|
| |
|
198 | Member-nominated trustees and directors: supplementary |
| |
(1) | Regulations may modify sections 196 and 197 in their application to prescribed |
| |
| |
| |
| “company” means a company within the meaning given by section 735(1) |
| 5 |
of the Companies Act 1985 (c. 6) or a company which may be wound up |
| |
under Part 5 of the Insolvency Act 1986 (c. 45) (unregistered |
| |
| |
| “occupational trust scheme” means an occupational pension scheme |
| |
established under a trust. |
| 10 |
Obligations of trustees of occupational pension schemes |
| |
199 | Investment principles |
| |
For section 35 of the Pensions Act 1995 (c. 26) (investment principles) |
| |
| |
“35 | Investment principles |
| 15 |
(1) | The trustees of a trust scheme must secure— |
| |
(a) | that a statement of investment principles is prepared and |
| |
maintained for the scheme, and |
| |
(b) | that the statement is reviewed at such intervals, and on such |
| |
occasions, as may be prescribed and, if necessary, revised. |
| 20 |
(2) | In this section “statement of investment principles”, in relation to a trust |
| |
scheme, means a written statement of the investment principles |
| |
governing decisions about investments for the purposes of the scheme. |
| |
(3) | Before preparing or revising a statement of investment principles, the |
| |
trustees of a trust scheme must comply with any prescribed |
| 25 |
| |
(4) | A statement of investment principles must be in the prescribed form |
| |
and cover, amongst other things, the prescribed matters. |
| |
(5) | Neither a trust scheme nor a statement of investment principles may |
| |
impose restrictions (however expressed) on any power to make |
| 30 |
investments by reference to the consent of the employer. |
| |
(6) | If in the case of a trust scheme— |
| |
(a) | a statement of investment principles has not been prepared, is |
| |
not being maintained or has not been reviewed or revised, as |
| |
required by this section, or |
| 35 |
(b) | the trustees have not complied with the obligation imposed on |
| |
| |
| section 10 applies to any trustee who has failed to take all reasonable |
| |
steps to secure compliance. |
| |
(7) | Regulations may provide that this section is not to apply to any scheme |
| 40 |
which is of a prescribed description.” |
| |
|
| |
|
| |
|
200 | Requirement for knowledge and understanding: individual trustees |
| |
(1) | This section applies to every individual who is a trustee of an occupational |
| |
| |
(2) | In this section, “relevant scheme”, in relation to an individual, means any |
| |
occupational pension scheme of which he is a trustee. |
| 5 |
(3) | An individual to whom this section applies must, in relation to each relevant |
| |
scheme, be conversant with— |
| |
(a) | the trust deed and scheme rules, |
| |
(b) | any statement of investment principles for the time being maintained |
| |
under section 35 of the Pensions Act 1995 (c. 26), |
| 10 |
(c) | in the case of a relevant scheme to which Part 3 (scheme funding) |
| |
applies, the statement of funding principles most recently prepared or |
| |
revised under section 180, and |
| |
(d) | any other document recording policy for the time being adopted by the |
| |
trustees relating to the administration of the scheme generally. |
| 15 |
(4) | An individual to whom this section applies must have knowledge and |
| |
| |
(a) | the law relating to pensions and trusts, |
| |
(b) | the principles relating to— |
| |
(i) | the funding of occupational pension schemes, and |
| 20 |
(ii) | investment of the assets of such schemes, and |
| |
(c) | such other matters as may be prescribed. |
| |
(5) | The degree of knowledge and understanding required by subsection (4) is that |
| |
appropriate for the purposes of enabling the individual properly to exercise his |
| |
functions as trustee of any relevant scheme. |
| 25 |
201 | Requirement for knowledge and understanding: corporate trustees |
| |
(1) | This section applies to any company which is a trustee of an occupational |
| |
| |
(2) | In this section, “relevant scheme”, in relation to a company, means any |
| |
occupational pension scheme of which it is a trustee. |
| 30 |
(3) | A company to which this section applies must, in relation to each relevant |
| |
scheme, secure that each individual who exercises any function which the |
| |
company has as trustee of the scheme is conversant with each of the documents |
| |
mentioned in subsection (4) so far as it is relevant to the exercise of the function. |
| |
| 35 |
(a) | the trust deed and scheme rules, |
| |
(b) | any statement of investment principles for the time being maintained |
| |
under section 35 of the Pensions Act 1995, |
| |
(c) | in the case of a relevant scheme to which Part 3 (scheme funding) |
| |
applies, the statement of funding principles most recently prepared or |
| 40 |
revised under section 180, and |
| |
(d) | any other document recording policy for the time being adopted by the |
| |
trustees relating to the administration of the scheme generally. |
| |
|
| |
|
| |
|
(5) | A company to which this section applies must secure that any individual who |
| |
exercises any function which the company has as trustee of any relevant |
| |
scheme has knowledge and understanding of— |
| |
(a) | the law relating to pensions and trusts, |
| |
(b) | the principles relating to— |
| 5 |
(i) | the funding of occupational pension schemes, and |
| |
(ii) | investment of the assets of such schemes, and |
| |
(c) | such other matters as may be prescribed. |
| |
(6) | The degree of knowledge and understanding required by subsection (5) is that |
| |
appropriate for the purposes of enabling the individual properly to exercise the |
| 10 |
| |
(7) | References in this section to the exercise by an individual of any function of a |
| |
company are to anything done by the individual on behalf of the company |
| |
which constitutes the exercise of the function by the company. |
| |
202 | Requirement for knowledge and understanding: supplementary |
| 15 |
(1) | For the purposes of sections 200 and 201, a person’s functions as trustee of a |
| |
relevant scheme are any functions which he has by virtue of being such a |
| |
trustee and include, in particular— |
| |
(a) | any functions which he has as one of the trustees authorised under |
| |
section 34(5)(a) of the Pensions Act 1995 (c. 26) (delegation of |
| 20 |
investment discretions) in the case of the scheme, and |
| |
(b) | any functions which he otherwise has as a member of a committee of |
| |
the trustees of the scheme. |
| |
(2) | Regulations may provide for any provision in section 200 or 201— |
| |
| 25 |
(b) | to apply with modifications, |
| |
| to a trustee in prescribed circumstances. |
| |
(3) | Nothing in either of those sections affects any rule of law requiring a trustee to |
| |
have knowledge of, or expertise in, any matter. |
| |
Pension protection on transfer of employment |
| 30 |
203 | Conditions for pension protection |
| |
(1) | This section applies in relation to a person (“the employee”) where— |
| |
(a) | there is a transfer of an undertaking, or part of an undertaking, to which |
| |
the TUPE Regulations apply, |
| |
(b) | by virtue of the transfer the employee ceases to be employed by the |
| 35 |
transferor and becomes employed by the transferee, and |
| |
(c) | at the time immediately before the employee becomes employed by the |
| |
| |
(i) | there is an occupational pension scheme (“the scheme”) in |
| |
relation to which the transferor is the employer, and |
| 40 |
(ii) | one of subsections (2), (3) and (4) applies. |
| |
(2) | This subsection applies where— |
| |
(a) | the employee is an active member of the scheme, and |
| |
|
| |
|
| |
|
(b) | if any of the benefits that may be provided under the scheme are money |
| |
| |
(i) | the transferor is required to make contributions to the scheme in |
| |
respect of the employee, or |
| |
(ii) | the transferor is not so required but has made one or more such |
| 5 |
| |
(3) | This subsection applies where— |
| |
(a) | the employee is not an active member of the scheme but is eligible to be |
| |
| |
(b) | if any of the benefits that may be provided under the scheme are money |
| 10 |
purchase benefits, the transferor would have been required to make |
| |
contributions to the scheme in respect of the employee if the employee |
| |
had been an active member of it. |
| |
(4) | This subsection applies where— |
| |
(a) | the employee is not an active member of the scheme, nor eligible to be |
| 15 |
such a member, but would have been an active member of the scheme |
| |
or eligible to be such a member if he had been employed by the |
| |
transferor for a longer period, and |
| |
(b) | if any of the benefits that may be provided under the scheme are money |
| |
purchase benefits, the transferor would have been required to make |
| 20 |
contributions to the scheme in respect of the employee if the employee |
| |
had been an active member of it. |
| |
(5) | For the purposes of this section, the condition in subsection (1)(c) is to be |
| |
regarded as satisfied in any case where it would have been satisfied but for any |
| |
action taken by the transferor by reason of the transfer. |
| 25 |
(6) | In subsection (1)(a), the reference to an undertaking, or part of an undertaking, |
| |
has the same meaning as in the TUPE Regulations. |
| |
(7) | In the case of a scheme which is contracted-out by virtue of section 9 of the |
| |
Pension Schemes Act 1993 (c. 48), the references in subsections (2)(b), (3)(b) and |
| |
(4)(b) to contributions mean contributions other than minimum payments |
| 30 |
(within the meaning of that Act). |
| |
| |
| the “TUPE regulations” means the Transfer of Undertakings (Protection |
| |
of Employment) Regulations 1981 (S.I. 1981/1794); |
| |
| references to the transferor include any associate of the transferor, and |
| 35 |
section 435 of the Insolvency Act 1986 (c. 45) applies for the purposes of |
| |
this section as it applies for the purposes of that Act. |
| |
| |
(1) | In a case where section 203 applies, it is a condition of the employee’s contract |
| |
of employment with the transferee that the requirements in subsection (2) or |
| 40 |
the requirement in subsection (3) are complied with. |
| |
(2) | The requirements in this subsection are that— |
| |
(a) | the transferee secures that, as from the relevant time, the employee is, |
| |
or is eligible to be, an active member of an occupational pension scheme |
| |
in relation to which the transferee is the employer, and |
| 45 |
(b) | in a case where the scheme is a money purchase scheme, as from the |
| |
| |
|
| |
|
| |
|
(i) | the transferee makes relevant contributions to the scheme in |
| |
respect of the employee, or |
| |
(ii) | if the employee is not an active member of the scheme but is |
| |
eligible to be such a member, the transferee would be required |
| |
to make such contributions if the employee were an active |
| 5 |
| |
(c) | in a case where the scheme is not a money purchase scheme, as from the |
| |
relevant time the scheme— |
| |
(i) | satisfies the statutory standard referred to in section 12A of the |
| |
Pension Schemes Act 1993 (c. 48), or |
| 10 |
(ii) | if regulations so provide, complies with such other |
| |
requirements as may be prescribed. |
| |
(3) | The requirement in this subsection is that, as from the relevant time, the |
| |
transferee makes relevant contributions to a stakeholder pension scheme of |
| |
which the employee is a member. |
| 15 |
(4) | The requirement in subsection (3) is for the purposes of this section to be |
| |
regarded as complied with by the transferee during any period in relation to |
| |
which the condition in subsection (5) is satisfied. |
| |
(5) | The condition in this subsection is that the transferee has offered to make |
| |
relevant contributions to a stakeholder pension scheme of which the employee |
| 20 |
is eligible to be a member (and the transferee has not withdrawn the offer). |
| |
(6) | Subsection (1) does not apply in relation to a contract if or to the extent that the |
| |
employee and the transferee so agree at any time after the time when the |
| |
employee becomes employed by the transferee. |
| |
| 25 |
| “the relevant time” means— |
| |
(a) | in a case where section 203 applies by virtue of the application |
| |
of subsection (2) or (3) of that section, the time when the |
| |
employee becomes employed by the transferee; |
| |
(b) | in a case where that section applies by virtue of the application |
| 30 |
of subsection (4) of that section, the time at which the employee |
| |
would have been a member of the scheme referred to in |
| |
subsection (1)(c)(i) of that section or (if earlier) would have been |
| |
eligible to be such a member; |
| |
| “relevant contributions” means such contributions in respect of such |
| 35 |
period or periods as may be prescribed; |
| |
| “stakeholder pension scheme” means a pension scheme which is |
| |
registered under section 2 of the Welfare Reform and Pensions Act 1999 |
| |
| |
Safeguarding pension rights |
| 40 |
205 | Paternity leave and adoption leave |
| |
(1) | In Schedule 5 to the Social Security Act 1989 (c. 24) (employment-related |
| |
schemes for pensions or other benefits: equal treatment), after paragraph 5 |
| |
|
| |
|
| |
|
| |
“Unfair paternity leave provisions |
| |
5A (1) | Where an employment-related benefit scheme includes any unfair |
| |
paternity leave provisions (irrespective of any differences on the |
| |
basis of sex in the treatment accorded to members under those |
| 5 |
| |
(a) | the scheme shall be regarded to that extent as not complying |
| |
with the principle of equal treatment; and |
| |
(b) | subject to sub-paragraph (3), this Schedule shall apply |
| |
| 10 |
(2) | In this paragraph “unfair paternity leave provisions”, in relation to |
| |
an employment-related benefit scheme, means any provision— |
| |
(a) | which relates to continuing membership of, or the accrual of |
| |
rights under, the scheme during any period of paid paternity |
| |
leave in the case of any member who is (or who, immediately |
| 15 |
before the commencement of such a period, was) an |
| |
employed earner and which treats such a member otherwise |
| |
than in accordance with the normal employment |
| |
| |
(b) | which requires the amount of any benefit payable under the |
| 20 |
scheme to or in respect of any such member, to the extent that |
| |
it falls to be determined by reference to earnings during a |
| |
period which included a period of paid paternity leave, to be |
| |
determined otherwise than in accordance with the normal |
| |
| 25 |
(3) | In the case of any unfair paternity leave provision— |
| |
(a) | the more favourable treatment required by paragraph 3(1) is |
| |
treatment no less favourable than would be accorded to the |
| |
member in accordance with the normal employment |
| |
| 30 |
(b) | paragraph 3(2) does not authorise the making of any such |
| |
election as is there mentioned; |
| |
| but, in respect of any period of paid paternity leave, a member shall |
| |
only be required to pay contributions on the amount of contractual |
| |
remuneration or statutory paternity pay actually paid to or for him |
| 35 |
in respect of that period. |
| |
| |
| “period of paid paternity leave”, in the case of a member, |
| |
| |
(a) | throughout which the member is absent from work |
| 40 |
in circumstances where sub-paragraph (5), (6) or (7) |
| |
| |
(b) | for which the employer (or if he is no longer in his |
| |
employment, his former employer) pays him any |
| |
contractual remuneration or statutory paternity pay; |
| 45 |
| |
| “the normal employment requirement” is the requirement that |
| |
any period of paid paternity leave shall be treated as if it |
| |
were a period throughout which the member in question |
| |
|
| |
|
| |
|
works normally and receives the remuneration likely to be |
| |
| |
(5) | This sub-paragraph applies if— |
| |
(a) | the member’s absence from work is due to the birth or |
| |
expected birth of a child, and |
| 5 |
(b) | the member satisfies the conditions prescribed under section |
| |
171ZA(2)(a)(i) and (ii) of the Social Security Contributions |
| |
and Benefits Act 1992 in relation to that child. |
| |
(6) | This sub-paragraph applies if— |
| |
(a) | the member’s absence from work is due to the placement or |
| 10 |
expected placement of a child for adoption under the law of |
| |
any part of the United Kingdom, and |
| |
(b) | the member satisfies the conditions prescribed under section |
| |
171ZB(2)(a)(i) and (ii) of that Act in relation to that child. |
| |
(7) | This sub-paragraph applies if— |
| 15 |
(a) | the member’s absence from work is due to the adoption or |
| |
expected adoption of a child who has entered the United |
| |
Kingdom in connection with or for the purposes of adoption |
| |
which does not involve the placement of the child for |
| |
adoption under the law of any part of the United Kingdom, |
| 20 |
| |
(b) | the member satisfies the conditions prescribed under section |
| |
171ZB(2)(a)(i) and (ii) of that Act (as applied by virtue of |
| |
section 171ZK of that Act (adoption cases not involving |
| |
placement under the law of the United Kingdom)) in relation |
| 25 |
| |
Unfair adoption leave provisions |
| |
5B (1) | Where an employment-related benefit scheme includes any unfair |
| |
adoption leave provisions (irrespective of any differences on the |
| |
basis of sex in the treatment accorded to members under those |
| 30 |
| |
(a) | the scheme shall be regarded to that extent as not complying |
| |
with the principle of equal treatment; and |
| |
(b) | subject to sub-paragraph (3), this Schedule shall apply |
| |
| 35 |
(2) | In this paragraph “unfair adoption leave provisions”, in relation to |
| |
an employment-related benefit scheme, means any provision— |
| |
(a) | which relates to continuing membership of, or the accrual of |
| |
rights under, the scheme during any period of paid adoption |
| |
leave in the case of any member who is (or who, immediately |
| 40 |
before the commencement of such a period, was) an |
| |
employed earner and which treats such a member otherwise |
| |
than in accordance with the normal employment |
| |
| |
(b) | which requires the amount of any benefit payable under the |
| 45 |
scheme to or in respect of any such member, to the extent that |
| |
it falls to be determined by reference to earnings during a |
| |
period which included a period of paid adoption leave, to be |
| |
determined otherwise than in accordance with the normal |
| |
| 50 |
|
| |
|