Pensions Bill

House of Commons

Session 2003 - 04
Internet Publications
Other Bills before Parliament

Pensions Bill

Pensions Bill
Part 1 — The Pensions Regulator
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“occupational trust scheme” means an occupational pension scheme
established under a trust.
Collecting information relevant to the Board of the Pension Protection Fund
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Information relevant to the Board
The Regulator may collect any information which appears to it to be relevant
5
to the exercise of the functions of the Board of the Pension Protection Fund.
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Duty to notify the Regulator of certain events
(1)
Except where the Regulator otherwise directs, the appropriate person must
give notice of any notifiable event to the Regulator.
(2)
In subsection (1) “notifiable event” means—
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(a)
a prescribed event in respect of an eligible scheme, or
(b)
a prescribed event in respect of the employer in relation to an eligible
scheme.
(3)
For the purposes of subsection (1)—
(a)
in the case of an event within subsection (2)(a), each of the following is
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“the appropriate person”—
(i)
the trustees or managers of the scheme,
(ii)
a person of a prescribed description, and
(b)
in relation to an event within subsection (2)(b), each of the following is
“the appropriate person”—
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(i)
the employer in relation to the scheme,
(ii)
a person of a prescribed description.
(4)
A notice under subsection (1)—
(a)
must be in writing, and
(b)
subject to subsection (5), must be given as soon as reasonably
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practicable after the person making it becomes aware of the notifiable
event.
(5)
Regulations may require a notice under subsection (1) to be given before the
beginning of the prescribed period ending with the notifiable event in
question.
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(6)
No duty to which a person is subject is to be regarded as contravened merely
because of any information or opinion contained in a notice under this section.

This is subject to section 234 (protected items).
(7)
Where the trustees or managers of a scheme fail to comply with an obligation
imposed on them by subsection (1), section 10 of the Pensions Act 1995 (c. 26)
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(civil penalties) applies in relation to any trustee or manager who has failed to
take all reasonable steps to secure compliance with that subsection.
(8)
That section also applies to any other person who, without reasonable excuse,
fails to comply with an obligation imposed on him by subsection (1).
(9)
In this section “eligible scheme” has the same meaning as in Part 2 (see section
40
98).

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Part 1 — The Pensions Regulator
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Reporting breaches of the law
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Duty to report breaches of the law
(1)
Subsection (2) imposes a reporting requirement on the following persons—
(a)
a trustee or manager of an occupational or personal pension scheme;
(b)
a person who is otherwise involved in the administration of such a
5
scheme;
(c)
the employer in relation to an occupational pension scheme;
(d)
a professional adviser in relation to such a scheme;
(e)
a person who is otherwise involved in advising the trustees or
managers of an occupational or personal pension scheme in relation to
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the scheme.
(2)
Where the person has reasonable cause to believe that—
(a)
a duty which is relevant to the administration of the scheme in
question, and is imposed by or by virtue of an enactment or rule of law,
has not been or is not being complied with, and
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(b)
the failure to comply is likely to be of material significance to the
Regulator in the exercise of any of its functions,

he must give a written report of the matter to the Regulator as soon as
reasonably practicable.
(3)
No duty to which a person is subject is to be regarded as contravened merely
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because of any information or opinion contained in a written report under this
section.

This is subject to section 234 (protected items).
(4)
Section 10 of the Pensions Act 1995 (c. 26) (civil penalties) applies to any person
who, without reasonable excuse, fails to comply with an obligation imposed on
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him by this section.
Gathering information
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Provision of information
(1)
The Regulator may, by notice in writing, require any person to whom
subsection (2) applies to produce any document, or provide any other
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information, which is—
(a)
of a description specified in the notice, and
(b)
relevant to the exercise of the Regulator’s functions.
(2)
This subsection applies to—
(a)
a trustee or manager of an occupational or personal pension scheme,
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(b)
a professional adviser in relation to an occupational pension scheme,
(c)
the employer in relation to—
(i)
an occupational pension scheme, or
(ii)
a personal pension scheme where direct payment arrangements
exist in respect of one or more members of the scheme who are
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employees, and
(d)
any other person appearing to the Regulator to be a person who holds,
or is likely to hold, information relevant to the exercise of the
Regulator’s functions.

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Part 1 — The Pensions Regulator
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(3)
Where the production of a document, or the provision of information, is
required by a notice given under subsection (1), the document must be
produced, or information must be provided, in such a manner, at such a place
and within such a period as may be specified in the notice.
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Inspection of premises
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(1)
An inspector may, for the purposes of investigating whether, in the case of any
occupational pension scheme, the occupational scheme provisions are being,
or have been, complied with, at any reasonable time enter premises liable to
inspection.
(2)
In subsection (1), the “occupational scheme provisions” means provisions
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contained in or made by virtue of—
(a)
any of the following provisions of this Act—

this Part;

Part 3 (scheme funding);

sections 196 to 198 (member-nominated trustees and directors);
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sections 200 to 202 (requirement for knowledge and familiarity);

Part 7 (miscellaneous and supplementary);
(b)
either of the following provisions of the Welfare Reform and Pensions
Act 1999 (c. 30)—

section 33 (time for discharge of pension credit liability);
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section 45 (information);
(c)
any of the provisions of Part 1 of the Pensions Act 1995 (c. 26)
(occupational pension schemes), other than—
(i)
sections 51 to 54 (indexation), and
(ii)
sections 62 to 65 (equal treatment);
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(d)
any of the following provisions of the Pension Schemes Act 1993
(c. 48)—

Chapter 4 of Part 4 (transfer values);

Chapter 2 of Part 4A (pension credit transfer values);

section 113 (information);
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section 175 (levy);
(e)
any provisions in force in Northern Ireland corresponding to any
provisions within paragraphs (a) to (d).
(3)
An inspector may, for the purposes of investigating whether, in the case of a
stakeholder scheme—
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(a)
sections 1 and 2(4) of the Welfare Reform and Pensions Act 1999
(stakeholder pension schemes: registration etc), or
(b)
any corresponding provisions in force in Northern Ireland,

are being, or have been, complied with, at any reasonable time enter premises
liable to inspection.
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(4)
An inspector may, for the purposes of investigating whether, in the case of any
trust-based personal stakeholder scheme, the trust-based scheme provisions
are being, or have been, complied with, at any reasonable time enter premises
liable to inspection.
(5)
In subsection (4)—
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“trust-based personal stakeholder scheme” means a personal pension
scheme which—

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Part 1 — The Pensions Regulator
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(a)
is a stakeholder scheme, and
(b)
is established under a trust; and

the “trust-based scheme provisions” means any provisions contained in
or made by virtue of—
(a)
any provision which applies in relation to trust-based personal
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stakeholder schemes by virtue of paragraph 1 of Schedule 1 to
the Welfare Reform and Pensions Act 1999 (c. 30), as the
provision applies by virtue of that paragraph, or
(b)
any corresponding provision in force in Northern Ireland.
(6)
Premises are liable to inspection for the purposes of this section if the inspector
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has reasonable grounds to believe that—
(a)
members of the scheme are employed there,
(b)
documents relevant to the administration of the scheme are being kept
there, or
(c)
the administration of the scheme, or work connected with that
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administration, is being carried out there.
(7)
In this section, “stakeholder scheme” means an occupational pension scheme
or a personal pension scheme which is or has been registered under—
(a)
section 2 of the Welfare Reform and Pensions Act 1999 (register of
stakeholder schemes), or
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(b)
any corresponding provision in force in Northern Ireland.
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Inspection of premises in respect of employers’ obligations
(1)
An inspector may, for the purposes of investigating whether an employer is
complying, or has complied, with the requirements under—
(a)
section 3 of the Welfare Reform and Pensions Act 1999 (duty of
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employers to facilitate access to stakeholder pension schemes), or
(b)
any corresponding provision in force in Northern Ireland,

at any reasonable time enter premises liable to inspection.
(2)
Premises are liable to inspection for the purposes of subsection (1) if the
inspector has reasonable grounds to believe that—
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(a)
employees of the employer are employed there,
(b)
documents relevant to the administration of the employer’s business
are being kept there, or
(c)
the administration of the employer’s business, or work connected with
that administration, is being carried out there.
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(3)
In subsections (1) and (2), “employer” has the meaning given in section 3(9) of
the Welfare Reform and Pensions Act 1999 (or, where subsection (1)(b) applies,
in any corresponding provision in force in Northern Ireland).
(4)
An inspector may, for the purposes of investigating whether, in the case of any
direct payment arrangements relating to a personal pension scheme—
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(a)
section 111A of the Pension Schemes Act 1993 (c. 48) (monitoring of
employers’ payments to personal pension schemes), or
(b)
any corresponding provision in force in Northern Ireland,

is being, or has been, complied with, at any reasonable time enter premises
liable to inspection.
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(5)
Premises are liable to inspection for the purposes of subsection (4) if—

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Part 1 — The Pensions Regulator
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(a)
employees of the employer are employed there,
(b)
documents relevant to the administration of—
(i)
the employer’s business,
(ii)
the direct payment arrangements, or
(iii)
the scheme to which those arrangements relate,
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are being kept there, or
(c)
either of the following is being carried out there—
(i)
the administration of the employer’s business, the
arrangements or the scheme;
(ii)
work connected with that administration.
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(6)
In the application of subsections (4) and (5) in relation to any provision
mentioned in subsection (4)(b) (a “corresponding Northern Ireland
provision”), references in those subsections to—

direct payment arrangements,

a personal pension scheme,
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the employer, or

employees of the employer,

are to be read as having the meanings that they have for the purposes of the
corresponding Northern Ireland provision.
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Inspection of premises: powers of inspectors
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(1)
Subsection (2) applies where, for a purpose mentioned in subsection (1), (3) or
(4) of section 47 or subsection (1) or (4) of section 48, an inspector enters
premises which are liable to inspection for the purposes of that provision.
(2)
While there, the inspector—
(a)
may make such examination and inquiry as may be necessary for the
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purpose for which he entered the premises,
(b)
may require any person on the premises to produce, or secure the
production of, any document relevant to compliance with the
regulatory provisions for his inspection, and
(c)
may take copies of any such document,
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(d)
may take possession of any document appearing to be a document
relevant to compliance with the regulatory provisions or take in
relation to any such document any other steps which appear necessary
for preserving it or preventing interference with it,
(e)
may, in the case of any such document which consists of information
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which is stored in electronic form and is on, or accessible from, the
premises, require the information to be produced in a form—
(i)
in which it can be taken away, and
(ii)
in which it is legible or from which it can readily be produced
in a legible form, and
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(f)
may, as to any matter relevant to compliance with the regulatory
provisions, examine, or require to be examined, either alone or in the
presence of another person, any person on the premises whom he has
reasonable cause to believe to be able to give information relevant to
that matter.
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