Pensions Bill

House of Commons

Session 2007 - 08
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Other Bills before Parliament

Pensions Bill

Pensions Bill
Part 3 — Pension compensation
Chapter 1 — Pension compensation on divorce etc
41

(2)
For the purposes of subsection (1) a payment is “qualifying payment” if the
cash equivalent by reference to which the amount of the pension compensation
debit is determined includes an amount in respect of it.
(3)
In this section “the appropriate percentage”, in relation to a pension
compensation debit, means the percentage specified in the pension
5
compensation sharing order on which the debit depends.
88
Time for discharge of liability
(1)
This section applies where the Board is subject to a liability in respect of a
pension compensation credit.
(2)
The Board must discharge the liability before the end of the implementation
10
period for the credit.
(3)
The Secretary of State may make provision by regulations as to circumstances
in which the implementation period for the credit is extended for the purposes
of this section.
89
“Implementation period”
15
(1)
For the purposes of this Chapter, the implementation period for a pension
compensation credit is the period of 4 months beginning with the later of—
(a)
the transfer day, and
(b)
the first day on which the Board is in receipt of—
(i)
the relevant documents, and
20
(ii)
such information relating to the transferor and transferee as the
Secretary of State may prescribe by regulations.
(2)
In subsection (1)(b)(i) “the relevant documents” means copies of—
(a)
the relevant order, and
(b)
the order or decree responsible for the divorce, dissolution or
25
annulment to which it relates.
(3)
Subsection (1) is subject to any provision made by regulations under section
91(2)(a).
(4)
The Secretary of State may by regulations—
(a)
make provision requiring the Board to notify the transferor and
30
transferee of the day on which the implementation period for the credit
begins;
(b)
provide for this section to have effect with modifications where the
credit depends on a pension compensation sharing order and the order
is the subject of an application for leave to appeal out of time.
35
90
Discharge of liability
(1)
This section applies where the Board is subject to a liability in respect of a
pension compensation credit.
(2)
The Board must discharge the liability by sending a notice to the transferee.
(3)
On the sending of the notice the transferee becomes entitled, with effect from
40
(and including) the transfer day, to compensation calculated in accordance
with Schedule 4.

Pensions Bill
Part 3 — Pension compensation
Chapter 1 — Pension compensation on divorce etc
42

(4)
For the purposes of that calculation, the initial annual rate of compensation is
an amount determined by the Board.
(5)
The Board must determine that amount in such a way as to secure that the cash
equivalent value of the compensation to which the transferee becomes entitled
under subsection (3) equals the amount of the credit.
5
(6)
The Secretary of State may by regulations make provision about the calculation
of cash equivalents for the purposes of subsection (5).
(7)
The notice sent under this section must—
(a)
state that the transferee is entitled to periodic pension compensation
calculated under Schedule 4, and
10
(b)
specify the amount determined under subsection (4).
(8)
Where the transferee dies before liability in respect of the credit has been
discharged—
(a)
subsections (2) to (7) do not have effect in relation to the discharge of
liability in respect of the credit, and
15
(b)
liability in respect of the credit must be discharged in accordance with
regulations made by the Secretary of State.
91
Charges in respect of pension compensation sharing costs
(1)
The Secretary of State may by regulations make provision for the purpose of
enabling the Board to recover from the parties to pension compensation
20
sharing prescribed charges in respect of prescribed descriptions of pension
compensation sharing activity.
(2)
Regulations under subsection (1) may include—
(a)
provision for the start of the implementation period for a pension
compensation credit to be postponed in prescribed circumstances;
25
(b)
provision, in relation to payments in respect of charges recoverable
under the regulations, for reimbursement as between the parties to
pension compensation sharing.
(3)
For the purposes of regulations under subsection (1), the question of how much
of a charge recoverable under the regulations is attributable to a party to
30
pension compensation sharing is to be determined as follows—
(a)
where the relevant order includes provision about the apportionment
of charges under this section, there is attributable to the party so much
of the charge as is apportioned to that party by that provision;
(b)
where the relevant order does not include such provision, the charge is
35
attributable to the transferor.
(4)
In subsection (1) the reference to pension compensation sharing activity is to
activity attributable directly or indirectly to the application of section 85 by
virtue of the relevant order.
92
Supply of information about pension compensation in relation to divorce etc
40
(1)
The Secretary of State may by regulations—
(a)
make provision imposing on the Board requirements with respect to
the supply of information relevant to any power with respect to—

Pensions Bill
Part 3 — Pension compensation
Chapter 2 — Other provision about pension compensation
43

(i)
financial relief under Part 2 of the Matrimonial Causes Act 1973
(c. 18) or Part 3 of the Matrimonial and Family Proceedings Act
1984 (c. 42) (England and Wales powers in relation to domestic
and overseas divorce etc),
(ii)
financial relief under Schedule 5 or 7 to the Civil Partnership
5
Act 2004 (c. 33) (England and Wales powers in relation to
domestic and overseas dissolution of civil partnerships etc), or
(iii)
financial relief under any provision corresponding to a
provision mentioned in sub-paragraph (i) or (ii) in force in
Northern Ireland;
10
(b)
make provision about calculation and verification in relation to the
valuation of PPF compensation for the purposes of regulations under
paragraph (a);
(c)
make provision for the purpose of enabling the Board to recover
prescribed charges in respect of providing information in accordance
15
with regulations under paragraph (a).
(2)
Regulations under subsection (1)(b) may include provision for calculation and
verification in a manner approved by the Board.
(3)
Regulations under subsection (1)(c) may include provision for the application
in prescribed circumstances, with or without modification, of any provision
20
made by virtue of section 91(2).
93
Supply of information about pension compensation sharing
The Secretary of State may by regulations require the Board to supply, to such
persons as the Secretary of State may specify in the regulations, such
information relating to anything which follows from the application of section
25
85 as the Secretary of State may so specify.
94
Pension compensation sharing and attachment on divorce etc
Schedule 5 (which amends matrimonial and civil partnership legislation for
the purpose of enabling the court to make pension compensation sharing
orders, and orders for the attachment of pension compensation, in connection
30
with proceedings in England and Wales) has effect.
95
Consequential amendment
In section 173(3)(b) of the Pensions Act 2004 (c. 35) (sums paid out of Pension
Protection Fund) after “the pension compensation provisions” insert “or
Chapter 1 of Part 3 of the Pensions Act 2008”.
35
Chapter 2
Other provision about pension compensation
96
Amendments of Schedule 7 to the Pensions Act 2004
Schedule 6 (amendments of Schedule 7 to the Pensions Act 2004) has effect.

Pensions Bill
Part 4 — Miscellaneous
44

Part 4
Miscellaneous
97
Pension sharing: power of Court of Session to extend time limits
(1)
The Welfare Reform and Pensions Act 1999 (c. 30) is amended as follows.
(2)
In section 28(10) (pension arrangements: time limit for activation of pension
5
sharing in Scotland), for “The sheriff” there is substituted “The Court of Session
or the sheriff”.
(3)
In section 48(9) (state scheme rights: time limit for activation of benefit sharing
in Scotland), for “The sheriff” there is substituted “The Court of Session or the
sheriff”.
10
98
Interest on late payment of levies
Schedule 7 (which makes provision about payment of interest on late payment
of levies) has effect.
99
Intervention by Regulator where scheme’s technical provisions improperly
determined
15
In section 231 of the Pensions Act 2004 (c. 35) (powers of the Regulator), before
paragraph (a) of subsection (1) insert—
“(za)
that the trustees or managers, when determining the methods
and assumptions to be used in calculating the scheme’s
technical provisions, have failed to comply with a requirement
20
imposed under section 222(4)(c);”.
100
Exclusion of transfers out in certain cases
(1)
The Pension Schemes Act 1993 (c. 48) is amended as follows.
(2)
In section 93(1B) (regulations as to the application of provisions relating to
transfers for early leavers) after paragraph (a) insert—
25
“(aa)
provide for this Chapter not to apply in prescribed
circumstances in relation to a member of a prescribed scheme or
schemes of a prescribed description;”.
(3)
In section 101F (transfer notice in respect of pension credit benefit) after
subsection (6) insert—
30
“(6A)
Regulations may provide for this Chapter not to apply in prescribed
circumstances in relation to a member of a prescribed scheme or
schemes of a prescribed description.”
101
Official pensions: adjustment of increases in survivors’ pensions
(1)
Section 59 of the Social Security Pensions Act 1975 (c. 60) (increase of official
35
pensions) is amended as follows.
(2)
Subsection (5ZA) is amended as follows.
(3)
In the words before paragraph (a)—

Pensions Bill
Part 4 — Miscellaneous
45

(a)
for “or widower’s” substitute “, widower’s or surviving civil partner’s”;
(b)
after “spouse” insert “or civil partner”.
(4)
In paragraph (a), after “spouse” insert “or civil partner”.
(5)
In paragraph (b)—
(a)
after “period” insert “(“the relevant time”)”;
5
(b)
for the words from “one half” to the end substitute “the rate provided for in
subsection (5ZB);”.
(6)
In paragraph (c), for “or widower’s” substitute “, widower’s or surviving civil
partner’s”.
(7)
Omit the words from “but this subsection” to the end.
10
(8)
After subsection (5ZA) insert—
“(5ZB)
The rate referred to in subsection (5ZA)(b) is—
(a)
in the case of a widow’s pension, one half of the rate of the deceased
husband’s guaranteed minimum pension at the relevant time;
(b)
in the case of a widower’s pension, one half of so much of the rate of the
15
deceased wife’s guaranteed minimum pension at the relevant time as
is attributable to earnings factors for the tax year 1988-89 and
subsequent tax years;
(c)
in the case of a surviving civil partner’s pension, one half of so much
of the rate of the deceased civil partner’s guaranteed minimum pension
20
at the relevant time as is attributable to earnings factors for the tax
year 1988-89 and subsequent tax years.
(5ZC)
Subsection (5ZA)—
(a)
does not apply to a widow’s or widower’s pension in respect of any
service of the deceased spouse if the deceased spouse’s pension in
25
respect of that service became payable before 24 July 1990;
(b)
applies to a surviving civil partner’s pension only in respect of
amounts payable after the coming into force of this subsection.”
102
War pensions: effect of later marriage or civil partnership
(1)
Section 168 of the Pensions Act 1995 (c. 26) (war pensions for widows: effect of
30
remarriage) is amended as follows.
(2)
For subsection (1) substitute—
“(1)
In determining whether a pension is payable to a person as a widow,
widower or surviving civil partner under any of the enactments
mentioned in subsection (3) in respect of any period beginning on or
35
after the commencement date, no account may be taken of the fact that
the person has married or formed a civil partnership with another
person if, before the beginning of that period—
(a)
the marriage or civil partnership has been terminated,
(b)
the parties to it have been judicially separated, or
40
(c)
in the case of a civil partnership, a separation order has been
made in respect of the parties.
(1A)
The commencement date is—

Pensions Bill
Part 5 — General
46

(a)
for the purpose of determining whether a pension is payable to
a person as a widow or widower, 19 July 1995;
(b)
for the purpose of determining whether a pension is payable to
a person as a surviving civil partner, 5 December 2005.”
(3)
In subsection (2), in paragraph (a)—
5
(a)
after “a marriage” insert “or civil partnership”;
(b)
for “the termination of the marriage” substitute “its termination”.
(4)
In that subsection, after “divorce” insert “, dissolution”.
(5)
In subsection (3)(a), for “The Naval, Military and Air Forces Etc. (Disablement
and Death) Service Pensions Order 1983” substitute “The Naval, Military and
10
Air Forces etc. (Disablement and Death) Service Pensions Order 2006”.
103
Polish Resettlement Act 1947: effect of residence in Poland
(1)
In section 1(3) of the Polish Resettlement Act 1947 (c. 19) (power to apply Royal
Warrant as to pensions etc to certain Polish forces) for “, and the scheme shall
contain provision for securing that no payment shall be made thereunder to or
15
in respect of any person as to whom the Secretary of State is satisfied that he is
resident in Poland” substitute “(including exceptions applying by virtue of a
person’s residence in Poland at any time prior to 1 May 2004)”.
(2)
Subsection (3) below applies where—
(a)
a person (“A”) was resident in Poland at any time in the relevant
20
period, and
(b)
but for that fact, an amount would have been payable to or in respect of
A under the scheme made under section 1 of the Polish Resettlement
Act 1947.
(3)
The power to make the scheme includes power to make provision for
25
payments to or in respect of A in relation to any part of the relevant period.
(4)
In this section “the relevant period” means the period beginning with 1 May
2004 and ending with the coming into force of this section.
Part 5
General
30
104
Orders and regulations
(1)
Any power to make an order or regulations under this Act is exercisable by
statutory instrument.
(2)
A statutory instrument containing an order or regulations under this Act is
subject to annulment in pursuance of a resolution of either House of
35
Parliament.
(3)
Subsection (2) does not apply to an order under section 109 or an order to
which subsection (4) or (5) applies.
(4)
No order may be made under section 50 or 53(5) unless a draft of the order has
been laid before and approved by resolution of each House of Parliament.
40

Pensions Bill
Part 5 — General
47

(5)
No order amending or repealing any provision of an Act may be made under
section 106 unless a draft of the order has been laid before and approved by
resolution of each House of Parliament.
105
Orders and regulations: supplementary
(1)
An order or regulations under this Act may include—
5
(a)
such incidental, supplemental, consequential or transitional provision
as appears to the Secretary of State to be expedient;
(b)
provision conferring a discretion on any person.
(2)
An order under section 50 may include provision for anything that may be
prescribed by the order to be determined under it, and for anything falling to
10
be so determined to be determined by such persons, in accordance with such
procedure and by reference to such matters, and to the opinion of such persons,
as may be prescribed.
(3)
The power to make an order or regulations under this Act may be exercised—
(a)
either in relation to all cases to which the power extends, or in relation
15
to those cases subject to specified exceptions, or in relation to any
specified cases or classes of case,
(b)
so as to make, as respects the cases in relation to which it is exercised—
(i)
the full provision to which the power extends or any less
provision (whether by way of exception or otherwise),
20
(ii)
the same provision for all cases in relation to which the power
is exercised, or different provision for different cases or
different classes of case or different provision as respects the
same case or class of case for different purposes of this Act, or
(iii)
any such provision either unconditionally or subject to any
25
specified condition.
106
Power to make further provision
(1)
The Secretary of State may by order make—
(a)
such supplemental, incidental or consequential provision, or
(b)
such transitory, transitional or saving provision,
30

as the Secretary of State thinks appropriate for the general purposes, or any
particular purpose, of this Act or in consequence of any provision made by or
under this Act or for giving full effect to this Act or any such provision.
(2)
An order under this section may, for purposes of or in consequence of or for
giving full effect to any provision of or made under Chapter 4 of Part 1, make
35
provision for applying (with or without modifications) or amending, repealing
or revoking any provision of or made under an Act passed before this Act or in
the same Session.
(3)
Amendments made under this section are in addition, and without prejudice,
to those made by or under any other provision of this Act.
40
(4)
No other provision of this Act restricts the powers conferred by this section.
107
General financial provisions
There is to be paid out of money provided by Parliament—