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Pensions Bill


Pensions Bill
Schedule 6 — Amendments of Schedule 7 to the Pensions Act 2004

83

 

7          

After paragraph 25 insert—

“Deferral of compensation

25A   (1)  

Regulations may prescribe circumstances in which, and

conditions subject to which, a person may elect to defer

entitlement to any relevant compensation until some time after

5

attaining normal pension age (or, in a case to which paragraph 21

applies, normal benefit age).

      (2)  

For this purpose “any relevant compensation” means any

compensation to which a person is or will be entitled under the

pension compensation provisions, except for compensation

10

payable in accordance with paragraph 3 (pensions in payment at

assessment date).

      (3)  

The Board must determine the amount of the actuarial increase to

be applied to compensation to which a person is entitled by virtue

of this paragraph.

15

      (4)  

Where, by virtue of this paragraph, periodic compensation is

payable to a person under paragraph 11 or 15 after that person

attains normal pension age (or, in a case to which paragraph 21

applies, normal benefit age)—

(a)   

paragraph 12(2) applies as if the reference to the date on

20

which the active member attains normal pension age were

a reference to the date on which the compensation is

payable by virtue of this paragraph, and

(b)   

paragraph 17(2)(b) applies as if the reference to the date on

which the deferred member attains normal pension age

25

were a reference to the date on which the compensation is

payable by virtue of this paragraph.”

8          

In paragraph 33 make the existing provision sub-paragraph (1) and at the

end add—

    “(2)  

Where the scheme is a variable-rate scheme, regulations under

30

this paragraph may have the effect that the amount of periodic

compensation payable to a person is, from a specified time, to be

different from the amount that would otherwise be payable under

this Schedule.

      (3)  

A “variable-rate scheme” is a scheme under which the annual rate

35

of pension to which a person is entitled would have increased

(otherwise than by way of revaluation) or decreased at any time

after the assessment date, had the scheme continued in existence

until that time (and had the scheme rules remained unchanged).

      (4)  

Where the scheme is a fixed-term scheme, regulations under this

40

paragraph may have the effect that no periodic compensation is to

be payable to a person from a specified time.

      (5)  

A “fixed-term scheme” is a scheme under which a person’s

entitlement to benefits would have ceased at any time after the

assessment date, had the scheme continued in existence until that

45

time (and had the scheme rules remained unchanged).

 
 

Pensions Bill
Schedule 7 — Interest on late payment of levies

84

 

      (6)  

In this paragraph “a specified time” means a time determined in

accordance with regulations under this paragraph.”

9          

In paragraph 34(1) after “ill health” insert “or otherwise”.

10         

For paragraph 35(2)(a) substitute—

“(a)   

in the case of a scheme to which sub-paragraph (3) applies,

5

any recent rule changes, and”.

11         

For paragraph 35(3) substitute—

    “(3)  

This sub-paragraph applies to a scheme if, in calculating the

protected liabilities in relation to the scheme at the relevant time,

the effect of taking into account—

10

(a)   

any recent rule changes, and

(b)   

any recent discretionary increases,

           

is that those liabilities are greater than they otherwise would be.”

Schedule 7

Section 98

 

Interest on late payment of levies

15

Pension Schemes Act 1993 (c. 48)

1          

After section 175 of the Pension Schemes Act 1993 (levies towards certain

expenditure) insert—

“175A   

 Levies: interest for late payment

(1)   

Regulations may make provision for interest to be charged at the

20

prescribed rate in the case of late payment of a levy imposed under

section 175(1).

(2)   

Interest is payable by or on behalf of the person or persons by or on

behalf of whom the levy is payable.

(3)   

Interest payable by a person by virtue of this section is a debt due

25

from the person to the Secretary of State.

(4)   

Interest is recoverable by the Secretary of State or, if the Secretary of

State so determines, by the Regulatory Authority on the Secretary of

State’s behalf.

(5)   

Without prejudice to the generality of subsection (1), regulations

30

under this section may include provision relating to—

(a)   

the collection and recovery of interest;

(b)   

the circumstances in which interest may be waived.”

Pensions Act 2004 (c. 35)

2          

The Pensions Act 2004 is amended as follows.

35

 
 

Pensions Bill
Schedule 7 — Interest on late payment of levies

85

 

3          

After section 117 (PPF administration levy) insert—

“117A   

 Administration levy: interest for late payment

(1)   

Regulations may make provision for interest to be charged at the

prescribed rate in the case of late payment of an administration levy.

(2)   

Interest is payable by or on behalf of the person or persons by or on

5

behalf of whom the levy is payable.

(3)   

Interest payable by a person by virtue of this section is a debt due

from the person to the Secretary of State.

(4)   

Interest is recoverable by the Secretary of State or, if the Secretary of

State so determines, by the Regulator on the Secretary of State’s

10

behalf.

(5)   

Without prejudice to the generality of subsection (1), regulations

under this section may include provision relating to—

(a)   

the collection and recovery of interest;

(b)   

the circumstances in which interest may be waived.”

15

4          

In section 173 (Pension Protection Fund) after subsection (1)(b) insert—

“(ba)   

interest paid by virtue of section 181A (interest for late

payment of pension protection levy),”.

5          

After section 181 (calculation, collection and recovery of levies) insert—

“181A   

 Pension protection levy: interest for late payment

20

(1)   

Regulations may make provision for interest to be charged at the

prescribed rate in the case of late payment of a pension protection

levy.

(2)   

Interest is payable by or on behalf of the person or persons by or on

behalf of whom the levy is payable.

25

(3)   

Interest payable by a person by virtue of this section is a debt due

from the person to the Board.

(4)   

Interest is recoverable by the Board or, if the Board so determines, by

the Regulator on its behalf.

(5)   

Without prejudice to the generality of subsection (1), regulations

30

under this section may include provision relating to—

(a)   

the collection and recovery of interest;

(b)   

the circumstances in which interest may be waived.”

6          

In section 188 (Fraud Compensation Fund) after subsection (1)(b) insert—

“(ba)   

interest paid by virtue of section 189A (interest for late

35

payment of fraud compensation levy),”.

7          

After section 189 (fraud compensation levy) insert—

“189A   

 Fraud compensation levy: interest for late payment

(1)   

Regulations may make provision for interest to be charged at the

prescribed rate in the case of late payment of a fraud compensation

40

levy.

 
 

Pensions Bill
Schedule 8 — Repeals
Part 1 — Pension scheme membership for jobholders

86

 

(2)   

Interest is payable by or on behalf of the person or persons by or on

behalf of whom the levy is payable.

(3)   

Interest payable by a person by virtue of this section is a debt due

from the person to the Board.

(4)   

Interest is recoverable by the Board or, if the Board so determines, by

5

the Regulator on its behalf.

(5)   

Without prejudice to the generality of subsection (1), regulations

under this section may include provision relating to—

(a)   

the collection and recovery of interest;

(b)   

the circumstances in which interest may be waived.”

10

8          

In section 209 (Ombudsman for the Board of the Pension Protection Fund) at

the end add—

“(9)   

Where regulations make provision under subsection (7), section

117A (interest for late payment of administration levy) applies in

relation to the levy as it applies in relation to an administration levy.”

15

9          

In section 323(2)(b)(i) (provisions extending to Northern Ireland) for

“subsections (7) and (8)” substitute “subsections (7) to (9)”.

Schedule 8

Section 108

 

Repeals

Part 1

20

Pension scheme membership for jobholders

 

Title

Extent of repeal

 
 

Welfare Reform and Pensions

In section 3—

 
 

Act 1999 (c. 30)

(a)   

subsections (2) to (4);

 
  

(b)   

in subsection (5), “fourth” and the words

 

25

  

from “of his” to “qualifying scheme”;

 
  

(c)   

subsection (6);

 
  

(d)   

subsection (8)(a)(ii) and (iii);

 
  

(e)   

in subsection (9), the definitions of

 
  

“qualifying scheme” and “relevant

 

30

  

employees”.

 
  

Section 6(1).

 
  

In section 8(1), the definition of “designated

 
  

scheme”.

 
 

Employment Relations Act 2004

Section 41(1) and (2).

 

35

 

(c. 24)

  
 

Pensions Act 2004 (c. 35)

In section 80(1)(a)(iii), “or”.

 
 

Pensions Act 2007 (c. 22)

Section 21.

 
 
 

Pensions Bill
Schedule 8 — Repeals
Part 3 — Pension compensation

87

 

Part 2

Safeguarded rights

 

Title

Extent of repeal

 
 

Pension Schemes Act 1993

In section 50(1)—

 
 

(c. 48)

(a)   

paragraph (a)(iii);

 

5

  

(b)   

in paragraph (b), the words “, or

 
  

safeguarded,”.

 
  

In section 52—

 
  

(a)   

subsection (2A)(c);

 
  

(b)   

in subsection (3)(b), the words “, or

 

10

  

safeguarded,” (in both places).

 
  

Sections 68A to 68D.

 
  

In section 181(1), the definition of “safeguarded

 
  

rights”.

 
 

Welfare Reform and Pensions

Section 36.

 

15

 

Act 1999 (c. 30)

In section 40—

 
  

(a)   

subsection (2)(b) and the word “and”

 
  

preceding it;

 
  

(b)   

in subsection (3), in the definition of

 
  

“relevant pension credit”, the words “or,

 

20

  

as the case may be, the safeguarded

 
  

rights”;

 
  

(c)   

in that subsection, the definition of

 
  

“safeguarded rights”.

 
  

In Schedule 5, paragraph 7(2) and (6).

 

25

  

In Schedule 12—

 
  

(a)   

paragraphs 29 and 30;

 
  

(b)   

paragraph 41(b).

 
 

Proceeds of Crime Act 2002

In Schedule 11, paragraph 22(5).

 
 

(c. 29)

  

30

 

Pensions Act 2007 (c.22)

In Schedule 4—

 
  

(a)   

paragraph 27;

 
  

(b)   

paragraph 40.

 

Part 3

Pension compensation

35

 

Title

Extent of repeal

 
 

Matrimonial Causes Act 1973

In section 25E(9), the definition of “PPF

 
 

(c. 18)

compensation”.

 
  

In section 31(2)(dd), at the end of sub-paragraph

 
  

(i), the word “or”.

 

40

 
 

Pensions Bill
Schedule 8 — Repeals
Part 4 — Official pensions: adjustment of increases in survivors’ pensions

88

 
 

Title

Extent of repeal

 
 

Civil Partnership Act 2004

In Schedule 5—

 
 

(c. 33)

(a)   

at the end of paragraph 20(a)(iii), the

 
  

word “or”;

 
  

(b)   

at the end of paragraph 21(1)(c), the

 

5

  

word “or”;

 
  

(c)   

at the end of paragraph 23(1)(c), the

 
  

word “or”;

 
  

(d)   

paragraph 30(3);

 
  

(e)   

at the end of paragraph 50(1)(f)(i), the

 

10

  

word “or”.

 
  

In Schedule 7, in paragraph 10(9)(c), the words

 
  

“Part 7 of”.

 
 

Part 4

Official pensions: adjustment of increases in survivors’ pensions

15

 

Title

Extent of repeal

 
 

Social Security Pensions Act

In section 59(5ZA) the words from “but this

 
 

1975 (c. 60)

subsection” to the end.

 
 
 

 
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Revised 5 December 2007