Postal Services Bill [HL]

House of Commons

Session 2008 - 09
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Other Bills before Parliament

Postal Services Bill [HL]

Postal Services Bill [HL]
Part 2 — Royal Mail Pension Plan
11

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Amendments of the RMPP
(1)
The Secretary of State may by order make such amendments of the RMPP as
the Secretary of State considers appropriate in connection with any order made
under section 19 or 20.
(2)
The provision that may be made by an order under this section includes
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provision authorising or requiring the amount of pensions or other benefits
payable to or in respect of qualifying members of the RMPP to be determined
in particular circumstances by reference to pensionable service under the
RMPP before and after the qualifying time.
(3)
Provision made by an order under this section may have retrospective effect.
10
22
Protection against adverse treatment
(1)
Subsection (2) applies to the exercise by the Secretary of State of—
(a)
the power to make an order under section 19 in a case where the order
contains provision establishing a new public scheme or transferring
qualifying accrued rights to a new public scheme, and
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(b)
the power to make an order under section 20 or 21.
(2)
In exercising the power the Secretary of State must ensure that the relevant
pensions provision in respect of each person who is or has been a member of
the RMPP is, in all material respects, at least as good immediately after the
exercise of the power as it is immediately before the exercise of the power.
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(3)
“The relevant pensions provision” means the provision for the payment of
pensions or other benefits which is contained in the RMPP or in a new public
scheme.
(4)
Subsections (1) to (3) do not require provision to be included in a new public
scheme if the Secretary of State is of the opinion that the provision would be
25
incompatible with any enactment or Community obligation (including any
enactment as it applies as a result of any provision made under this Part).
(5)
Nothing in those subsections is to be read as—
(a)
requiring particular provisions of the RMPP or a new public scheme to
take the same or similar form,
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(b)
requiring a new public scheme to be established in a particular way,
(c)
requiring any power conferred by the RMPP or a new public scheme to
be exercised in a particular way, or
(d)
affecting any power of any person to amend the RMPP or a new public
scheme.
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(6)
The power of the Secretary of State to amend a new public scheme may not be
exercised in any manner which would or might adversely affect any provision
of the scheme made in respect of qualifying accrued rights unless—
(a)
the consent requirements are satisfied in respect of the exercise of the
power in that manner, or
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(b)
the scheme is amended in the prescribed manner.
(7)
The consent requirements are those prescribed for the purpose of obtaining the
consent of members of the scheme to its amendment.

Postal Services Bill [HL]
Part 2 — Royal Mail Pension Plan
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Transfer of assets of the RMPP
(1)
The Secretary of State may by order make provision for the transfer of assets of
the RMPP to—
(a)
the Secretary of State,
(b)
a nominee of the Treasury, or
5
(c)
a fund established by the Secretary of State for the purpose of holding
the assets pending their disposal.
(2)
An order under this section—
(a)
may be made only if a pensions order is being, or has been, made, and
(b)
must identify the pensions order in consequence of which it is made.
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(3)
An order under this section may include provision for—
(a)
the delegation to any person of the administration and management of
any fund within subsection (1)(c), and
(b)
the making of payments into the Consolidated Fund.
(4)
In this section and section 24 a “pensions order” means—
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(a)
an order under section 19, or
(b)
an order under section 20 that contains provision by virtue of
subsection (3) of that section.
(5)
This section needs to be read with section 24 (which contains restrictions on the
exercise of the power to make a transfer under this section).
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24
Restriction on power to transfer assets
(1)
The power of the Secretary of State to make an order under section 23 (a
“transfer order”) must be exercised so as to secure that the ratio of assets to
liabilities of the RMPP immediately after the relevant time is at least equal to
the ratio of the assets to liabilities of the RMPP immediately before that time.
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(2)
“The relevant time” is the time at which the pensions order in consequence of
which the transfer order is made has effect.
(3)
For the purposes of this section it is to be assumed that, in a case where an order
under section 20 is made, all the liabilities mentioned in subsection (3) of that
section are extinguished at the relevant time.
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(4)
For the purposes of this section any reference to the assets or liabilities of the
RMPP is to their amount or value determined, calculated and verified by a
prescribed person and in the prescribed manner.
(5)
In calculating the value of any liabilities for those purposes, a provision of the
RMPP that limits the amount of its liabilities by reference to the amount of its
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assets is to be disregarded.
Supplementary provisions
25
Taxation
(1)
The Treasury may by regulations make provision for varying the way in which
any relevant tax would, apart from the regulations, have effect in relation to—
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(a)
a new public scheme,

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Part 2 — Royal Mail Pension Plan
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(b)
members of a new public scheme, or
(c)
a fund within section 23(1)(c).
(2)
Regulations under subsection (1) may include provision for treating a new
public scheme as a registered pension scheme.
(3)
The Treasury may by regulations make provision for varying the way in which
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any relevant tax would, apart from the regulations, have effect in relation to, or
in connection with, anything done in relation to—
(a)
the RMPP, or
(b)
any members of the RMPP,

by or under, or in consequence of, an order made under this Part.
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(4)
Regulations under subsection (1) or (3) may include provision for any of the
following—
(a)
a tax provision not to apply or to apply with modifications,
(b)
anything done to have or not to have a specified consequence for the
purposes of a tax provision, and
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(c)
the withdrawal of relief and the charging of a relevant tax.
(5)
Provision made by regulations under subsection (1) or (3), other than provision
withdrawing a relief or charging a relevant tax, may have retrospective effect.
(6)
In this section—
“relevant tax” means—
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(a)
income tax,
(b)
capital gains tax,
(c)
corporation tax,
(d)
inheritance tax,
(e)
stamp duty and stamp duty reserve tax, and
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(f)
stamp duty land tax,
“registered pension scheme” has the same meaning as in Part 4 of the
Finance Act 2004 (c. 12),
“tax provision” means any provision made by or under an enactment
relating to a relevant tax.
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26
Information
The Secretary of State may by order make provision for requiring any
prescribed person to disclose any information (whether in the form of a
document or otherwise) to the Secretary of State for any purpose of this Part.
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Orders and regulations
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(1)
The Secretary of State must consult the trustee of the RMPP before making—
(a)
an order under section 19 which contains provision establishing a new
public scheme or transferring qualifying accrued rights to a new public
scheme, or
(b)
any order under any other provision of this Part.
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(2)
The Secretary of State may not make an order under any provision of this Part
(apart from section 26) unless the Treasury have consented to its making.
(3)
Any order under this Part is subject to negative resolution procedure.

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Part 3 — Regulation of postal services
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(4)
A statutory instrument containing regulations under section 25 is subject to
annulment in pursuance of a resolution of the House of Commons.
(5)
Nothing in any provision of this Part that authorises the inclusion of any
particular kind of provision in any order, regulations or scheme is to be read as
restricting the generality of the provision that may be included in the order,
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regulations or scheme.
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Interpretation of Part 2
(1)
In this Part—
“active member” has the meaning given by section 124(1) of the Pensions
Act 1995 (c. 26),
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“company” means any body corporate,
“deferred member” has the meaning given by section 124(1) of the
Pensions Act 1995,
“enactment” includes an enactment whenever passed or made,
“member” has the meaning given by section 124(1) of the Pensions Act
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1995,
“new public scheme” has the meaning given by section 19,
“occupational pension scheme” has the meaning given by section 1 of the
Pension Schemes Act 1993 (c. 48),
“pensionable service” has the meaning given by section 124(1) of the
20
Pensions Act 1995,
“prescribed” means specified in, or determined in accordance with, an
order made by the Secretary of State,
“qualifying accrued rights”, in relation to qualifying members of the
RMPP, has the meaning given by section 18,
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“qualifying member of the RMPP” has the meaning given by section 18,
“the qualifying time” has the meaning given by section 18,
“the RMPP” has the meaning given by section 18.
(2)
Any reference in this Part to amending the RMPP includes—
(a)
amending the trust deed or rules of the RMPP or any other instrument
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relating to the constitution, management or operation of the RMPP, and
(b)
amending any instrument relating to the provision of financial support
to or in relation to the RMPP.
Part 3
Regulation of postal services
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Postal services
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Postal services, postal packets and postal operators
(1)
“Postal services” means—
(a)
the service of conveying postal packets from one place to another by
post,
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(b)
the incidental services of receiving, collecting, sorting and delivering
postal packets, and

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Part 3 — Regulation of postal services
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(c)
any other service which relates to, and is provided in conjunction with,
any service within paragraph (a) or (b).
(2)
“Postal packet” means a letter, parcel, packet or other article transmissible by
post.
(3)
“Postal operator” means a person who provides—
5
(a)
the service of conveying postal packets from one place to another by
post, or
(b)
any of the incidental services of receiving, collecting, sorting and
delivering postal packets.
(4)
A person is not to be regarded as a postal operator by reason only of receiving
10
postal packets in the course of acting as an agent for, or otherwise on behalf of,
another.
(5)
The Secretary of State may make regulations prescribing circumstances in
which subsection (4) is not to apply.
(6)
Regulations under subsection (5) are subject to affirmative resolution
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procedure.
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General authorisation to provide postal services
(1)
Persons may provide postal services without the need for any licence or
authorisation, but the provision of those services by postal operators may be
subject to regulatory conditions that OFCOM may impose on them under this
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Part.
(2)
In this Part a “regulatory condition” means any of the following conditions—
(a)
a designated USP condition (see sections 35 and 36),
(b)
a USP access condition (see section 37 and Schedule 3),
(c)
a USP accounting condition (see section 38),
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(d)
a general universal service condition (see section 40),
(e)
an essential condition (see section 46),
(f)
a general access condition (see section 47 and Schedule 3), and
(g)
a consumer protection condition (see sections 48 and 49).
The universal postal service
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Duty to secure provision of universal postal service
(1)
OFCOM must carry out their functions in relation to postal services in a way
that they consider will secure the provision of a universal postal service.
(2)
Accordingly, the power of OFCOM to impose access and other regulatory
conditions on postal operators is subject to the duty imposed on them by
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subsection (1).
(3)
OFCOM’s duty under subsection (1) includes a duty to carry out their
functions in relation to postal services in a way that they consider will secure
the provision of sufficient access points to meet the reasonable needs of users
of the universal postal service.
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Part 3 — Regulation of postal services
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(4)
In this Part “access point” means any box, receptacle or other facility provided
for the purpose of receiving postal packets, or any class of postal packets, for
onwards transmission by post.
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The universal postal service
(1)
OFCOM must by order (“the universal postal service order”) set out—
5
(a)
a description of the services that they consider should be provided in
the United Kingdom as a universal postal service, and
(b)
the standards with which those services are to comply.
(2)
Before making or modifying the universal postal service order, OFCOM must
carry out an assessment of the extent to which the market for the provision of
10
postal services in the United Kingdom is meeting the reasonable needs of the
users of those services.
(3)
A universal postal service must, as a minimum, include the following—
(a)
at least one delivery of letters every day other than a Sunday or public
holiday—
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(i)
to the home or premises of every individual or other person in
the United Kingdom, or
(ii)
to such identifiable points for the delivery of postal packets as
OFCOM may approve,
(b)
at least one delivery of other postal packets every day other than a
20
Saturday, Sunday or public holiday to the places mentioned in
paragraph (a)(i) or (ii),
(c)
at least one collection of letters every day other than a Sunday or public
holiday from each access point in the United Kingdom used for the
purpose of receiving postal packets, or any class of them, for onwards
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transmission in connection with the provision of a universal postal
service,
(d)
at least one collection of other postal packets every day other than a
Saturday, Sunday or public holiday from each access point in the
United Kingdom used for that purpose,
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(e)
a service of conveying postal packets from one place to another by post
(including the incidental services of receiving, collecting, sorting and
delivering them) at affordable prices determined in accordance with a
uniform public tariff,
(f)
a registered items service at affordable prices determined in accordance
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with a uniform public tariff,
(g)
an insured items service at affordable prices determined in accordance
with a uniform public tariff, and
(h)
a service of conveying free of charge qualifying Parliamentary petitions
and addresses.
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(4)
In subsection (3) any reference to a letter or other postal packet does not
include one—
(a)
whose weight exceeds 20 kilograms, or
(b)
whose dimensions fall outside the minimum and maximum
dimensions laid down in the Convention and the Agreement
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concerning Postal Parcels adopted by the Universal Postal Union.
(5)
In subsection (3)—

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Part 3 — Regulation of postal services
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(a)
the references in paragraphs (a) and (b) to the delivery of letters or other
postal packets include the delivery of packets posted outside the
United Kingdom,
(b)
the references in paragraphs (c) and (d) to the onwards transmission of
letters or postal packets include their onwards transmission to places
5
outside the United Kingdom, and
(c)
the reference in paragraph (e) to conveying postal packets from one
place to another includes conveying them to places outside the United
Kingdom.
(6)
The requirements of subsection (3)(a) to (d) do not need to be met in such
10
geographical conditions or other circumstances as OFCOM consider to be
exceptional.
(7)
Neither—
(a)
the interruption, suspension or restriction of any service in cases of
emergency, nor
15
(b)
the conclusion with customers of individual agreements as to prices,

means that any requirement of subsection (3) is not met.
(8)
OFCOM must notify the European Commission of the universal postal service
order and of any modifications of the order.
(9)
This section is supplemented by section 33, which defines the following
20
expressions for the purposes of this section—
“insured items service”,
“public holiday”,
“qualifying Parliamentary petitions and addresses”,
“registered items service”, and
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“uniform public tariff”.
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Definitions for purposes of section 32
(1)
“Insured items service” means a postal service which, in the event of the theft
or loss of or damage to a postal packet, provides for the payment of an amount
up to the value of the packet as declared by the sender.
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(2)
“Public holiday” means—
(a)
Christmas Day or Good Friday, or
(b)
a day which is a bank holiday under the Banking and Financial
Dealings Act 1971 (c. 80) in any part of the United Kingdom.
(3)
“Qualifying Parliamentary petitions and addresses” means—
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(a)
petitions and addresses to Her Majesty which—
(i)
are sent by post to a member of either House of Parliament or of
a devolved legislature (that is to say, the Scottish Parliament,
the National Assembly for Wales or the Northern Ireland
Assembly), and
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(ii)
meet the requirements of subsection (4),
(b)
petitions which—
(i)
are addressed to either House of Parliament or a devolved
legislature,