Pensions Bill

House of Commons

Session 2003 - 04
Internet Publications
Other Bills before Parliament

Pensions Bill

Pensions Bill
Schedule 4 — The Pensions Regulator Tribunal
Part 4 — Status etc
183

(b)
refuses to produce a document when so required,

is guilty of an offence.
      (6)
A person guilty of an offence under sub-paragraph (5) is liable—
(a)
on summary conviction, to a fine not exceeding the statutory
maximum;
5
(b)
on conviction on indictment, to imprisonment for a term not
exceeding two years or a fine or both.
      (7)
In this paragraph “document” includes information recorded in any form
and, in relation to information recorded otherwise than in a legible form,
references to its production include references to producing a copy of the
10
information—
(a)
in a legible form, or
(b)
in a form from which it can readily be produced in a legible form.
Decisions of the Tribunal
12    (1)
A decision of the Tribunal may be taken by a majority.
15
      (2)
The decision must state whether it was unanimous or taken by a majority.
      (3)
The decision must be recorded in a document which—
(a)
contains a statement of the reasons for the decision, and
(b)
is signed and dated by the member of the panel of chairmen dealing
with the reference.
20
      (4)
The Tribunal must inform each party to the reference of its decision.
      (5)
The Tribunal must as soon as reasonably practicable send a copy of the
document mentioned in sub-paragraph (3)—
(a)
to each of the parties to the reference, and
(b)
to such other persons as appear to be directly affected by the
25
decision.
      (6)
The Tribunal must send the Secretary of State a copy of its decision.
      (7)
In this paragraph “document” includes information recorded in any form.
Costs
13    (1)
If the Tribunal considers that a party to any proceedings on a reference has
30
acted vexatiously, frivolously or unreasonably it may order that party to pay
to another party to the proceedings the whole or part of the costs or expenses
incurred by the other party in connection with the proceedings.
      (2)
If, in any proceedings on a reference, the Tribunal considers that a
determination of the Regulator which is the subject of the reference was
35
unreasonable it may order the Regulator to pay to another party to the
proceedings the whole or part of the costs or expenses incurred by the other
party in connection with the proceedings.
Part 4
Status etc
40
Disqualification
14
In Part 3 of Schedule 1 to the House of Commons Disqualification Act 1975

Pensions Bill
Schedule 4 — The Pensions Regulator Tribunal
Part 4 — Status etc
184

(c. 24) (other disqualifying offices), at the appropriate place insert—

“Any member, in receipt of remuneration, of a panel of
persons who may be selected to act as members of the
Pensions Regulator Tribunal.”
15
In Part 3 of Schedule 1 to the Northern Ireland Assembly Disqualification
5
Act 1975 (c. 25) (other disqualifying offices), at the appropriate place insert—

“Any member, in receipt of remuneration, of a panel of
persons who may be selected to act as members of the
Pensions Regulator Tribunal.”
The Parliamentary Commissioner for Administration
10
16
In Schedule 4 to the Parliamentary Commissioner Act 1967 (c. 13) (relevant
tribunals for the purposes of section 5(7) of that Act), at the appropriate place
insert—

“The Pensions Regulator Tribunal constituted under section
76 of the Pensions Act 2004.”
15
Judicial Pensions and Retirement Act 1993
17    (1)
The Judicial Pensions and Retirement Act 1993 (c. 8) is amended as follows.
      (2)
In Schedule 1 (offices which may be qualifying offices), in Part 2, at the
appropriate place insert—

“President or Deputy President of the Pensions Regulator
20
Tribunal.”
      (3)
In Schedule 5 (relevant offices in relation to retirement provisions), at the
appropriate place insert—

“Member of the Pensions Regulator Tribunal.”
Disclosure of information
25
18
In section 449(1) of the Companies Act 1985 (c. 6) (exceptions from
restrictions on publication and disclosure), after paragraph (m) insert—
“(n)
for the purposes of proceedings before the Pensions
Regulator Tribunal;”
19
In section 87(2) of the Companies Act 1989 (c. 40) (exceptions from
30
restrictions on disclosure), after paragraph (c) insert—
“(d)
proceedings before the Pensions Regulator Tribunal.”
20
In section 50(2) of the Courts and Legal Services Act 1990 (c. 41) (exceptions
from restrictions on disclosure), after paragraph (s) insert—
“(t)
the Pensions Regulator Tribunal to discharge any of its
35
functions.”

Pensions Bill
Schedule 5 — The Board of the Pension Protection Fund
Part 1 — Members of the Board
185

Schedule 5
Section 83

The Board of the Pension Protection Fund
Part 1
Members of the Board
Appointment of chairman
5
1
The chairman of the Board is to be appointed by the Secretary of State.
Appointment of ordinary members
2     (1)
The appointments of the first five ordinary members are to be made by the
Secretary of State.
      (2)
Subsequent appointments of ordinary members are to be made by the
10
Board, subject to sub-paragraph (4).
      (3)
In making any appointment by virtue of sub-paragraph (2) the Board must
act in accordance with any procedure for making such appointments that
may be prescribed.
      (4)
If, at any time, there are less than five ordinary members, the Secretary of
15
State must appoint such number of ordinary members as is required to bring
the number of ordinary members to five.
Terms of appointment
3     (1)
The chairman and the ordinary members appointed by the Secretary of State
are to be appointed on such terms and conditions as are determined by the
20
Secretary of State.
      (2)
The ordinary members appointed by the Board are to be appointed on such
terms and conditions as are determined—
(a)
in the case of a non-executive member, by the chairman with the
approval of the Secretary of State, and
25
(b)
in the case of an executive member, by the Chief Executive.
      (3)
This paragraph is subject to paragraph 7 (remuneration of members).
Tenure of members
4     (1)
Subject to the following provisions, the chairman and any ordinary
member—
30
(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.
      (2)
A person must cease to be a member of the Board where—
35
(a)
in the case of the chairman, he ceases to hold that office or becomes
a member of the staff of the Board;
(b)
in the case of any other non-executive member, he becomes a
member of the staff of the Board;

Pensions Bill
Schedule 5 — The Board of the Pension Protection Fund
Part 2 — Staff of the Board
186

(c)
in the case of an ordinary member who is an executive member, he
ceases to be a member of the staff of the Board.
5
Where a person ceases to be employed as Chief Executive, he ceases to be a
member of the Board.
6
No person is to be prevented from being a member of the Board (whether as
5
chairman or otherwise) merely because he has previously been such a
member.
Remuneration etc of members
7
The Board may pay, or make provision for paying, its non-executive
members such remuneration as the Secretary of State may determine.
10
8
The Board may—
(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
(b)
make such payments as the Secretary of State may determine
15
towards provision for the payment of a pension, allowance or
gratuity to or in respect of such a person.
9
Where—
(a)
a non-executive member ceases to be a member otherwise than on
the expiry of his term of office, and
20
(b)
it appears to the Secretary of State that there are circumstances which
make it right for that person to receive compensation,

the Board may make a payment to that person of such amount as the
Secretary of State may determine.
Interpretation of Part 1
25
10
In this Part “ordinary member” has the same meaning as in section 82.
Part 2
Staff of the Board
The staff
11    (1)
The staff of the Board consists of—
30
(a)
the Chief Executive of the Board appointed under paragraph 12,
(b)
the other employees of the Board appointed under paragraph 13, and
(c)
any additional staff made available by the Secretary of State under
paragraph 14.
      (2)
No member of the Regulator, or of the Determinations Panel established by
35
the Regulator under section 10, is eligible for appointment as a member of
the staff of the Board.
The Chief Executive
12    (1)
The Board is to employ a person as its Chief Executive.

Pensions Bill
Schedule 5 — The Board of the Pension Protection Fund
Part 3 — Proceedings and delegation etc
187

      (2)
The Chief Executive’s main function is to be responsible for securing that the
functions of the Board are discharged efficiently and effectively.
      (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
5
matters as are determined by the Secretary of State.
      (4)
Subsequent appointments of a Chief Executive are to be made by the Board
with the approval of the Secretary of State.
      (5)
Appointments under sub-paragraph (4) are to be—
(a)
on such terms and conditions as to remuneration as may be
10
determined by the Board with the approval of the Secretary of State,
and
(b)
on such other terms and conditions as may be determined by the
Secretary of State.
      (6)
By virtue of section 86(4), the function conferred on the Board by sub-
15
paragraph (5)(a) is exercisable on its behalf by the Non-Executive
Committee.
Other employees
13    (1)
Other employees of the Board may be appointed by the Board with the
approval of the Secretary of State as to numbers.
20
      (2)
Subject to sub-paragraph (3), an appointment under sub-paragraph (1) is to
be on such terms and conditions as may be determined by the Chief
Executive.
      (3)
The terms and conditions relating to remuneration are—
(a)
in the case of an appointment of an employee who is also to be an
25
executive member of the Board, to be determined by the Board with
the approval of the Secretary of State,
(b)
in the case of an appointment of an employee of a prescribed
description, to be determined by the Board.
      (4)
By virtue of section 86(4), the functions conferred on the Board by sub-
30
paragraph (3)(a) and (b) are exercisable on its behalf by the Non-Executive
Committee.
Additional staff etc
14    (1)
The Secretary of State may make available to the Board such additional staff
and such other facilities as he considers appropriate.
35
      (2)
The availability of such staff and facilities may be on such terms as to
payment by the Board as the Secretary of State may determine.
Part 3
Proceedings and delegation etc
Committees
40
15    (1)
The Board may establish committees for any purpose.
      (2)
Any committee established by the Board may establish sub-committees.

Pensions Bill
Schedule 5 — The Board of the Pension Protection Fund
Part 4 — Accounts
188

      (3)
The members of such committees or sub-committees may include persons
who are not members of the Board.
      (4)
The members of a sub-committee may include persons who are not
members of the committee.
      (5)
Sub-paragraphs (3) and (4) do not apply to the Non-Executive Committee or
5
any of its sub-committees.
      (6)
Any sub-committee of the Non-Executive Committee may include persons
who are not members of the committee, but those persons must not be
executive members or other staff of the Board.
Procedure
10
16
The Board may determine—
(a)
its own procedure (including quorum), and
(b)
the procedure (including quorum) of any of its committees or sub-
committees.
Delegation
15
17    (1)
The Board may authorise—
(a)
any executive member of the Board,
(b)
any other member of its staff, or
(c)
any of its committees or sub-committees (other than the Non-
Executive Committee or any of its sub-committees),
20

to exercise such of the Board’s functions, in such circumstances, as the Board
may determine.
      (2)
But sub-paragraph (1) does not apply to the non-executive functions of the
Board (which must be discharged by the Non-Executive Committee by
virtue of section 86(4)).
25
Application of seal and proof of instruments
18    (1)
The fixing of the common seal of the Board must be authenticated by the
signature of a person authorised for that purpose by the Board (whether
generally or specifically).
      (2)
Sub-paragraph (1) does not apply in relation to any document which is or is
30
to be signed in accordance with the law of Scotland.
19
A document purporting to be duly executed under the seal of the Board 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
35
proved.
Part 4
Accounts
Accounts
20    (1)
The Board must—
40

Pensions Bill
Schedule 5 — The Board of the Pension Protection Fund
Part 4 — Accounts
189

(a)
keep proper accounts and proper records in relation to the accounts,
and
(b)
prepare in respect of each financial year a statement of accounts.
      (2)
Each statement of accounts must—
(a)
contain an actuarial valuation of the Pension Protection Fund, and
5
(b)
comply with any accounting directions given by the Secretary of
State with the approval of the Treasury.
      (3)
For the purposes of sub-paragraph (2)—
“actuarial valuation”, with respect to a fund, means a valuation,
prepared and signed by the appointed actuary, of the assets and
10
liabilities of the fund; and
“accounting direction” means a direction regarding—
(a)
the information to be contained in a statement of accounts
and the manner in which it is to be presented;
(b)
the methods and principles according to which the
15
statement is to be prepared;
(c)
the additional information (if any) which is to be provided
for the information of Parliament.
      (4)
In sub-paragraph (3)—
(a)
“the appointed actuary” means a person with prescribed
20
qualifications who is appointed by the Board for the purposes of this
paragraph, and
(b)
the liabilities and assets to be taken into account in preparing the
actuarial valuation, and their amount or value, are to be determined,
calculated and verified by the appointed actuary in the prescribed
25
manner.
      (5)
The Board must send a copy of each statement of accounts—
(a)
to the Secretary of State, and
(b)
to the Comptroller and Auditor General,

before the end of the month of August next following the financial year to
30
which the statement relates.
      (6)
The Comptroller and Auditor General must—
(a)
examine, certify and report on each statement of accounts which he
receives under sub-paragraph (5), and
(b)
lay a copy of each statement and of his report before each House of
35
Parliament.
      (7)
In this paragraph “financial year” means—
(a)
the period beginning with the date on which the Board is established
and ending with the next following 31st March, and
(b)
each successive period of 12 months.
40
Other expenses
21
The Board may—
(a)
pay, or make provision for paying, persons attending proceedings of
the Board at its request such travelling and other allowances
(including compensation for loss of remunerative time) as the Board
45
may determine, and