Pensions Bill

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Pensions Bill

Pensions Bill
Part 5 — General
48

(a)
any expenditure incurred by the Secretary of State or a government
department in consequence of this Act, and
(b)
any increase attributable to this Act in the sums payable out of money so
provided under any other enactment.
108
Repeals
5
Schedule 8 (repeals) has effect.
109
Commencement
(1)
Subject to the following provisions, this Act comes into force in accordance
with provision made by order by the Secretary of State.
(2)
Subsection (1) does not apply to—
10
(a)
sections 50 to 56;
(b)
sections 61 to 67;
(c)
section 81;
(d)
this Part, except section 108.
(3)
Section 81 comes into force on 6 April 2009.
15
(4)
An order under subsection (1) may appoint different days for different
purposes.
110
Extent
(1)
Subject to the following provisions, this Act extends to England and Wales and
Scotland.
20
(2)
The following provisions extend also to Northern Ireland—
(a)
in Part 1, Chapters 4 and 5;
(b)
sections 104 to 106;
(c)
section 109, this section and section 111.
(3)
An amendment or repeal by this Act has the same extent as the enactment
25
amended or repealed.
111
Short title
This Act may be cited as the Pensions Act 2008.

Pensions Bill
Schedule 1 — The trustee corporation
Part 1 — Members and employees
49

Schedules
Schedule 1
Section 57

The trustee corporation
Part 1
Members and employees
5
Members
1     (1)
Appointments of members of the corporation, and of a member as chair of
the corporation, are to be made—
(a)
by the Secretary of State, if they take effect on the commencement of
section 57(1) or in the initial period;
10
(b)
by the corporation, if they take effect after the initial period.
      (2)
The Secretary of State and the corporation must aim to ensure that, from the
end of the initial period, there are not fewer than 9 and not more than 15
members at any time.
      (3)
It is for the Secretary of State to determine the length of the initial period.
15
      (4)
An order under section 50 may provide for section 242 of the Pensions Act
2004 (c. 35) (member-nominated directors of corporate trustees) to apply to
the members of the corporation as it applies to the directors of a company,
subject to any modifications specified in the order.
Conflicts of interest
20
2     (1)
The Secretary of State and, under paragraph 1(1)(b), the corporation must
satisfy themselves that a person to be appointed as a member does not have
a conflict of interest.
      (2)
The Secretary of State and the corporation must also satisfy themselves from
time to time that none of the members has a conflict of interest.
25
      (3)
A member of the corporation, or a person the Secretary of State or the
corporation proposes to appoint as a member, must provide the Secretary of
State on request with any information the Secretary of State considers
necessary for the purposes of sub-paragraph (1) or (2).
      (4)
A member of the corporation, or a person the corporation proposes to
30
appoint as a member, must provide the corporation on request with any
information the corporation considers necessary for the purposes of sub-
paragraph (1) or (2).

Pensions Bill
Schedule 1 — The trustee corporation
Part 1 — Members and employees
50

      (5)
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
prejudicially that person’s discharge of functions as a member of the trustee
corporation.
      (6)
But for the purposes of this paragraph and paragraph 3 a person is not to be
5
taken to have a conflict of interest for these reasons alone—
(a)
being or having previously been engaged, on behalf of the relevant
authority, in activities connected with the discharge of the
authority’s functions relating to occupational pension schemes or
personal pension schemes;
10
(b)
having previously been a trustee or manager of such a scheme or an
employee of such a trustee or manager.
Disqualification and removal
3     (1)
A person is disqualified for appointment as a member if—
(a)
prohibited by an order under section 3 of the Pensions Act 1995
15
(c. 26) or Article 3 of the Pensions (Northern Ireland) Order 1995 (S.I.
1995/3213 (N.I. 22)) from being a trustee of trust schemes in general,
or
(b)
suspended by an order under section 4 of that Act or Article 4 of that
Order as a trustee of any scheme.
20
      (2)
While the trustee corporation is a trustee of a scheme established under
section 50, section 3 of that Act applies in relation to being a member of the
trustee corporation as it applies in relation to being a trustee of the scheme.
      (3)
The Pensions Regulator may also make an order under section 3 of that Act
as applied by sub-paragraph (2) at any time when it would have power to
25
make an order under section 4 of that Act (suspension) if the person were a
trustee of the scheme.
4     (1)
A person is disqualified for appointment as a member if disqualified under
section 29 of the Pensions Act 1995 or Article 29 of the Pensions (Northern
Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) for being a trustee of a trust
30
scheme.
      (2)
A person is not disqualified under this paragraph if the Pensions Regulator
has given the person a general waiver under section 29(5) of that Act or
Article 29(5) of that Order.
      (3)
The Pensions Regulator may, on the application of a person disqualified
35
under this paragraph, give the person notice in writing waiving the
disqualification.
      (4)
A member who becomes disqualified under sub-paragraph (1) ceases to be
a member.
5
The Secretary of State may remove a member from office if satisfied that the
40
member—
(a)
has a conflict of interest,
(b)
is unfit for office by reason of misconduct,
(c)
has failed to comply with the terms of appointment,
(d)
has without reasonable excuse failed to discharge the functions of the
45
office, or

Pensions Bill
Schedule 1 — The trustee corporation
Part 1 — Members and employees
51

(e)
is otherwise incapable of discharging, or unfit or unwilling to
discharge, the functions of the office.
Tenure of office
6     (1)
A person holds and vacates office as a member or as chair in accordance with
the terms of the appointment (subject to this Schedule).
5
      (2)
A person's appointment as a member or as chair must state the period for
which the appointment is made.
      (3)
The period must not be more than four years.
      (4)
At the end of the period the person is eligible for re-appointment, but may
not be re-appointed more than once.
10
      (5)
A person may resign as a member by notice in writing to the chair.
      (6)
A person may resign as chair by notice in writing to the Secretary of State.
      (7)
A person’s appointment as chair ceases if the person ceases to be a member.
Remuneration etc.
7     (1)
The trustee corporation may—
15
(a)
pay to the members such remuneration, and
(b)
pay to or in respect of them such sums by way of or in respect of
allowances and gratuities,

as the Secretary of State may determine.
      (2)
Where—
20
(a)
a person whose term of office as member or chair has not expired
ceases to hold that office, and
(b)
the Secretary of State thinks there are special circumstances that
make it right for the person to receive compensation,

the trustee corporation may make a payment to the person of such amount
25
as the Secretary of State may determine.
Employees
8     (1)
The trustee corporation may appoint employees and make any other
arrangements for its staffing that it thinks fit.
      (2)
Employees are appointed and hold their employment on terms and
30
conditions, including remuneration, determined by the trustee corporation.
      (3)
The trustee corporation must—
(a)
pay to or in respect of employees such pensions, allowances or
gratuities as it may determine, or
(b)
provide and maintain for them such pension schemes (whether
35
contributory or not) as it may determine.

Pensions Bill
Schedule 1 — The trustee corporation
Part 2 — Proceedings etc.
52

Part 2
Proceedings etc.
Committees and advisory committees
9     (1)
The trustee corporation may—
(a)
establish a committee for the purpose of discharging any of its
5
functions;
(b)
establish a committee for the purpose of giving the corporation
advice about matters relating to the discharge of its functions.
      (2)
A committee may include persons (including persons constituting a
majority, but not the whole, of the committee) who are neither members nor
10
employees of the trustee corporation.
      (3)
Where a person who is neither a member nor an employee of the trustee
corporation is a member of a committee, the trustee corporation may pay to
that person such remuneration and expenses as it may determine.
10    (1)
A committee of the trustee corporation may establish a sub-committee.
15
      (2)
Every member of a sub-committee must be a member of the committee
which established it.
Proceedings
11    (1)
The trustee corporation may, subject to this Schedule—
(a)
regulate its own procedure;
20
(b)
regulate the procedure of its committees or sub-committees;
(c)
enable committees or sub-committees to regulate their own
procedure subject to any provision made by the corporation.
      (2)
The trustee corporation must publish, in such manner as it thinks fit, its own
procedures and those of its committees and sub-committees.
25
      (3)
This paragraph has effect subject to paragraph 13 (disqualification for acting
in relation to certain matters).
12
The trustee corporation must make arrangements for the keeping of proper
records—
(a)
of its proceedings,
30
(b)
of the proceedings of its committees and sub-committees,
(c)
of anything done by an employee or member of the corporation
under paragraph 14(a) or (b) (delegation to member or employee).
Disqualification for acting in relation to certain matters
13    (1)
This paragraph applies if at any meeting of—
35
(a)
the trustee corporation, or
(b)
any committee or sub-committee,

a member of the trustee corporation or, as the case may be, of the committee
or sub-committee has a direct or indirect interest in any matter falling to be
considered at the meeting.
40

Pensions Bill
Schedule 1 — The trustee corporation
Part 2 — Proceedings etc.
53

      (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
relating to the matter in which he has an interest, unless—
(a)
in the case of a meeting of the trustee corporation the other members
5
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
(b)
in the case of a meeting of a committee or sub-committee, the other
members of the committee or sub-committee who are present when
10
the discussion or decision falls to take place or is made have resolved
in the manner authorised by the trustee corporation that the interest
is to be disregarded.
      (4)
In granting authorisations for the purposes of sub-paragraph (3)(b), the
trustee corporation must secure that a resolution for those purposes does not
15
allow a 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
20
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—
25
(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
30
(b)
the person 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.
35
      (6)
Section 252 of the Companies Act 2006 (c. 46) (persons connected with a
director) applies for determining whether a person is connected with
another person for the purposes of sub-paragraph (5) as it applies for
determining whether a person is connected with a director of a company.
      (7)
A notification for the purposes of sub-paragraph (5) remains in force until it
40
is withdrawn.
      (8)
For the purposes of sub-paragraph (5) each of the following is a “relevant
meeting”—
(a)
a meeting of the trustee corporation,
(b)
a meeting of a committee,
45
(c)
a meeting of a sub-committee,

and a relevant meeting is of the same type as another relevant meeting if
both meetings are relevant meetings by virtue of falling within the same
paragraph of this sub-paragraph.

Pensions Bill
Schedule 1 — The trustee corporation
Part 2 — Proceedings etc.
54

      (9)
A person required to make a declaration for the purposes of this paragraph
in relation to any meeting—
(a)
is not required to attend the meeting, but
(b)
is to be taken to have complied with the requirements of this
paragraph if he takes reasonable steps to secure that notice of his
5
interest is read out at, and taken into consideration at, the meeting.
     (10)
For the purposes of this paragraph a person is not to be taken to have an
interest in any matter for these reasons only—
(a)
being or having previously been engaged, on behalf of the relevant
authority, in activities connected with the discharge of the
10
authority's functions relating to occupational pension schemes or
personal pension schemes, or
(b)
having previously been a trustee or manager of such a scheme or an
employee of such a trustee or manager.
Delegation
15
14
The trustee corporation may, subject to an order or rules under section 50,
delegate any function conferred on it to—
(a)
a member,
(b)
an employee, or
(c)
a committee.
20
Validity of proceedings
15
The validity of proceedings of the trustee corporation, a committee or a sub-
committee is not affected by a vacancy among the members or a defect in
appointment.
Authentication of the trustee corporation’s seal
25
16    (1)
The application of the trustee corporation's seal must be authenticated by
the signature of—
(a)
a member, or
(b)
any other person authorised by the trustee corporation (whether
generally or specially) for the purpose.
30
      (2)
A document purporting to be duly executed under the seal of the trustee
corporation, or to be signed on behalf of the trustee corporation, is to be
received in evidence and, except to the extent that the contrary is shown,
taken to be duly so executed or signed.
      (3)
This paragraph does not apply to Scotland.
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Annual report
17    (1)
As soon as is reasonably practicable after the end of each financial year, the
trustee corporation must send to the Secretary of State a report on the
exercise of the trustee corporation's functions during that year.
      (2)
The report must include—
40
(a)
a report on the trustee corporation's proceedings during the year,
and