Pensions Bill

House of Commons

Session 2003 - 04
Internet Publications
Other Bills before Parliament

Pensions Bill

Pensions Bill
Schedule 7 — Pension compensation provisions
211

(b)
if greater, the appropriate percentage of the rate of that pension.
      (8)
For the purposes of sub-paragraph (7)(a), no increase in the rate of a pension
which is made at the discretion of the trustees or managers of the scheme,
the employer or any other person is to be regarded as an increase required
by virtue of the admissible rules.
5
      (9)
For the purposes of sub-paragraph (7)(b), “the appropriate percentage” is
the percentage increase in the general level of prices in Great Britain during
the period—
(a)
beginning when the rate of the pension was last increased or, if there
has been no previous increase, the date the pension first became
10
payable (or would have been payable but for its being postponed),
and
(b)
ending with the time the relevant increase was made.
Accrual rate, pensionable service and pensionable earnings
33    (1)
In this Schedule, in relation to a member’s entitlement to benefits under the
15
scheme, each of the following expressions has the meaning given by this
paragraph—
“accrual rate”,
“pensionable earnings”, and
“pensionable service”.
20
      (2)
“Accrual rate” means the rate at which under the admissible rules rights to
the benefits accrue over time by reference to periods of pensionable service.
      (3)
“Pensionable earnings” means the earnings by reference to which the
benefits are calculated under the admissible rules.
      (4)
Subject to sub-paragraphs (5) and (6), “pensionable service” means—
25
(a)
service in any description of category of employment to which the
scheme applies which qualifies the member (on the assumption that
it continues for the appropriate period) for benefits under the
scheme,
(b)
any service attributable to transfer credits, and
30
(c)
service which under the admissible rules of the scheme is
attributable to voluntary contributions paid by the member.
      (5)
The service within sub-paragraph (4)(a) does not include service notionally
attributable for any purpose of the scheme.
      (6)
In determining “pensionable service” no account is to be taken of admissible
35
rules by which a period of service can be treated for any purpose as being
longer or shorter than it actually is.
Other definitions
34    (1)
In this Schedule—
“deferred member”, in relation to the scheme, means a person who,
40
under the admissible rules, has accrued rights under the scheme
other than—
(a)
an active member, or
(b)
a person who in respect of his pensionable service under the
scheme or by reason of transfer credits is entitled to the
45
present payment of pension or other benefits;

Pensions Bill
Schedule 7 — Pension compensation provisions
212

“normal benefit age”, in relation to the scheme and a person with
rights to a pension or lump sum under it attributable (directly or
indirectly) to a pension credit, means the age specified in the
admissible rules as the earliest age at which that pension or lump
sum becomes payable without actuarial adjustment (disregarding
5
any scheme rule making special provision as to early payment on
grounds of ill health or otherwise);
“pension credit” means a credit under section 29(1)(b) of the Welfare
Reform and Pensions Act 1999 (c. 30);
“pension credit member”, in relation to the scheme, means a person
10
who has rights under the scheme which are attributable (directly or
indirectly) to a pension credit;
“pension credit rights”, in relation to the scheme, means rights to
future benefits under the scheme which are attributable (directly or
indirectly) to a pension credit;
15
“retail prices index” means—
(a)
the general index of retail prices (for all items) published by
the Office for National Statistics, or
(b)
where that index is not published for a month, any
substituted index or figures published by that Office;
20
“the scheme” is to be construed in accordance with paragraph 1;
“transfer credits” means rights allowed to a member under the
admissible rules of the scheme by reference to a transfer to that
scheme of his accrued rights from another scheme (including any
transfer credits allowed by that scheme).
25
      (2)
For the purposes of this Schedule the accrued rights of a member of the
scheme at any time are the rights (other than rights attributable (directly or
indirectly) to a pension credit) which, in accordance with the admissible
rules, have accrued to or in respect of him at that time to future benefits
under the scheme.
30
      (3)
In this Schedule references to a pension or lump sum under the admissible
rules of the scheme, or a right to such a pension or lump sum, do not include
a pension or lump sum, or right to a pension or lump sum, which is a money
purchase benefit.
      (4)
In this Schedule references to “ill health” are to be construed in accordance
35
with regulations under this sub-paragraph.

Pensions Bill
Schedule 8 — Restricted information held by the Board: certain permitted disclosures to facilitate exercise of functions
213

Schedule 8
Section 162

Restricted information held by the Board: certain permitted disclosures to
facilitate exercise of functions

Persons
Functions

The Secretary of State.
Functions under—

5

(a)
Part 14 of the Companies

Act 1985 (c. 6),

(b)
the Insolvency Act 1986

(c. 45),

(c)
Part 3 of the Companies

10

Act 1989 (c. 40),

(d)
Part 1 of the Export and

Investment Guarantees Act

1991 (c. 67) (apart from

sections 5 and 6),

15

(e)
Part 3 of the Pension

Schemes Act 1993 (c. 48),

(f)
Part 5 of the Police Act 1997

(c. 50),

(g)
the Financial Services and

20

Markets Act 2000 (c. 8), or

(h)
this Act,

and functions of co-operating with

overseas government authorities

and bodies in relation to criminal

25

matters.

The Bank of England.
Any of its functions.

The Financial Services Authority.
Functions under—

(a)
the legislation relating to

friendly societies,

30

(b)
the Building Societies Act

1986 (c. 53), or

(c)
the Financial Services and

Markets Act 2000.

The Charity Commissioners.
Functions under the Charities Act

35

1993 (c. 10).

The Pensions Regulator Tribunal.
Any of its functions.

The Pensions Ombudsman.
Functions under—

(a)
the Pension Schemes Act

1993, or

40

(b)
the Pension Schemes

(Northern Ireland) Act 1993

(c. 49).

Pensions Bill
Schedule 8 — Restricted information held by the Board: certain permitted disclosures to facilitate exercise of functions
214

Persons
Functions

The Ombudsman for the Board of
Any of his functions.

the Pension Protection Fund.

The Comptroller and Auditor
Any of his functions.

General.

5

The Auditor General for Wales.
Any of his functions.

The Auditor General for Scotland.
Any of his functions.

The Comptroller and Auditor
Any of his functions.

General for Northern Ireland.

The Commissioners of Inland
Functions under—

10

Revenue or their officers.
(a)
the Income and

Corporation Taxes Act 1988

(c. 1),

(b)
the Taxation of Chargeable

Gains Act 1992 (c. 12),

15

(c)
Part 3 of the Pension

Schemes Act 1993 (c. 48),

(d)
Part 3 of the Pension

Schemes (Northern

Ireland) Act 1993 (c. 49), or

20

(e)
the Income Tax (Earnings

and Pensions) Act 2003

(c. 1).

The Commissioners of Customs
Functions under any enactment.

and Excise.

25

The Official Receiver or, in
Functions under the enactments

Northern Ireland, the Official
relating to insolvency.

Receiver for Northern Ireland.

An inspector appointed by the
Functions under Part 14 of the

Secretary of State.
Companies Act 1985 (c. 6).

30

A person authorised to exercise
Functions under those sections or

powers under—
that Article.

(a)
section 447 of the

Companies Act 1985,

(b)
Article 440 of the

35

Companies (Northern

Ireland) Order 1986 (S.I.

1986/1032 (N.I. 6)), or

(c)
section 84 of the

Companies Act 1989 (c. 40).

40

Pensions Bill
Schedule 8 — Restricted information held by the Board: certain permitted disclosures to facilitate exercise of functions
215

Persons
Functions

A person appointed under—
Functions in relation to that

(a)
section 167 of the Financial
investigation.

Services and Markets Act

2000 (c. 8),

5

(b)
subsection (3) or (5) of

section 168 of that Act, or

(c)
section 284 of that Act,

to conduct an investigation.

A body designated under section
Functions in its capacity as a body

10

326(1) of that Act.
designated under that section.

A recognised investment exchange
Functions in its capacity as an

or a recognised clearing house (as
exchange or clearing house

defined by section 285 of that Act).
recognised under that Act.

A body corporate established in
Functions under the Financial

15

accordance with section 212(1) of
Services Compensation Scheme,

that Act.
established in accordance with

section 213 of that Act.

The Panel on Takeovers and
Functions under the City Code on

Mergers.
Takeovers and Mergers and the

20

Rules Governing Substantial

Acquisitions of Shares for the time

being issued by the Panel.

The General Insurance Standards
Functions of regulating sales and

Council.
advisory and service standards in

25

relation to insurance.

A recognised professional body
Functions in its capacity as such a

(within the meaning of section 391
body under that Act.

of the Insolvency Act 1986 (c. 45)).

A person on whom functions are
The functions so conferred.

30

conferred by or under Part 2, 3 or 4

of the Proceeds of Crime Act 2002

(c. 29).

The Counter Fraud and Security
Any of its functions.

Management Service established

35

under the Counter Fraud and

Security Management Service

(Establishment and Constitution)

Order 2002 (S.I. 2002/3039).

Pensions Bill
Schedule 9 — Use and supply of information: private pensions policy and retirement planning
216

Persons
Functions

The Department of Enterprise,
Functions under—

Trade and Investment in Northern
(a)
Part 15 of the Companies

Ireland.
(Northern Ireland) Order

1986 (S.I. 1986/1032 (N.I.

5

6)),

(b)
the Insolvency (Northern

Ireland) Order 1989 (S.I.

1989/2405 (N.I. 19)), or

(c)
Part 2 of the Companies

10

(No. 2) (Northern Ireland)

Order 1990 (S.I. 1990/1504

(N.I. 10)).

The Department for Social
Functions under Part 3 of the

Development in Northern Ireland.
Pension Schemes (Northern

15

Ireland) Act 1993 (c. 49).

An Inspector appointed by the
Functions under Part 15 of the

Department of Enterprise, Trade
Companies (Northern Ireland)

and Investment in Northern
Order 1986.

Ireland.

20

A recognised professional body
Functions in its capacity as such a

within the meaning of Article 350
body under that Order.

of the Insolvency (Northern

Ireland) Order 1989.

The Gaming Board for Great
Functions under—

25

Britain.
(a)
the Gaming Act 1968

(c. 65), or

(b)
the Lotteries and

Amusements Act 1976

(c. 32).

30

Schedule 9
Section 193

Use and supply of information: private pensions policy and retirement
planning
Use of information held by Secretary of State etc
1     (1)
Section 3 of the Social Security Act 1998 (c. 14) (use of information) is
35
amended as follows.
      (2)
In subsection (1), for the words from “social security” to “training” substitute
“any of the matters specified in subsection (1A) below”.
      (3)
After subsection (1) insert—
“(1A)
The matters are—
40
(a)
social security, child support or war pensions;
(b)
employment or training;

Pensions Bill
Schedule 9 — Use and supply of information: private pensions policy and retirement planning
217

(c)
private pensions policy;
(d)
retirement planning.”
      (4)
In subsection (2)(a), for the words from “social security” to “training”
substitute “any of the matters specified in subsection (1A) above”.
      (5)
After subsection (4) insert—
5
“(5)
In this section—

“private pensions policy” means policy relating to occupational
pension schemes or personal pension schemes (within the
meaning given by section 1 of the Pension Schemes Act 1993);

“retirement planning” means promoting financial planning for
10
retirement.”
Supply of information held by tax authorities
2     (1)
This paragraph applies to information which is held—
(a)
by the Commissioners of Inland Revenue;
(b)
by a person providing services to the Commissioners of Inland
15
Revenue, in connection with the provision of those services;
(c)
by the Commissioners of Customs and Excise;
(d)
by a person providing services to the Commissioners of Customs
and Excise, in connection with the provision of those services.
      (2)
Information to which this paragraph applies may be supplied—
20
(a)
to the Secretary of State or the Northern Ireland Department, or
(b)
to a person providing services to the Secretary of State or the
Northern Ireland Department,

for use for the purposes of functions relating to private pensions policy or
retirement planning.
25
      (3)
An authorised officer may require information to which this paragraph
applies to be supplied—
(a)
to the Secretary of State or the Northern Ireland Department, or
(b)
to a person providing services to the Secretary of State or the
Northern Ireland Department,
30

for use for the purposes of functions relating to private pensions policy or
retirement planning.
      (4)
In sub-paragraph (3) “authorised officer” means an officer of the Secretary of
State or the Northern Ireland Department authorised for the purposes of this
paragraph by the Secretary of State or the Northern Ireland Department.
35
      (5)
In this paragraph—
“private pensions policy” means policy relating to occupational
pension schemes or personal pension schemes;
“retirement planning” means promoting financial planning for
retirement;
40
“the Northern Ireland Department” means the Department for Social
Development in Northern Ireland.