Pensions Bill

House of Commons portcullis

House of Commons

Session 2003 - 04
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Other Bills before Parliament

Pensions Bill

Pensions Bill

[AS AMENDED IN STANDING COMMITTEE B]

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 powers in respect of ocupational and personal pension schemes
14
Improvement notices
15
Third party notices
16
Injunctions and interdicts
17
Restitution

Bill 96 53/3

Pensions Bill
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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 orders
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 determination to wind up scheme on freezing order
25
Effect of winding up order on freezing order
26
Effect of assessment period under Part 2 on freezing order
27
Power to give a direction where freezing order ceases to have effect
28
Notification of trustees, managers, employers and members
29
Supplementary provision relating to orders under sections 20 to 28
Trustees of occupational pension schemes
30
Prohibition orders
31
Suspension orders
32
Appointments by Regulator
33
Independent trustees
34
Disqualification
Contribution notices where avoidance of employer debt
35
Contribution notices where avoidance of employer debt
36
The sum specified in a section 35 contribution notice
37
Content and effect of a section 35 contribution notice
38
Section 35 contribution notice: relationship with employer debt
Financial support directions
39
Financial support directions
40
Meaning of “service company” and “insufficiently resourced”
41
Meaning of “financial support”
42
Contribution notices where non-compliance with financial support direction
43
The sum specified in a section 42 contribution notice
44
Content and effect of a section 42 contribution notice
45
Section 42 contribution notice: relationship with employer debt
46
Sections 39 to 45 : interpretation
Applications under the Insolvency Act 1986
47
Regulator’s right to apply under section 423 of Insolvency Act 1986
Register of schemes
48
Register of occupational and personal pension schemes
49
Registrable information
50
The register: inspection, provision of information and reports etc
51
The register: duties of trustees or managers
52
Duty of the Regulator to issue scheme return notices
53
Duty of trustees or managers to provide scheme return

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54
Scheme returns: supplementary
Register of prohibited trustees
55
Register of prohibited trustees
56
Accessibility of register of prohibited trustees
Collecting information relevant to the Board of the Pension Protection Fund
57
Information relevant to the Board
58
Duty to notify the Regulator of certain events
Reporting breaches of the law
59
Duty to report breaches of the law
Reports by skilled persons
60
Reports by skilled persons
Gathering information
61
Provision of information
62
Inspection of premises
63
Inspection of premises in respect of employers’ obligations
64
Inspection of premises: powers of inspectors
65
Inspection of premises: supplementary
66
Penalties relating to sections 61 to 64
67
Warrants
68
Sections 61 to 67 : interpretation
Provision of false or misleading information
69
Offences of providing false or misleading information
Use of information
70
Use of information
Disclosure of information
71
Restricted information
72
Information supplied to the Regulator by corresponding overseas authorities
73
Disclosure for facilitating exercise of functions by the Regulator
74
Disclosure for facilitating exercise of functions by the Board
75
Disclosure for facilitating exercise of functions by other supervisory
authorities
76
Other permitted disclosures
77
Disclosure of information by the Inland Revenue
Reports
78
Publishing reports etc

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Codes of practice
79
Codes of practice
80
Procedure for issue and publication of codes of practice
81
Revocation of codes of practice
Exercise of regulatory functions
82
The Regulator’s procedure in relation to its regulatory functions
83
Publication of procedure in relation to regulatory functions
84
Application of standard and special procedure
85
Standard procedure
86
Special procedure: applicable cases
87
Special procedure
88
Compulsory review
89
Duty to have regard to the interests of members etc
90
Powers to vary or revoke orders, notices or directions etc
The Pensions Regulator Tribunal
91
The Pensions Regulator Tribunal
92
References to the Tribunal
93
Appeal on a point of law
94
Redetermination etc by the Tribunal
95
Legal assistance scheme
Part 2
The Board of the Pension Protection Fund
Chapter 1
The Board
Establishment
96
The Board of the Pension Protection Fund
97
Membership of the Board
98
Further provision about the Board
General provision about functions
99
Board’s functions
100
Supplementary powers
The Non-Executive Committee
101
The Non-Executive Committee
Financial matters
102
Investment of funds
103
Investment principles
104
Borrowing
105
Grants

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106
Administration levy
107
Fees
Annual reports
108
Annual reports to Secretary of State
Chapter 2
Information relating to employer’s insolvency etc
Insolvency events
109
Duty to notify insolvency events in respect of employers
110
Insolvency event, insolvency date and insolvency practitioner
Status of scheme
111
Insolvency practitioner’s duty to issue notices confirming status of scheme
Board’s duties
112
Board’s duty where there is a failure to comply with section 111
Chapter 3
Pension protection
Eligible schemes
113
Eligible schemes
Circumstances in which Board assumes responsibility for eligible schemes
114
Duty to assume responsibility for schemes following insolvency event
115
Duty to assume responsibility for schemes following application or
notification
116
Applications and notifications for the purposes of section 115
117
Board’s duty where application or notification received under section 116
118
Protected liabilities
Restrictions on schemes during the assessment period
119
Assessment periods
120
Admission of new members, payment of contributions etc
121
Directions
122
Restrictions on winding up, discharge of liabilities etc
123
Power to validate contraventions of section 122
124
Board to act as creditor of the employer
125
Payment of scheme benefits
126
Loans to pay scheme benefits

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vi

Valuation of assets and liabilities
127
Board’s obligation to obtain valuation of assets and protected liabilities
128
Approval of valuation
129
Binding valuations
Refusal to assume responsibility
130
Schemes which become eligible schemes
131
New schemes created to replace existing schemes
Cessation of involvement with a scheme
132
Circumstances in which Board ceases to be involved with an eligible scheme
133
Consequences of the Board ceasing to be involved with a scheme
Reconsideration
134
Application for reconsideration
135
Duty to assume responsibility following reconsideration
Closed schemes
136
Closed schemes
Winding up
137
Requirement to wind up schemes with sufficient assets to meet protected
liabilities
Provisions applying to closed schemes
138
Treatment of closed schemes
139
Valuations of closed schemes
Reconsideration of closed schemes
140
Applications and notifications where closed schemes have insufficient assets
141
Duty to assume responsibility for closed schemes
142
Closed schemes: further assessment periods
Assumption of responsibility for a scheme
143
Transfer notice
144
Effect of Board assuming responsibility for a scheme
145
The pension compensation provisions
146
Adjustments to be made where the Board assumes responsibility for a scheme
147
Postponement of compensation entitlement for the assessment period
148
Guaranteed minimum pensions
149
Duty to pay scheme benefits unpaid at assessment date
150
Modification of Chapter where liabilities discharged during assessment
period
151
Administration of compensation

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Discharge of Board’s liabilities
152
Discharge of liabilities in respect of compensation
153
Discharge of liabilities in respect of money purchase benefits
Equal treatment
154
Equal treatment
Relationship with fraud compensation regime
155
Relationship with fraud compensation regime
The fund
156
Pension Protection Fund
The levy
157
Initial levy
158
Pension protection levies
159
Supplementary provisions about pension protection levies
160
Amounts to be raised by the pension protection levies
161
The levy ceiling
162
Valuations to determine scheme underfunding
163
Pension protection levies during the transitional period
164
Calculation, collection and recovery of levies
Chapter 4
Fraud compensation
Entitlement to fraud compensation
165
Cases where fraud compensation payments can be made
166
Board’s duties in respect of certain applications under section 165
167
Recovery of value
168
Fraud compensation payments
169
Interim payments
170
Board’s powers to make fraud compensation transfer payments
The fund
171
Fraud Compensation Fund
The levy
172
Fraud compensation levy
Chapter 5
Gathering information
173
Information to be provided to the Board etc
174
Notices requiring provision of information

© Parliamentary copyright 2004
Revised 30 April 2004