Pensions Bill

House of Commons

Session 2003 - 04
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Other Bills before Parliament

Pensions Bill

Pensions Bill
Schedule 1 — The Pensions Regulator
Part 1 — Members of the Regulator
164

Schedules
Schedule 1
Section 3

The Pensions Regulator
Part 1
Members of the Regulator
5
Terms of appointment and tenure of members
1     (1)
The members of the Regulator appointed by the Secretary of State under
section 2(1)(a) or (c) are to be appointed on such terms and conditions as are
determined by the Secretary of State.
      (2)
Subject to sub-paragraph (3), such a member—
10
(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
and conditions.
      (3)
A person must cease to be a member of the Regulator where—
15
(a)
in the case of the chairman, he ceases to hold that office or becomes
a member of the staff of the Regulator;
(b)
in the case of any other non-executive member, he becomes a
member of the staff of the Regulator;
(c)
in the case of an executive member appointed under section 2(1)(c),
20
he ceases to be a member of the staff of the Regulator.
2
Where a person ceases to be employed as Chief Executive, he ceases to be a
member of the Regulator.
3
No person is to be prevented from being a member of the Regulator
(whether as chairman or otherwise) merely because he has previously been
25
such a member.
Remuneration etc of members
4
The Regulator may pay, or make provision for paying, its non-executive
members such remuneration as the Secretary of State may determine.
5
The Regulator may—
30
(a)
pay to or in respect of any person who is or has been a non-executive
member such pension, allowances or gratuities as the Secretary of
State may determine, or

Pensions Bill
Schedule 1 — The Pensions Regulator
Part 2 — Staff of the Regulator
165

(b)
make such payments as the Secretary of State may determine
towards provision for the payment of a pension, allowance or
gratuity to or in respect of such a person.
6
Where—
(a)
a non-executive member ceases to be a member otherwise than on
5
the expiry of his term of office, and
(b)
it appears to the Secretary of State that there are circumstances which
make it right for that person to receive compensation,

the Regulator may make a payment to that person of such amount as the
Secretary of State may determine.
10
Part 2
Staff of the Regulator
The staff
7     (1)
The staff of the Regulator consists of—
(a)
the Chief Executive of the Regulator appointed under paragraph 8,
15
(b)
the other employees of the Regulator appointed under paragraph 9,
and
(c)
any additional staff made available by the Secretary of State under
paragraph 10.
      (2)
No member of the Board of the Pension Protection Fund is eligible for
20
appointment as a member of the staff of the Regulator.
The Chief Executive
8     (1)
The Regulator is to employ a person as its Chief Executive.
      (2)
The Chief Executive’s main function is to be responsible for securing that the
functions of the Regulator are exercised efficiently and effectively.
25
      (3)
The first appointment of a Chief Executive—
(a)
is to be made by the Secretary of State, and
(b)
is to be on such terms and conditions as to remuneration and other
matters as are determined by the Secretary of State.
      (4)
Subsequent appointments of a Chief Executive—
30
(a)
are to be made by the Regulator with the approval of the Secretary of
State, and
(b)
are to be on such terms and conditions as to remuneration and other
matters as are determined by the Regulator with the approval of the
Secretary of State.
35
      (5)
By virtue of section 9(2) (functions exercisable by the Non-Executive
Committee), the function conferred on the Regulator by sub-paragraph
(4)(b) is exercisable on its behalf by the Non-Executive Committee.
Other employees
9     (1)
Other employees of the Regulator may be appointed by the Regulator with
40
the approval of the Secretary of State as to numbers.

Pensions Bill
Schedule 1 — The Pensions Regulator
Part 3 — Members of the Determinations Panel
166

      (2)
Any such appointments are to be on such terms and conditions as to
remuneration and other matters as are determined by the Regulator with the
approval of the Secretary of State.
Additional staff etc
10    (1)
The Secretary of State may make available to the Regulator such additional
5
staff and such other facilities as he considers appropriate.
      (2)
The availability of such staff and facilities may be on such terms as to
payment by the Regulator as the Secretary of State may determine.
Part 3
Members of the Determinations Panel
10
Nomination of the chairman of the Panel
11    (1)
On each occasion when the Regulator is required to appoint a person as
chairman of the Determinations Panel, the chairman of the Regulator must
establish a committee (in this Schedule referred to as “the appointments
committee”).
15
      (2)
The appointments committee must consist of—
(a)
a chairman appointed by the chairman of the Regulator from the
non-executive members of the Regulator, and
(b)
one or more persons appointed by the chairman of the Regulator.
      (3)
At least one of the persons appointed under sub-paragraph (2)(b) must be a
20
person who is not a member of the Regulator.
      (4)
Subject to sub-paragraph (3), a person appointed under sub-paragraph
(2)(b) may be a person who is not a member of the Regulator.
      (5)
But a person appointed under sub-paragraph (2)(b) must not be a person
who is a member of the staff of the Regulator.
25
      (6)
The committee must nominate a person suitable for appointment as
chairman of the Panel.
Terms of appointment and tenure of members of the Panel
12    (1)
The members of the Determinations Panel are to be appointed on such terms
and conditions as are determined by the Regulator with the approval of the
30
Secretary of State.
      (2)
Subject to sub-paragraph (3) such a member—
(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
35
and conditions.
      (3)
A person must cease to be a member of the Panel where—
(a)
in the case of the chairman, he ceases to hold that office, or
(b)
in the case of any member, he becomes a member of the Regulator or
a member of the staff of the Regulator.
40

Pensions Bill
Schedule 1 — The Pensions Regulator
Part 4 — Proceedings and delegation etc
167

13
No person is to be prevented from being a member of the Panel (whether as
chairman or otherwise) merely because he has previously been a member of
the Panel.
Remuneration etc of members of the Panel
14
The Regulator may pay, or make provision for paying, the members of the
5
Determinations Panel such remuneration as the Secretary of State may
determine.
15
The Regulator may—
(a)
pay to or in respect of any person who is or has been a member of the
Panel such pension, allowances or gratuities as the Secretary of State
10
may determine, or
(b)
make such payments as the Secretary of State may determine
towards provision for the payment of a pension, allowance or
gratuity to or in respect of such a person.
16
Where—
15
(a)
a member of the Panel ceases to be a member otherwise than on the
expiry of his term of office, and
(b)
it appears to the Secretary of State that there are circumstances which
make it right for that person to receive compensation,

the Regulator may make a payment to that person of such amount as the
20
Secretary of State may determine.
Part 4
Proceedings and delegation etc
Committees
17    (1)
The Regulator may establish committees for any purpose.
25
      (2)
Any committee so established may establish sub-committees.
      (3)
The members of such committees or sub-committees may include persons
who are not members of the Regulator.
      (4)
The members of such sub-committees may include persons who are not
members of the committee.
30
      (5)
But the majority of the members of a committee or a sub-committee must
consist of persons who are members of the Regulator or members of the staff
of the Regulator.
      (6)
Sub-paragraphs (2) to (5) do not apply to—
(a)
the Non-Executive Committee or any of its sub-committees (see
35
section 8), or
(b)
the Determinations Panel or any of its sub-committees (see section
10).
      (7)
Subject to that, references in this Schedule to the committees of the Regulator
are to—
40
(a)
the Non-Executive Committee and any of its sub-committees,
(b)
the Determinations Panel and any of its sub-committees,
(c)
the appointments committee, and

Pensions Bill
Schedule 1 — The Pensions Regulator
Part 4 — Proceedings and delegation etc
168

(d)
any committees or sub-committees established under this
paragraph.
Procedure
18    (1)
The Regulator may determine—
(a)
its own procedure (including quorum), and
5
(b)
the procedure (including quorum) of any of its committees (other
than the Determinations Panel and any of that Panel’s sub-
committees).
      (2)
The Determinations Panel may determine—
(a)
its own procedure (including quorum), and
10
(b)
the procedure (including quorum) of any of its sub-committees.
      (3)
This paragraph is subject to—
(a)
sections 67 to 78 (procedure in relation to the regulatory functions)
and any corresponding provisions in force in Northern Ireland, and
(b)
any regulations made by the Secretary of State under paragraph 19.
15
19    (1)
The Secretary of State may make regulations—
(a)
as to the procedure (including quorum) to be followed by the
Regulator or any of its committees;
(b)
as to the manner in which the functions of the Regulator are to be
exercised.
20
      (2)
Such regulations may in particular—
(a)
make provision as to the hearing of parties, the taking of evidence
and the circumstances (if any) in which a document of any
prescribed description is to be treated for the purposes of any
proceedings before the Regulator, as evidence, or conclusive
25
evidence, of any prescribed matter;
(b)
make provision as to the manner in which parties to any proceedings
before the Regulator may or are to be represented for the purposes of
the proceedings;
(c)
provide for enabling the Regulator to summon persons—
30
(i)
to attend proceedings before the Regulator and give evidence
(including evidence on oath) for any purposes of proceedings
in connection with a determination whether to exercise, or
the exercise of, a regulatory function (or any corresponding
function under any provisions in force in Northern Ireland
35
corresponding to this Act), or
(ii)
to produce any documents required by the Regulator for
those purposes.
      (3)
In this paragraph references to proceedings before the Regulator include
references to proceedings before the Determinations Panel and any of the
40
Panel’s sub-committees.
Delegation
20    (1)
The Regulator may authorise—
(a)
any executive member of the Regulator,
(b)
any other member of the staff of the Regulator, or
45

Pensions Bill
Schedule 1 — The Pensions Regulator
Part 4 — Proceedings and delegation etc
169

(c)
any of its committees (other than the appointments committee, the
Determinations Panel and any of that Panel’s sub-committees),

to exercise such of the Regulator’s functions, in such circumstances, as the
Regulator may determine.
      (2)
But sub-paragraph (1) does not apply to—
5
(a)
the non-executive functions of the Regulator listed in section 9(3)
(which must be discharged by the Non-Executive Committee by
virtue of section 9(2)),
(b)
the duty of the Regulator to appoint the chairman and other
members of the Determinations Panel under section 10,
10
(c)
the duty of the Regulator to determine the terms and conditions of
their appointments under paragraph 12(1), and
(d)
the functions of the Regulator which are exercisable only by the
Panel by virtue of—
(i)
section 11(1) (the power in certain circumstances to
15
determine whether to exercise the functions listed in
Schedule 2 and to exercise them) or any corresponding
provision in force in Northern Ireland, or
(ii)
section 73(8) (the functions concerning the compulsory
review of certain determinations) or any corresponding
20
provision in force in Northern Ireland.
      (3)
The Regulator may authorise the appointments committee to exercise the
power under paragraph 18 to determine the committee’s own procedure
(including quorum).
      (4)
The Regulator may authorise the Determinations Panel, in such
25
circumstances as the Regulator may determine, to exercise on behalf of the
Regulator—
(a)
the power to determine whether to exercise one or more of the
regulatory functions listed in sub-paragraph (5), and
(b)
where the Panel so determines to exercise the regulatory function in
30
question, the power to exercise it.
      (5)
The regulatory functions mentioned in sub-paragraph (4) are—
(a)
the power to issue an improvement notice under section 14;
(b)
the power to issue a third party notice under section 15;
(c)
the power under section 2(3)(a) of the Welfare Reform and Pensions
35
Act 1999 (c. 30) to refuse to register a scheme under section 2 of that
Act;
(d)
the power to appoint a trustee under any of the following provisions
of section 7 of the Pensions Act 1995 (c. 26)—
(i)
subsection (1) where a trustee is removed by reason of his
40
disqualification;
(ii)
subsection (3)(b);
(e)
the power to give directions under section 72B of that Act facilitating
a winding up.
      (6)
The Regulator may also authorise the Determinations Panel, in such
45
circumstances as the Regulator may determine, to exercise on behalf of the
Regulator such functions (other than those mentioned in sub-paragraph
(2)(a) to (c)) as the Regulator considers necessary for the effective exercise by
the Panel of—

Pensions Bill
Schedule 1 — The Pensions Regulator
Part 5 — Funding and accounts
170

(a)
a function of the Regulator which it is authorised to exercise by
virtue of sub-paragraph (4),
(b)
a function of the Regulator mentioned in sub-paragraph (2)(d)
(functions exercisable only by the Panel), or
(c)
a function of the Panel under section 67(3), section 73(9) or paragraph
5
18(2) of this Schedule (procedure).
      (7)
This paragraph is subject to any regulations made by the Secretary of State
under paragraph 21.
21
The Secretary of State may make regulations—
(a)
limiting the extent to which any of the functions mentioned in
10
subsection (6) of section 9 may be delegated by the Non-Executive
Committee to any of its members or any of its sub-committees under
that subsection;
(b)
limiting the extent to which any of the functions mentioned in
subsection (8) of section 11 may be delegated by the Determinations
15
Panel to any of its members or any of its sub-committees under that
subsection;
(c)
limiting the extent to which functions of the Regulator may be
delegated under paragraph 20;
(d)
limiting the delegation under paragraph 20 of any power to delegate
20
contained in that paragraph;
(e)
permitting the Regulator in prescribed circumstances to delegate to
prescribed persons prescribed functions of the Regulator.
Application of seal and proof of instruments
22    (1)
The fixing of the common seal of the Regulator must be authenticated by the
25
signature of a person authorised for that purpose by the Regulator (whether
generally or specifically).
      (2)
Sub-paragraph (1) does not apply in relation to any document which is or is
to be signed in accordance with the law of Scotland.
23
A document purporting to be duly executed under the seal of the Regulator
30
or purporting to be signed on its behalf—
(a)
is to be received in evidence, and
(b)
is to be taken to be so executed or signed unless the contrary is
proved.
Part 5
35
Funding and accounts
Funding
24
The Secretary of State may pay the Regulator out of money provided by Parliament
such sums as he may determine towards its expenses.
25    (1)
The Secretary of State may make regulations authorising the Regulator to
40
charge fees to meet the costs incurred by the Regulator in connection with
applications made for the modification of an occupational pension scheme—
(a)
under section 69 of the Pensions Act 1995 (c. 26), or
(b)
under any corresponding provision in force in Northern Ireland.