Pensions Bill

House of Commons portcullis

House of Commons

Session 2007 - 08
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Other Bills before Parliament

Pensions Bill

Pensions Bill

EXPLANATORY NOTES
Explanatory notes to the Bill, prepared by the Department for Work and Pensions,
will be published separately as Bill 25—EN.
EUROPEAN CONVENTION ON HUMAN RIGHTS
Mr Secretary Hain has made the following statement under section 19(1)(a) of the
Human Rights Act 1998:
In my view the provisions of the Pensions Bill are compatible with the Convention
rights.

Bill 25
54/3

Pensions Bill

Contents
Part 1
Pension scheme membership for jobholders
Chapter 1
Employers’ duties
Jobholders
1
Jobholders
Employers’ duties
2
Continuity of scheme membership
3
Automatic enrolment
4
Postponement of automatic enrolment
5
Automatic re-enrolment
6
Jobholder’s right to opt in
7
Jobholder’s right to opt out
8
Information to be given to jobholders
9
Information to be given to the Pensions Regulator
10
Introduction of employers’ duties
Qualifying earnings
11
Qualifying earnings
12
Review of qualifying earnings band
13
Pay reference period
Qualifying schemes and automatic enrolment schemes
14
Qualifying schemes
15
Automatic enrolment schemes
16
Occupational pension schemes
17
Personal pension schemes

Bill 25
54/3

Pensions Bill
ii

Quality requirements
18
Quality requirement: UK money purchase schemes
19
Quality requirement: UK defined benefits schemes
20
Test scheme standard
21
Test scheme
22
Quality requirement: UK hybrid schemes
23
Quality requirement: non-UK occupational pension schemes
24
Quality requirement: personal pension schemes
Miscellaneous
25
Power of trustees to modify by resolution
26
Deduction of contributions
Chapter 2
Compliance
Effect of failure to comply
27
Effect of failure to comply
Compliance notices and unpaid contributions notices
28
Compliance notices
29
Third party compliance notices
30
Unpaid contributions notices
31
Calculation and payment of contributions
Penalty notices
32
Fixed penalty notices
33
Escalating penalty notices
34
Penalty notices: recovery
Review and appeal
35
Review of notices
36
References to the Pensions Regulator Tribunal
Offences
37
Offences of failing to comply
38
Offences of providing false or misleading information
39
Monitoring of employers’ payments to personal pension schemes
Records and information
40
Requirement to keep records
41
Powers to require information and to enter premises
42
Disclosure of information by Revenue and Customs
43
Information for private pensions policy and retirement planning
44
Penalty for disclosure

Pensions Bill
iii

Objectives of the Regulator
45
Objectives of the Regulator
Chapter 3
Protection of employment rights
46
The right not to suffer detriment
47
Enforcement of the right
48
Right of employee not to be unfairly dismissed
49
Restrictions on agreements to limit operation of this Part
Chapter 4
Power to establish a pension scheme
Pension scheme
50
Power to provide for a pension scheme
51
Scheme orders: general
52
Consultation of members and employers
53
Contribution limits
54
Procedure for scheme orders
55
Procedure for rules
56
Application of enactments
Trustee corporation
57
Trustee corporation
58
Functions
59
Application of enactments
Interpretation
60
Interpretation of Chapter
Chapter 5
Personal Accounts Delivery Authority
Functions of the Authority
61
Functions
62
Principles
63
Directions and guidance
64
Finance
65
Disclosure of information by the Pensions Regulator
Non-executive committee
66
Non-executive committee

Pensions Bill
iv

Winding up
67
Winding up of the Authority
Chapter 6
Stakeholder pension schemes
68
Stakeholder pension schemes
Chapter 7
Interpretation
“Employee", “worker” etc.
69
“Employee”, “worker” and related expressions
70
Agency workers
71
Crown employment
72
House of Lords staff
73
House of Commons staff
74
Exception for reserve and volunteer forces
75
Exception for share fishermen
76
Extension of definition of worker
General
77
Interpretation of Part
Part 2
Simplification etc
Private pensions
78
Abolition of safeguarded rights
79
Revaluation of accrued benefits etc
State pensions etc
80
Additional State Pension consolidation: Category A and graduated
retirement benefit
81
State pension credit: extension of assessed income period for those aged 75 or
over
Part 3
Pension compensation
Chapter 1
Pension compensation on divorce etc
82
Scope of mechanism
83
Interpretation

Pensions Bill
v

84
Activation of pension compensation sharing
85
Creation of pension compensation debits and credits
86
Cash equivalents
87
Reduction of compensation
88
Time for discharge of liability
89
“Implementation period”
90
Discharge of liability
91
Charges in respect of pension compensation sharing costs
92
Supply of information about pension compensation in relation to divorce etc
93
Supply of information about pension compensation sharing
94
Pension compensation sharing and attachment on divorce etc
95
Consequential amendment
Chapter 2
Other provision about pension compensation
96
Amendments of Schedule 7 to the Pensions Act 2004
Part 4
Miscellaneous
97
Pension sharing: power of Court of Session to extend time limits
98
Interest on late payment of levies
99
Intervention by Regulator where scheme’s technical provisions improperly
determined
100
Exclusion of transfers out in certain cases
101
Official pensions: adjustment of increases in survivors’ pensions
102
War pensions: effect of later marriage or civil partnership
103
Polish Resettlement Act 1947: effect of residence in Poland
Part 5
General
104
Orders and regulations
105
Orders and regulations: supplementary
106
Power to make further provision
107
General financial provisions
108
Repeals
109
Commencement
110
Extent
111
Short title
Schedule 1   —
The trustee corporation
Part 1   —
Members and employees
Part 2   —
Proceedings etc.
Part 3   —
Money
Part 4   —
Supplementary
Schedule 2   —
Revaluation of accrued benefits etc

© Parliamentary copyright 2007
Revised 5 December 2007