Pensions Bill

House of Lords

Session 2006 - 07
Internet Publications
Other Bills before Parliament

Pensions Bill

Pensions Bill
Part 2 — Occupational and personal pension schemes
28

28
Transfer of unclaimed assets
(1)
The Secretary of State shall by regulations, not later than twelve months after
the passing of this Act, establish a scheme (“the Scheme”) for the transfer of
such unclaimed assets as the regulations shall prescribe to the Lifeboat Fund.
(2)
Regulations made under this subsection shall provide for—
5
(a)
a definition of those unclaimed assets to which the Scheme applies,
including the extent to which the Scheme is applicable to assets whose
ownership is known, or can be determined;
(b)
the transfer to the Lifeboat Fund of a prescribed proportion of such
unclaimed assets as the regulations shall prescribe, and the manner and
10
timing of such transfers;
(c)
the transfer to the Lifeboat Fund of liability for any claim in respect of
assets transferred under the Scheme to the Lifeboat Fund;
(d)
penalties to be imposed on any person holding assets prescribed under
subsection (1) or (2)(b) who fails to transfer them or such proportion of
15
them as is prescribed in accordance with the Scheme.
(3)
The power to make regulations under this section is exercisable by statutory
instrument.
(4)
A statutory instrument containing regulations under this section is subject to
annulment in pursuance of a resolution of either House of Parliament.
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29
Purchase of annuities
The Secretary of State shall, as soon as is reasonably practicable, by regulations
require the trustees of qualifying schemes as defined by the Financial
Assistance Scheme Regulations 2005 (S.I. 2005/1986) which have not yet
completed winding-up to desist from purchasing (except where, on or before
25
18th April 2007, they have entered into a binding contractual commitment so
to do) or making binding commitments to purchase annuities on behalf of
scheme members, for a period of nine months from 18th April 2007.
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Duty to make on-account payments
(1)
Pursuant to his powers under section 286(3)(d) of the Pensions Act 2004 (c. 35),
30
the Secretary of State shall as soon as is reasonably practicable make
regulations requiring trustees of qualifying pension schemes to make on-
account payments to qualifying members, or persons who would be qualifying
members if the qualifying age for the Financial Assistance Scheme were set at
the level of the qualifying scheme retirement age.
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(2)
The Secretary of State may make such loans to trustees of qualifying schemes
as appear to him to be expedient to enable them to make such on-account
payments where adequate scheme assets appear to him not to be available to
them and regulations may prescribe for the recovery of such loans upon
completion of wind-up of a qualifying scheme.
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(3)
Regulations made under subsection (1) shall provide that on-account
payments shall equal the amounts that would be payable if the qualifying
scheme were accepted into the Pension Protection Fund.
(4)
The regulations shall provide for payment to trustees of a qualifying pension
scheme of payments due to a qualifying member of that pension scheme (or a
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Pensions Bill
Part 3 — Personal Accounts Delivery Authority
29

person who would be a qualifying member if the qualifying age for the
Financial Assistance Scheme were set at the level of the qualifying scheme
retirement age) by the Financial Assistance Scheme or by the Lifeboat Fund (as
defined in section 28) in respect of periods for which on-account payments to
that member have been made in accordance with subsection (1).
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31
Financial Assistance Scheme: payment
The Secretary of State shall by regulations ensure that payments made to any
person under the Financial Assistance Scheme as defined by the Financial
Assistance Scheme Regulations 2005 (S.I 2005/1986) shall equal the amount
that would be payable to that person if that person were entitled to receive
10
benefits under the Pensions Protection Fund.
Part 3
Personal Accounts Delivery Authority
32
Personal Accounts Delivery Authority
(1)
There is to be a body corporate known as the Personal Accounts Delivery
15
Authority (referred to in this Part as the “Authority”).
(2)
The Authority is not to be regarded as the servant or agent of the Crown or as
enjoying any status, immunity or privilege of the Crown.
(3)
Schedule 6 makes provision about the Authority.
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Initial function of the Authority
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(1)
The Authority may do anything it thinks appropriate for preparing for the
implementation of, or for advising on the modification of, any relevant
proposals about personal accounts.
(2)
In this Part “relevant proposals about personal accounts” means proposals by
the Secretary of State (whether or not Parliament has given any approval on
25
which their implementation depends) which are—
(a)
proposals for the establishment of a national low-cost portable
pensions savings scheme, or
(b)
proposals that are made in connection with proposals falling within
paragraph (a) and—
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(i)
relate to the subject-matter of those proposals, or
(ii)
relate to matters that are incidental or supplemental to those
proposals or proposals falling within sub-paragraph (i), or to
any consequential or transitional matters.
(3)
Subject to subsections (4) and (5), the Authority may do anything which is
35
calculated to facilitate, or is incidental or conducive to, the discharge of its
function under this section.
(4)
Nothing in this section is to be taken, in relation to proposals that have not yet
been approved by Parliament—
(a)
as dispensing with the need for any Parliamentary approval otherwise
40
required for the implementation of the proposals; or

Pensions Bill
Part 3 — Personal Accounts Delivery Authority
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(b)
as requiring the Authority, before any such approval is given, to carry
out any activities other than—
(i)
the formulation of the proposals;
(ii)
the taking of preparatory steps towards their implementation
when approved;
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(iii)
activities which are carried out in connection with activities
falling within sub-paragraph (i) or (ii).
(5)
The Authority may not borrow money from any person for the purposes of, or
in connection with, its function under this section.
(6)
The Secretary of State may from time to time issue guidance to the Authority
10
about the discharge of its function under this section.
(7)
If guidance is issued under subsection (6), the Authority must have regard to
it in discharging its function under this section.
(8)
In this Part “modification” includes omissions, alterations and additions.
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Management of the Authority
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(1)
In managing its affairs, the Authority must have regard—
(a)
to such general guidance concerning the management of the affairs of
public bodies as the Authority thinks appropriate, and
(b)
to generally accepted principles of good corporate governance.
(2)
But the obligation in subsection (1)(b)—
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(a)
is subject to guidance falling within subsection (1)(a), and
(b)
applies only to the extent that the principles in question may
reasonably be regarded as applicable in relation to a statutory
corporation.
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Winding up of the Authority
25
(1)
If the condition in subsection (3) is satisfied the Secretary of State may by order
provide for the winding up and dissolution of the Authority.
(2)
If the condition in subsection (3) is satisfied at any time after 2008, the Secretary
of State must lay before Parliament a draft of an order under this section as
soon as reasonably practicable.
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(3)
The condition is that, as a result of the abandonment or modification of any
relevant proposals about personal accounts, it appears to the Secretary of State
that it is no longer necessary for the Authority to continue to exist.
(4)
If—
(a)
the Secretary of State lays a draft of an order under this section before
35
Parliament in accordance with subsection (2), and
(b)
a motion for the approval of the order is defeated in either House,

that subsection is not to be taken to oblige the Secretary of State to lay any
further draft of such an order before Parliament.
(5)
An order under this section may, in particular—
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(a)
provide for the transfer of property, rights or liabilities of the
Authority—
(i)
to the Secretary of State, or

Pensions Bill
Part 4 — General
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(ii)
to any other person specified in the order;
(b)
provide for the property, rights and liabilities of the Authority to be
divided between different persons;
(c)
provide, in connection with provision made under paragraph (a) or
(b)—
5
(i)
for the creation of interests in property transferred or divided;
(ii)
for the creation of rights and liabilities in relation to such
property;
(iii)
for interests, rights and liabilities to be extinguished;
(d)
provide for the payment by the Secretary of State or the Authority of
10
compensation to any person who suffers loss or damage as a result of
the provision made for the winding up of the Authority.
(6)
An order under this section may make—
(a)
such consequential, incidental or supplemental provision, and
(b)
such transitional, transitory or saving provision,
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as the Secretary of State thinks necessary or expedient in connection with, or in
consequence of, the winding up and dissolution of the Authority.
(7)
An order under this section may also contain provision repealing any
provision of sections 32 to 34 or Schedule 6.
(8)
No order may be made under this section unless a draft of the order has been
20
laid before and approved by a resolution of each House of Parliament.
Part 4
General
36
Orders and regulations
(1)
Any order or regulations under this Act must be made by statutory instrument.
25
(2)
Any power of the Secretary of State to make an order or regulations under this
Act includes power to make different provision for different purposes or cases.
(3)
Before the Secretary of State makes any regulations by virtue of—
(a)
section 15(5), or
(b)
section 18(9),
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he must consult such persons as he considers appropriate.
(4)
Subsection (3) does not apply—
(a)
to regulations made for the purpose only of consolidating other
regulations revoked by them,
(b)
in a case where it appears to the Secretary of State that by reason of
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urgency consultation is inexpedient,
(c)
to regulations made before the end of the period of 6 months beginning
with the coming into force of the provision mentioned in subsection (3)
by virtue of which the regulations are made, or
(d)
to regulations which—
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(i)
state that they are consequential upon a specified enactment,
and
(ii)
are made before the end of the period of 6 months beginning
with the coming into force of that enactment.

Pensions Bill
Part 4 — General
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(5)
In subsection (4) “enactment” includes an enactment comprised in subordinate
legislation.
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Interpretation
In this Act—
“the Administration Act” means the Social Security Administration Act
5
1992 (c. 5);
“the SSCBA” means the Social Security Contributions and Benefits Act
1992 (c. 4);
“subordinate legislation” has the same meaning as in the Interpretation
Act 1978 (c. 30);
10
“tax year” has the same meaning as in Parts 1 to 6 of the SSCBA (see
section 122(1) of that Act).
38
Consequential etc. provision, repeals and revocations
(1)
The Secretary of State may by order make—
(a)
such supplementary, incidental or consequential provision, or
15
(b)
such transitory, transitional or saving provision,

as he considers appropriate for the general purposes, or any particular
purposes, of this Act, or in consequence of, or for giving full effect to, any
provision made by this Act.
(2)
Schedule 7 contains repeals and revocations.
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(3)
The following repeals have effect at the end of the period of 2 months
beginning with the day on which this Act is passed—
(a)
the repeals in Part 2 of Schedule 7 of the provisions of the Pensions Act
1995 (c. 26) other than paragraphs 19 and 20 of Schedule 4 to that Act;
(b)
the repeal in Part 2 of Schedule 7 of paragraph 36 of Schedule 24 to the
25
Civil Partnership Act 2004 (c. 33);
(c)
the repeals in Part 4 of Schedule 7.
(4)
The following repeals and revocations have effect on 6th April 2010—
(a)
the repeals and revocations in Part 1 of Schedule 7;
(b)
the repeals in Part 2 of that Schedule other than those falling within
30
subsection (3).
(5)
The repeals in Part 3 of that Schedule have effect on 6th April in the tax year
following the designated tax year (see section 5(4)).
(6)
The repeals in Part 5 of that Schedule have effect on the abolition date (within
the meaning of section 15).
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(7)
The other repeals contained in that Schedule have effect on the date on which
they come into force by virtue of an order made under section 41.
(8)
A statutory instrument containing an order under subsection (1) is subject to
annulment in pursuance of a resolution of either House of Parliament.
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Financial provisions
40
(1)
There is to be paid out of money provided by Parliament—

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Part 4 — General
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(a)
any expenditure incurred by the Secretary of State by virtue of this Act;
and
(b)
any increase attributable to this Act in the sums payable under any
other Act out of money so provided.
(2)
There is to be paid into the Consolidated Fund any increase in the sums
5
payable into that Fund under any other Act.
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Extent
(1)
The following provisions of this Act extend to England and Wales, Scotland
and Northern Ireland—
(a)
section 18,
10
(b)
Part 3, and
(c)
this Part.
(2)
Section 8 and the repeal in the Social Security Contributions and Benefits
(Northern Ireland) Act 1992 (c. 7) in Part 3 of Schedule 7 extend to Northern
Ireland only.
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(3)
The amendments made by Schedule 5 have the same extent as the enactments
amended.
(4)
The other provisions of this Act extend to England and Wales and Scotland.
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Commencement
(1)
The following provisions of this Act come into force on the day on which it is
20
passed—
(a)
sections 5 and 6, and Part 5 of Schedule 1, so far as relating to the
amounts mentioned in subsection (1)(d) of the new section 150A
inserted into the Administration Act by section 5(1);
(b)
section 18(4) to (11);
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(c)
Part 3;
(d)
this Part.
(2)
The following provisions of this Act come into force on such day as the
Secretary of State may by order appoint—
(a)
section 14;
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(b)
section 15(1), Part 2 of Schedule 4 and Part 6 of Schedule 7;
(c)
section 17, Schedule 5 and Part 7 of Schedule 7;
(d)
section 18(1) to (3).
(3)
The other provisions of this Act come into force at the end of the period of 2
months beginning with the day on which it is passed.
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(4)
An order under subsection (2) may—
(a)
appoint different days for different purposes;
(b)
make such provision as the Secretary of State considers necessary or
expedient for transitory, transitional or saving purposes in connection
with the coming into force of any provision falling within subsection
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(2).