Pensions Bill

House of Commons

Session 2006 - 07
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Other Bills before Parliament

Pensions Bill

Pensions Bill
Schedule 6 — The Personal Accounts Delivery Authority
Part 1 — Members and employees etc.
54

4
In section 342F of that Act (orders in relation to transactions at an
undervalue and preferences: supplementary) in subsection (7) (under which
calculation and verification of certain values and amounts may be required
to be in accordance with guidance approved by Secretary of State) for
paragraph (b) substitute—
5
“(b)
in accordance with guidance from time to time prepared by a
prescribed person.”
Pension Schemes Act 1993 (c. 48)
5
In section 12A of the Pension Schemes Act 1993 (statutory standard for
certification of occupational pension schemes) in subsection (5) (regulations
10
may provide for determination to be made in accordance with guidance
approved by Secretary of State) omit “and approved by the Secretary of
State”.
6
In section 113 of that Act (disclosure of information about schemes to
members etc.) in subsection (3A) (regulations may provide for information
15
that must be given to be determined by reference to guidance approved by
Secretary of State) for paragraphs (a) and (b) substitute “is prepared and
from time to time revised by a prescribed body”.
Pensions Act 1995 (c. 26)
7
In section 67D of the Pensions Act 1995 (actuarial equivalence requirements:
20
further provisions) in subsection (5) (requirements prescribed for
calculation of actuarial values may include that the calculation is to be made
in accordance with guidance approved by Secretary of State) for paragraphs
(a) and (b) substitute “is prepared and from time to time revised by a
prescribed body”.
25
8
In section 119 of that Act (regulations may provide for values to be
calculated in accordance with guidance approved by the Secretary of State)
for paragraphs (a) and (b) substitute “prepared and from time to time
revised by a prescribed body”.
Pensions Act 2004 (c. 35)
30
9
In section 230 of the Pensions Act 2004 (matters on which advice of actuary
must be obtained) in subsection (3) (regulations may require actuary to have
regard to guidance) in the definition of “prescribed guidance” omit “and, if
the regulations so provide, is approved by the Secretary of State”.
Schedule 6
35
Section 18

The Personal Accounts Delivery Authority
Part 1
Members and employees etc.
Members
1     (1)
The following are to be the members of the Authority—
40

Pensions Bill
Schedule 6 — The Personal Accounts Delivery Authority
Part 1 — Members and employees etc.
55

(a)
a chairman appointed by the Secretary of State,
(b)
other non-executive members appointed in accordance with sub-
paragraph (2) or (3), and
(c)
the executive members (see paragraph 6).
      (2)
The first non-executive members appointed for the purposes of sub-
5
paragraph (1)(b) are to be appointed by the Secretary of State.
      (3)
Any subsequent appointment for the purposes of sub-paragraph (1)(b) is to
be made by the Authority with the approval of the Secretary of State.
      (4)
Both the Secretary of State and the Authority must aim to ensure that the
Authority has neither less than 3 nor more than 9 members at any time.
10
Qualifications for non-executive members
2     (1)
Before appointing a person to be the chairman or another non-executive
member, the Secretary of State must satisfy himself that the person does not
have a conflict of interest.
      (2)
The Secretary of State must also satisfy himself from time to time that the
15
chairman and every other non-executive member does not have a conflict of
interest.
      (3)
Any of the persons mentioned in sub-paragraph (4) must, if so requested by
the Secretary of State, provide the Secretary of State with such information
as he considers necessary for the purpose of discharging his duties under
20
this paragraph.
      (4)
The persons are—
(a)
a person whom the Secretary of State proposes to appoint to be the
chairman or another non-executive member, and
(b)
the chairman and other non-executive members.
25
      (5)
Sub-paragraphs (1) to (4) apply in connection with the approval by the
Secretary of State of an appointment by the Authority as they apply in
connection with an appointment by him.
      (6)
In this paragraph and paragraph 3 “conflict of interest”, in relation to a
person, means a financial or other interest which is likely to affect
30
prejudicially the discharge by him of his functions as a member of the
Authority.
      (7)
But for the purposes of this paragraph and paragraph 3 a person is not to be
taken to have a conflict of interest by reason only—
(a)
that he is or has previously been engaged, on behalf of the relevant
35
authority, in activities connected with the discharge of the
authority’s functions relating to occupational pension schemes or
personal pension schemes, or
(b)
that he has previously been a trustee or manager of such a scheme or
an employee of such a trustee or manager.
40
Tenure of office of non-executive members
3     (1)
The chairman and each other non-executive member holds and vacates
office in accordance with the terms of his appointment (subject to this
Schedule).

Pensions Bill
Schedule 6 — The Personal Accounts Delivery Authority
Part 1 — Members and employees etc.
56

      (2)
A person’s appointment as the chairman or other non-executive member
must state the period for which the appointment is made.
      (3)
A person is eligible for re-appointment at the end of any such period.
      (4)
The chairman and each other non-executive member may resign by notice in
writing to the Secretary of State.
5
      (5)
If the Secretary of State is satisfied that the chairman or another non-
executive member—
(a)
has at any time had a bankruptcy order made against him or had his
estate sequestrated,
(b)
has at any time made a composition or arrangement with, or granted
10
a trust deed for, his creditors,
(c)
has a conflict of interest,
(d)
has been guilty of misbehaviour,
(e)
has failed to comply with the terms of his appointment,
(f)
has without reasonable excuse failed to discharge the functions of his
15
office, or
(g)
is otherwise incapable of discharging, or unfit or unwilling to
discharge, the functions of his office,

the Secretary of State may by notice in writing remove him from office.
Remuneration and pensions of non-executive members
20
4     (1)
The Authority may pay to the chairman and other non-executive
members—
(a)
such remuneration, and
(b)
such allowances,

as the Secretary of State may determine.
25
      (2)
The Authority may pay, or make provision for paying, to or in respect of the
chairman and other non-executive members such sums by way of, or in
respect of—
(a)
pensions,
(b)
allowances, or
30
(c)
gratuities,

as the Secretary of State may determine.
      (3)
Where—
(a)
otherwise than on the expiry of his term of office, a person ceases to
be the chairman or another non-executive member, and
35
(b)
the Secretary of State thinks there are special circumstances that
make it right for the person to receive compensation,

the Authority may make a payment to the person of such amount as the
Secretary of State may determine.
      (4)
If a non-executive member—
40
(a)
is a participant in a pension scheme applicable to his membership of
the Authority, and
(b)
on ceasing to be a non-executive member, becomes an employee of
the Authority or both an employee and an executive member,

his service (after ceasing to be a non-executive member) as an employee or
45
executive member, may, if the Secretary of State so determines, be treated for

Pensions Bill
Schedule 6 — The Personal Accounts Delivery Authority
Part 1 — Members and employees etc.
57

the purposes of the pension scheme as if it were service as a non-executive
member.
Deputy chairman
5     (1)
The Secretary of State may appoint a non-executive member to be the deputy
chairman.
5
      (2)
A person appointed to be the deputy chairman—
(a)
ceases to be the deputy chairman if he ceases to be a member of the
Authority, but
(b)
otherwise holds and vacates office in accordance with the terms of
his appointment.
10
      (3)
The deputy chairman is entitled to discharge the functions of the chairman
in such cases and in such manner as may be determined by or in accordance
with directions given by the chairman or the Secretary of State.
Executive members and other employees
6     (1)
The following are to be the executive members of the Authority—
15
(a)
the chief executive of the Authority, and
(b)
such other persons (if any) as are appointed in accordance with sub-
paragraph (4) or (5).
      (2)
The first chief executive is to be appointed by the Secretary of State, and until
he makes such an appointment the membership of the Authority is not
20
required by virtue of paragraph 1(1)(c) to include any executive member.
      (3)
Any subsequent chief executive is to be appointed by the chairman and
other non-executive members with the approval of the Secretary of State.
      (4)
The first executive members (if any) appointed for the purposes of sub-
paragraph (1)(b) are to be appointed by the Secretary of State.
25
      (5)
Any subsequent appointment for the purposes of sub-paragraph (1)(b) is to
be made by the chairman and other non-executive members with the
approval of the Secretary of State.
      (6)
The chief executive and any other executive members are to be employees of
the Authority.
30
      (7)
The Authority may appoint other employees, and may make such other
arrangements for the staffing of the Authority as it thinks fit.
Terms and conditions of executive members
7     (1)
The first chief executive is to be appointed to hold his office, and any
executive members appointed in accordance with paragraph 6(4) are to be
35
appointed as such members and employed by the Authority, on such terms
and conditions, including those as to remuneration, as the Secretary of State
may determine.
      (2)
Any subsequent chief executive is to be appointed to hold his office, and any
executive members appointed in accordance with paragraph 6(5) are to be
40
appointed as such members and employed by the Authority, on such terms
and conditions, including those as to remuneration, as the chairman and

Pensions Bill
Schedule 6 — The Personal Accounts Delivery Authority
Part 2 — Proceedings etc.
58

other non-executive members may determine with the approval of the
Secretary of State.
      (3)
The Authority must—
(a)
pay to or in respect of employees who are executive members, such
pensions, allowances or gratuities, and
5
(b)
provide and maintain for them such pension schemes (whether
contributory or not),

as the chairman and other non-executive members may determine.
      (4)
If an employee of the Authority who is an executive member—
(a)
is a participant in a pension scheme applicable to his employment,
10
and
(b)
becomes a non-executive member,

his service as a non-executive member may, if the Secretary of State so
determines, be treated for the purposes of the pension scheme as if it were
service as an employee.
15
      (5)
If an employee of the Authority who is an executive member—
(a)
is a participant in a pension scheme applicable to his membership of
the Authority, and
(b)
ceases to be an executive member without ceasing to be an employee,

his service (after ceasing to be an executive member) as an employee may, if
20
the Secretary of State so determines, be treated for the purposes of the
pension scheme as if it were service as an executive member.
Terms and conditions of other employees
8     (1)
The employees of the Authority who are not executive members are to be
appointed to and hold their employments on such terms and conditions,
25
including those as to remuneration, as the Authority may determine.
      (2)
The Authority must—
(a)
pay to or in respect of employees who are not executive members,
such pensions, allowances or gratuities, or
(b)
provide and maintain for them such pension schemes (whether
30
contributory or not),

as the Authority may determine.
      (3)
If an employee of the Authority—
(a)
is a participant in a pension scheme applicable to his employment,
and
35
(b)
becomes an executive member or a non-executive member,

his service as a member may, if the Secretary of State so determines, be
treated for the purposes of the pension scheme as if it were service as an
employee.
Part 2
40
Proceedings etc.
Committees and advisory committees
9     (1)
The Authority may—

Pensions Bill
Schedule 6 — The Personal Accounts Delivery Authority
Part 2 — Proceedings etc.
59

(a)
establish a committee for the purpose of discharging any of its
functions, and
(b)
establish a committee for the purpose of giving advice to the
Authority about matters relating to the discharge of its functions.
      (2)
A committee may consist of or include persons (including persons
5
constituting a majority of the committee) who are neither members nor
employees of the Authority.
      (3)
But except where a committee—
(a)
is established solely for the purpose mentioned in sub-paragraph
(1)(b), and
10
(b)
is not authorised under paragraph 14 to discharge functions on
behalf of the Authority,

the committee must contain at least one person who is either a member or an
employee of the Authority (or is both).
      (4)
Where a person who is neither a member nor an employee of the Authority
15
is a member of a committee, the Authority may pay to that person such
remuneration and expenses as it may determine.
10    (1)
A committee of the Authority may establish a sub-committee.
      (2)
Every member of a sub-committee must be a member of the committee
which established it.
20
Proceedings of the Authority, committees and sub-committees
11    (1)
The Authority may, subject to this Schedule—
(a)
regulate its own procedure;
(b)
regulate the procedure of its committees or sub-committees;
(c)
enable committees or sub-committees to regulate their own
25
procedure subject to any provision made by the Authority.
      (2)
The procedure for the discharge of the separate functions which are
conferred under this Schedule on the chairman and non-executive members
of the Authority is to be determined by a majority of the non-executive
members.
30
      (3)
In this paragraph a power to regulate or determine procedure includes, in
particular, power—
(a)
to specify a quorum for meetings,
(b)
to make provision that in specified circumstances the Authority or,
as the case may be, the chairman and non-executive members may
35
exercise their respective powers of appointment under paragraph
1(3) or 6(5) at a meeting which is inquorate, and
(c)
to make provision about the making of decisions by a majority.
      (4)
The Authority must publish, in such manner as it thinks fit, its own
procedures and those of its committees and sub-committees.
40
      (5)
This paragraph has effect subject to paragraph 13.
12
The Authority must make arrangements for the keeping of proper records—
(a)
of its proceedings,
(b)
of the proceedings of its committees and sub-committees,

Pensions Bill
Schedule 6 — The Personal Accounts Delivery Authority
Part 2 — Proceedings etc.
60

(c)
of the proceedings of a meeting of the chairman and other non-
executive members,
(d)
of anything done by an employee or member of the Authority under
paragraph 14(a) or (b).
Disqualification for acting in relation to certain matters
5
13    (1)
This paragraph applies if at any meeting of—
(a)
the Authority,
(b)
the chairman and other non-executive members, or
(c)
any committee or sub-committee,

a member of the Authority or, as the case may be, of the committee or sub-
10
committee has a direct or indirect interest in any matter falling to be
considered at the meeting.
      (2)
The person with the interest must declare it and the declaration must be
recorded in the minutes of the meeting.
      (3)
The person with the interest may not take part in any discussion or decision
15
relating to the matter in which he has an interest, unless—
(a)
in the case of a meeting of the Authority or of the chairman and other
non-executive members, the other members who are present when
the discussion or decision falls to take place or is made have resolved
unanimously that the interest is to be disregarded, or
20
(b)
in any other case, the other members of the committee or sub-
committee who are so present have resolved in the manner
authorised by the Authority that the interest is to be disregarded.
      (4)
In granting authorisations for the purposes of sub-paragraph (3)(b), the
Authority must secure that a resolution for those purposes does not allow a
25
person to take part in a discussion or decision at a meeting of a committee
established by virtue of paragraph 9(1)(a) or of a sub-committee of such a
committee unless at least the following requirements are met—
(a)
the number of other members of the committee or sub-committee in
favour of the resolution is not less than two-thirds of those who are
30
both present and entitled to vote on the resolution, and
(b)
the number of other members of the committee or sub-committee in
favour of the resolution is not less than its quorum.
      (5)
For the purposes of this paragraph a general notification given at or sent to
a relevant meeting that—
35
(a)
a person—
(i)
has an interest (as member, officer, employee or otherwise) in
a specified body corporate or firm, or
(ii)
is connected with a specified person (other than a body
corporate or firm), and
40
(b)
he is to be regarded as interested in any matter involving that body
corporate or firm or, as the case may be, person,

is to be regarded as compliance with sub-paragraph (2) in relation to any
such matter for the purposes of that meeting and any subsequent relevant
meeting of the same type which is held while the notification is in force.
45
      (6)
Section 252 of the Companies Act 2006 (c. 46) (persons connected with a
director) applies for determining whether a person is connected with