consideration of evidence by the PPF Ombudsman,
15
including—
(i)
production of documents,
(ii)
oral hearings,
(iii)
expert evidence,
(iv)
attendance of witnesses,
20
(c)
conferring rights on prescribed persons to continue a reference made
by a person who has died or is otherwise unable to act for himself,
(d)
as to the costs or expenses of prescribed persons,
(e)
conferring rights on prescribed persons to apply for a stay (or in
Scotland, for a sist) in relation to prescribed legal proceedings which
25
begin after the reference is made and conferring power on the relevant
court to make an order staying (or sisting) the proceedings if it is
satisfied of prescribed matters, and
(f)
for securing that any determination or direction of the PPF
Ombudsman under the regulations is binding on prescribed persons.
30
(5)
Regulations under subsection (1) may include provision—
(a)
conferring power on the PPF Ombudsman to direct the Board to pay
such compensation as he considers appropriate to such persons as he
may direct,
(b)
conferring power on the Board to make such payments, and
35
(c)
conferring such other powers on the Board as may be required when a
matter is remitted to it.
174
Investigation by PPF Ombudsman of complaints of maladministration
(1)
Regulations must provide for the investigation and determination by the PPF
Ombudsman of such matters as may be prescribed following decisions on
40
relevant complaints given by the Board or the committee of the Board referred
to in section 169(3)(b) under regulations made under that section.
(2)
Regulations under this section must make provision—
(a)
prescribing the descriptions of person who may refer matters to the PPF
Ombudsman under the regulations,
45
(b)
about the manner in which such references may be made, including the
times by which they are to be made,

Pensions Bill
Part 2 — The Board of the Pension Protection Fund
Chapter 6 — Reviews, appeals and maladministration
111

(c)
about the procedure for conducting investigations, and reaching and
giving determinations, on such references, including the times by
which the determinations are to be given,
(d)
about the powers of the PPF Ombudsman on making such
determinations, including—
5
(i)
the power to direct the Board to pay such compensation as he
considers appropriate to such persons as he considers have
sustained injustice in consequence of the matters complained
of, and
(ii)
the power to direct the Board to take or refrain from taking such
10
other steps as he may specify,
(e)
conferring such powers on the Board as are necessary to comply with
such requirements,
(f)
for prescribed persons to be notified of—
(i)
references to the PPF Ombudsman under the regulations, and
15
(ii)
determinations and directions by the PPF Ombudsman under
the regulations,
(g)
conferring rights on prescribed persons—
(i)
to make representations to the PPF Ombudsman in relation to a
matter referred to him by virtue of this section,
20
(ii)
to be heard or represented at any oral hearing by the PPF
Ombudsman in relation to such a matter,
(h)
about the consideration of evidence by the PPF Ombudsman,
including—
(i)
production of documents,
25
(ii)
oral hearings,
(iii)
expert evidence,
(iv)
attendance of witnesses,
(i)
conferring rights on prescribed persons to continue a reference made
by a person who has died or is otherwise unable to act for himself,
30
(j)
as to the costs or expenses of prescribed persons,
(k)
conferring rights on prescribed persons to apply for a stay (or in
Scotland, for a sist) in relation to prescribed legal proceedings which
begin after the reference is made and conferring power on the relevant
court to make an order staying (or sisting) the proceedings if it is
35
satisfied of prescribed matters, and
(l)
for securing that any determination or direction of the PPF
Ombudsman under the regulations is binding on prescribed persons.
175
Determinations of the PPF Ombudsman
(1)
A person bound by a determination or direction by the PPF Ombudsman by
40
virtue of regulations made under section 173 or section 174 may appeal on a
point of law arising from the determination or direction—
(a)
in England and Wales, to the High Court, or
(b)
in Scotland, to the Court of Session.
(2)
Any determination or direction of the PPF Ombudsman is enforceable—
45
(a)
in England and Wales, in a county court as if it were a judgment or
order of that court, and

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Part 2 — The Board of the Pension Protection Fund
Chapter 7 — Miscellaneous
112

(b)
in Scotland, in like manner as an extract registered decree arbitral
bearing warrant for execution issued by the sheriff court of any
sheriffdom in Scotland.
176
Obstruction etc of the PPF Ombudsman
(1)
This section applies if any person—
5
(a)
without lawful excuse obstructs the PPF Ombudsman in the
performance of his functions, or
(b)
is guilty of any act or omission in relation to an investigation by the PPF
Ombudsman under regulations made under section 173 or section 174,
which, if that investigation were a proceeding in the court, would
10
constitute contempt of court.
(2)
The PPF Ombudsman may certify the offence to the court.
(3)
Where an offence is certified under subsection (2), the court may—
(a)
inquire into the matter,
(b)
hear any witnesses who may be produced against or on behalf of the
15
person charged with the offence and any statement that may be offered
in defence, and
(c)
deal with him in any manner in which the court could deal with him if
he had committed the like offence in relation to the court.
(4)
This section is to be construed, in its application to Scotland, as if contempt of
20
court were categorised as an offence in Scots law.
(5)
In this section “the court” means—
(a)
in England and Wales, a county court;
(b)
in Scotland, the sheriff.
Chapter 7
25
Miscellaneous
Backdating the winding up of eligible schemes
177
Backdating the winding up of eligible schemes
(1)
Subsection (2) applies where—
(a)
a qualifying insolvency event occurs in relation to the employer in
30
relation to an eligible scheme, and
(b)
the winding up of the scheme begins at or after the time of that event
but not later than the first of the following events in relation to the
scheme—
(i)
the issuing of a notice under section 96(2) by an insolvency
35
practitioner in relation to the employer,
(ii)
the Board ceasing to be involved with the scheme by virtue of
an event within section 117(2)(c), or
(iii)
in a case where section 117(4) does not apply, the issuing of a
notice under section 96(4) by a person who was or is such an
40
insolvency practitioner.