Pensions Bill

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Pensions Bill

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 1 — Employers’ duties
1

A
Bill
[AS AMENDED IN PUBLIC BILL COMMITTEE]
To
Make provision relating to pensions; and for connected purposes.
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—
Part 1
Pension scheme membership for jobholders
Chapter 1
Employers’ duties
Jobholders
5
1
Jobholders
(1)
For the purposes of this Part a jobholder is an employee or worker—
(a)
who is working or ordinarily works in Great Britain under a contract,
(b)
who is aged at least 16 and under 75, and
(c)
to whom qualifying earnings (defined in section 12) are payable by the
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employer.
(2)
Where a jobholder has more than one employer, or a succession of employers,
this Chapter applies separately in relation to each employment.
(3)
Accordingly—
(a)
references to the employer are references to the employer concerned;
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(b)
references to membership of a pension scheme are references to
membership in relation to the employment concerned.

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Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 1 — Employers’ duties
2

Employers’ duties
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Continuity of scheme membership
(1)
If a jobholder is an active member of a qualifying scheme, the employer must
not take any action, or make any omission, by which the jobholder, without
ceasing to be employed by the employer, ceases to be an active member of the
5
scheme.
(2)
Subsection (1) is not contravened if the jobholder remains an active member of
another qualifying scheme.
(3)
Subsection (1) is not contravened if the jobholder becomes an active member of
another qualifying scheme within the prescribed period.
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(4)
Subsection (1) is not contravened if the action or omission is at the jobholder’s
request.
(5)
In this Part as it applies in the case of any jobholder, references to a qualifying
scheme are references to a pension scheme which is a qualifying scheme in
relation to that jobholder (see section 15).
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3
Automatic enrolment
(1)
This section applies to a jobholder who—
(a)
is aged at least 22, and
(b)
has not reached pensionable age.
(2)
The employer must make prescribed arrangements by which the jobholder
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becomes an active member of an automatic enrolment scheme with effect from
the automatic enrolment date.
(3)
Subsection (2) does not apply if the jobholder was an active member of a
qualifying scheme on the automatic enrolment date.
(4)
Subsection (2) does not apply if, within the prescribed period before the
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automatic enrolment date, the jobholder ceased to be an active member of a
qualifying scheme because of any action or omission by the jobholder.
(5)
The Secretary of State may by regulations provide that subsection (2) does not
apply if there are prescribed arrangements under which the jobholder is
entitled to become an active member, with effect from the automatic enrolment
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date, of a qualifying scheme which is a personal pension scheme of a
prescribed description.
(6)
The automatic enrolment date, in relation to any person, is the first day on
which this section applies to the person as a jobholder of the employer.
(7)
In this Part as it applies in the case of any jobholder, references to an automatic
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enrolment scheme are references to a pension scheme which is an automatic
enrolment scheme in relation to that jobholder (see section 16).
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Postponement of automatic enrolment
(1)
The Secretary of State may by regulations provide that, for the purposes of
arrangements of a prescribed description that are made in accordance with
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section 3(2) or with regulations under section 3(5), the automatic enrolment

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 1 — Employers’ duties
3

date is a date, determined in accordance with regulations under this section,
which is later than the date specified in section 3(6).
(2)
Where a person becomes an active member of a scheme in accordance with
regulations under this section, the employer must not take any action, or make
any omission, by which the person ceases to be an active member of the scheme
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within the minimum period.
(3)
The minimum period is so much of a prescribed period as the person remains
a jobholder of the employer.
(4)
Subsection (2) does not apply to any action or omission at the member’s
request.
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5
Automatic re-enrolment
(1)
This section applies to a jobholder who—
(a)
is aged at least 22, and
(b)
has not reached pensionable age.
(2)
The employer must make prescribed arrangements by which the jobholder
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becomes an active member of an automatic enrolment scheme with effect from
the automatic re-enrolment date.
(3)
Subsection (2) does not apply if the jobholder was an active member of a
qualifying scheme on the automatic re-enrolment date.
(4)
Subsection (2) does not apply if, within the prescribed period before the
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automatic re-enrolment date, the jobholder ceased to be an active member of a
qualifying scheme because of any action or omission by the jobholder.
(5)
The Secretary of State may by regulations provide that subsection (2) does not
apply if there are prescribed arrangements under which the jobholder is
entitled to become an active member, with effect from the automatic re-
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enrolment date, of a qualifying scheme which is a personal pension scheme of
a prescribed description.
(6)
Automatic re-enrolment dates are dates, after the automatic enrolment date,
that are to be determined in accordance with regulations made by the Secretary
of State.
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(7)
Regulations under subsection (6) must secure in the case of each employer, or
secure in the case of each jobholder of an employer, that there is not more than
one automatic re-enrolment date in any period of three years.
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Jobholder’s right to opt in
(1)
This section applies to a jobholder who is not an active member of a qualifying
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scheme.
(2)
But it does not apply at a time when—
(a)
arrangements are required to be made under section 3 or 5 in respect of
the jobholder, or
(b)
the jobholder’s automatic enrolment date is postponed under section 4.
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(3)
The jobholder may by notice require the employer to arrange for the jobholder
to become an active member of an automatic enrolment scheme.

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 1 — Employers’ duties
4

(4)
The Secretary of State may by regulations make provision—
(a)
about the form and content of the notice;
(b)
about the arrangements that the employer is required to make;
(c)
for determining the date with effect from which the jobholder is to
become an active member under the arrangements.
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(5)
The Secretary of State may by regulations provide that an employer may
comply with a notice by making prescribed arrangements under which the
jobholder is entitled to become an active member of a qualifying scheme which
is a personal pension scheme of a prescribed description, with effect from a
date determined in accordance with the regulations.
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(6)
Subsections (7) and (8) apply where a jobholder becomes an active member of
an automatic enrolment scheme in pursuance of a notice under this section
and, within the period of 12 months beginning with the day on which that
notice was given—
(a)
ceases to be an active member of that scheme, and
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(b)
gives the employer a further notice under this section.
(7)
The further notice does not have effect to require the employer to arrange for
the jobholder to become an active member of an automatic enrolment scheme.
(8)
But any arrangements the employer makes for the jobholder to become, within
that period, an active member of such a scheme must be made in accordance
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with regulations under this section.
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Jobholder’s right to opt out
(1)
This section applies to a jobholder to whom arrangements under section 3(2),
5(2) or 6(3) apply (arrangements for the jobholder to become an active member
of an automatic enrolment scheme).
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(2)
If the jobholder gives notice in the prescribed period in accordance with this
section, the jobholder is to be treated for all purposes as not having become a
member of the scheme.
(3)
Any contributions paid by the jobholder must be refunded in accordance with
prescribed requirements.
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(4)
Any contributions paid by the employer, on behalf of the jobholder, must be
refunded in accordance with prescribed requirements.
(5)
Regulations under subsection (3) or (4) may, in particular, make provision
about—
(a)
the time within which contributions must be refunded;
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(b)
how the amount to be refunded is calculated;
(c)
the procedure for refunding contributions.
(6)
The Secretary of State may by regulations make provision about the form and
content of a notice under this section.
(7)
The regulations must provide for the notice—
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(a)
to include information about the effect in relation to jobholders of
giving notice under this section, and
(b)
to be signed by the jobholder.