Pensions Bill

House of Lords

Session 2006 - 07
Internet Publications
Other Bills before Parliament

Pensions Bill

Pensions Bill
Schedule 6 — The Personal Accounts Delivery Authority
Part 1 — Members and employees etc.
69

      (5)
Any subsequent appointment for the purposes of sub-paragraph (1)(b) is to
be made by the chairman and other non-executive members with the
approval of the Secretary of State.
      (6)
The chief executive and any other executive members are to be employees of
the Authority.
5
      (7)
The Authority may appoint other employees, and may make such other
arrangements for the staffing of the Authority as it thinks fit.
Terms and conditions of executive members
7     (1)
The first chief executive is to be appointed to hold his office, and any
executive members appointed in accordance with paragraph 6(4) are to be
10
appointed as such members and employed by the Authority, on such terms
and conditions, including those as to remuneration, as the Secretary of State
may determine.
      (2)
Any subsequent chief executive is to be appointed to hold his office, and any
executive members appointed in accordance with paragraph 6(5) are to be
15
appointed as such members and employed by the Authority, on such terms
and conditions, including those as to remuneration, as the chairman and
other non-executive members may determine with the approval of the
Secretary of State.
      (3)
The Authority must—
20
(a)
pay to or in respect of employees who are executive members, such
pensions, allowances or gratuities, or
(b)
provide and maintain for them such pension schemes (whether
contributory or not),

as the chairman and other non-executive members may determine.
25
      (4)
If an employee of the Authority who is an executive member—
(a)
is a participant in a pension scheme applicable to his employment,
and
(b)
becomes a non-executive member,

his service as a non-executive member may, if the Secretary of State so
30
determines, be treated for the purposes of the pension scheme as if it were
service as an employee.
      (5)
If an employee of the Authority who is an executive member—
(a)
is a participant in a pension scheme applicable to his membership of
the Authority, and
35
(b)
ceases to be an executive member without ceasing to be an employee,

his service (after ceasing to be an executive member) as an employee may, if
the Secretary of State so determines, be treated for the purposes of the
pension scheme as if it were service as an executive member.
Terms and conditions of other employees
40
8     (1)
The employees of the Authority who are not executive members are to be
appointed to and hold their employments on such terms and conditions,
including those as to remuneration, as the Authority may determine.
      (2)
The Authority must—

Pensions Bill
Schedule 6 — The Personal Accounts Delivery Authority
Part 2 — Proceedings etc.
70

(a)
pay to or in respect of employees who are not executive members,
such pensions, allowances or gratuities, or
(b)
provide and maintain for them such pension schemes (whether
contributory or not),

as the Authority may determine.
5
      (3)
If an employee of the Authority—
(a)
is a participant in a pension scheme applicable to his employment,
and
(b)
becomes an executive member or a non-executive member,

his service as a member may, if the Secretary of State so determines, be
10
treated for the purposes of the pension scheme as if it were service as an
employee.
Part 2
Proceedings etc.
Committees and advisory committees
15
9     (1)
The Authority may—
(a)
establish a committee for the purpose of discharging any of its
functions, and
(b)
establish a committee for the purpose of giving advice to the
Authority about matters relating to the discharge of its functions.
20
      (2)
A committee may consist of or include persons (including persons
constituting a majority of the committee) who are neither members nor
employees of the Authority.
      (3)
But except where a committee—
(a)
is established solely for the purpose mentioned in sub-paragraph
25
(1)(b), and
(b)
is not authorised under paragraph 14 to discharge functions on
behalf of the Authority,

the committee must contain at least one person who is either a member or an
employee of the Authority (or is both).
30
      (4)
Where a person who is neither a member nor an employee of the Authority
is a member of a committee, the Authority may pay to that person such
remuneration and expenses as it may determine.
10    (1)
A committee of the Authority may establish a sub-committee.
      (2)
Every member of a sub-committee must be a member of the committee
35
which established it.
Proceedings of the Authority, committees and sub-committees
11    (1)
The Authority may, subject to this Schedule—
(a)
regulate its own procedure;
(b)
regulate the procedure of its committees or sub-committees;
40
(c)
enable committees or sub-committees to regulate their own
procedure subject to any provision made by the Authority.

Pensions Bill
Schedule 6 — The Personal Accounts Delivery Authority
Part 2 — Proceedings etc.
71

      (2)
The procedure for the discharge of the separate functions which are
conferred under this Schedule on the chairman and non-executive members
of the Authority is to be determined by a majority of the non-executive
members.
      (3)
In this paragraph a power to regulate or determine procedure includes, in
5
particular, power—
(a)
to specify a quorum for meetings,
(b)
to make provision that in specified circumstances the Authority or,
as the case may be, the chairman and non-executive members may
exercise their respective powers of appointment under paragraph
10
1(3) or 6(5) at a meeting which is inquorate, and
(c)
to make provision about the making of decisions by a majority.
      (4)
The Authority must publish, in such manner as it thinks fit, its own
procedures and those of its committees and sub-committees.
      (5)
This paragraph has effect subject to paragraph 13.
15
12
The Authority must make arrangements for the keeping of proper records—
(a)
of its proceedings,
(b)
of the proceedings of its committees and sub-committees,
(c)
of the proceedings of a meeting of the chairman and other non-
executive members,
20
(d)
of anything done by an employee or member of the Authority under
paragraph 14(a) or (b).
Disqualification for acting in relation to certain matters
13    (1)
This paragraph applies if at any meeting of—
(a)
the Authority,
25
(b)
the chairman and other non-executive members, or
(c)
any committee or sub-committee,

a member of the Authority or, as the case may be, of the committee or sub-
committee has a direct or indirect interest in any matter falling to be
considered at the meeting.
30
      (2)
The person with the interest must declare it and the declaration must be
recorded in the minutes of the meeting.
      (3)
The person with the interest may not take part in any discussion or decision
relating to the matter in which he has an interest, unless—
(a)
in the case of a meeting of the Authority or of the chairman and other
35
non-executive members, the other members who are present when
the discussion or decision falls to take place or is made have resolved
unanimously that the interest is to be disregarded, or
(b)
in any other case, the other members of the committee or sub-
committee who are so present have resolved in the manner
40
authorised by the Authority that the interest is to be disregarded.
      (4)
In granting authorisations for the purposes of sub-paragraph (3)(b), the
Authority must secure that a resolution for those purposes does not allow a
person to take part in a discussion or decision at a meeting of a committee
established by virtue of paragraph 9(1)(a) or of a sub-committee of such a
45
committee unless at least the following requirements are met—

Pensions Bill
Schedule 6 — The Personal Accounts Delivery Authority
Part 2 — Proceedings etc.
72

(a)
the number of other members of the committee or sub-committee in
favour of the resolution is not less than two-thirds of those who are
both present and entitled to vote on the resolution, and
(b)
the number of other members of the committee or sub-committee in
favour of the resolution is not less than its quorum.
5
      (5)
For the purposes of this paragraph a general notification given at or sent to
a relevant meeting that—
(a)
a person—
(i)
has an interest (as member, officer, employee or otherwise) in
a specified body corporate or firm, or
10
(ii)
is connected with a specified person (other than a body
corporate or firm), and
(b)
he is to be regarded as interested in any matter involving that body
corporate or firm or, as the case may be, person,

is to be regarded as compliance with sub-paragraph (2) in relation to any
15
such matter for the purposes of that meeting and any subsequent relevant
meeting of the same type which is held while the notification is in force.
      (6)
Section 252 of the Companies Act 2006 (c. 46) (persons connected with a
director) applies for determining whether a person is connected with
another person for the purposes of sub-paragraph (5) as it applies for
20
determining whether a person is connected with a director of a company.
      (7)
A notification for the purposes of sub-paragraph (5) remains in force until it
is withdrawn.
      (8)
For the purposes of sub-paragraph (5) each of the following is a “relevant
meeting”—
25
(a)
a meeting of the Authority,
(b)
a meeting of the chairman and other non-executive members,
(c)
a meeting of a committee,
(d)
a meeting of a sub-committee,

and a relevant meeting is of the same type as another relevant meeting if
30
both meetings are relevant meetings by virtue of falling within the same
paragraph of this sub-paragraph.
      (9)
A person required to make a declaration for the purposes of this paragraph
in relation to any meeting—
(a)
is not required to attend the meeting, but
35
(b)
is to be taken to have complied with the requirements of this
paragraph if he takes reasonable steps to secure that notice of his
interest is read out at, and taken into consideration at, the meeting.
     (10)
For the purposes of this paragraph a person is not to be taken to have an
interest in any matter by reason only—
40
(a)
that he is or has previously been engaged, on behalf of the relevant
authority, in activities connected with the discharge of the
authority’s functions relating to occupational pension schemes or
personal pension schemes, or
(b)
that he has previously been a trustee or manager of such a scheme or
45
an employee of such a trustee or manager.

Pensions Bill
Schedule 6 — The Personal Accounts Delivery Authority
Part 2 — Proceedings etc.
73

Delegation
14
The Authority may delegate any function conferred on it to—
(a)
a member,
(b)
an employee, or
(c)
a committee.
5
Validity of proceedings
15    (1)
The validity of proceedings of the Authority, the chairman and other non-
executive members, a committee or a sub-committee is not affected by—
(a)
a vacancy among the members of the Authority or, as the case may
be, the committee or sub-committee,
10
(b)
a defect in the appointment of a person as chairman, deputy
chairman or any other member, or
(c)
a failure to comply with a requirement which is a requirement as to
procedure by virtue of paragraph 11.
      (2)
Sub-paragraph (1)(c) does not validate any proceedings of a meeting which
15
is inquorate for a reason not within sub-paragraph (1)(a) or (b).
Authentication of the Authority’s seal
16    (1)
The application of the Authority’s seal must be authenticated by the
signature of—
(a)
the chairman or another member, or
20
(b)
any other person authorised by the Authority (whether generally or
specially) for the purpose.
      (2)
A document purporting to be duly executed under the seal of the Authority,
or to be signed on behalf of the Authority, is to be received in evidence and,
except to the extent that the contrary is shown, taken to be duly so executed
25
or signed.
      (3)
This paragraph does not apply to Scotland.
Annual report
17    (1)
As soon as is reasonably practicable after the end of each financial year, the
Authority must send to the Secretary of State a report on the exercise of the
30
Authority’s functions during that year.
      (2)
A report under this paragraph must include—
(a)
a report on the Authority’s proceedings during that year, and
(b)
such information relating to the financial position of the Authority,
and to any other matters that he thinks appropriate, as the Secretary
35
of State may direct.
      (3)
The Secretary of State must lay before Parliament a copy of each report
received by him under this paragraph.

Pensions Bill
Schedule 6 — The Personal Accounts Delivery Authority
Part 4 — Supplementary
74

Part 3
Money
Grants
18
The Secretary of State may, with the consent of the Treasury, make grants to
the Authority of such sums as he thinks fit for the purpose of enabling the
5
Authority to incur or meet liabilities in respect of capital and revenue
expenditure.
Accounts
19    (1)
The Authority must—
(a)
keep proper accounting records, and
10
(b)
prepare a statement of accounts in respect of each financial year.
      (2)
A statement under sub-paragraph (1)(b) must be prepared by the Authority
in such form as the Secretary of State may direct.
      (3)
The Authority must send a copy of a statement under sub-paragraph
(1)(b)—
15
(a)
to the Secretary of State, and
(b)
to the Comptroller and Auditor General.
      (4)
A copy of a statement must be sent under sub-paragraph (3) within such
period, beginning with the end of the financial year to which the statement
relates, as the Secretary of State may direct.
20
      (5)
The Comptroller and Auditor General must—
(a)
examine, certify and report on a statement received under this
paragraph, and
(b)
lay a copy of the statement and of his report before Parliament.
Part 4
25
Supplementary
Disqualification
20
In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975
(c. 24) (bodies of which all members are disqualified) insert at the
appropriate place—
30
“The Personal Accounts Delivery Authority.”
21
In Part 2 of Schedule 1 to the Northern Ireland Assembly Disqualification
Act 1975 (c. 25) (bodies of which all members are disqualified) insert at the
appropriate place—
“The Personal Accounts Delivery Authority.”
35
Records and freedom of information
22
In Schedule 1 to the Public Records Act 1958 (c. 51) (definition of public
records) in paragraph 3, insert at the appropriate place in Part 2 of the Table

Pensions Bill
Schedule 6 — The Personal Accounts Delivery Authority
Part 4 — Supplementary
75

(other establishments and organisations)—
“Personal Accounts Delivery Authority”.
23
In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (c. 36) (public
authorities: miscellaneous) insert at the appropriate place—
“The Personal Accounts Delivery Authority”.
5
Interpretation
24    (1)
In this Schedule—
“financial year” means—
(a)
the period beginning with the day on which this Act is passed
and ending with the following 31st March; and
10
(b)
every subsequent period of 12 months ending with 31st
March;
“non-executive member”, in relation to the Authority, means a member
of the Authority who is not an executive member;
“occupational pension scheme” and “personal pension scheme”—
15
(a)
in relation to England and Wales or Scotland, have the same
meanings as in the Pension Schemes Act 1993 (c. 48) (see
section 1 of that Act);
(b)
in relation to Northern Ireland, have the same meanings as in
the Pension Schemes (Northern Ireland) Act 1993 (c. 49) (see
20
section 1 of that Act);
“the relevant authority” means—
(a)
in relation to England and Wales or Scotland, the Secretary of
State, or
(b)
in relation to Northern Ireland, the Department for Social
25
Development in Northern Ireland;
“trustee or manager”—
(a)
in relation to England and Wales or Scotland, is to be
construed in accordance with section 178 of the Pension
Schemes Act 1993 (trustees and managers of schemes:
30
interpretation);
(b)
in relation to Northern Ireland, is to be construed in
accordance with section 173 of the Pension Schemes
(Northern Ireland) Act 1993 (trustees or managers of
schemes).
35
      (2)
In this Schedule references to the relevant authority’s functions relating to
occupational pension schemes or personal pension schemes include such
functions conferred at any time after the passing of this Act.