Pensions Bill

House of Commons

Session 2007 - 08
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Other Bills before Parliament

Pensions Bill

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 2 — Compliance
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(c)
with a view to the institution of any other proceedings by the
Regulator, or for the purposes of any such proceedings
instituted by the Regulator,
(d)
in accordance with section 84, otherwise than for the purposes
of any proceedings, or
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(e)
in the form of a summary or collection of information so framed
as not to enable information relating to any particular person to
be ascertained from it.
(5)
Accordingly sections 82(3), 83, 85 to 87 and 235, and paragraph 4 of
Schedule 10, do not apply to such information, and section 84 applies
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subject to subsection (4)(d).
(6)
In subsection (4)(c) and (d), “proceedings” includes the issue of notices
or any other enforcement action taken by the Regulator under Chapter
2 of Part 1 of the Pensions Act 2008 or any other enactment.
(7)
In this section “the Revenue and Customs” and a “function of the
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Revenue and Customs” have the same meaning as in section 18 of the
Commissioners for Revenue and Customs Act 2005 (confidentiality).”
(2)
In section 82 of that Act (restricted information) in subsection (3) for “88(4)”
substitute “88(4)(d)”.
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Information for private pensions policy and retirement planning
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(1)
In Schedule 10 to the Pensions Act 2004 (c. 35) (use and supply of information
for purposes relating to private pensions policy and retirement planning) after
paragraph 3 insert—
“4    (1)
This paragraph applies to information which is held—
(a)
by the Pensions Regulator;
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(b)
by a person providing services to the Pensions Regulator, in
connection with the provision of those services.
      (2)
Information to which this paragraph applies may be supplied—
(a)
to the Secretary of State or the Northern Ireland Department,
or
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(b)
to a person providing services to the Secretary of State or the
Northern Ireland Department,

for use for the purposes of functions relating to private pensions
policy or retirement planning.
      (3)
In this paragraph—
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“private pensions policy” means policy relating to schemes
which are occupational pension schemes or personal pension
schemes within the meaning of Part 1 of the Pensions Act
2008;
“retirement” and “the Northern Ireland Department” have the
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same meaning as in paragraph 2.”
(2)
Section 323 of the Pensions Act 2004 (extent) is amended as follows.
(3)
In subsection (2)(c) (provisions extending to Northern Ireland)—
(a)
for “paragraph 2” substitute “paragraphs 2 and 4”;
(b)
for “that paragraph” substitute “those paragraphs”.
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Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 3 — Employment and pre-employment protection
23

(4)
In subsection (4), for “paragraph 2” substitute “paragraphs 2 and 4”.
(5)
Section 3 of the Social Security Act 1998 (c. 14) (use of information) is amended
as follows.
(6)
In subsection (5), in the definition of “private pensions policy”—
(a)
the words from “occupational” to the end become paragraph (a), and
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(b)
after that paragraph insert, “or
(b)
occupational pension schemes or private
pension schemes within the meaning of Part 1 of
the Pensions Act 2008, if they do not fall within
paragraph (a);”.
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Penalty for disclosure
(1)
In section 82(5)(a) of the Pensions Act 2004 (penalty for disclosure of restricted
information, on summary conviction) at the end insert “, or imprisonment for
a term not exceeding 12 months, or both”.
(2)
After subsection (5) insert—
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“(6)
In relation to an offence under subsection (5) committed before the
commencement of section 282 of the Criminal Justice Act 2003 (c 44)
(short sentences) the reference in subsection (5)(a) to 12 months has
effect as if it were a reference to six months.
(7)
Subsection (6) does not extend to Scotland.”
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Objectives of the Regulator
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Objectives of the Regulator
In section 5(1) of the Pensions Act 2004 (c. 35), before “and” at the end of
paragraph (c) insert—
“(ca)
to maximise compliance with the duties under Chapter 1 of Part
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1 of the Pensions Act 2008,”.
Chapter 3
Employment and pre-employment protection
Prohibited recruitment conduct
49
Prohibited recruitment conduct
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(1)
An employer contravenes this section if any statement made or question asked
by or on behalf of the employer for the purposes of recruitment indicates
(expressly or impliedly) that an application for employment with the employer
may be determined by reference to whether or not an applicant might opt out
of automatic enrolment.
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(2)
The reference in subsection (1) to a statement made or a question asked for the
purposes of recruitment is a reference to one made or asked in the course of any
of the following—

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 3 — Employment and pre-employment protection
24

(a)
inviting applications for employment;
(b)
requesting information from an applicant, referee or other person in
connection with an application for employment;
(c)
providing information about employment;
(d)
proposing terms or conditions of employment.
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(3)
The reference in subsection (1) to an applicant opting out of automatic
enrolment is a reference to the applicant, if becoming at any time in the course
of the employment a jobholder to whom section 3 or 5 applies—
(a)
giving notice in accordance with section 7 in relation to arrangements
made by the employer under the relevant section, or
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(b)
where the employer makes arrangements under regulations under
section 3(5) or 5(5), declining to become an active member of the
scheme to which the arrangements relate.
(4)
In this section and sections 50 and 51, “employer” means the prospective
employer in relation to any employment.
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50
Compliance notices
(1)
The Pensions Regulator (referred to in this Chapter as the “Regulator”) may
issue a compliance notice to an employer if the Regulator is of the opinion that
the employer has contravened section 49.
(2)
A compliance notice is a notice directing the employer to take, or refrain from
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taking, the steps specified in the notice in order to—
(a)
remedy the contravention, or
(b)
prevent the contravention being repeated.
(3)
A compliance notice may, in particular—
(a)
state the period within which any step must be taken or must cease to
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be taken;
(b)
require the employer to provide within a specified period specified
information relating to the contravention;
(c)
require the employer to inform the Regulator, within a specified period,
how the employer has complied or is complying with the notice;
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(d)
state that, if the employer fails to comply with the requirements of the
notice, the Regulator may issue a penalty notice under section 51.
(4)
A compliance notice must specify the contravention to which the notice relates.
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Penalty notices
(1)
The Regulator may issue a penalty notice to an employer if the Regulator is of
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the opinion that the employer—
(a)
has contravened section 49, or
(b)
has failed to comply with a compliance notice under section 50.
(2)
A penalty notice is a notice requiring the person to whom it is issued to pay a
penalty within the period specified in the notice.
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(3)
The penalty—
(a)
is to be determined in accordance with regulations, and
(b)
must not exceed £50,000.

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 3 — Employment and pre-employment protection
25

(4)
A penalty notice must—
(a)
state the amount of the penalty;
(b)
state the date, which must be at least 4 weeks after the date on which
the notice is issued, by which the penalty must be paid;
(c)
specify the contravention or failure to which the notice relates;
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(d)
notify the employer of the review process under section 38 and the right
to make a reference under section 39 (as applied by section 52).
(5)
Section 37 (penalty notices: recovery) applies to a penalty payable under this
section, and to a notice under this section, as it applies to a penalty payable
under section 35, and to a notice under that section.
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Review of notices and references to Pensions Regulator Tribunal
(1)
Section 38 (review of notices) also applies to a compliance notice issued under
section 50 and to a penalty notice issued under section 51.
(2)
Section 39 (references to the Pensions Regulator Tribunal) applies in relation to
a penalty notice issued under section 51 as it applies in relation to a notice
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issued under section 35 or 36.
Protection of employment rights
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The right not to suffer detriment
(1)
A worker has the right not to be subjected to any detriment by an act, or a
deliberate failure to act, by the worker’s employer, done on the ground that—
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(a)
any action was taken, or was proposed to be taken, with a view to
enforcing in favour of the worker a requirement to which this section
applies;
(b)
the employer was prosecuted for an offence under section 40 as a result
of action taken for the purpose of enforcing in favour of the worker a
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requirement to which this section applies; or
(c)
any provision of Chapter 1 of this Part applies to the worker, or will or
might apply.
(2)
It is immaterial for the purposes of paragraph (a) or (b) of subsection (1)—
(a)
whether or not the requirement applies in favour of the worker, or
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(b)
whether or not the requirement has been contravened,

but, for that subsection to apply, the claim that the requirement applies and, if
applicable, the claim that it has been contravened must be made in good faith.
(3)
This section applies to any requirement imposed on the employer by or under
any provision of Chapter 1 of this Part.
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(4)
This section does not apply where the detriment in question amounts to
dismissal within the meaning of Part 10 of the Employment Rights Act 1996
(c. 18) (unfair dismissal).
(5)
In this section references to enforcing a requirement include references to
securing its benefit in any way.
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