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 4 — Power to establish a pension scheme
25

51
Scheme orders: general
(1)
An order establishing a scheme must provide for the trustee corporation (the
body established by section 57) to be a trustee on the coming into force of the
scheme.
(2)
An order may provide for any provision of the Trustee Act 2000 (c. 29) to apply
5
as if an order or rules under section 50 were a trust instrument.
(3)
An order may provide for the trustees to have power to make rules under
section 50.
(4)
Where the trustees have power to make rules, an order may provide—
(a)
that they may not exercise the power in specified circumstances;
10
(b)
that they may exercise it subject to conditions;
(c)
that they must comply with requirements for consultation or
publication or other procedural requirements when exercising the
power.
(5)
An order may make provision for the exclusion of, or indemnity against,
15
liability of a trustee, or an officer or employee of a trustee, arising out of the
administration or management of a scheme.
52
Consultation of members and employers
(1)
If an order under section 50 establishes a scheme, the Secretary of State must
by order under that section require the trustees to make and maintain
20
arrangements for consulting the members of the scheme and participating
employers about the operation, development and amendment of the scheme.
(2)
The arrangements must include establishment and maintenance of—
(a)
a panel of persons to represent members (“the members’ panel”), and
(b)
a panel of persons to represent employers (“the employers’ panel”).
25
(3)
The composition and functions of the panels are to be determined by order
under section 50, or by the trustees under an order.
(4)
The functions of the members’ panel may include nominating individuals to be
members of the trustee corporation.
(5)
An order under section 50 may provide for payments to panel members out of
30
scheme funds, but only in respect of reasonable expenses.
53
Contribution limits
(1)
An order under section 50 must prescribe the maximum amount of
contributions that may be made by or in respect of a member in any tax year.
(2)
For the purposes of provision under subsection (1) an order may in particular
35
make provision as to—
(a)
what is a contribution;
(b)
when a contribution is to be treated as made;
(c)
how contributions are to be treated if the maximum is exceeded;
(d)
circumstances in which a payment is to be made to any person in
40
respect of an excess contribution;
(e)
who is to make any such payment and how it is to be calculated.

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 4 — Power to establish a pension scheme
26

(3)
An order may prescribe a maximum amount for payments that may be made
by a member and that are not contributions for the purposes of provision
under subsection (1).
(4)
In this section “tax year” has the same meaning as in Parts 1 to 6 of the Social
Security Contributions and Benefits Act 1992 (c. 4).
5
(5)
The Secretary of State may by order repeal this section.
54
Procedure for scheme orders
(1)
Subsection (2) applies to any order under section 50 relating to a scheme,
except the order establishing the scheme and an order taking effect at the same
time as that order.
10
(2)
The Secretary of State may not make the order without the consent of the
trustees.
(3)
But the trustees may not withhold their consent without giving reasons.
(4)
The trustees must consult the members’ panel and the employers’ panel before
deciding whether to give consent.
15
55
Procedure for rules
(1)
A person who proposes to make rules under section 50 must publish a draft of
the rules and invite comments.
(2)
They must have regard to any comments made in accordance with the
invitation.
20
(3)
If they make the rules they must publish an account in general terms of those
comments and their response to them.
(4)
If the rules they make differ from the draft published under subsection (1), they
must publish details of any differences that they think are significant.
(5)
Subsection (6) applies to any rules made by the Secretary of State under section
25
50 relating to a scheme, except rules taking effect at the same time as the order
establishing the scheme.
(6)
The Secretary of State may not make the rules without the consent of the
trustees.
(7)
But the trustees may not withhold their consent without giving reasons.
30
(8)
The trustees must consult the members’ panel and the employers’ panel—
(a)
before making rules under section 50;
(b)
before deciding whether to give consent under subsection (6).
(9)
If the Secretary of State or the trustees make rules under section 50 they must
publish them.
35
(10)
Anything published under this section must be published in a way designed to
bring it to the attention of the persons likely to be interested or affected.
(11)
The publication must not be limited to electronic publication.

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 4 — Power to establish a pension scheme
27

56
Application of enactments
(1)
The Interpretation Act 1978 (c. 30) applies in relation to rules under section 50
as if they were contained in a deed not made under an enactment.
(2)
A scheme established under section 50 is not to be treated as a public service
pension scheme for the purposes of any enactment.
5
Trustee corporation
57
Trustee corporation
(1)
There is to be a body corporate, referred to in this Chapter as the trustee
corporation.
(2)
The name of the body is to be determined by order made by the Secretary of
10
State.
(3)
The trustee corporation is not to be regarded as the servant or agent of the
Crown or as enjoying any status, immunity or privilege of the Crown.
(4)
Property held by the corporation is not to be regarded as property of, or
property held on behalf of, the Crown.
15
(5)
Schedule 1 makes provision about the trustee corporation.
58
Functions
(1)
The functions of the trustee corporation are—
(a)
to act as a trustee of any scheme established under section 50, and
(b)
any other functions it is given by or under an enactment in connection
20
with the scheme.
(2)
The corporation may do anything calculated to facilitate, or incidental or
conducive to, the carrying out of any of its functions.
(3)
In particular the corporation may—
(a)
enter into agreements;
25
(b)
borrow money;
(c)
invest money.
(4)
The corporation’s powers within subsection (3)(b) and (c) are exercisable only
with the consent of the Secretary of State.
(5)
Subsections (3) and (4) are without prejudice to the exercise by the trustee
30
corporation of any power vested in it as a trustee of a scheme established under
section 50.
59
Application of enactments
(1)
The Secretary of State may by regulations provide that legislation applying in
relation to a person as trustee of a pension scheme, or as director of a company
35
which is a trustee of a pension scheme, applies in relation to the trustee
corporation, or its members, with any modifications prescribed in the
regulations.

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 5 — Personal Accounts Delivery Authority
28

(2)
In this section “legislation” means any provision of an Act or subordinate
legislation (and “subordinate legislation” has the same meaning as in the
Interpretation Act 1978 (c. 30)).
Interpretation
60
Interpretation of Chapter
5
In this Chapter—
“employers’ panel” has the meaning given by section 52(2)(b);
“members’ panel” has the meaning given by section 52(2)(a).
“trustees”, in relation to a scheme established under section 50, means the
trustee or trustees of the scheme.
10
Chapter 5
Personal Accounts Delivery Authority
Functions of the Authority
61
Functions
(1)
Section 21 of the Pensions Act 2007 (c. 22) (initial function of the Authority)
15
ceases to have effect.
(2)
The Personal Accounts Delivery Authority (referred to in this Chapter as the
“Authority”) has the following functions—
(a)
to give any assistance and advice that the Secretary of State may
require, and any advice that the Authority considers expedient, for or
20
in connection with the establishment and operation of a scheme under
section 50(1);
(b)
to give any assistance and advice that the Secretary of State or the
Pensions Regulator may require, and any advice that the Authority
considers expedient, for or in connection with arrangements to enable
25
requirements imposed by or under Chapter 1 of this Part to be
complied with and enforced.
(3)
Assistance or advice required by the Secretary of State under subsection (2)(a)
may include assistance or advice to the trustees of the scheme.
(4)
The Authority’s functions under subsection (2) are in addition to any functions
30
that may be conferred on it by or under this Act or any other enactment.
(5)
The Authority may do anything calculated to facilitate, or incidental or
conducive to, the carrying out of any of its functions.
(6)
In particular, the Authority may—
(a)
enter into agreements;
35
(b)
borrow money.
(7)
The corporation’s powers within subsection (6)(b) are exercisable only with the
consent of the Secretary of State.