Pensions Bill

House of Commons

Session 2003 - 04
Internet Publications
Other Bills before Parliament

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