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Make
provision for the pensions of board members of banks that are
wholly or |
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partly in public ownership
to be limited in certain circumstances; and for |
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Be
it enacted by the Queen’s most Excellent Majesty,
by and with the advice and |
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consent of the Lords Spiritual
and Temporal, and Commons, in this present |
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Parliament assembled, and
by the authority of the same, as follows:— |
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1 |
Forfeiture
of pension by board members of banks in certain circumstances |
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(1) |
The Pensions
Act 1995 (c. 26) is amended as follows. |
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(2) |
In section 91 (inalienability
of occupational pensions), after paragraph (5) (f), |
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“(g) |
subject to subsection (6A),
a charge or lien on, or set-off against, |
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5 |
the
person in question’s entitlement, or right, where the person
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in
question is a member or former member of the board of |
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directors
of a bank, provided that the person in question was a |
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member
of the board of directors of a bank when at any time |
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following
the coming into force of this Act— |
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(i) |
all or part of the business
of that bank has been |
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transferred
to a bridge bank or onward bridge bank in |
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accordance
with section 12 of the Banking Act 2009 (“the |
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(ii) |
the bank has come under
temporary public ownership |
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in
accordance with section 13 of the 2009 Act; or |
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(iii) |
a nominee of the Treasury
or a company wholly owned |
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by
the Treasury has taken securities in the bank, and— |
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(a) |
the Treasury has taken
a majority of the voting |
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share
capital of the bank; and |
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(b) |
the Treasury took
securities in the bank because |
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in
the stated opinion of the Treasury the bank— |
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(i)
was incapable of trading as solvent, or
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(ii)
was likely to go into administration.” |
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(3) |
In section 91 (inalienability
of occupational pensions), after subsection (6), |
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“(6A) |
Where a charge, lien or
set-off is exercisable by virtue of paragraph (5) |
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(a) |
the amount of the charge
or lien on, or set-off against, the person |
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in
question’s entitlement, or right, shall be determined by
the |
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Treasury,
having regard to the responsibility of the person in |
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question
for the events listed in paragraph (5) (g) (i), (ii) and (iii); |
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(b) |
the charge, lien or set-off
must not exceed the amount of the |
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person
in question‘s entitlement or accrued right; and |
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(c) |
the person in question must
be given a certificate showing the |
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amount
of the charge, lien or set-off and its effect on his benefits
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“bank” has the
same meaning as in section 2 of the 2009 Act; |
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“securities”
has the same meaning as in section 14 of the 2009 Act. |
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3 |
Short
title, commencement and extent |
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(1) |
This Act may be cited as
the Bankers’ Pensions (Limits) Act 2009. |
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(2) |
This Act shall come into
force on the day following the day on which it is |
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(3) |
This Act extends to England
and Wales, Scotland and Northern Ireland. |
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