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House of Commons

Session 2003 - 04 Internet Publications Other Bills before Parliament

Pensions Bill

Pensions Bill
EXPLANATORY NOTES
Explanatory notes to the Bill, prepared by the Department for Work and Pensions, are
published separately as EN—57.
EUROPEAN CONVENTION ON HUMAN RIGHTS
Mr Secretary Smith has made the following statement under section 19(1)(a) of the
Human Rights Act 1998:
In my view the provisions of the Pensions Bill are compatible with the Convention
rights.
Bill 57 53/3
Pensions Bill
Contents
Part 1
The Pensions Regulator
Establishment
1    The Pensions Regulator
2    Membership of the Regulator
3    Further provision about the Regulator
General provisions about functions
4    Regulator’s functions
5    Regulator’s objectives
6    Supplementary powers
7    Transfer of OPRA’s functions to the Regulator
The Non-Executive Committee and the Determinations Panel
8    The Non-Executive Committee
9    Functions exercisable by the Non-Executive Committee
10    The Determinations Panel
11    Functions exercisable by the Determinations Panel
Annual report
12    Annual reports to Secretary of State
Provision of information, education and assistance
13    Provision of information, education and assistance
New regulatory powers of the Regulator
14    Improvement notices
15    Third party notices
16    Injunctions and interdicts
17    Restitution
Bill 57 53/3
Pensions Bill iv
18    Power of the Regulator to recover unpaid contributions
Powers in relation to winding up of occupational pension schemes
19    Powers to wind up occupational pension schemes
20    Freezing order
21    Consequences of freezing order
22    Period of effect etc of freezing order
23    Validation of action in contravention of freezing order
24    Effect of winding up of scheme on freezing order
25    Effect of assessment period under Part 2 on freezing order
26    Power to give a direction where freezing order ceases to have effect
27    Notification of trustees, managers, employers and members
28    Supplementary provision relating to orders under sections 20 to 27
Trustees of occupational pension schemes
29    Prohibition orders
30    Suspension orders
31    Appointments by Regulator
32    Disqualification
Applications under the Insolvency Act 1986
33    Regulator’s right to apply under section 423 of Insolvency Act 1986
Register of schemes
34    Register of occupational and personal pension schemes
35    Registrable information
36    The register: inspection, provision of information and reports etc
37    The register: duties of trustees or managers
38    Duty of the Regulator to issue scheme return notices
39    Duty of trustees or managers to provide scheme return
40    Scheme returns: supplementary
Register of prohibited trustees
41    Register of prohibited trustees
42    Accessibility of register of prohibited trustees
Collecting information relevant to the Board of the Pension Protection Fund
43    Information relevant to the Board
44    Duty to notify the Regulator of certain events
Reporting breaches of the law
45    Duty to report breaches of the law
Gathering information
46    Provision of information
47    Inspection of premises
Pensions Bill v
48    Inspection of premises in respect of employers’ obligations
49    Inspection of premises: powers of inspectors
50    Inspection of premises: supplementary
51    Penalties relating to sections 46 to 49
52    Warrants
53    Sections 46 to 52: interpretation
Provision of false or misleading information
54    Offences of providing false or misleading information
Use of information
55    Use of information
Disclosure of information
56    Restricted information
57    Information supplied to the Regulator by corresponding overseas authorities
58    Disclosure for facilitating exercise of functions by the Regulator
59    Disclosure for facilitating exercise of functions by the Board
60    Disclosure for facilitating exercise of functions by other supervisory
authorities
61    Other permitted disclosures
62    Disclosure of information by the Inland Revenue
Reports
63    Publishing reports
Codes of practice
64    Codes of practice
65    Procedure for issue and publication of codes of practice
66    Revocation of codes of practice
Exercise of regulatory functions
67    The Regulator’s procedure in relation to its regulatory functions
68    Publication of procedure in relation to regulatory functions
69    Application of standard and special procedure
70    Standard procedure
71    Special procedure: applicable cases
72    Special procedure
73    Compulsory review
74    Duty to have regard to the interests of members etc
75    Powers to vary or revoke orders, notices or directions etc
The Pensions Regulator Tribunal
76    The Pensions Regulator Tribunal
77    References to the Tribunal
78    Appeal on a point of law
79    Redetermination etc by the Tribunal
Pensions Bill vi
80    Legal assistance scheme
Part 2
The Board of the Pension Protection Fund
Chapter 1
The Board
Establishment
81    The Board of the Pension Protection Fund
82    Membership of the Board
83    Further provision about the Board
General provision about functions
84    Board’s functions
85    Supplementary powers
The Non-Executive Committee
86    The Non-Executive Committee
Financial matters
87    Investment of funds
88    Investment principles
89    Borrowing
90    Grants
91    Administration levy
92    Fees
Annual reports
93    Annual reports to Secretary of State
Chapter 2
Information relating to employer’s insolvency etc
Insolvency events
94    Duty to notify insolvency events in respect of employers
95    Insolvency event, insolvency date and insolvency practitioner
Status of scheme
96    Insolvency practitioner’s duty to issue notices confirming status of scheme
Board’s duties
97    Board’s duty where there is a failure to comply with section 96
Pensions Bill vii
Chapter 3
Pension protection
Eligible schemes
98    Eligible schemes
Circumstances in which Board assumes responsibility for eligible schemes
99    Duty to assume responsibility for schemes following insolvency event
100    Duty to assume responsibility for schemes following application or
notification
101    Applications and notifications for the purposes of section 100
102    Board’s duty where application or notification received under section 101
103    Protected liabilities
Restrictions on schemes during the assessment period
104    Assessment periods
105    Admission of new members, payment of contributions etc
106    Directions
107    Restrictions on winding up of schemes
108    Power to validate contraventions of section 107
109    Board to act as creditor of the employer
110    Payment of scheme benefits
111    Loans to pay scheme benefits
Valuation of assets and liabilities
112    Board’s obligation to obtain valuation of assets and protected liabilities
113    Approval of valuation
114    Binding valuations
Refusal to assume responsibility
115    Schemes which become eligible schemes
116    New schemes created to replace existing schemes
Cessation of involvement with a scheme
117    Circumstances in which Board ceases to be involved with an eligible scheme
118    Consequences of the Board ceasing to be involved with a scheme
Reconsideration and winding up
119    Requirement to wind up schemes with sufficient assets to meet protected
liabilities
120    Application for reconsideration
121    Duty to assume responsibility following reconsideration
Assumption of responsibility for a scheme
122    Transfer notice
Pensions Bill viii
123    Effect of Board assuming responsibility for a scheme
124    The pension compensation provisions
125    Adjustments to be made where Board assumes responsibility for a scheme
126    Postponement of compensation entitlement for the assessment period
127    Guaranteed minimum pensions
128    Duty to pay scheme benefits unpaid at assessment date
129    Modification of Chapter where liabilities discharged during assessment
period
130    Administration of compensation
Discharge of Board’s liabilities
131    Discharge of liabilities in respect of compensation
132    Discharge of liabilities in respect of money purchase benefits
Equal treatment
133    Equal treatment
Relationship with fraud compensation regime
134    Relationship with fraud compensation regime
The fund
135    Pension Protection Fund
The levy
136    Initial levy
137    Pension protection levies
138    Supplementary provisions about pension protection levies
139    Amounts to be raised by the pension protection levies
140    The levy ceiling
141    Valuations to determine scheme underfunding
142    Pension protection levies during the transitional period
143    Calculation, collection and recovery of levies
Chapter 4
Fraud compensation
Entitlement to fraud compensation
144    Cases where fraud compensation payments can be made
145    Schemes which are not eligible schemes or subject to insolvency events
146    Recovery of value
147    Fraud compensation payments
148    Interim payments
149    Board’s powers to make fraud compensation transfer payments
The fund
150    Fraud Compensation Fund

© Parliamentary copyright 2004	Revised 12 February 2004