Pensions Bill

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Pensions Bill

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 2 — Compliance
15

(4)
An escalating penalty is a penalty which is calculated by reference to a
prescribed daily rate.
(5)
The prescribed daily rate—
(a)
is to be determined in accordance with regulations, and
(b)
must not exceed £10,000.
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(6)
An escalating penalty notice must—
(a)
specify the failure to which the notice relates;
(b)
state that, if the person fails to comply with the notice referred to in
subsection (1) before a specified date, the person will be liable to pay an
escalating penalty;
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(c)
state the daily rate of the escalating penalty and the way in which the
penalty is calculated;
(d)
state the date from which the escalating penalty will be payable, which
must not be earlier than the date specified in the fixed penalty notice
under section 32(5)(b);
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(e)
state that the escalating penalty will continue to be payable at the daily
rate until the date on which the person complies with the notice
referred to in subsection (1) or such earlier date as the Regulator may
determine;
(f)
notify the person of the review process under section 35 and the right
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of appeal under section 36.
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Penalty notices: recovery
(1)
Any penalty payable under section 32 or section 33 is recoverable by the
Regulator.
(2)
In England and Wales, any such penalty is, if a county court so orders,
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recoverable under section 85 of the County Courts Act 1984 (c. 28) or otherwise
as if it were payable under an order of that court.
(3)
In Scotland, a fixed penalty notice or escalating penalty notice is enforceable as
if it were an extract registered decree arbitral bearing a warrant for execution
issued by the sheriff court of any sheriffdom in Scotland.
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(4)
The Regulator must pay into the Consolidated Fund any penalty recovered under this
section.
Review and appeal
35
Review of notices
(1)
The Regulator may review a notice to which this section applies—
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(a)
on the written application of the person to whom the notice was issued,
or
(b)
if the Regulator otherwise considers it appropriate.
(2)
This section applies to—
(a)
a compliance notice issued under section 28;
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(b)
a third party compliance notice issued under section 29;
(c)
an unpaid contributions notice issued under section 30;
(d)
a fixed penalty notice issued under section 32;

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 2 — Compliance
16

(e)
an escalating penalty notice issued under section 33.
(3)
Regulations may prescribe the period within which—
(a)
an application to review a notice may be made under subsection (1)(a);
(b)
a notice may be reviewed under subsection (1)(b).
(4)
The Regulator may suspend the effect of a notice until any review of that notice
5
is completed.
(5)
In carrying out a review, the Regulator must consider any representations
made by the person to whom the notice was issued.
(6)
The Regulator’s powers on a review include power to—
(a)
confirm, vary or revoke the notice;
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(b)
substitute a different notice.
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References to the Pensions Regulator Tribunal
(1)
A person to whom a notice is issued under section 32 or section 33 may make
a reference to the Pensions Regulator Tribunal in respect of—
(a)
the issue of the notice;
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(b)
the amount of the penalty payable under the notice.
(2)
The Secretary of State may by regulations make provision—
(a)
as to the manner in which, and the time within which, a reference under
subsection (1) may be made;
(b)
as to the procedure which is to be followed if such a reference is made;
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(c)
as to the powers of the Pensions Regulator Tribunal in relation to such
a reference.
(3)
In section 102(2) of the Pensions Act 2004 (c. 35) (functions of the Pensions
Regulator Tribunal)—
(a)
the words from “by this Act” to the end become paragraph (a);
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(b)
at the end insert—
“(b)
by section 36 of the Pensions Act 2008 or any provision
in force in Northern Ireland corresponding to that
section.”
Offences
30
37
Offences of failing to comply
(1)
An offence is committed by an employer who wilfully fails to comply with—
(a)
the duty under section 3(2) (automatic enrolment),
(b)
the duty under section 5(2) (automatic re-enrolment), or
(c)
the duty under section 6(3) (jobholder’s right to opt in).
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(2)
A person guilty of an offence under this section is liable—
(a)
on conviction on indictment, to imprisonment for a term not exceeding
two years, or to a fine, or both;
(b)
on summary conviction to a fine not exceeding level 5 on the standard
scale.
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Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 2 — Compliance
17

38
Offences of providing false or misleading information
In section 80(1) (a) of the Pensions Act 2004 (c. 35) (offences of providing false
or misleading information) at the end of sub-paragraph (iv) insert “or
“(v)
regulations under section 9 of the Pensions Act 2008,”.
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Monitoring of employers’ payments to personal pension schemes
5
In section 111A of the Pension Schemes Act 1993 (c. 48), at the end insert—
“(18)
In this section, “employee” includes a jobholder within the meaning of
section 1 of the Pensions Act 2008 and “employer” is to be read
accordingly.”
Records and information
10
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Requirement to keep records
(1)
For the purposes of Chapter 1 of this Part, or this Chapter, the Secretary of State
may by regulations make provision requiring any person—
(a)
to keep, in such form and manner as may be prescribed, such records
as may be prescribed;
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(b)
to preserve those records for such period, not exceeding 6 years, as may
be prescribed;
(c)
to provide those records, on request, to the Regulator.
(2)
Regulations under subsection (1) may provide that section 10 of the Pensions
Act 1995 (c. 26) applies to a person who fails to comply with those
20
requirements.
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Powers to require information and to enter premises
(1)
The Pensions Act 2004 is amended as follows.
(2)
In section 72, after subsection (1) insert—
“(1A)
If the Regulator requires information which is relevant to the exercise
25
of its functions under Chapter 2 of Part 1 of the Pensions Act 2008, the
Regulator may, by notice in writing, require a person to whom
subsection (2) applies—
(a)
to furnish the Regulator with an explanation of any document
or information required under subsection (1);
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(b)
to attend before the Regulator at such time and place as may be
specified in the notice under that subsection to furnish any such
explanation.
(1B)
The Regulator may not require a person to answer any question or
furnish any information which might incriminate the person or, if
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married or a civil partner, the person’s spouse or civil partner.”
(3)
In section 74, before subsection (1) insert—
“(A1)
An inspector may, for the purposes of investigating whether an
employer is complying, or has complied, with the requirements under
Chapter 1 of Part 1 of the Pensions Act 2008, at any reasonable time
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enter premises liable to inspection.

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 2 — Compliance
18

(B1)
Premises are liable to inspection for the purposes of subsection (A1) if
the inspector has reasonable grounds to believe that—
(a)
employees of the employer are employed there,
(b)
documents relevant to any of the following are being kept
there—
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(i)
the administration of the employer’s business,
(ii)
the duties of the employer under Chapter 1 of Part 1 of
the Pensions Act 2008,
(iii)
the administration of a qualifying scheme, or
(c)
the administration of the employer’s business, or work
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connected with that administration, is being carried out there.
(C1)
In subsections (A1) and (B1)—
“employer” and “employee” have the meaning given by section 69
of the Pensions Act 2008;
“qualifying scheme” has the meaning given by section 14 of that
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Act.”
(4)
In section 75(1), after “subsection” (in the third place where it occurs) insert
“(A1),”.
(5)
In section 76(9), after “subsection” (in the second place where it occurs) insert
“(A1),”.
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Disclosure of information by Revenue and Customs
In the Pensions Act 2004, after section 88 (tax information) insert—
“88A
Information relevant to functions under the Pensions Act 2008
(1)
This section applies to information held by Revenue and Customs if it
is held by them in connection with a function of Revenue and Customs
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which relates to any of these matters—
(a)
income tax;
(b)
national insurance contributions;
(c)
the national minimum wage;
(d)
pension schemes.
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(2)
An officer of Revenue and Customs may disclose any of that
information to the Regulator, if the disclosure is made for the purpose
of enabling or assisting the Regulator to discharge its functions under
Chapter 2 of Part 1 of the Pensions Act 2008 (compliance with
employers’ duties relating to pension scheme membership for
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jobholders).
(3)
In this section a reference to Revenue and Customs has the same
meaning as in section 17 of the Commissioners for Revenue and
Customs Act 2005 (c. 11) (use of information).
(4)
Any information that may be disclosed by virtue of section 88(2), to the
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extent that its disclosure is authorised by this section, is to be regarded
as disclosed under this section and not by virtue of section 88(2).”