Pensions Bill

House of Commons

Session 2003 - 04
Internet Publications
Other Bills before Parliament

Pensions Bill

Pensions Bill
Part 1 — The Pensions Regulator
63

(a)
such persons as appear to the Regulator to be directly affected by the
exercise of the regulatory function have been given an opportunity to
make representations, and
(b)
the Regulator has considered any such representations before it makes
its determination on the review.
5
(6)
Subsection (5) does not apply if the regulatory function is listed in section 86(5)
and the Regulator determines to exercise it immediately on the basis that it is
necessary to do so because there is, or the Regulator considers it likely that if
the function were not exercised immediately there would be, an immediate
risk to—
10
(a)
the interests of members under an occupational or personal pension
scheme, or
(b)
the assets of such a scheme.
(7)
The determination which is the subject-matter of a final notice may be referred
to the Tribunal (see section 91) by—
15
(a)
any person to whom the final notice is given as required under
subsection (4), and
(b)
any other person who appears to the Tribunal to be directly affected by
the determination.
(8)
Where that determination is a determination to exercise a different regulatory
20
function to the function which was the subject-matter of the determination
notice, the Regulator must not exercise the regulatory function—
(a)
during the period within which the determination may be referred to
the Tribunal (see section 92(1)), and
(b)
if the determination is so referred, until the reference, and any appeal
25
against the Tribunal’s determination, has been finally disposed of.
(9)
Subsection (8) does not apply where—
(a)
the regulatory function in question is a function listed in section 85(5)
(functions which may be exercised immediately under the standard
procedure), or
30
(b)
the regulatory function in question is a function listed in section 86(5)
(functions which may be exercised immediately under the special
procedure) and the Regulator determines to exercise it immediately on
the basis described in subsection (6).
(10)
The functions of the Regulator under this section are exercisable on behalf of
35
the Regulator by the Determinations Panel (and are not otherwise exercisable
by or on behalf of the Regulator).
(11)
The Panel must determine the procedure that it proposes to follow in relation
to the exercise of those functions.
(12)
Section 83 (publication of Regulator’s procedure) applies in relation to the
40
procedure determined under subsection (11) as it applies to the procedure
determined under section 82 (procedure in relation to the regulatory
functions).
89
Duty to have regard to the interests of members etc
(1)
The Regulator must have regard to the matters mentioned in subsection (2)—
45
(a)
when determining whether to exercise a regulatory function—

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Part 1 — The Pensions Regulator
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(i)
in a case where the requirements of the standard or special
procedure apply, or
(ii)
on a review under section 88, and
(b)
when exercising the regulatory function in question.
(2)
Those matters are—
5
(a)
the interests of the generality of the members of the scheme to which
the exercise of the function relates, and
(b)
the interests of such persons as appear to the Regulator to be directly
affected by the exercise.
90
Powers to vary or revoke orders, notices or directions etc
10
(1)
The Regulator may vary or revoke—
(a)
any determination by the Regulator whether to exercise a regulatory
function, or
(b)
any order, notice or direction made, issued or given by the Regulator in
the exercise of a regulatory function.
15
(2)
Subsection (1)(b) does not apply to—
(a)
an order under section 3(3) of the Pensions Act 1995 (c. 26) revoking a
prohibition order under that section,
(b)
an order under section 4(5) of that Act revoking a suspension order
under that section, or
20
(c)
a direction under section 2(3) of the Welfare Reform and Pensions Act
1999 (c. 30) refusing to register a scheme under section 2 of that Act or
removing a scheme from the register of stakeholder pension schemes.
(3)
A variation or revocation of an order, a notice or a direction must be made by
an order, notice or direction (as the case may be).
25
(4)
A variation or revocation made under this section must take effect from a
specified time which must not be a time earlier than the time when the
variation or revocation is made.
(5)
The power to vary or revoke under this section—
(a)
is not to be treated for the purposes of subsection (1) as a regulatory
30
function, and
(b)
is in addition to any such power which is conferred on the Regulator
by, or by virtue of, this or any other enactment.
The Pensions Regulator Tribunal
91
The Pensions Regulator Tribunal
35
(1)
There shall be a tribunal to be known as the Pensions Regulator Tribunal (in
this Act referred to as “the Tribunal”).
(2)
The Tribunal is to have the functions conferred on it by this Act or any
provisions in force in Northern Ireland corresponding to this Act.
(3)
The Lord Chancellor may by rules make such provision as appears to him to
40
be necessary or expedient in respect of the conduct of proceedings before the
Tribunal.

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Part 1 — The Pensions Regulator
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(4)
Schedule 4 (which makes provision as respects the Tribunal and its
proceedings) has effect.
(5)
But that Schedule does not limit the Lord Chancellor’s powers under this
section.
92
References to the Tribunal
5
(1)
A reference to the Tribunal under this Act must be made—
(a)
in the case of a reference under section 85(3) (referral following
determination under standard procedure), during the period of 28 days
beginning with the day on which the determination notice in question
is given,
10
(b)
in the case of a reference under section 88(7) (referral following
determination under special procedure), during the period of 28 days
beginning with the day on which the final notice in question is given, or
(c)
in either case, during such other period as may be specified in rules
made under section 91.
15
(2)
Subject to rules made under section 91, the Tribunal may allow a reference to
be made after the end of the relevant period specified in or under subsection
(1).
(3)
On a reference, the Tribunal may consider any evidence relating to the subject-
matter of the reference, whether or not it was available to the Regulator at the
20
material time.
(4)
On a reference, the Tribunal must determine what (if any) is the appropriate
action for the Regulator to take in relation to the matter referred to the
Tribunal.
(5)
On determining a reference, the Tribunal must remit the matter to the
25
Regulator with such directions (if any) as the Tribunal considers appropriate
for giving effect to its determination.
(6)
Those directions may include directions to the Regulator—
(a)
confirming the Regulator’s determination and any order, notice or
direction made, issued or given as a result of it;
30
(b)
to vary or revoke the Regulator’s determination, and any order, notice
or direction made, issued or given as a result of it;
(c)
to substitute a different determination, order, notice or direction;
(d)
to make such savings and transitional provision as the Tribunal
considers appropriate.
35
(7)
The Regulator must act in accordance with the determination of, and any
direction given by, the Tribunal (and accordingly sections 85 to 88 (standard
and special procedure) do not apply).
(8)
The Tribunal may, on determining a reference, make recommendations as to
the procedure followed by the Regulator or the Determinations Panel.
40
(9)
An order of the Tribunal may be enforced—
(a)
as if it were an order of a county court, or
(b)
in Scotland, as if it were an order of the Court of Session.

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Part 1 — The Pensions Regulator
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93
Appeal on a point of law
(1)
A party to a reference to the Tribunal may with permission appeal—
(a)
to the Court of Appeal, or
(b)
in Scotland, to the Court of Session,

on a point of law arising from a decision of the Tribunal disposing of the
5
reference.
(2)
“Permission” means permission given by—
(a)
the Tribunal, or
(b)
if it is refused by the Tribunal, by the Court of Appeal or, in Scotland,
the Court of Session.
10
(3)
If, on an appeal under subsection (1), the court considers that the decision of
the Tribunal was wrong in law, it may—
(a)
remit the matter to the Tribunal for rehearing and determination by it
under section 92, or
(b)
itself make a determination.
15
(4)
An appeal may not be brought from a decision of the Court of Appeal under
subsection (3) except with the leave of—
(a)
the Court of Appeal, or
(b)
the House of Lords.
(5)
An appeal lies, with the leave of the Court of Session or the House of Lords,
20
from any decision of the Court of Session under this section, and such leave
may be given on such terms as to costs, expenses or otherwise as the Court of
Session or the House of Lords may determine.
(6)
Rules made under section 91 may make provision for regulating or prescribing
any matters incidental to or consequential on an appeal under this section.
25
94
Redetermination etc by the Tribunal
(1)
This section applies where an application is made to the Tribunal for
permission under section 93(2)(a) to appeal from a decision of the Tribunal
disposing of a reference.
(2)
If the person who constitutes, or is the chairman of, the Tribunal for the
30
purposes of dealing with that application considers that the decision of the
Tribunal disposing of the reference was wrong in law, he may set aside the
decision and refer the matter—
(a)
for rehearing and redetermination by the Tribunal under section 92, or
(b)
for rehearing and determination under that section by a differently
35
constituted Tribunal.
95
Legal assistance scheme
(1)
The Lord Chancellor may by regulations establish a scheme governing the
provision of legal assistance in connection with proceedings before the
Tribunal.
40
(2)
The legal assistance scheme may, in particular, make provision as to—
(a)
the kinds of legal assistance that may be provided;
(b)
the persons by whom legal assistance may be provided;

Pensions Bill
Part 2 — The Board of the Pension Protection Fund
Chapter 1 — The Board
67

(c)
the manner in which applications for legal assistance are to be made;
(d)
the criteria on which eligibility for legal assistance is to be determined;
(e)
the persons or bodies by whom applications are to be determined;
(f)
appeals against refusals of applications;
(g)
the revocation or variation of decisions;
5
(h)
its administration and the enforcement of its provisions.
(3)
Legal assistance under the scheme may be provided subject to conditions or
restrictions.
(4)
Those conditions may include conditions as to the making of contributions by
the person to whom the assistance is provided.
10
(5)
The Lord Chancellor must fund, out of money provided by Parliament, the
costs of the scheme including the costs of legal assistance provided under it.
(6)
In this Part “the legal assistance scheme” means any scheme in force by virtue
of subsection (1).
Part 2
15
The Board of the Pension Protection Fund
Chapter 1
The Board
Establishment
96
The Board of the Pension Protection Fund
20
There shall be a body corporate called the Board of the Pension Protection
Fund (in this Act referred to as “the Board”).
97
Membership of the Board
(1)
The Board is to consist of the following members—
(a)
a chairman,
25
(b)
the Chief Executive of the Board, and
(c)
at least five other persons (“ordinary members”).
(2)
The chairman must not be appointed from the staff of the Board or be the
chairman of the Regulator.
(3)
The number of ordinary members must not exceed any maximum number
30
which may be prescribed.
(4)
At least two ordinary members must be appointed from the staff of the Board.
(5)
No member of the Determinations Panel established by the Regulator under
section 10, or member of the staff of the Regulator, is eligible for appointment
as a member of the Board.
35
(6)
Any power to appoint ordinary members must be exercised so as to secure that
a majority of the members of the Board are non-executive members.

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Part 2 — The Board of the Pension Protection Fund
Chapter 1 — The Board
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(7)
In this Part—
(a)
references to executive members of the Board are to—
(i)
the Chief Executive, and
(ii)
the ordinary members appointed from the staff of the Board,
and
5
(b)
references to non-executive members of the Board are to members who
are not executive members.
98
Further provision about the Board
Schedule 5 makes further provision about the Board, including provision as
to—
10
the appointment of members,
the terms of appointment, tenure and remuneration of members,
the appointment of the Chief Executive and other staff,
the proceedings of the Board,
its accounts, and
15
the status and liability of the Board, its members and staff.
General provision about functions
99
Board’s functions
(1)
The Board must hold, manage and apply, in accordance with this Part—
(a)
a fund to be known as the Pension Protection Fund, and
20
(b)
a fund to be known as the Fraud Compensation Fund.
(2)
Sections 158 and 172 make provision for contributions to those funds to be
levied by the Board.
(3)
The Board also has such other functions as are conferred on it by, or by virtue
of, this or any other enactment.
25
100
Supplementary powers
The Board may do anything which—
(a)
is calculated to facilitate the exercise of its functions, or
(b)
is incidental or conducive to their exercise.
The Non-Executive Committee
30
101
The Non-Executive Committee
(1)
The Board must establish and maintain a committee consisting of—
(a)
the chairman of the Board, and
(b)
the other non-executive members of the Board,

(in this Part referred to as “the Non-Executive Committee”).
35
(2)
The chairman of the Board is to be the chairman of the Non-Executive
Committee.

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Part 2 — The Board of the Pension Protection Fund
Chapter 1 — The Board
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(3)
The functions listed in subsection (5) (in this Part referred to as “the non-
executive functions”) are functions of the Board.
(4)
The non-executive functions must be discharged on behalf of the Board by the
Non-Executive Committee (and are not otherwise dischargeable by or on
behalf of the Board).
5
(5)
The non-executive functions are—
(a)
the duty to contribute to and keep under review the strategic direction
of the Board;
(b)
the duty to scrutinise the performance of the Chief Executive in
securing that the functions of the Board are exercised efficiently and
10
effectively;
(c)
the duty to monitor the extent to which the Board is meeting its
objectives and targets;
(d)
the duty to monitor the Board’s reporting of its activities to the
Secretary of State under section 108;
15
(e)
the duty to keep under review the question whether the Board’s
internal financial controls secure the proper conduct of its financial
affairs;
(f)
the duty to determine under sub-paragraph (5)(a) of paragraph 12 of
Schedule 5, subject to the approval of the Secretary of State, the terms
20
and conditions as to remuneration of any Chief Executive appointed
under sub-paragraph (4) of that paragraph;
(g)
the duty to determine under paragraph 13(3)(a) of that Schedule,
subject to the approval of the Secretary of State, the terms and
conditions as to remuneration of any member of the staff who is also to
25
be an executive member of the Board;
(h)
the duty to determine under paragraph 13(3)(b) of that Schedule, the
terms and conditions as to remuneration of any member of the staff of
a description prescribed for the purposes of that provision.
(6)
The Non-Executive Committee must prepare a report on the discharge of the
30
non-executive functions for inclusion in the Board’s annual report to the
Secretary of State under section 108.
(7)
The Non-Executive Committee’s report must relate to the same period as that
covered by the Board’s report.
(8)
The Non-Executive Committee may authorise any of its sub-committees to
35
discharge on its behalf—
(a)
any of the non-executive functions;
(b)
the duty to prepare a report under subsection (6).
Financial matters
102
Investment of funds
40
(1)
The Board may invest for the purposes of the prudent management of its
financial affairs.
(2)
For the purposes of subsection (1) there must be at least two fund managers.
(3)
For this purpose “fund manager” means an individual who or firm which is
appointed by the Board to manage the fund maintained under section 156 (the
45