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
222

      (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
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.
5
Part 4
Status etc
Disqualification
14
In Part 3 of Schedule 1 to the House of Commons Disqualification Act 1975
(c. 24) (other disqualifying offices), at the appropriate place insert—
10

“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
Act 1975 (c. 25) (other disqualifying offices), at the appropriate place insert—
15

“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
16
In Schedule 4 to the Parliamentary Commissioner Act 1967 (c. 13) (relevant
20
tribunals for the purposes of section 5(7) of that Act), at the appropriate place
insert—

“The Pensions Regulator Tribunal constituted under section
91 of the Pensions Act 2004.”
Judicial Pensions and Retirement Act 1993
25
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
Tribunal.”
30
      (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
18
In section 449(1) of the Companies Act 1985 (c. 6) (exceptions from
35
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
restrictions on disclosure), after paragraph (c) insert—
40
“(d)
proceedings before the Pensions Regulator Tribunal.”

Pensions Bill
Schedule 5 — The Board of the Pension Protection Fund
Part 1 — Members of the Board
223

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
functions.”
Schedule 5
5
Section 98

The Board of the Pension Protection Fund
Part 1
Members of the Board
Appointment of chairman
1
The chairman of the Board is to be appointed by the Secretary of State.
10
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
Board, subject to sub-paragraph (4).
15
      (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
State must appoint such number of ordinary members as is required to bring
20
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
Secretary of State.
25
      (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
(b)
in the case of an executive member, by the Chief Executive.
30
      (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—
(a)
is to hold and vacate office in accordance with the terms and
35
conditions of his appointment, and
(b)
may resign or be removed from office in accordance with those terms
and conditions.

Pensions Bill
Schedule 5 — The Board of the Pension Protection Fund
Part 2 — Staff of the Board
224

      (2)
A person must cease to be a member of the Board where—
(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;
5
(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
10
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.
15
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
20
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
25
(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
30
10
In this Part “ordinary member” has the same meaning as in section 97.
Part 2
Staff of the Board
The staff
11    (1)
The staff of the Board consists of—
35
(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
40
the Regulator under section 10, is eligible for appointment as 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
225

The Chief Executive
12    (1)
The Board 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 Board are exercised efficiently and effectively.
      (3)
The first appointment of a Chief Executive—
5
(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 are to be made by the Board
with the approval of the Secretary of State.
10
      (5)
Appointments under sub-paragraph (4) are to be—
(a)
on such terms and conditions as to remuneration as may be
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
15
Secretary of State.
      (6)
By virtue of section 101(4) (functions exercisable by Non-Executive
Committee), the function conferred on the Board by sub-paragraph (5)(a) is
exercisable on its behalf by the Non-Executive Committee.
Other employees
20
13    (1)
Other employees of the Board may be appointed by the Board with the
approval of the Secretary of State as to numbers.
      (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.
25
      (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
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
30
description, to be determined by the Board.
      (4)
By virtue of section 101(4) (functions exercisable by Non-Executive
Committee), the functions conferred on the Board by sub-paragraph (3)(a)
and (b) are exercisable on its behalf by the Non-Executive Committee.
Additional staff etc
35
14    (1)
The Secretary of State may make available to the Board such additional 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 Board as the Secretary of State may determine.

Pensions Bill
Schedule 5 — The Board of the Pension Protection Fund
Part 3 — Proceedings and delegation etc
226

Part 3
Proceedings and delegation etc
Committees
15    (1)
The Board may establish committees for any purpose.
      (2)
Any committee established by the Board may establish sub-committees.
5
      (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
10
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
15
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
20
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),
25

to exercise on behalf of the Board, such of its 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 101(4)).
30
18    (1)
The Board may make arrangements for any of its functions mentioned in
sub-paragraph (2) to be exercised, in accordance with those arrangements,
by a person on behalf of the Board.
      (2)
The functions are those conferred by or by virtue of—
(a)
the pension compensation provisions (see section 145);
35
(b)
section 146 (adjustments to be made where Board assumes
responsibility for a scheme);
(c)
section 148 (duty to notify Inland Revenue in relation to guaranteed
minimum pensions);
(d)
section 149 (duty to pay scheme benefits unpaid at assessment date);
40
(e)
sections 152 and 153 (discharge of liabilities in respect of
compensation or money purchase benefits);
(f)
section 174 (notices requiring provision of information);

Pensions Bill
Schedule 5 — The Board of the Pension Protection Fund
Part 3 — Proceedings and delegation etc
227

(g)
section 186(1)(a) (provision of information to members of schemes
etc);
(h)
section 100 (supplementary powers), so far as that section relates to
any function conferred by or by virtue of any provision mentioned in
paragraphs (a) to (g).
5
      (3)
Where arrangements are made under this paragraph for any functions of the
Board to be exercised by another person on its behalf—
(a)
section 178(1)(b) (offence of providing false or misleading
information to the Board) and section 179 (use of information) apply
in relation to that person and any functions of the Board exercised by
10
him as they apply in relation to the Board and its functions;
(b)
subject to paragraph (c), sections 180 to 185 and 186(2) to (6)
(disclosure of information) apply in relation to that person and any
information obtained by him in the exercise of the Board’s function
as they apply in relation to the Board and information obtained by it
15
in the exercise of its functions;
(c)
nothing in paragraph (b) authorises any person to determine on
behalf of the Board under section 184(1) whether the disclosure of
any restricted information is desirable or expedient in the interests of
members of occupational pension schemes or in the public interest.
20
      (4)
Where the Board makes arrangements under sub-paragraph (1) for any of its
functions to be exercised by a person on its behalf, those arrangements may
also provide for that person to exercise on behalf of the Board—
(a)
any function, by virtue of section 190(1)(a), to give a review decision
in respect of any reviewable matter arising from the exercise of that
25
function;
(b)
in relation to any function exercisable by virtue of paragraph (a)
above, any other function under regulations under section 190(1) in
connection with the giving of a review decision;
(c)
any function conferred by section 100 (supplementary powers), so
30
far as that section relates to any function mentioned in paragraph (a)
or (b).
      (5)
In sub-paragraph (4) “review decision” has the meaning given by section
190(1).
Application of seal and proof of instruments
35
19    (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
to be signed in accordance with the law of Scotland.
40
20
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
proved.
45

Pensions Bill
Schedule 5 — The Board of the Pension Protection Fund
Part 4 — Accounts
228

Part 4
Accounts
Accounts
21    (1)
The Board must—
(a)
keep proper accounts and proper records in relation to the accounts,
5
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
(b)
comply with any accounting directions given by the Secretary of
10
State with the approval of the Treasury.
      (3)
For the purposes of sub-paragraph (2)—
“actuarial valuation”, with respect to the Fund, means a valuation,
prepared and signed by the appointed actuary, of the assets and
liabilities of the fund; and
15
“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
statement is to be prepared;
20
(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
qualifications who is appointed by the Board for the purposes of this
25
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
manner.
30
      (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
which the statement relates.
35
      (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
Parliament.
40
      (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.