|
| |
|
| |
| |
(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 |
| 5 |
| |
(b) | pay, or make provision for paying, persons from whom the Board |
| |
may decide to seek advice, as being persons considered by the Board |
| |
to be specially qualified to advise it on particular matters, such fees |
| |
as the Board may determine. |
| 10 |
| |
| |
| |
23 (1) | The Board is not to be regarded— |
| |
(a) | as the servant or agent of the Crown, or |
| 15 |
(b) | as enjoying any status, privilege or immunity of the Crown. |
| |
(2) | Accordingly, the Board’s property is not to be regarded as property of, or |
| |
held on behalf of, the Crown. |
| |
| |
24 | The validity of any proceedings of the Board (including any proceedings of |
| 20 |
any of its committees or sub-committees) is not to be affected by— |
| |
(a) | any vacancy among the members of the Board or of any of its |
| |
committees or sub-committees, |
| |
(b) | any defect in the appointment of any member of the Board or of any |
| |
of its committees or sub-committees, or |
| 25 |
(c) | any defect in the appointment of the Chief Executive. |
| |
| |
25 | In Schedule 1 to the House of Commons Disqualification Act 1975 (c. 24), in |
| |
Part 2 (bodies whose members are disqualified), at the appropriate place |
| |
| 30 |
| “The Board of the Pension Protection Fund.” |
| |
26 | In Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 |
| |
(c. 25), in Part 2 (bodies whose members are disqualified), at the appropriate |
| |
| |
| “The Board of the Pension Protection Fund.” |
| 35 |
The Superannuation Act 1972 |
| |
27 (1) | The persons to whom section 1 of the Superannuation Act 1972 (c. 11) |
| |
(persons to or in respect of whom benefits may be provided by schemes |
| |
under that section) applies are to include— |
| |
| the chairman of the Board |
| 40 |
| the employees of the Board. |
| |
|
| |
|
| |
|
(2) | The Board must pay to the Minister for the Civil Service, at such times as he |
| |
may direct, such sums as he may determine in respect of the increase |
| |
attributable to sub-paragraph (1) in the sums payable out of money |
| |
provided by Parliament under that Act. |
| |
Exemption from liability in damages |
| 5 |
28 (1) | Neither the Board nor any person who is a member of the Board, a member |
| |
of any of its committees or sub-committees, or a member of its staff is to be |
| |
liable in damages for anything done or omitted in the exercise or purported |
| |
exercise of the functions of the Board conferred by, or by virtue of, this or any |
| |
| 10 |
(2) | Any person who is the Chief Executive of the Board is not to be liable in |
| |
damages for anything done or omitted in the exercise or purported exercise |
| |
of any function conferred on the Chief Executive by, or by virtue of, this Act |
| |
or any provisions in force in Northern Ireland corresponding to this Act. |
| |
(3) | Any person who is a member of the Non-Executive Committee or of any of |
| 15 |
its sub-committees is not to be liable in damages for anything done or |
| |
omitted in the discharge or purported discharge of the duty to prepare a |
| |
report under section 101(6) on the discharge of the non-executive functions. |
| |
(4) | Sub-paragraphs (1) to (3) do not apply— |
| |
(a) | if it is shown that the action or omission was in bad faith, or |
| 20 |
(b) | so as to prevent an award of damages made in respect of an act or |
| |
omission on the ground that the act or omission was unlawful as a |
| |
result of section 6(1) of the Human Rights Act 1998 (c. 42). |
| |
(5) | This paragraph does not prevent the Board being required to pay |
| |
compensation on a direction of the PPF Ombudsman by virtue of |
| 25 |
regulations under section 196(1) or 197 or any provision in force in Northern |
| |
Ireland corresponding to either of those provisions. |
| |
| |
| |
Transfer of property, rights and liabilities to the Board |
| |
1 | This Schedule applies where the property, rights and liabilities of an |
| 30 |
occupational pension scheme are transferred to the Board in accordance |
| |
| |
2 (1) | Subject to sub-paragraph (2), the property, rights and liabilities so |
| |
| |
(a) | property, rights and liabilities that would not otherwise be capable |
| 35 |
of being transferred or assigned, |
| |
(b) | property situated anywhere in the United Kingdom or elsewhere, |
| |
| |
(c) | rights and liabilities under the law of any part of the United |
| |
Kingdom or of any country or territory outside the United Kingdom. |
| 40 |
(2) | Where, but for this sub-paragraph, any rights or liabilities under a contract |
| |
of employment would be transferred to the Board under section 144, this |
| |
sub-paragraph operates to terminate the contract of employment on the day |
| |
preceding the day on which the transfer notice is received by the trustees or |
| |
| 45 |
|
| |
|
| |
|
3 (1) | Without prejudice to the generality of section 144 and subject to sub- |
| |
paragraph (2), any legal proceedings or applications to any authority |
| |
pending immediately before the transfer by or against any of the trustees or |
| |
managers of the scheme in their capacity as trustees or managers shall be |
| |
continued by or against the Board. |
| 5 |
(2) | The liabilities transferred by section 144 do not include any liabilities in |
| |
respect of an existing or future cause of action against the trustees or |
| |
managers of the scheme if, disregarding the transfer, the trustees or |
| |
managers would have been personally liable to meet the claim and would |
| |
not have been indemnified from the assets of the scheme. |
| 10 |
4 | The transfer is binding on all persons, even if, apart from this paragraph, it |
| |
would have required the consent or concurrence of any person. |
| |
5 | No person shall have any power, in consequence of the transfer, to terminate |
| |
or modify any interest or right which was vested in the trustees or managers |
| |
| 15 |
6 | Any reference in any agreement, document or instrument of any description |
| |
to the trustees or managers of the scheme shall have effect so far as necessary |
| |
for the purposes of giving effect to the transfer as a reference to the Board. |
| |
7 (1) | The Board must take all such steps as may be required to secure that the |
| |
vesting in the Board, by virtue of section 144, of any foreign property, right |
| 20 |
or liability is effective under the relevant foreign law. |
| |
(2) | Until the vesting of any foreign property, right or liability in the Board is |
| |
effective under the relevant foreign law, the persons who were the trustees |
| |
or managers of the scheme immediately before the transfer effected by |
| |
section 144 must hold that property or right for the benefit of, or discharge |
| 25 |
that liability on behalf of, the Board. |
| |
(3) | Nothing in this paragraph prejudices the effect under the law of England |
| |
and Wales or of Scotland of the vesting in the Board, in accordance with |
| |
section 144, of any foreign property, right or liability. |
| |
(4) | In this paragraph references to any foreign property, right or liability are |
| 30 |
references to any property, right or liability as respects which any issue |
| |
arising in any proceedings would have to be determined (in accordance with |
| |
the rules of private international law) by reference to the law of a country or |
| |
territory outside the United Kingdom. |
| |
| 35 |
| |
Pension compensation provisions |
| |
| |
1 | This Schedule applies for the purposes of determining the compensation |
| |
payable where the Board assumes responsibility for an eligible scheme (“the |
| |
scheme”) in accordance with this Chapter. |
| 40 |
2 | In this Schedule references to “the assessment date” are to the date on which |
| |
the assessment period in relation to the scheme, or (where there has been |
| |
more than one such assessment period) the last one, began. |
| |
|
| |
|
| |
|
Pensions in payment at assessment date |
| |
3 (1) | Compensation is payable in accordance with this paragraph where, |
| |
immediately before the assessment date, a person is entitled to present |
| |
payment of a pension under the admissible rules of the scheme. |
| |
(2) | That person (“the pensioner”) is entitled to periodic compensation in respect |
| 5 |
of that pension (“the pension”) commencing at the assessment date and |
| |
continuing for life or, in a case to which sub-paragraph (8) applies, until such |
| |
time as entitlement to the pension would have ceased under the admissible |
| |
| |
(3) | The annual rate of the periodic compensation is the appropriate percentage |
| 10 |
| |
(a) | the protected pension rate, and |
| |
(b) | any increases under paragraph 27 (annual increases in periodic |
| |
| |
(4) | In sub-paragraph (3) “the appropriate percentage” means— |
| 15 |
(a) | in a case to which sub-paragraph (7) applies, 90%, and |
| |
(b) | in any other case, 100%. |
| |
(5) | In sub-paragraph (3) “the protected pension rate” means the annual rate of |
| |
the pension, under the admissible rules, immediately before the assessment |
| |
| 20 |
(6) | In determining for the purposes of sub-paragraph (5) the annual rate of the |
| |
pension immediately before the assessment date, any recent discretionary |
| |
increase is to be disregarded if paragraph 31(4) applies. |
| |
(7) | This sub-paragraph applies where the pensioner has not attained normal |
| |
pension age in respect of the pension before the assessment date and his |
| 25 |
entitlement to the pension— |
| |
(a) | is attributable to his pensionable service under the scheme or another |
| |
| |
(b) | did not arise by virtue of any provision of the admissible rules of the |
| |
scheme making special provision as to early payment of pension on |
| 30 |
| |
(8) | This sub-paragraph applies where the pension was not attributable to— |
| |
(a) | the pensioner’s pensionable service under the scheme or another |
| |
| |
(b) | (directly or indirectly) to a pension credit to which the pensioner |
| 35 |
became entitled under section 29(1)(b) of the Welfare Reform and |
| |
Pensions Act 1999 (c. 30). |
| |
(9) | This paragraph does not apply if compensation is payable in respect of the |
| |
pension in accordance with paragraph 5 (pension benefits postponed at |
| |
| 40 |
(10) | This paragraph is subject to— |
| |
| paragraph 25 (compensation cap), and |
| |
| paragraph 29 (power of Secretary of State to change percentage rates |
| |
| |
4 (1) | This paragraph applies where— |
| 45 |
(a) | the pensioner dies on or after the assessment date, and |
| |
(b) | the pension was attributable— |
| |
(i) | to the pensioner’s pensionable service under the scheme, or |
| |
|
| |
|
| |
|
(ii) | (directly or indirectly) to a pension credit to which the |
| |
pensioner became entitled under section 29(1)(b) of the |
| |
Welfare Reform and Pensions Act 1999 (c. 30). |
| |
(2) | The pensioner’s widow or widower is entitled to periodic compensation |
| |
commencing on the day following the pensioner’s death and continuing for |
| 5 |
| |
(3) | The annual rate of the periodic compensation at any time is half of the |
| |
annual rate of the periodic compensation (including any increases under |
| |
paragraph 27) to which the pensioner would at that time have been entitled |
| |
under paragraph 3 in respect of the pension had the pensioner not died. |
| 10 |
(4) | In this paragraph “the pension” and “the pensioner” are to be construed in |
| |
accordance with paragraph 3. |
| |
Pension benefits postponed at assessment date |
| |
5 (1) | Compensation is payable in accordance with this paragraph where |
| |
immediately before the assessment date— |
| 15 |
(a) | a person is entitled to present payment of a pension under the |
| |
admissible rules of the scheme, |
| |
(b) | payment of that pension is postponed, and |
| |
(c) | he has attained normal pension age in relation to the pension. |
| |
(2) | That person (“the postponed pensioner”) is entitled to periodic |
| 20 |
compensation in respect of that pension (“the pension”) commencing at the |
| |
assessment date and continuing for life or, in a case to which sub-paragraph |
| |
(7) applies, until such time as entitlement to the pension would have ceased |
| |
under the admissible rules. |
| |
(3) | The annual rate of the periodic compensation is 100% of the aggregate of— |
| 25 |
(a) | the protected pension rate, and |
| |
(b) | any increases under paragraph 27 (annual increases in periodic |
| |
| |
(4) | In sub-paragraph (3) “the protected pension rate” means what would have |
| |
been the annual rate of the pension, under the admissible rules, if the |
| 30 |
postponement of payment had ceased immediately before the assessment |
| |
| |
(5) | In determining for the purposes of sub-paragraph (4) the annual rate of the |
| |
pension immediately before the assessment date, any recent discretionary |
| |
increase is to be disregarded if paragraph 31(4) applies. |
| 35 |
(6) | Where the pension is attributable (directly or indirectly) to a pension credit, |
| |
the reference in sub-paragraph (1)(c) to “normal pension age” is to be read |
| |
as a reference to “normal benefit age”. |
| |
(7) | This sub-paragraph applies where the pension was not attributable to— |
| |
(a) | the pensioner’s pensionable service under the scheme or another |
| 40 |
| |
(b) | (directly or indirectly) to a pension credit to which the pensioner |
| |
became entitled under section 29(1)(b) of the Welfare Reform and |
| |
| |
(8) | This paragraph is subject to— |
| 45 |
| paragraph 23 (commutation), and |
| |
|
| |
|
| |
|
| paragraph 29 (power of Secretary of State to change percentage rates |
| |
| |
6 (1) | This paragraph applies where the postponed pensioner— |
| |
(a) | dies on or after the assessment date, |
| |
(b) | the pension was attributable— |
| 5 |
(i) | to the postponed pensioner’s pensionable service under the |
| |
scheme or another scheme, or |
| |
(ii) | (directly or indirectly) to a pension credit to which the |
| |
postponed pensioner became entitled under section 29(1)(b) |
| |
of the Welfare Reform and Pensions Act 1999 (c. 30). |
| 10 |
(2) | The postponed pensioner’s widow or widower is entitled to periodic |
| |
compensation commencing on the day following the postponed pensioner’s |
| |
death and continuing for life. |
| |
(3) | The annual rate of the periodic compensation at any time is half of the |
| |
annual rate of the periodic compensation (including any increases under |
| 15 |
paragraph 27) to which the postponed pensioner would at that time have |
| |
been entitled under paragraph 5 in respect of the pension had the postponed |
| |
| |
(4) | In this paragraph “the postponed pensioner” and “the pension” are to be |
| |
construed in accordance with paragraph 5. |
| 20 |
7 (1) | Compensation is payable in accordance with this paragraph where |
| |
immediately before the assessment date— |
| |
(a) | a person is entitled to present payment of a lump sum under the |
| |
admissible rules of the scheme (“the scheme lump sum”), |
| |
(b) | payment of that lump sum is postponed, and |
| 25 |
(c) | he has attained normal pension age in relation to the lump sum. |
| |
(2) | That person is entitled to compensation in the form of a lump sum of an |
| |
amount equal to 100% of the amount of the scheme lump sum which would |
| |
have been payable had the postponement ceased immediately before the |
| |
| 30 |
(3) | The compensation is payable at the assessment date. |
| |
(4) | Where the scheme lump sum is attributable (directly or indirectly) to a |
| |
pension credit, the reference in sub-paragraph (1)(c) to “normal pension |
| |
age” is to be read as a reference to “normal benefit age”. |
| |
(5) | This paragraph does not apply in relation to a lump sum to which a person |
| 35 |
is entitled by reason of commuting any part of a pension under the scheme. |
| |
(6) | This paragraph is subject to paragraph 29 (power to change percentage rates |
| |
| |
Active members over normal pension age at assessment date |
| |
8 (1) | Compensation is payable in accordance with this paragraph where a person |
| 40 |
who, under the admissible rules, is (immediately before the assessment |
| |
date) an active member of the scheme has, before that date, attained normal |
| |
pension age in respect of his rights under the admissible rules of the scheme |
| |
| |
(2) | The active member is entitled to periodic compensation in respect of that |
| 45 |
pension (“the pension”) commencing at the assessment date and continuing |
| |
| |
|
| |
|
| |
|
(3) | The annual rate of the periodic compensation is 100% of the aggregate of— |
| |
(a) | the protected notional pension, and |
| |
(b) | any increases under paragraph 27 (annual increases in periodic |
| |
| |
(4) | In sub-paragraph (3) “the protected notional pension” means the aggregate |
| 5 |
| |
(a) | the accrued amount, and |
| |
(b) | any increases in the pension to which the active member would have |
| |
been entitled under the admissible rules (by virtue of the fact that the |
| |
pension did not come into payment at normal pension age) if he had |
| 10 |
ceased to be an active member of the scheme immediately before the |
| |
| |
(5) | Subject to sub-paragraphs (6) and (7), the accrued amount is— |
| |
| |
| AR is the active member’s annual accrual rate in respect of the pension |
| 15 |
under the admissible rules, |
| |
| PE is the active member’s annual pensionable earnings in respect of |
| |
the pension under the admissible rules, and |
| |
| PS is the active member’s pensionable service in respect of the pension |
| |
under the admissible rules in years (including any fraction of a |
| 20 |
| |
(6) | If the accrual rates or pensionable earnings differ in respect of different parts |
| |
of the active member’s pensionable service relating to the pension, an |
| |
amount is calculated in accordance with the formula in sub-paragraph (5) in |
| |
respect of each of those parts and the accrued amount is the aggregate of |
| 25 |
| |
| For this purpose the references in that sub-paragraph to the active member’s |
| |
pensionable service, accrual rate and pensionable earnings are to be read as |
| |
references to the part of his pensionable service in question and to his accrual |
| |
rate and pensionable earnings in respect of that part. |
| 30 |
(7) | In any case where the Board is satisfied that it is not possible to identify one |
| |
or more of the elements of the formula in sub-paragraph (5), the Board may, |
| |
having regard to the admissible scheme rules, determine how the accrued |
| |
amount is to be calculated. |
| |
(8) | This paragraph is subject to— |
| 35 |
| paragraph 23 (commutation), and |
| |
| paragraph 29 (power of Secretary of State to change percentage rates |
| |
| |
9 (1) | This paragraph applies where the active member dies on or after the |
| |
| 40 |
(2) | The active member’s widow or widower is entitled to periodic |
| |
compensation commencing on the day following the member’s death and |
| |
| |
|
| |
|