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Pensions Bill


Pensions Bill
Schedule 1 — The trustee corporation
Part 4 — Supplementary

55

 

(b)   

any information the Secretary of State directs, relating to the financial

position of the trustee corporation or any other matter.

      (3)  

The Secretary of State must lay before Parliament a copy of each report

received under this paragraph.

Part 3

5

Money

Finance

18    (1)  

The Secretary of State may give financial assistance to the trustee corporation.

      (2)  

The assistance—

(a)   

may take the form of grants, loans, guarantees or indemnities;

10

(b)   

may be given on conditions (which may include conditions about repayment

with or without interest).

19         

The trustee corporation may make charges in connection with the exercise of

its functions.

Accounts

15

20    (1)  

The trustee corporation must—

(a)   

keep proper accounting records, and

(b)   

prepare a statement of accounts in respect of each financial year.

      (2)  

A statement under sub-paragraph (1)(b) must be prepared by the trustee

corporation in such form as the Secretary of State may direct.

20

      (3)  

The trustee corporation must send a copy of a statement under sub-

paragraph (1)(b)—

(a)   

to the Secretary of State, and

(b)   

to the Comptroller and Auditor General.

      (4)  

A copy of a statement must be sent under sub-paragraph (3) within such

25

period, beginning with the end of the financial year to which the statement

relates, as the Secretary of State may direct.

      (5)  

The Comptroller and Auditor General must—

(a)   

examine, certify and report on a statement received under this

paragraph, and

30

(b)   

send a copy of the certified statement and of the report on it to the

Secretary of State as soon as possible.

      (6)  

The Secretary of State must lay before Parliament a copy of the statement

and report sent under sub-paragraph (5)(b).

Part 4

35

Supplementary

Disqualification

21         

In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975

 
 

Pensions Bill
Schedule 1 — The trustee corporation
Part 4 — Supplementary

56

 

(c. 24) (bodies of which all members are disqualified) insert at the

appropriate place—

“The trustee corporation established by section 57 of the

Pensions Act 2008.”

22         

In Part 2 of Schedule 1 to the Northern Ireland Assembly Disqualification

5

Act 1975 (c. 25) (bodies of which all members are disqualified) insert at the

appropriate place—

“The trustee corporation established by section 57 of the

Pensions Act 2008.”

Records and freedom of information

10

23         

In Schedule 1 to the Public Records Act 1958 (c. 51) (definition of public

records) in paragraph 3, insert at the appropriate place in Part 2 of the Table

(other establishments and organisations)—

“The trustee corporation established by section 57 of the

Pensions Act 2008.”

15

24         

In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (c. 36) (public

authorities: miscellaneous) insert at the appropriate place—

“The trustee corporation established by section 57 of the

Pensions Act 2008.”

Equality

20

25         

In Schedule 1A to the Race Relations Act 1976 (c. 74) (bodies subject to

general duty), in Part 2, under “Other Bodies, Etc” insert at the appropriate

place—

“The trustee corporation established by section 57 of the

Pensions Act 2008.”

25

Interpretation

26    (1)  

In this Schedule—

“financial year” means such period as the Secretary of State may by

order prescribe;

“occupational pension scheme” and “personal pension scheme”—

30

(a)   

in relation to England and Wales or Scotland, have the same

meanings as in the Pension Schemes Act 1993 (c. 48) (see

section 1 of that Act);

(b)   

in relation to Northern Ireland, have the same meanings as in

the Pension Schemes (Northern Ireland) Act 1993 (c. 49) (see

35

section 1 of that Act);

“the relevant authority” means—

(a)   

in relation to England and Wales or Scotland, the Secretary of

State;

(b)   

in relation to Northern Ireland, the Department for Social

40

Development in Northern Ireland;

“trustee or manager”—

(a)   

in relation to England and Wales or Scotland, is to be

construed in accordance with section 178 of the Pension

 
 

Pensions Bill
Schedule 2 — Revaluation of accrued benefits etc
Part 1 — Revaluation of accrued pension benefits

57

 

Schemes Act 1993 (trustees and managers of schemes:

interpretation);

(b)   

in relation to Northern Ireland, is to be construed in

accordance with section 173 of the Pension Schemes

(Northern Ireland) Act 1993 (c. 49) (trustees or managers of

5

schemes).

      (2)  

In this Schedule references to the relevant authority's functions relating to

occupational pension schemes or personal pension schemes include such

functions conferred at any time after the passing of this Act.

Schedule 2

10

Section 79

 

Revaluation of accrued benefits etc

Part 1

Revaluation of accrued pension benefits

Amendments to Schedule 3 to the 1993 Act

1          

This Part makes amendments to Schedule 3 to the Pension Schemes Act 1993

15

(c. 48) (methods of revaluing accrued pension benefits).

2          

In paragraph 1 (the final salary method), for sub-paragraphs (1) to (3)

substitute—

    “(1)  

The final salary method is to add to the amount that would be

payable but for Chapter 2 of Part 4, or regulations made under it,

20

the additional amount specified in sub-paragraph (1A), (1B), (1C)

or (1D) (whichever applies).

     (1A)  

Where—

(a)   

the termination of pensionable service occurs before 1st

January 1991, and

25

(b)   

the whole of the member’s pensionable service falls on or

after 1st January 1985,

           

the additional amount is the appropriate higher revaluation

percentage of the accrued benefit.

     (1B)  

Where—

30

(a)   

the termination of pensionable service occurs before 1st

January 1991, and

(b)   

some of the member’s pensionable service falls before 1st

January 1985,

           

the additional amount is such proportion of the appropriate

35

higher revaluation percentage of the accrued benefit as the

member’s pensionable service falling on or after 1st January 1985

bears to the member’s total pensionable service.

     (1C)  

Where the termination of pensionable service occurs—

(a)   

on or after 1st January 1991, but

40

(b)   

before the day on which section 79 of the Pensions Act 2008

comes into force (“the 2008 Act commencement day”),

 
 

Pensions Bill
Schedule 2 — Revaluation of accrued benefits etc
Part 1 — Revaluation of accrued pension benefits

58

 

           

the additional amount is the appropriate higher revaluation

percentage of the accrued benefit.

     (1D)  

Where the termination of pensionable service occurs on or after

the 2008 Act commencement day, the additional amount is the

aggregate of—

5

(a)   

the appropriate higher revaluation percentage of so much

of the accrued benefit as is attributable to the member’s

pensionable service falling before the 2008 Act

commencement day, and

(b)   

the appropriate lower revaluation percentage of so much

10

of the accrued benefit as is attributable to the member’s

pensionable service falling on or after that day.

     (1E)  

In this paragraph “the accrued benefit” means the amount of the

pension or other benefit which on the termination date has

accrued to the member or to any other person in respect of the

15

member (excluding any part of that amount which consists of—

(a)   

the member’s guaranteed minimum, or

(b)   

the guaranteed minimum of the member’s widow,

widower or surviving civil partner).

     (2)  

For the purposes of this paragraph, a member’s pensionable

20

service includes any notional pensionable service which is

credited to the member by the scheme (“notional service”).

           

But notional service shall not be taken into account in determining

which of sub-paragraphs (1A), (1B), (1C) and (1D) applies.

      (3)  

For the purposes of determining the additional amount where

25

sub-paragraph (1B) applies, any notional service shall be taken to

have ended immediately before the member’s actual pensionable

service began.

     (3A)  

For the purposes of determining the additional amount where

sub-paragraph (1D) applies, any notional service shall be treated

30

as falling on or after the 2008 Act commencement day only if, or to

the extent that, it is so treated for the purposes of the scheme.”

3     (1)  

Paragraph 2 (the revaluation percentage and the appropriate revaluation

percentage) is amended as follows.

      (2)  

In sub-paragraph (1), for “specify a relevant percentage for each period”

35

substitute “specify (so far as it is necessary to do so)—

(a)   

a higher revaluation percentage, and

(b)   

a lower revaluation percentage,

           

for each period”.

      (3)  

For sub-paragraph (3) substitute—

40

    “(3)  

The higher revaluation percentage which the Secretary of State is

to specify in relation to a revaluation period is the lesser of—

(a)   

the percentage which appears to the Secretary of State to be

the percentage increase in the general level of prices in

Great Britain during the period which is the reference

45

period in relation to the revaluation period (“the inflation

percentage”), and

 
 

Pensions Bill
Schedule 2 — Revaluation of accrued benefits etc
Part 2 — Revaluation of accrued amounts etc

59

 

(b)   

the higher maximum rate.

     (3A)  

The lower revaluation percentage which the Secretary of State is to

specify in relation to a revaluation period is the lesser of—

(a)   

the percentage which appears to the Secretary of State to be

the inflation percentage, and

5

(b)   

the lower maximum rate.”

      (4)  

For sub-paragraphs (6) and (7) substitute—

    “(6)  

For the purposes of sub-paragraph (3)(b) and (3A)(b)—

“the higher maximum rate”, in relation to a revaluation

period, is—

10

(a)   

in the case of a revaluation period of 12 months, 5

per cent; and

(b)   

in any other case, the percentage that would be the

inflation percentage had the general level of prices

increased at the rate of 5 per cent compound per

15

annum during the reference period in question;

“the lower maximum rate”, in relation to a revaluation

period, is—

(a)   

in the case of a revaluation period of 12 months, 2.5

per cent; and

20

(b)   

in any other case, the percentage that would be the

inflation percentage had the general level of prices

increased at the rate of 2.5 per cent compound per

annum during the reference period in question.

      (7)  

In paragraph 1—

25

“the appropriate higher revaluation percentage” means the

higher revaluation percentage specified in the last

calendar year before the date on which the member attains

normal pension age as the higher revaluation percentage

for the revaluation period which is of the same length as

30

the number of complete years in the pre-pension period;

“the appropriate lower revaluation percentage” has a

corresponding meaning.”

Part 2

Revaluation of accrued amounts etc

35

Amendments to Schedule 7 to the 2004 Act

4          

This Part makes amendments to Schedule 7 to the Pensions Act 2004 (c. 35)

(pension compensation provisions).

5     (1)  

Paragraph 12 (active members who have not attained normal pension age at

assessment date: the revaluation amount for the revaluation period) is

40

amended as follows.

      (2)  

In sub-paragraph (3), for paragraph (b) substitute—

“(b)   

in any other case, the aggregate of—

(i)   

the higher revaluation percentage of so much of the

accrued amount as is attributable to the active

45

 
 

Pensions Bill
Schedule 2 — Revaluation of accrued benefits etc
Part 2 — Revaluation of accrued amounts etc

60

 

member’s pensionable service falling before the

day on which section 79 of the Pensions Act 2008

comes into force (“the 2008 Act commencement

day”), and

(ii)   

the lower revaluation percentage of so much of the

5

accrued amount as is attributable to the active

member’s pensionable service falling on or after

that day.”

      (3)  

After sub-paragraph (3) insert—

   “(3A)  

For the purposes of sub-paragraph (3)(b)—

10

(a)   

any service within paragraph 36(4)(b) (notional

pensionable service) is to be treated as falling on or after

the 2008 Act commencement day if, or to the extent that, it

is so treated for the purposes of the scheme;

(b)   

regulations may make provision in relation to cases where

15

it is unclear whether or not any particular pensionable

service (either actual or notional) falls, or is to be treated as

falling, on or after that day.”

      (4)  

For sub-paragraphs (4) and (5) substitute—

    “(4)  

In sub-paragraph (3)(b)—

20

“the higher revaluation percentage” means the lesser of—

(a)   

the percentage increase in the general level of

prices in Great Britain during the revaluation

period determined in the prescribed manner (“the

inflation percentage”), and

25

(b)   

the higher maximum revaluation rate;

“the lower revaluation percentage” means the lesser of—

(a)   

the inflation percentage, and

(b)   

the lower maximum revaluation rate.

      (5)  

For the purposes of sub-paragraph (4)—

30

“the higher maximum revaluation rate”, in relation to the

revaluation period, is—

(a)   

if that period is a period of 12 months, 5%, and

(b)   

in any other case, the percentage that would be the

inflation percentage had the general level of prices

35

in Great Britain increased at the rate of 5%

compound per annum during that period;

“the lower maximum revaluation rate”, in relation to the

revaluation period, is—

(a)   

if that period is a period of 12 months, 2.5%, and

40

(b)   

in any other case, the percentage that would be the

inflation percentage had the general level of prices

in Great Britain increased at the rate of 2.5%

compound per annum during that period.

           

This is subject to paragraph 29 (power of Board to determine

45

maximum revaluation rates etc).”

 
 

Pensions Bill
Schedule 2 — Revaluation of accrued benefits etc
Part 2 — Revaluation of accrued amounts etc

61

 

6     (1)  

Paragraph 17 (deferred members who have not attained normal pension age

at assessment date: the revaluation amount for the second revaluation

period) is amended as follows.

      (2)  

In sub-paragraph (3), for paragraph (b) substitute—

“(b)   

in any other case, the aggregate of—

5

(i)   

the higher revaluation percentage of so much of the

relevant amount as is attributable to the deferred

member’s pensionable service falling before the

day on which section 79 of the Pensions Act 2008

comes into force (“the 2008 Act commencement

10

day”), and

(ii)   

the lower revaluation percentage of so much of the

relevant amount as is attributable to the deferred

member’s pensionable service falling on or after

that day.”

15

      (3)  

After sub-paragraph (3) insert—

   “(3A)  

For the purposes of sub-paragraph (3)(b)—

(a)   

any service within paragraph 36(4)(b) (notional

pensionable service) is to be treated as falling on or after

the 2008 Act commencement day if, or to the extent that, it

20

is so treated for the purposes of the scheme;

(b)   

regulations may make provision in relation to cases where

it is unclear whether or not any particular pensionable

service (either actual or notional) falls, or is to be treated as

falling, on or after that day.”

25

      (4)  

For sub-paragraphs (4) and (5) substitute—

    “(4)  

In sub-paragraph (3)—

“the higher revaluation percentage” means the lesser of—

(a)   

the percentage increase in the general level of

prices in Great Britain during the revaluation

30

period determined in the prescribed manner (“the

inflation percentage”), and

(b)   

the higher maximum revaluation rate;

“the lower revaluation percentage” means the lesser of—

(a)   

the inflation percentage, and

35

(b)   

the lower maximum revaluation rate;

“the relevant amount” means the aggregate of—

(a)   

the accrued amount, and

(b)   

the revaluation amount for the first revaluation

period (see paragraph 16).

40

      (5)  

For the purposes of sub-paragraph (3)—

“the higher maximum revaluation rate”, in relation to the

second revaluation period, is—

(a)   

if that period is a period of 12 months, 5%, and

(b)   

in any other case, the percentage that would be the

45

inflation percentage had the general level of prices

in Great Britain increased at the rate of 5%

compound per annum during that period;

 
 

 
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