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 5 — Personal Accounts Delivery Authority
33

(b)
any other functions it is given by or under an enactment in connection
with the scheme.
(2)
The corporation may do anything calculated to facilitate, or incidental or
conducive to, the carrying out of any of its functions.
(3)
In particular the corporation may—
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(a)
enter into agreements;
(b)
borrow money;
(c)
invest money.
(4)
The corporation’s powers within subsection (3)(b) and (c) are exercisable only
with the consent of the Secretary of State.
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(5)
Subsections (3) and (4) are without prejudice to the exercise by the trustee
corporation of any power vested in it as a trustee of a scheme established under
section 58.
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Application of enactments
(1)
The Secretary of State may by regulations provide that legislation applying in
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relation to a person as trustee of a pension scheme, or as director of a company
which is a trustee of a pension scheme, applies in relation to the trustee
corporation, or its members, with any modifications prescribed in the
regulations.
(2)
In this section “legislation” means any provision of an Act or subordinate
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legislation (and “subordinate legislation” has the same meaning as in the
Interpretation Act 1978 (c. 30)).
Interpretation
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Interpretation of Chapter
In this Chapter—
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“employers’ panel” has the meaning given by section 60(2)(b);
“members’ panel” has the meaning given by section 60(2)(a).
“trustees”, in relation to a scheme established under section 58, means the
trustee or trustees of the scheme.
Chapter 5
30
Personal Accounts Delivery Authority
Functions of the Authority
69
Functions
(1)
Section 21 of the Pensions Act 2007 (c. 22) (initial function of the Authority)
ceases to have effect.
35
(2)
The Personal Accounts Delivery Authority (referred to in this Chapter as the
“Authority”) has the following functions—

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 5 — Personal Accounts Delivery Authority
34

(a)
to give any assistance and advice that the Secretary of State may
require, and any advice that the Authority considers expedient, for or
in connection with the establishment and operation of a scheme under
section 58(1);
(b)
to give any assistance and advice that the Secretary of State or the
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Pensions Regulator may require, and any advice that the Authority
considers expedient, for or in connection with arrangements to enable
requirements imposed by or under Chapter 1 of this Part to be
complied with and enforced.
(3)
Assistance or advice required by the Secretary of State under subsection (2)(a)
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may include assistance or advice to the trustees of the scheme.
(4)
The Authority’s functions under subsection (2) are in addition to any functions
that may be conferred on it by or under this Act or any other enactment.
(5)
The Authority may do anything calculated to facilitate, or incidental or
conducive to, the carrying out of any of its functions.
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(6)
In particular, the Authority may—
(a)
enter into agreements;
(b)
borrow money.
(7)
The corporation’s powers within subsection (6)(b) are exercisable only with the
consent of the Secretary of State.
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70
Principles
(1)
In carrying out its functions under section 69(2) the Authority must have
regard to the principles in subsection (2).
(2)
The principles are that—
(a)
participation in qualifying schemes should be encouraged and
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facilitated;
(b)
the burdens imposed on employers as a result of this Part should be
minimised;
(c)
any adverse effects on qualifying pension schemes, and members and
future members of those schemes, as a result of implementation of
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Chapter 4 of this Part should be minimised;
(d)
the cost of membership of a scheme established under section 58 should
be minimised;
(e)
the preferences of members and future members should, so far as
practicable, be taken into account in making any provision about
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investment choice in such a scheme;
(f)
diversity among members and future members of such a scheme
should be respected.
(3)
The Authority must take any steps it considers appropriate to promote and
engage in discussion with relevant public authorities and others about its
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functions under section 69(2) and how it carries them out.
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Directions and guidance
(1)
The Secretary of State may give the Authority guidance or directions about the
discharge of its functions.

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 5 — Personal Accounts Delivery Authority
35

(2)
In discharging its functions, the Authority must have regard to any guidance,
and comply with any directions, under this section.
(3)
Guidance or directions under this section may vary or revoke earlier guidance
or directions under this section.
(4)
Directions under this section must be in writing.
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(5)
The Secretary of State must publish any direction given under this section.
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Finance
In Schedule 6 to the Pensions Act 2007 (c. 22), for paragraph 18 and the italic
cross-heading immediately before it, substitute—
“Finance
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18    (1)
The Secretary of State may give financial assistance to the Authority.
      (2)
The assistance—
(a)
may take the form of grants, loans, guarantees or
indemnities;
(b)
may be given on conditions (which may include conditions
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about repayment with or without interest).”
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Disclosure of information by the Pensions Regulator
In section 84 of the Pensions Act 2004 (disclosure for facilitating exercise of
functions by the Pensions Regulator) after subsection (3) insert—
“(4)
Section 82 does not preclude the disclosure by the Regulator to the
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Personal Accounts Delivery Authority of such information as appears
to the Regulator to be necessary to enable the Authority to provide
assistance or advice to the Regulator under section 69(2) of the Pensions
Act 2008.”
Non-executive committee
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Non-executive committee
(1)
Schedule 6 to the Pensions Act 2007 is amended as follows.
(2)
In paragraph 6(3) and (5), for “the chairman and other non-executive
members” substitute “the non-executive committee”.
(3)
In paragraph 7(2) and (3), for “the chairman and other non-executive
30
members” substitute “the non-executive committee”.
(4)
At the beginning of Part 2 insert—
“Non-executive committee
8A    (1)
There is to be a committee of the Authority consisting of the
chairman and every other non-executive member of the Authority
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(referred to in this Schedule as the “non-executive committee”).
      (2)
The non-executive committee must—

Pensions Bill
Part 1 — Pension scheme membership for jobholders
Chapter 5 — Personal Accounts Delivery Authority
36

(a)
keep under review the question whether the Authority’s
internal financial controls secure the proper conduct of its
financial affairs, and
(b)
discharge the other functions conferred on it by this
Schedule.
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      (3)
The non-executive committee must prepare a report on the discharge
of the functions mentioned in sub-paragraph (2) for inclusion in the
annual report of the Authority under paragraph 17.
      (4)
The report under sub-paragraph (3) must relate to the same period
as the Authority’s report.
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      (5)
The non-executive committee may establish a sub-committee.
      (6)
The members of a sub-committee under sub-paragraph (5)—
(a)
must include at least one non-executive member of the
Authority, and
(b)
must not include persons who are executive members or
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employees of the Authority.
      (7)
A sub-committee under sub-paragraph (5) may include persons who
are not members of the non-executive committee or the Authority.
      (8)
Paragraphs 9 and 10 do not apply to the non-executive committee.”
(5)
In the italic cross-heading immediately before paragraph 9, for “Committees”
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substitute “Other committees”.
(6)
In paragraph 11, in sub-paragraph (1)(b), at the beginning insert “subject to
sub-paragraph (1A),”.
(7)
In that paragraph, after sub-paragraph (1) insert—
   “(1A)
The non-executive committee may, subject to this Schedule—
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(a)
regulate its own procedure;
(b)
regulate the procedure of its sub-committees;
(c)
enable its sub-committees to regulate their own procedure
subject to any provision it makes.”
(8)
In that paragraph, in sub-paragraph (2)—
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(a)
for “the chairman and non-executive members of the Authority”
substitute “the non-executive committee”;
(b)
for “the non-executive members” substitute “the members of that
committee”.
(9)
In that paragraph, in sub-paragraph (3), for “the chairman and non-executive
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members” substitute “the non-executive committee”.
(10)
In paragraph 17(2), before “and” at the end of paragraph (a) insert—
“(aa)
the report prepared by the non-executive committee under
paragraph 8A(3),”.