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Pensions Bill


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

132

 

      (3)  

In the case of any unfair adoption 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

requirement; and

5

(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 adoption leave, a member shall

only be required to pay contributions on the amount of contractual

remuneration or statutory adoption pay actually paid to or for him

10

in respect of that period.

      (4)  

In this paragraph—

“period of paid adoption leave”, in the case of a member,

means a period—

(a)   

throughout which the member is absent from work

15

in circumstances where sub-paragraph (5) or (6)

applies, and

(b)   

for which the employer (or, if he is no longer in his

employment, his former employer) pays him any

contractual remuneration or statutory adoption pay;

20

and

“the normal employment requirement” is the requirement that

any period of paid adoption 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

25

paid for doing so.

      (5)  

This sub-paragraph applies if—

(a)   

the member’s absence from work is due to the placement, or

expected placement, of a child for adoption under the law of

any part of the United Kingdom, and

30

(b)   

the member is a person with whom the child is, or is expected

to be, placed for such adoption.

      (6)  

This sub-paragraph applies if—

(a)   

the member’s absence from work is due to the adoption or

expected adoption of a child who has entered the United

35

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,

and

(b)   

the member is a person by whom the child has been or is

40

expected to be adopted.”

(2)   

The provision that may be made under section 142(1) of the Adoption and

Children Act 2002 (c. 38) (power to make consequential etc provision to give

full effect to any provision of that Act) includes provision modifying

paragraph 5A or 5B of Schedule 5 to the Social Security Act 1989 (c. 24) (as

45

inserted by subsection (1) above).

206     

Inalienability of occupational pension

(1)   

Section 91 of the Pensions Act 1995 (c. 26) (inalienability of occupational

pension) is amended as follows.

 

 

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

133

 

(2)   

In subsection (5) (exceptions to the rule of inalienability) at the end insert—

“(f)   

subject to subsection (6), a charge or lien on, or set-off against,

the person in question’s entitlement, or right, for the purpose of

discharging some monetary obligation due from the person in

question to the scheme arising out of a payment made in error

5

in respect of the pension.”

(3)   

In subsection (6) (limits on the charge, lien or set-off under subsection (5)(d) or

(e)) for “or (e)” substitute “, (e) or (f)”.

Payments by employers

207     

Payments made by employers to personal pension schemes

10

(1)   

Section 111A of the Pension Schemes Act 1993 (c. 48) (monitoring of

employers’ payments to personal pension schemes) is amended as follows.

(2)   

For subsections (3) to (7) substitute—

“(3)   

The trustees or managers of the scheme must monitor the payment of

contributions by or on behalf of the employer under the direct payment

15

arrangements.

(4)   

The trustees or managers may request the employer to provide them,

(or arrange for them to be provided) with the payment information

specified in the request.

(5)   

For the purposes of subsection (4) “payment information” is

20

information required by the trustees or managers to enable them to

discharge the duty imposed by subsection (3).

(6)   

The employer must comply with a request under subsection (4) within

a reasonable period.

(7)   

Where, as a result of the employer’s failure to so comply, the trustees or

25

managers are unable to discharge the duty imposed by subsection (3),

they must give notice to that effect to the Regulatory Authority within

a reasonable period.

(7A)   

Where—

(a)   

a contribution payable under the direct payment arrangements

30

has not been paid on or before its due date, and

(b)   

the trustees or managers have reasonable cause to believe that

the failure to pay the contribution is likely to be of material

significance in the exercise by the Regulatory Authority of any

of their functions,

35

   

they must give notice to that effect to the Regulatory Authority and the

employee within a reasonable period after the due date.”

(3)   

In subsection (8) (employer’s liability for civil penalties) for “subsection (3) or

(5)” substitute “subsection (6) and as a result the trustees or managers of the

scheme are unable to discharge the duty imposed by subsection (3)”.

40

(4)   

In subsection (9) (liability of trustees or managers for civil penalties) for

“subsection (6) or (7)” substitute “subsection (7) or (7A)”.

 

 

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

134

 

208     

Payments made by employers and members to occupational pension schemes

(1)   

In section 49 of the Pensions Act 1995 (c. 26) (other responsibilities of trustees,

employers, etc), in subsection (9) (duty of trustee etc to report a failure by

employer to pay contributions deducted from earnings on time) for paragraph

(b) substitute—

5

“(b)   

if the trustees or managers have reasonable cause to believe that

the failure is likely to be of material significance in the exercise

by the Authority of any of their functions, they must, except in

prescribed circumstances, give notice of the failure to the

Authority and the member within a reasonable period after the

10

end of the prescribed period under subsection (8).”

(2)   

In section 88 of that Act (schedules of payments to money purchase schemes),

for subsection (1) (duty of trustees or managers to report a failure to pay

amounts on time) substitute—

“(1)   

Where, in the case of an occupational pension scheme to which section

15

87 applies—

(a)   

there is a failure to pay on or before the due date any amounts

payable in accordance with the payment schedule, and

(b)   

the trustees or managers have reasonable cause to believe that

the failure is likely to be of material significance in the exercise

20

by the Authority of any of their functions,

   

they must, except in prescribed circumstances, give notice of the failure

to the Authority and to the members of the scheme within a reasonable

period after the due date.”

Deficiency in assets of certain occupational pension schemes

25

209     

Debt due from the employer when assets insufficient

(1)   

Section 75 of the Pensions Act 1995 (deficiencies in the assets) is amended as

follows.

(2)   

For subsections (1) to (4) substitute—

“(1)   

This section applies in relation to an occupational pension scheme other

30

than a scheme which is—

(a)   

a money purchase scheme, or

(b)   

of a prescribed description.

(2)   

If—

(a)   

at any time which falls—

35

(i)   

when a scheme is being wound up, but

(ii)   

before any insolvency event in relation to the employer

which occurs while the scheme is being wound up,

   

the value of the assets of the scheme is less than the amount at

that time of the liabilities of the scheme, and

40

(b)   

the trustees or managers of the scheme designate that time for

the purposes of this subsection (before the occurrence of an

event within paragraph (a)(ii)),

   

an amount equal to the difference shall be treated as a debt due from

the employer to the trustees or managers of the scheme.

45

 

 

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

135

 

   

This is subject to subsection (3).

(3)   

Subsection (2) applies only if before the commencement of the winding

up of the scheme—

(a)   

no insolvency event has occurred in relation to the employer, or

(b)   

any such event has been followed by an event within subsection

5

(6A)(b), (c) or (d).

(4)   

Where—

(a)   

immediately before a qualifying insolvency event occurs in

relation to the employer the value of the assets of the scheme is

less than the amount at that time of the liabilities of the scheme,

10

and

(b)   

if the scheme was being wound up immediately before that

event, subsection (2) has not applied in relation to the scheme to

treat an amount as a debt due from the employer to the trustees

or managers of the scheme,

15

   

an amount equal to the difference shall be treated as a debt due from

the employer to the trustees or managers of the scheme.

(4A)   

A debt under subsection (4) is to be taken, for the purposes of the law

relating to insolvency as it applies to the employer, to arise

immediately before the occurrence of the qualifying insolvency event.

20

(4B)   

Where the scheme was not being wound up immediately before the

qualifying insolvency event, the debt due from the employer under

subsection (4) is contingent upon—

(a)   

the occurrence, in relation to the scheme, of an event within

paragraph (a) of subsection (6A) in circumstances where that

25

event is the first event within that subsection to occur after the

qualifying insolvency event, or

(b)   

the commencement of the winding up of the scheme before any

event within subsection (6A) occurs.”

(3)   

In subsection (5) for “subsection (1)” substitute “subsections (2) and (4)”.

30

(4)   

After subsection (6) insert—

“(6A)   

The events within this subsection are—

(a)   

the issuing of a notice under subsection (2) of section 96 of the

Pensions Act 2004 confirming that a scheme rescue is not

possible;

35

(b)   

the issuing of such a notice confirming that a scheme rescue has

occurred;

(c)   

the Board ceasing to be involved with the scheme by virtue of

an event within section 117(2)(c) of that Act (withdrawal where

no insolvency event likely to occur in six month period or

40

expiry of six month period without further insolvency event

occurring), or

(d)   

if where an insolvency practitioner issues a notice under section

96(4) of that Act (confirmation of inability to confirm status of

scheme) section 117(4) of that Act (Board’s duty to consider

45

whether to withdraw) does not apply, the issuing of that notice.

(6B)   

For the purposes of this section—

 

 

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

136

 

(a)   

section 95 of the Pensions Act 2004 applies for the purposes of

determining if and when an insolvency event has occurred in

relation to the employer,

(b)   

an insolvency event (“the current event”) in relation to the

employer is a qualifying insolvency event if—

5

(i)   

it is the first insolvency event in relation to the

employer, or

(ii)   

an event within subsection (6A)(b), (c) or (d) has

occurred in relation to the scheme since the date of the

last insolvency event (if any) to occur in relation to the

10

employer before the current event, and

(c)   

references to an insolvency event in relation to an employer do

not include an insolvency event which occurred in relation to

him before he became the employer in relation to the scheme.”

(5)   

Omit subsection (9).

15

Pension disputes

210     

Resolution of disputes

For section 50 of the Pensions Act 1995 (c. 26) (resolution of disputes)

substitute—

“50     

Requirement for dispute resolution arrangements

20

(1)   

The trustees or managers of an occupational pension scheme must

secure that dispute resolution arrangements are made and

implemented.

(2)   

Dispute resolution arrangements are such arrangements as are

required by this section for the resolution of pension disputes.

25

(3)   

For this purpose a pension dispute is a dispute which—

(a)   

is between—

(i)   

the trustees or managers of a scheme, and

(ii)   

one or more persons with an interest in the scheme (see

section 50A),

30

(b)   

is about matters relating to the scheme, and

(c)   

is not an exempted dispute (see subsection (9)).

(4)   

The dispute resolution arrangements must provide a procedure—

(a)   

for any of the parties to the dispute mentioned in subsection

(3)(a)(ii) to make an application for a decision to be taken on the

35

matters in dispute (“an application for the resolution of a

pension dispute”), and

(b)   

for the trustees or managers to take that decision.

(5)   

Where an application for the resolution of a pension dispute is made in

accordance with the dispute resolution arrangements, the trustees or

40

managers must—

(a)   

take the decision required on the matters in dispute within a

reasonable period of the receipt of the application by them, and

(b)   

notify the applicant of the decision within a reasonable period

of it having been taken.

45

 

 

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

137

 

(6)   

The procedure provided for by the dispute resolution arrangements

must include the provision required by section 50B.

(7)   

Dispute resolution arrangements under subsection (1) must, in the case

of existing schemes, have effect on and after the date of commencement

of this section in relation to applications made on or after that date.

5

(8)   

This section does not apply in relation to an occupational pension

scheme if—

(a)   

every member of the scheme is a trustee of the scheme,

(b)   

the scheme has no more than one member, or

(c)   

the scheme is of a prescribed description.

10

(9)   

For the purposes of this section a dispute is an exempted dispute if—

(a)   

proceedings in respect of it have been commenced in any court

or tribunal,

(b)   

the Pensions Ombudsman has commenced an investigation in

respect of it as a result of a complaint made or a dispute referred

15

to him, or

(c)   

it is of a prescribed description.

(10)   

If, in the case of an occupational pension scheme, the dispute resolution

arrangements required by this section to be made—

(a)   

have not been made, or

20

(b)   

are not being implemented,

   

section 10 applies to any of the trustees or managers who have failed to

take all reasonable steps to secure that such arrangements are made or

implemented.

50A     

Meaning of “person with an interest in the scheme”

25

(1)   

For the purposes of section 50 a person is a person with an interest in

an occupational pension scheme if—

(a)   

he is a member of the scheme,

(b)   

he is a widow, widower or surviving dependant of a deceased

member of the scheme,

30

(c)   

he is a surviving non-dependant beneficiary of a deceased

member of the scheme,

(d)   

he is a prospective member of the scheme,

(e)   

he has ceased to be within any of the categories of persons

referred to in paragraphs (a) to (d), or

35

(f)   

he claims to be such a person as is mentioned in paragraphs (a)

to (e) and the dispute relates to whether he is such a person.

(2)   

In subsection (1)(c) a “non-dependant beneficiary”, in relation to a

deceased member of an occupational pension scheme, means a person

who, on the death of the member, is entitled to the payment of benefits

40

under the scheme.

(3)   

In subsection (1)(d) a “prospective member” means any person who,

under the terms of his contract of service or the rules of the scheme—

(a)   

is able, at his own option, to become a member of the scheme,

(b)   

will become so able if he continues in the same employment for

45

a sufficiently long period,

 

 

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

138

 

(c)   

will be admitted to the scheme automatically unless he makes

an election not to become a member, or

(d)   

may be admitted to it subject to the consent of his employer.

50B     

The dispute resolution procedure

(1)   

The procedure provided for by the dispute resolution arrangements

5

under section 50 must include the following provision.

(2)   

The procedure must provide that an application for the resolution of a

pension dispute under section 50(4) may be made or continued on

behalf of a person who is a party to the dispute mentioned in section

50(3)(a)(ii)—

10

(a)   

where the person dies, by his personal representative,

(b)   

where the person is a minor or is otherwise incapable of acting

for himself, by a member of his family or some other person

suitable to represent him, and

(c)   

in any other case, by a representative nominated by him.

15

(3)   

The procedure may include provision about the time limits for making

an application for the resolution of a pension dispute but it must

require that—

(a)   

in the case of a person with an interest in a scheme as mentioned

in section 50A(1)(e), the time limit for making an application is

20

the end of the period of six months beginning immediately after

the date upon which he ceased to be a person with an interest as

mentioned in section 50A(1)(a), (b), (c) or (d), and

(b)   

in the case of a person with an interest in a scheme as mentioned

in section 50A(1)(f) who is claiming to be such a person as is

25

mentioned in section 50A(1)(e), the time limit for making an

application is the end of the period of six months beginning

immediately after the date upon which he claims that he ceased

to be a person with an interest as mentioned in section

50A(1)(a), (b), (c) or (d).

30

(4)   

The procedure must include provision about—

(a)   

the manner in which an application for the resolution of a

pension dispute is to be made,

(b)   

the particulars which must be included in such an application,

and

35

(c)   

the manner in which any decisions required are to be reached

and given.

(5)   

The procedure must provide that if, after an application for the

resolution of a pension dispute has been made, the dispute becomes an

exempted dispute within the meaning of section 50(9)(a) or (b), the

40

resolution of the dispute under the procedure ceases.”

Pension compensation

211     

Amendments relating to the Pensions Compensation Board

(1)   

The Pensions Act 1995 (c. 26) is amended as follows.

(2)   

In section 80 (review of decisions of the Pensions Compensation Board)—

45

 

 

 
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