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Pensions Bill


Pensions Bill
Part 4 — Financial planning for retirement

120

 

Part 4

Financial planning for retirement

Retirement planning

191     

Promoting and facilitating financial planning for retirement

(1)   

The Secretary of State and the Northern Ireland Department may take action for the

5

purpose of promoting or facilitating financial planning for retirement.

(2)   

The action may in particular include the provision of facilities for the purpose of

enabling or assisting an individual or a person authorised by him

(a)   

to estimate the financial resources the individual is likely to need after his

retirement;

10

(b)   

to estimate the financial resources that are likely to be available to the

individual after his retirement, from pensions and other sources;

(c)   

to ascertain what action might be taken with a view to increasing the financial

resources available to the individual after his retirement.

(3)   

This section does not authorise the Secretary of State or the Northern Ireland

15

Department to take action which the Secretary of State or the Northern Ireland

Department would otherwise be prohibited from taking under section 21 of the

Financial Services and Markets Act 2000 (c. 8) (restrictions on financial promotion).

(4)   

In this section “the Northern Ireland Department” means the Department for Social

Development in Northern Ireland.

20

192     

Supply of information for purposes of section 191

(1)   

This section applies to—

(a)   

information which is relevant for determining the pensions and other

benefits that may become payable to or in respect of an individual;

(b)   

information which relates to the financial resources of, or available to,

25

an individual;

(c)   

information which relates to action taken in connection with—

(i)   

providing facilities for saving (for retirement or otherwise) by

individuals, or

(ii)   

promoting or facilitating saving (for retirement or otherwise) by

30

individuals.

(2)   

A person who holds information to which this section applies may supply it

to—

(a)   

the Secretary of State or the Northern Ireland Department, or

(b)   

a person providing services to the Secretary of State or the Northern

35

Ireland Department,

   

for use for the purposes of functions under section 191(1).

(3)   

Information supplied under subsection (2) must not be supplied by the

recipient except—

(a)   

if the information relates to an individual—

40

(i)   

to the individual or a person authorised by him;

(ii)   

to another person, with the consent of the individual;

 

 

Pensions Bill
Part 4 — Financial planning for retirement

121

 

(b)   

in any case—

(i)   

to a person to whom it could be supplied under subsection (2);

(ii)   

to any person with a view to the institution of relevant criminal

proceedings or otherwise for the purposes of relevant criminal

proceedings.

5

(4)   

In subsection (3) “relevant criminal proceedings” means criminal proceedings

under—

(a)   

the Pension Schemes Act 1993 (c. 48);

(b)   

the Pensions Act 1995 (c. 26);

(c)   

this Act;

10

(d)   

any enactment in force in Northern Ireland corresponding to an Act

mentioned in any of paragraphs (a) to (c).

(5)   

In this section “the Northern Ireland Department” means the Department for

Social Development in Northern Ireland.

193     

Use and supply of information: private pensions policy and retirement

15

planning

Schedule 9 (which makes provision about the use and supply of information

for purposes relating to private pensions policy and retirement planning) has

effect.

194     

Combined pension forecasts

20

(1)   

Regulations may require the trustees or managers of an occupational or

personal pension scheme to provide any member of the scheme with—

(a)   

the information specified in subsection (2), together with

(b)   

the information specified in subsection (3).

(2)   

The information referred to in subsection (1)(a) is information relating to the

25

member which—

(a)   

is state pension information for the purposes of section 42 of the Child

Support, Pensions and Social Security Act 2000 (c. 19),

(b)   

has been disclosed to the trustees or managers under that section (or,

by virtue of that section, is treated as having been so disclosed), and

30

(c)   

is of a description specified in the regulations.

(3)   

The information referred to in subsection (1)(b) is information which—

(a)   

relates to the pensions and other benefits likely to accrue to the

member, or capable of being secured by him, under the scheme, and

(b)   

is of a description specified in the regulations.

35

(4)   

Regulations under subsection (1) may require information referred to in that

subsection to be provided at a time or times specified in the regulations.

Employee information and advice

195     

Information and advice to employees

(1)   

Regulations may require employers to take action for the purpose of enabling

40

employees to obtain information and advice about pensions and saving for

retirement.

 

 

Pensions Bill
Part 5 — Occupational and personal pension schemes: miscellaneous provisions

122

 

(2)   

Regulations under subsection (1) may in particular—

(a)   

provide that they are to apply in relation to employers of a prescribed

description and employees of a prescribed description;

(b)   

make different provision for different descriptions of employers and

employees;

5

(c)   

make provision as to the action to be taken by employers (including the

frequency at which, and the time and place at which, action is to be

taken);

(d)   

make provision as to the description of information and advice in

relation to which requirements apply;

10

(e)   

make provision about the description of person authorised to provide

any such information and advice.

(3)   

Employers to whom regulations under subsection (1) apply must provide

information to the Regulator about the action taken by them for the purpose of

complying with the regulations.

15

(4)   

Regulations may make provision as to—

(a)   

the information to be provided under subsection (3);

(b)   

the form and manner in which the information is to be provided;

(c)   

the period within which the information is to be provided.

(5)   

Section 10 of the Pensions Act 1995 (c. 26) (civil penalties) applies to any person

20

who, without reasonable excuse, fails to comply with subsection (3).

(6)   

In this section “employer” means any employer, whether or not resident or

incorporated in any part of the United Kingdom.

Part 5

Occupational and personal pension schemes: miscellaneous provisions

25

Requirements for member-nominated trustees and directors

196     

Requirement for member-nominated trustees

(1)   

The trustees of an occupational trust scheme must secure—

(a)   

that, within a reasonable period of the commencement date,

arrangements are in place which provide for at least one-third of the

30

total number of trustees to be member-nominated trustees, and

(b)   

that those arrangements are implemented.

(2)   

“Member-nominated trustees” are trustees of an occupational trust scheme

who—

(a)   

are nominated as the result of a process in which at least all the active

35

members of the scheme are eligible to participate, and

(b)   

are selected by some or all of the members of the scheme.

(3)   

The “commencement date”, in relation to a scheme, is—

(a)   

the date upon which this section first applies in relation to the scheme,

or

40

(b)   

in the case of a scheme to which this section has ceased to apply and

then reapplies, the date on which the section reapplies to it.

 

 

Pensions Bill
Part 5 — Occupational and personal pension schemes: miscellaneous provisions

123

 

(4)   

The arrangements may provide for a greater number of member-nominated

trustees than that required to satisfy the one-third minimum mentioned in

subsection (1)(a) only if the employer has approved the greater number.

(5)   

The arrangements—

(a)   

must provide for the nomination and selection process to take place

5

within a reasonable period of any requirement arising under the

arrangements to appoint a member-nominated trustee,

(b)   

must provide, where a vacancy is not filled because insufficient

nominations are received, for the nomination and selection process to

be repeated at reasonable intervals until the vacancy is filled,

10

(c)   

must provide that where the employer so requires, a person who is not

a member of the scheme must have the employer’s approval to qualify

for selection as a member-nominated trustee, and

(d)   

subject to paragraph (c), may provide that, where the number of

nominations received is equal to or less than the number of

15

appointments required, the nominees are deemed to be selected.

(6)   

The arrangements must provide that the removal of a member-nominated

trustee requires the agreement of all the other trustees.

(7)   

Nothing in the arrangements or in the provisions of the scheme may exclude

member-nominated trustees from the exercise of functions exercisable by other

20

trustees by reason only of the fact that they are member-nominated trustees.

(8)   

This section does not apply in relation to an occupational trust scheme if—

(a)   

every member of the scheme is a trustee of the scheme and no other

person is such a trustee,

(b)   

every trustee of the scheme is a company, or

25

(c)   

the scheme is of a prescribed description.

(9)   

If, in the case of an occupational trust scheme, the arrangements required by

subsection (1)—

(a)   

are not in place as required by subsection (1)(a), or

(b)   

are not being implemented,

30

   

section 10 of the Pensions Act 1995 (c. 26) (civil penalties) applies to any trustee

who has failed to take all reasonable steps to secure compliance.

197     

Requirement for member-nominated directors of corporate trustees

(1)   

Where a company is a trustee of an occupational trust scheme and every

trustee of the scheme is a company, the company must secure—

35

(a)   

that, within a reasonable period of the commencement date,

arrangements are in place which provide for at least one-third of the

total number of directors of the company to be member-nominated

directors, and

(b)   

that those arrangements are implemented.

40

(2)   

“Member-nominated directors” are directors who—

(a)   

are nominated as the result of a process in which at least all the active

members of the occupational trust scheme are eligible to participate,

and

(b)   

are selected by some or all of the members of that scheme.

45

(3)   

The “commencement date”, in relation to a company, is—

 

 

Pensions Bill
Part 5 — Occupational and personal pension schemes: miscellaneous provisions

124

 

(a)   

the date upon which this section first applies in relation to the

company, or

(b)   

in the case of a company to which this section has ceased to apply and

then reapplies, the date on which the section reapplies to it.

(4)   

The arrangements may provide for a greater number of member-nominated

5

directors than that required to satisfy the one-third minimum mentioned in

subsection (1)(a) only if the employer has approved the greater number.

(5)   

The arrangements—

(a)   

must provide for the nomination and selection process to take place

within a reasonable period of any requirement arising under the

10

arrangements to appoint a member-nominated director,

(b)   

must provide, where a vacancy is not filled because insufficient

nominations are received, for the nomination and selection process to

be repeated at reasonable intervals until the vacancy is filled,

(c)   

must provide that where the employer so requires, a person who is not

15

a member of the scheme must have the employer’s approval to qualify

for selection as a member-nominated director, and

(d)   

subject to paragraph (c), may provide that, where the number of

nominations received is equal to or less than the number of

appointments required, the nominees are deemed to be selected.

20

(6)   

The arrangements must provide that the removal of a member-nominated

director requires the agreement of all the other directors.

(7)   

Nothing in the arrangements may exclude member-nominated directors from

the exercise of functions exercisable by other directors by reason only of the

fact that they are member-nominated directors.

25

(8)   

Where the same company is a trustee of two or more occupational trust

schemes by reference to each of which this section applies to the company, then

subject to subsection (9), the preceding provisions of this section have effect as

if—

(a)   

the schemes were a single scheme,

30

(b)   

the members of each of the schemes were members of that single

scheme, and

(c)   

the references to “the employer” were references to all the employers in

relation to the schemes.

(9)   

Where, apart from this subsection, subsection (8) would apply in relation to a

35

company, the company may elect that subsection (8)—

(a)   

is not to apply as mentioned in that subsection, or

(b)   

is to apply but only in relation to some of the schemes to which it would

otherwise apply.

(10)   

This section does not apply in relation to an occupational trust scheme if the

40

scheme is of a prescribed description.

(11)   

If, in the case of a company which is a trustee of an occupational trust scheme,

the arrangements required by subsection (1)—

(a)   

are not in place as required by subsection (1)(a), or

(b)   

are not being implemented,

45

   

section 10 of the Pensions Act 1995 (c. 26) (civil penalties) applies to the

company.

 

 

 
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