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Pensions Act 2004

Type Public General Act

Publication 2004-11-18

Last updated 2024-11-18

State In force

Department Statute Law Database

Source legislation.gov.uk

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Reform history JSON API

(q) an order under section 319(2)(a) (power to make consequential amendments to Acts);

(r) an order under paragraph 24(8) of Schedule 7 (power to vary percentage of periodic compensation that can be commuted);

(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or

(t) an order under paragraph 30(1) of that Schedule (power to vary percentage paid as compensation from the Pension Protection Fund);

must not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(2A) Subsection (1) does not apply to regulations under section 286 prescribing an exception for the purposes of paragraph (b) of the definition of “qualifying pension scheme” in subsection (2) of that section, if a draft of the instrument containing them has been laid before and approved by a resolution of each House of Parliament.

(3) Subsection (1) does not apply to—

(a) an order under section 91(9) (commencement of code of practice);

(b) an order under section 126(2) (schemes winding up before day appointed by order not eligible schemes for purposes of Part 2);

(c) an order under section 182(10) (order appointing day after which losses of non-trust schemes are relevant for fraud compensation purposes);

(d) an order under section 322 (commencement).

Consultations about regulations

317

(1) Before the Secretary of State makes any regulations by virtue of this Act (other than Part 8), he must consult such persons as he considers appropriate.

(2) Subsection (1) does not apply—

(a) to regulations contained in a statutory instrument made for the purpose only of consolidating other instruments revoked by it,

(b) in a case where it appears to the Secretary of State that by reason of urgency consultation is inexpedient,

(c) to regulations contained in a statutory instrument made before the end of the period of six months beginning with the coming into force of the provision of this Act by virtue of which the regulations are made, or

(d) to regulations contained in a statutory instrument which—

(i) states that it contains only regulations which are consequential upon a specified enactment, and

(ii) is made before the end of the period of six months beginning with the coming into force of that enactment.

Interpretation

General interpretation

318

(1) In this Act, unless the context otherwise requires—

“active member” has the meaning given by section 124(1) of the Pensions Act 1995 (c. 26);

“the Board” has the meaning given by section 107;

“contravention” includes failure to comply;

“direct payment arrangements”, in relation to a personal pension scheme, has the same meaning as in section 111A of the Pension Schemes Act 1993 (c. 48);

“earnings” has the meaning given by section 181(1) of the Pension Schemes Act 1993;

“employee” has the meaning given by section 181(1) of the Pension Schemes Act 1993;

“employer”—in relation to an occupational pension scheme, means the employer of persons in the description of employment to which the scheme in question relates (but see subsection (4)), andin relation to a personal pension scheme, where direct payment arrangements exist in respect of one or more members of the scheme who are employees, means an employer with whom those arrangements exist;

“enactment” includes an enactment comprised in subordinate legislation (within the meaning of the Interpretation Act 1978 (c. 30));

“managers”, in relation to an occupational or personal pension scheme (other than a scheme established under a trust), means the persons responsible for the management of the scheme;

“member”, in relation to an occupational pension scheme, means any active, deferred, pensioner or pension credit member within the meaning of section 124(1) of the Pensions Act 1995 (c. 26) (but see subsection (5));

“modifications” includes additions, omissions and amendments, and related expressions are to be construed accordingly;

“money purchase benefit” has the meaning given by section 181(1) of the Pension Schemes Act 1993 (c. 48);

“money purchase scheme” has the meaning given by section 181(1) of the Pension Schemes Act 1993;

“occupational pension scheme” has the meaning given by section 1 of the Pension Schemes Act 1993;

“pension board” has the meaning given by section 124(1) of the Pensions Act 1995;

“pension credit” has the meaning given by section 124(1) of the Pensions Act 1995;

“personal pension scheme” has the meaning given by section 1 of the Pension Schemes Act 1993;

“the PPF Ombudsman” has the meaning given by section 209(1);

“prescribed” means prescribed by regulations;

“professional adviser”, in relation to an occupational pension scheme, has the meaning given by section 47 of the Pensions Act 1995;

"public service pension scheme” means, subject to subsection (6)—a scheme under section 1 of the Public Service Pensions Act 2013 (new public service schemes);a new public body pension scheme (within the meaning of that Act);any statutory pension scheme which is connected with a scheme referred to in paragraph (a) or (b) (and for this purpose “statutory pension scheme” and “connected” have the meanings given in that Act);

“the register” has the meaning given by section 59(1);

“regulations” means regulations made by the Secretary of State;

“the Regulator” has the meaning given by section 1;

“scheme manager”, in relation to a public service pension scheme, has the same meaning as in the Public Service Pensions Act 2013 (see section 4 of that Act);

(2) In this Act, unless the context otherwise requires, references to the scheme rules, in relation to a pension scheme , are references to—

(a) the rules of the scheme, except so far as overridden by a relevant legislative provision,

(b) the relevant legislative provisions, to the extent that they have effect in relation to the scheme and are not reflected in the rules of the scheme, and

(c) any provision which the rules of the scheme do not contain but which the scheme must contain if it is to conform with the requirements of Chapter 1 of Part 4 of the Pension Schemes Act 1993 (preservation of benefit under occupational pension schemes).

(3) For the purposes of subsection (2)—

(a) “relevant legislative provision” means any provision contained in any of the following provisions—

(i) Schedule 5 to the Social Security Act 1989 (c. 24) (equal treatment for men and women);

(ii) Chapter 2 or 3 of Part 4 of the Pension Schemes Act 1993 (certain protection for early leavers) or regulations made under either of those Chapters;

(iia) Chapter 1 or 2 of Part 4ZA of that Act (transfers and contribution refunds) or regulations made under either of those Chapters;

(iii) Part 4A of that Act (requirements relating to pension credit benefit) or regulations made under that Part;

(iv) section 110(1) of that Act (requirement as to resources for annual increase of guaranteed minimum pensions);

(v) Part 1 of the Pensions Act 1995 (c. 26) (occupational pensions) or subordinate legislation made or having effect as if made under that Part;

(vi) section 31 of the Welfare Reform and Pensions Act 1999 (c. 30) (pension debits: reduction of benefit);

(vii) any provision mentioned in section 306(2) of this Act;

(xi) section 55 of the Pension Schemes Act 2015;

(xii) regulations made under section 56 or 57 of the Pension Schemes Act 2015;

(xiii) sections 21, 23, 26, 28, 29 and 33 of and Schedule 1 to the Pension Schemes Act 2017;

(xiv) regulations under section 18(4) of or paragraph 1(6) of Schedule 2 to the Pension Schemes Act 2021;

(xv) sections 34, 39, 41, 42 and 45 of the Pension Schemes Act 2021;

(b) a relevant legislative provision is to be taken to override any of the provisions of the scheme if, and only if, it does so by virtue of any of the following provisions—

(i) paragraph 3 of Schedule 5 to the Social Security Act 1989 (c. 24);

(ii) section 129(1) of the Pension Schemes Act 1993;

(iii) section 117(1) of the Pensions Act 1995;

(iv) section 31(4) of the Welfare Reform and Pensions Act 1999;

(v) section 306(1) of this Act.

(ix) section 55(3) of the Pension Schemes Act 2015;

(x) regulations made under section 56(4) or 57(4) of the Pension Schemes Act 2015;

(xi) sections 21(7), 23(7), 26(9), 28(6), 29(2) and 33(5) of and paragraph 1(7) of Schedule 1 to the Pension Schemes Act 2017;

(xii) sections 18(7)(b), 34(5), 39(6), 41(6), 42(2) and 45(5) of and paragraph 1(7) of Schedule 2 to the Pension Schemes Act 2021.

(4) Regulations may, in relation to occupational pension schemes, extend for the purposes of Parts 1, 2 and 4 to 7 and this Part the meaning of “employer” to include—

(a) persons who have been the employer in relation to the scheme;

(b) such other persons as may be prescribed.

(5) Regulations may for any purpose of any provision of this Act—

(a) prescribe the persons who are to be regarded as members or prospective members of an occupational or personal pension scheme, and

(b) make provision as to the times at which and circumstances in which a person is to be treated as becoming, or as ceasing to be, such a member or prospective member.

(6) A scheme which would otherwise fall within the definition of “public service pension scheme” in subsection (1) does not fall within that definition if—

(a) it is an injury or compensation scheme (within the meaning of the Public Service Pensions Act 2013), or

(b) it is specified in an order made by the Secretary of State after consulting the Treasury.

Miscellaneous and supplementary

Minor and consequential amendments

319

(1) Schedule 12 (which makes minor and consequential amendments) has effect.

(2) The Secretary of State may by order make provision consequential on this Act amending, repealing or revoking (with or without savings) any provision of—

(a) an Act passed before or in the same session as this Act, or

(b) an instrument made under an Act before the passing of this Act.

Repeals and revocations

320

The enactments mentioned in Schedule 13 are repealed or revoked to the extent specified.

Pre-consolidation amendments

321

(1) The Secretary of State may by order make such modifications of—

(a) this Act,

(b) the Pension Schemes Act 1993 (c. 48),

(d) Parts 1 to 4 of the Welfare Reform and Pensions Act 1999 (c. 30), and

(e) Chapter 2 of Part 2 of the Child Support, Pensions and Social Security Act 2000 (c. 19),

as in his opinion facilitate, or are otherwise desirable in connection with, the consolidation of those enactments or any of them.

(2) No order is to be made under this section unless a Bill for repealing and re-enacting—

(a) the enactments modified by the order, or

(b) enactments relating to matters connected with the matters to which enactments modified by the order relate,

has been presented to either House of Parliament.

(3) An order under this section is not to come into force until immediately before the commencement of the Act resulting from that Bill.

Commencement

322

(1) Subject to subsections (2) to (4), the provisions of this Act come into force in accordance with provision made by the Secretary of State by order.

(2) The following provisions come into force on the day this Act is passed—

(a) in Part 4, sections 234, 235 and 236 and Schedule 10 (provisions relating to retirement planning);

(b) in Part 5, section 281 (exemption from statutory revaluation requirement);

(i) section 296 (entitlement to more than one state pension),

(ii) section 297(3) (commencement of amendments of state pension deferment provisions made by Pensions Act 1995),

(iii) section 298 (disclosure of state pension information), except subsections (4) and (5)(b), and

(iv) section 299 (claims for certain benefits following termination of reciprocal agreement with Australia);

(d) in this Part (miscellaneous and general)—

(i) sections 303 to 305 (service of notifications etc and electronic working), and

(ii) this section and sections 313, 315 (other than subsection (6)), 316, 317, 318 (other than subsections (4) and (5)) and 323 to 325;

(e) the repeal by this Act of section 50(2) of the Welfare Reform and Pensions Act 1999.

(3) Section 297 (and Schedule 11) (deferral of retirement pensions and shared additional pensions), other than the provisions coming into force in accordance with subsection (2)—

(a) come into force on the day this Act is passed so far as is necessary for enabling the making of any regulations for which they provide, and

(b) otherwise, come into force on 6th April 2005.

(4) The repeals by this Act of section 134(3) of, and paragraph 21(14) of Schedule 4 to, the Pensions Act 1995 (c. 26) come into force on 6th April 2005.

(5) Without prejudice to section 315(5), the power to make an order under this section includes power—

(a) to make transitional adaptations or modifications—

(i) of the provisions brought into force by the order, or

(ii) in connection with those provisions, of any provisions of Parts 1 to 7 of this Act or of the Pension Schemes Act 1993 (c. 48), the Pensions Act 1995, Parts 1, 2 or 4 of the Welfare Reform and Pensions Act 1999 (c. 30) or Chapter 2 of Part 2 of the Child Support, Pensions and Social Security Act 2000 (c. 19), or

(b) to save the effect of any of the repealed provisions of those Acts, or those provisions as adapted or modified by the order,

as it appears to the Secretary of State expedient, including different adaptations or modifications for different periods.

Extent

323

(1) Subject to the following provisions, this Act extends to England, Wales and Scotland.

(2) The following provisions of this Act also extend to Northern Ireland—

(a) in Part 1 (the Regulator)—

(i) sections 1, 2, 4 (other than subsection (2)(b)), 8, 9, 11, 59, 102 and 106,

(ii) in Schedule 1, paragraphs 1 to 19, 20(1) to (3) and (7), 21 (other than paragraph (b)), 22 to 25 and 27 to 35, and section 3 so far as it relates to those provisions, and

(iii) Schedule 4,

(b) in Part 2 (the Board)—

(i) sections 107, 108, 109, 110(1) and (3), 112, 113, 114, 115, 118, 119, 161(2)(a), (3) and (5) to (8), 173, 188, 209 (other than paragraphs (b) to (d), (f) and (g) of subsection (4), subsection (6) so far as relating to any of those paragraphs and subsections (7) and (8)), 210, 211(3) and (4), 212 and 220,

(ii) section 111 so far as that provision has effect in relation to functions of the Board conferred by any provision of, or made under, this Act which extends to Northern Ireland,

(iii) Schedule 5 (other than paragraph 18), and

(iv) Schedule 6 (other than paragraph 7),

(c) in Part 4 (retirement planning), sections 234 and 235 and paragraphs 2 and 4 of Schedule 10 (and section 236 so far as it relates to those paragraphs),

(d) in Part 5 (personal and occupational pension schemes: miscellaneous provisions), sections 274 and 277(2)(b),

(e) Part 6 (financial assistance scheme for members of certain pension schemes),

(f) in Part 8 (state pensions), section 299, and

(g) in this Part—

(i) sections 300(1) and (2), 301, 302(1) and (2), 307, 308 and 310,

(ii) sections 303 to 306, 309, 313, 315, 316 and 318 so far as those provisions have effect for the purposes of provisions which themselves extend to Northern Ireland, and

(iii) this section and sections 319(2), 321, 322, 324 and 325.

(3) Section 106 (legal assistance scheme) does not extend to Scotland.

(4) An amendment or repeal contained in this Act has the same extent as the enactment to which it relates and sections 236 (except so far as it relates to paragraphs 2 and 4 of Schedule 10), 319(1) and 320 have effect accordingly.

Northern Ireland

324

(1) An Order in Council under paragraph 1(1) of the Schedule to the Northern Ireland Act 2000 (c. 1) (legislation for Northern Ireland during suspension of devolved government) which contains a statement that it is made only for purposes corresponding to those of this Act—

(a) is not subject to paragraph 2 of that Schedule (affirmative resolution of both Houses of Parliament), but

(b) is subject to annulment in pursuance of a resolution of either House of Parliament.

(2) Where an Order in Council to which subsection (1) applies makes provision (“the NI provisions”) which corresponds to the GB transfer provisions, regulations may make provision to secure that any transfer of property, rights and liabilities, or modification of a term of a contract of insurance, by virtue of the NI provisions is recognised for the purposes of the law of England and Wales and the law of Scotland.

(3) In subsection (2) “the GB transfer provisions” means section 161(1), (2)(a), (3) and (5) to (8) and Schedule 6 (other than paragraph 7).

Short title

325

This Act may be cited as the Pensions Act 2004.

SCHEDULE 1

Part 1 — Members of the Regulator

Terms of appointment and tenure of members

1

(1) The members of the Regulator appointed by the Secretary of State under section 2(1)(a) or (c) are to be appointed on such terms and conditions as are determined by the Secretary of State.

(2) Subject to sub-paragraph (3), such a member—

(a) is to hold and vacate office in accordance with the terms and conditions of his appointment, and

(b) may resign or be removed from office in accordance with those terms and conditions.

(3) A person must cease to be a member of the Regulator where—

(a) in the case of the chairman, he ceases to hold that office or becomes a member of the staff of the Regulator;

(b) in the case of any other non-executive member, he becomes a member of the staff of the Regulator;

(c) in the case of an executive member appointed under section 2(1)(c), he ceases to be a member of the staff of the Regulator.

2

Where a person ceases to be employed as Chief Executive, he ceases to be a member of the Regulator.

3

No person is to be prevented from being a member of the Regulator (whether as chairman or otherwise) merely because he has previously been such a member.

Remuneration etc of members

4

The Regulator may pay, or make provision for paying, its non-executive members such remuneration as the Secretary of State may determine.

5

The Regulator may—

(a) pay to or in respect of any person who is or has been a non-executive member such pension, allowances or gratuities as the Secretary of State may determine, or

(b) make such payments as the Secretary of State may determine towards provision for the payment of a pension, allowance or gratuity to or in respect of such a person.

6

Where—

(a) a non-executive member ceases to be a member otherwise than on the expiry of his term of office, and

(b) it appears to the Secretary of State that there are circumstances which make it right for that person to receive compensation,

the Regulator may make a payment to that person of such amount as the Secretary of State may determine.

Part 2 — Staff of the Regulator

The staff

7

(1) The staff of the Regulator consists of—

(a) the Chief Executive of the Regulator appointed under paragraph 8,

(b) the other employees of the Regulator appointed under paragraph 9, and

(2) No member of the Board of the Pension Protection Fund is eligible for appointment as a member of the staff of the Regulator.

The Chief Executive

8

(1) The Regulator is to employ a person as its Chief Executive.

(2) The Chief Executive’s main function is to be responsible for securing that the functions of the Regulator are exercised efficiently and effectively.

(3) The first appointment of a Chief Executive—

(a) is to be made by the Secretary of State, and

(b) is to be on such terms and conditions as to remuneration and other matters as are determined by the Secretary of State.

(4) Subsequent appointments of a Chief Executive—

(a) are to be made by the Regulator with the approval of the Secretary of State, and

(b) are to be on such terms and conditions as to remuneration and other matters as are determined by the Regulator with the approval of the Secretary of State.

(5) By virtue of subsection (2) of section 8 (non-executive functions), the function conferred on the Regulator by sub-paragraph (4)(b), so far as it relates to the terms and conditions as to remuneration, is exercisable on its behalf by the committee established under that section.

Other employees

9

(1) Other employees of the Regulator may be appointed by the Regulator with the approval of the Secretary of State as to numbers.

(2) Any such appointments are to be on such terms and conditions as to remuneration and other matters as are determined by the Regulator with the approval of the Secretary of State.

Additional staff etc

10

(1) The Secretary of State may make available to the Regulator such additional staff and such other facilities as he considers appropriate.

(2) The availability of such staff and facilities may be on such terms as to payment by the Regulator as the Secretary of State may determine.

Part 3 — Members of the Determinations Panel

Nomination of the chairman of the Panel

11

(1) On each occasion when the Regulator is required to appoint a person as chairman of the Determinations Panel, the chairman of the Regulator must establish a committee (in this Schedule referred to as “the appointments committee”).

(2) The appointments committee must consist of—

(a) a chairman appointed by the chairman of the Regulator from the non-executive members of the Regulator, and

(b) one or more persons appointed by the chairman of the Regulator.

(3) At least one of the persons appointed under sub-paragraph (2)(b) must be a person who is not a member of the Regulator.

(4) But a person appointed under sub-paragraph (2)(b) must not be a person who is a member of the staff of the Regulator.

(5) The committee must nominate a person suitable for appointment as chairman of the Panel.

Terms of appointment and tenure of members of the Panel

12

(1) The members of the Determinations Panel are to be appointed on such terms and conditions as are determined by the Regulator with the approval of the Secretary of State.

(2) Subject to sub-paragraph (3) such a member—

(a) is to hold and vacate office in accordance with the terms and conditions of his appointment, and

(b) may resign or be removed from office in accordance with those terms and conditions.

(3) A person must cease to be a member of the Panel where—

(a) in the case of the chairman, he ceases to hold that office, or

(b) in the case of any member, he becomes a member of the Regulator or a member of the staff of the Regulator.

13

No person is to be prevented from being a member of the Panel (whether as chairman or otherwise) merely because he has previously been a member of the Panel.

Remuneration etc of members of the Panel

14

The Regulator may pay, or make provision for paying, the members of the Determinations Panel such remuneration as the Secretary of State may determine.

15

The Regulator may—

(a) pay to or in respect of any person who is or has been a member of the Panel such pension, allowances or gratuities as the Secretary of State may determine, or

(b) make such payments as the Secretary of State may determine towards provision for the payment of a pension, allowance or gratuity to or in respect of such a person.

16

Where—

(a) a member of the Panel ceases to be a member otherwise than on the expiry of his term of office, and

(b) it appears to the Secretary of State that there are circumstances which make it right for that person to receive compensation,

the Regulator may make a payment to that person of such amount as the Secretary of State may determine.

Part 4 — Proceedings and delegation etc

Committees

17

(1) The Regulator may establish committees for any purpose.

(2) Any committee so established may establish sub-committees.

(3) The members of such committees or sub-committees may include persons who are not members of the Regulator.

(4) The members of such sub-committees may include persons who are not members of the committee.

(5) But the majority of the members of a committee or a sub-committee must consist of persons who are members of the Regulator or members of the staff of the Regulator.

(6) Sub-paragraphs (2) to (5) do not apply to—

(a) the committee established under section 8 or any of its sub-committees, or

(b) the Determinations Panel or any of its sub-committees (see section 9).

(7) Subject to that, references in this Schedule to the committees of the Regulator are to—

(a) the committee established under section 8 and any of its sub-committees,

(b) the Determinations Panel and any of its sub-committees,

(d) any committees or sub-committees established under this paragraph.

Procedure

18

(1) The Regulator may determine—

(a) its own procedure (including quorum), and

(b) the procedure (including quorum) of any of its committees (other than the Determinations Panel and any of that Panel’s sub-committees).

(2) The Determinations Panel may determine—

(a) its own procedure (including quorum), and

(b) the procedure (including quorum) of any of its sub-committees.

(3) This paragraph is subject to—

(a) sections 93 to 104 (procedure in relation to the regulatory functions) and any corresponding provisions in force in Northern Ireland, and

(b) any regulations made by the Secretary of State under paragraph 19.

19

(1) The Secretary of State may make regulations—

(a) as to the procedure (including quorum) to be followed by the Regulator or any of its committees;

(b) as to the manner in which the functions of the Regulator are to be exercised.

(2) Such regulations may in particular—

(a) make provision as to the hearing of parties, the taking of evidence and the circumstances (if any) in which a document of any prescribed description is to be treated for the purposes of any proceedings before the Regulator, as evidence, or conclusive evidence, of any prescribed matter;

(b) make provision as to the manner in which parties to any proceedings before the Regulator may or are to be represented for the purposes of the proceedings;

(i) to attend proceedings before the Regulator and give evidence (including evidence on oath) for any purposes of proceedings in connection with a determination whether to exercise, or the exercise of, a regulatory function (or any corresponding function under any provisions in force in Northern Ireland corresponding to this Act), or

(ii) to produce any documents required by the Regulator for those purposes.

(3) In this paragraph references to proceedings before the Regulator include references to proceedings before the Determinations Panel and any of the Panel’s sub-committees.

Delegation

20

(1) The Regulator may authorise—

(a) any executive member of the Regulator,

(b) any other member of the staff of the Regulator, or

(c) any of its committees (other than the appointments committee, the Determinations Panel and any of that Panel’s sub-committees),

to exercise, on behalf of the Regulator, such of its functions, in such circumstances, as the Regulator may determine.

(2) But sub-paragraph (1) does not apply to—

(a) the non-executive functions of the Regulator listed in subsection (4) of section 8 (which, by virtue of subsection (2) of that section, must be discharged by the committee established under that section),

(b) the duty of the Regulator to appoint the chairman and other members of the Determinations Panel under section 9,

(d) the functions of the Regulator which are exercisable only by the Panel by virtue of—

(i) section 10(1) (the power in certain circumstances to determine whether to exercise the functions listed in Schedule 2 and to exercise them) or any corresponding provision in force in Northern Ireland, or

(ii) section 99(10) (the functions concerning the compulsory review of certain determinations) or any corresponding provision in force in Northern Ireland.

(3) The Regulator may authorise the appointments committee to exercise the power under paragraph 18 to determine the committee’s own procedure (including quorum).

(4) The Regulator may authorise the Determinations Panel, in such circumstances as the Regulator may determine, to exercise on behalf of the Regulator—

(a) the power to determine whether to exercise one or more of the regulatory functions listed in sub-paragraph (5), and

(b) where the Panel so determines to exercise the regulatory function in question, the power to exercise it.

(5) The regulatory functions mentioned in sub-paragraph (4) are—

(a) the power to issue an improvement notice under section 13;

(b) the power to issue a third party notice under section 14;

(d) the power to issue a notice under section 45(1) approving the details of arrangements;

(e) the power to issue a clearance statement under section 46;

(f) the power to make an order under section 154(8);

(g) the power to make an order under section 219(4);

(h) the power to grant or revoke authorisation under section 288;

(i) the power to grant or revoke approval under section 289;

(j) the power to issue a notice under section 293(5);

(k) the power by direction under section 2(3)(a) of the Welfare Reform and Pensions Act 1999 (c. 30) to refuse to register a scheme under section 2 of that Act;

(l) the power to appoint a trustee under any of the following provisions of section 7 of the Pensions Act 1995 (c. 26)—

(i) subsection (1) where a trustee is removed by reason of his disqualification;

(ii) subsection (3)(b);

(m) the power to appoint an independent trustee under section 23 of that Act;

(n) the power to give directions under section 72B of that Act facilitating a winding up.

(6) The Regulator may also authorise the Determinations Panel, in such circumstances as the Regulator may determine, to exercise on behalf of the Regulator such functions (other than those mentioned in sub-paragraph (2)(a) to (c)) as the Regulator considers necessary for the effective exercise by the Panel of—

(a) a function of the Regulator which it is authorised to exercise by virtue of sub-paragraph (4),

(b) a function of the Regulator mentioned in sub-paragraph (2)(d) (functions exercisable only by the Panel), or

(7) This paragraph is subject to any regulations made by the Secretary of State under paragraph 21.

21

(1) The Secretary of State may make regulations—

(a) limiting the extent to which any of the functions mentioned in subsection (8) of section 8 may be delegated by the committee established under that section to any of its members or any of its sub-committees under that subsection;

(b) limiting the extent to which any of the functions mentioned in subsection (9) of section 10 may be delegated by the Determinations Panel to any of its members or any of its sub-committees under that subsection;

(d) limiting the delegation under paragraph 20 of any power to delegate contained in that paragraph;

(e) permitting the Regulator to authorise such persons, in such circumstances and under such arrangements, as the Regulator may determine, to exercise on behalf of the Regulator—

(i) the power to determine whether to exercise any of the functions listed in sub-paragraph (2);

(ii) the power to exercise any of the functions listed in sub-paragraph (2) or such other functions as may be prescribed.

(2) The functions mentioned in sub-paragraph (1)(e) are—

(a) the power to issue an improvement notice under section 13;

(b) the power to issue a third party notice under section 14;

(d) the power to require information under section 72;

(da) the power to issue a notice under section 72A;

(db) the power to issue a fixed penalty notice under section 77A;

(dc) the power to issue an escalating penalty notice under section 77B;

(dd) the power to require payment of a penalty under section 88A;

(e) the power to vary or revoke a determination, order, notice or direction under section 101;

(ea) the power to issue a compliance notice under regulations under section 238G;

(eb) the power to issue a third party compliance notice under regulations under section 238G;

(ec) the power to issue a penalty notice under regulations under section 238G;

(f) the power to require payment of a penalty under section 10 of the Pensions Act 1995;

(g) the power to issue a compliance notice under section 35 of the Pensions Act 2008;

(h) the power to issue a third party compliance notice under section 36 of that Act;

(i) the power to issue an unpaid contributions notice under section 37 of that Act;

(j) the power to issue a fixed penalty notice under section 40 of that Act;

(k) the power to issue an escalating penalty notice under section 41 of that Act;

(l) the power to recover penalties under section 42 of that Act;

(m) the power to review a notice under section 43 of that Act;

(n) the power to issue a compliance notice in respect of prohibited recruitment conduct under section 51 of that Act;

(o) the power to issue a penalty notice in respect of prohibited recruitment conduct under section 52 of that Act.

(p) the power to issue a fixed penalty notice under section 17 of the Pension Schemes Act 2017;

(q) the power to issue an escalating penalty notice under section 18 of that Act.

Application of seal and proof of instruments

22

(1) The fixing of the common seal of the Regulator must be authenticated by the signature of a person authorised for that purpose by the Regulator (whether generally or specifically).

(2) Sub-paragraph (1) does not apply in relation to any document which is or is to be signed in accordance with the law of Scotland.

23

A document purporting to be duly executed under the seal of the Regulator or purporting to be signed on its behalf—

(a) is to be received in evidence, and

(b) is to be taken to be so executed or signed unless the contrary is proved.

Part 5 — Funding and accounts

Funding

24

The Secretary of State may pay the Regulator out of money provided by Parliament such sums as he may determine towards its expenses.

25

(1) The Secretary of State may make regulations authorising the Regulator to charge fees to meet the costs incurred by the Regulator in connection with applications made for—

(a) the modification of an occupational pension scheme under section 69 of the Pensions Act 1995 (c. 26) or under any corresponding provision in force in Northern Ireland, or

(b) the issuing of a clearance statement under section 42 or 46 or under any corresponding provision in force in Northern Ireland.

(2) Regulations under sub-paragraph (1) may prescribe, or authorise the Regulator to determine, the time at which any fee is due.

(3) Any fee which is owed to the Regulator by virtue of regulations under this paragraph may be recovered as a debt due to the Regulator.

26

(1) Section 175 of the Pension Schemes Act 1993 (c. 48) (levies towards certain expenditure) is amended as follows.

(2) In subsection (1) omit “or” at the end of paragraph (b) and for paragraph (c) substitute—

(c) of the Regulatory Authority (including the establishment of the Authority under the Pensions Act 2004), or (d) of the Lord Chancellor in meeting the costs of the legal assistance scheme established by virtue of section 106 of the Pensions Act 2004 (legal assistance in connection with proceedings before the Pensions Regulator Tribunal),

(3) In subsection (3), in paragraph (a), for the words from “any amounts paid” to the end of the paragraph substitute

— (i) any amounts paid to the Secretary of State under section 168(4) of this Act or section 10 of the Pensions Act 1995 (civil penalties), and (ii) any fees paid to the Authority under paragraph 25 of Schedule 1 to the Pensions Act 2004 (fees for certain applications), and

Accounts

27

(1) The Regulator must—

(a) keep proper accounts and proper records in relation to the accounts, and

(b) prepare in respect of each financial year a statement of accounts.

(2) Each statement of accounts must comply with any directions given by the Secretary of State with the approval of the Treasury as to—

(a) the information to be contained in it and the manner in which it is to be presented;

(b) the methods and principles according to which the statement is to be prepared;

(3) The Regulator must send a copy of each statement of accounts—

(a) to the Secretary of State, and

(b) to the Comptroller and Auditor General,

before the end of the month of August next following the financial year to which the statement relates.

(4) The Comptroller and Auditor General must—

(a) examine, certify and report on each statement of accounts which he receives under sub-paragraph (3), and

(b) lay a copy of each statement and of his report before each House of Parliament.

(5) In this paragraph “financial year” means—

(a) the period beginning with the date on which the Regulator is established and ending with the next following 31st March, and

(b) each successive period of 12 months.

Other expenses

28

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 6 — Status and liability etc

Status

29

(1) The Regulator is not to be regarded—

(a) as the servant or agent of the Crown, or

(b) as enjoying any status, privilege or immunity of the Crown.

(2) Accordingly, the Regulator’s property is not to be regarded as property of, or held on behalf of, the Crown.

Validity

30

The validity of any proceedings of the Regulator (including any proceedings of any of its committees) is not to be affected by—

(a) any vacancy among the members of the Regulator or of any of its committees,

(b) any defect in the appointment of any member of the Regulator or of any of its committees, or

Disqualification

31

Schedule 1 to the House of Commons Disqualification Act 1975 (c. 24) is amended as follows—

(a) in Part 2 (bodies whose members are disqualified) at the appropriate place insert— “ The Pensions Regulator. ”, and

(b) in Part 3 (other disqualifying offices) at the appropriate place insert— “ Member of the Determinations Panel established by the Pensions Regulator under section 9 of the Pensions Act 2004. ”

32

Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 (c. 25) is amended as follows—

(a) in Part 2 (bodies whose members are disqualified) at the appropriate place insert— “ The Pensions Regulator. ”, and

(b) in Part 3 (other disqualifying offices) at the appropriate place insert— “ Member of the Determinations Panel established by the Pensions Regulator under section 9 of the Pensions Act 2004. ”

The Parliamentary Commissioner for Administration

33

In Schedule 2 to the Parliamentary Commissioner Act 1967 (c. 13)(departments and authorities subject to investigation), at the appropriate place insert— “ The Pensions Regulator. ”

The Superannuation Act 1972

34

(1) The persons to whom section 1 of the Superannuation Act 1972 (c. 11) (persons to or in respect of whom benefits may be provided by schemes under that section) applies are to include—

the chairman of the Regulator

the employees of the Regulator.

(2) The Regulator must pay to the Minister for the Civil Service, at such times as he may direct, such sums as he may determine in respect of the increase attributable to sub-paragraph (1) in the sums payable out of money provided by Parliament under that Act.

Exemption from liability in damages

35

(1) Neither the Regulator nor any person who is a member of the Regulator, a member of any of its committees, or a member of its staff is to be liable in damages for anything done or omitted in the exercise or purported exercise of the functions of the Regulator conferred by, or by virtue of, this or any other enactment.

(2) Any person who is—

(a) the chairman of the Regulator,

(b) the Chief Executive of the Regulator, or

is not to be liable in damages for anything done or omitted in the exercise or purported exercise of any function conferred on the office in question by, or by virtue of, this Act or any provisions in force in Northern Ireland corresponding to this Act.

(3) Any person who is a member of the committee established under section 8 or of any of its sub-committees is not to be liable in damages for anything done or omitted in the discharge or purported discharge of the duty to prepare a report under subsection (5) of that section on the discharge of the non-executive functions.

(4) Any person who is a member of the Determinations Panel is not to be liable in damages for anything done or omitted in the exercise or purported exercise of the functions of the Panel under—

(a) section 93(3) (procedure in relation to regulatory functions) or any corresponding provision in force in Northern Ireland,

(b) section 99(11) (procedure in relation to exercise of functions on a compulsory review) or any corresponding provision in force in Northern Ireland, or

(5) But sub-paragraphs (1) to (4) do not apply—

(a) if it is shown that the act or omission was in bad faith, or

(b) so as to prevent an award of damages made in respect of an act or omission on the ground that the act or omission was unlawful as a result of section 6(1) of the Human Rights Act 1998 (c. 42).

SCHEDULE 2

Part 1 — Functions under the Pension Schemes Act 1993 (c. 48)

1

The power by direction under section 99(4) to grant an extension of the period within which the trustees or managers of a scheme are to carry out certain duties.

2

The power by direction under section 101J(2) to extend the period for compliance with a transfer notice.

3

The power under regulations made by virtue of section 168(4) to require a person to pay a penalty.

Part 2 — Functions under the Pensions Act 1995 (c. 26)

4

The power to make an order under section 3(1) prohibiting a person from being a trustee.

5

The power to make an order under section 3(3) revoking such an order.

6

The power to make an order under section 4(1) suspending a trustee.

7

The power to make an order under section 4(2) extending the period for which an order under section 4(1) of that Act has effect.

8

The power to make an order under section 4(5) revoking an order under section 4(1) of that Act suspending a trustee.

9

The power to make an order appointing a trustee under any of the following provisions of section 7—

(a) subsection (1) where a trustee is removed by an order under section 3 (prohibition orders) or by section 3A;

(b) subsection (3)(a) , (c) or (d).

10

The power under section 9 to exercise by order the same jurisdiction and powers as the High Court or the Court of Session for vesting property in, or transferring property to, trustees in consequence of the appointment or removal of a trustee.

11

The power to require a person to pay a penalty under section 10 (including under regulations made by virtue of subsection (3) of that section).

12

The power to make an order under section 11 directing or authorising an occupational pension scheme to be wound up.

13

The power to give directions to trustees under section 15.

14

The power under section 29(5) to give a notice waiving a disqualification under section 29 of that Act.

15

The power under section 30(2) to exercise by order the same jurisdiction and powers as the High Court or the Court of Session for vesting property in, or transferring property to, the trustees where a trustee becomes disqualified under section 29 of that Act.

16

The power to make an order under section 67G(2) by virtue of which any modification of, or grant of rights under, an occupational pension scheme is void to any extent.

17

The power to make an order under section 67H(2) prohibiting, or specifying steps to be taken in relation to, the exercise of a power to modify an occupational pension scheme.

18

The power to make an order under section 69 authorising the modification of an occupational pension scheme or modifying the scheme.

19

The power to make an order under section 71A modifying an occupational pension scheme with a view to ensuring that it is properly wound up.

Part 3 — Functions under the Welfare Reform and Pensions Act 1999 (c. 30)

20

The power by direction under section 2(3)(b) to remove a scheme from the register of stakeholder pension schemes.

Part 4 — Functions under this Act

21

The power to make or extend a restraining order under section 20.

22

The power to make an order under section 20(10) permitting payments out of an account that is subject to a restraining order.

23

The power to make a repatriation order under section 21.

24

The power to make a freezing order under section 23.

25

The power to make an order under section 25(3) extending the period for which a freezing order has effect.

26

The power to make an order under section 26 validating action taken in contravention of a freezing order.

27

The power to make an order under section 28 directing that specified steps are taken.

28

The power to make an order under section 30 giving a direction where a freezing order ceases to have effect.

29

The power to make an order under section 31(3) directing the notification of members.

30

The power to issue a contribution notice under section 38.

31

The power to issue a direction under section 41(4) to the trustees or managers of an occupational pension scheme.

32

The power to issue a revised contribution notice under section 41(9).

33

The power to issue a financial support direction under section 43.

34

The power to issue a contribution notice under section 47.

35

The power to issue a direction under section 50(4) to the trustees or managers of an occupational pension scheme.

36

The power to issue a revised contribution notice under section 50(9).

37

The power to make a restoration order under section 52.

38

The power to issue a contribution notice under section 55.

39

The power to issue a notice under section 71 requiring a report to be provided to the Regulator.

40

The power to make a direction under section 76(8) extending the retention period for documents taken into possession under section 75.

41

The power to make a direction under section 78(10) extending the retention period for documents taken into possession under that section.

42

The power to make an order under section 231 modifying a scheme, giving directions or imposing a schedule of contributions.

43

The power to issue a ring-fencing notice under section 292.

44

The power to vary or revoke under section 101—

(a) a determination made by the Determinations Panel whether to exercise one of the other functions listed in this Schedule, or

(b) an order, notice or direction made, issued or given in the exercise of one of those functions—

(i) by the Panel, or

(ii) by the Regulator in compliance with a direction of a tribunal under section 103.

SCHEDULE 3

SCHEDULE 4

Part 1 — The Tribunal

The Panels

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The President

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Terms of office etc

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Remuneration and allowances

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Staff

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Expenses

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 2 — Constitution of the Tribunal

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 3 — Tribunal Procedure

General

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Practice directions

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Evidence

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Decisions of the Tribunal

12

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Costs

13

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 4 — Status etc

Disqualification

14

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Parliamentary Commissioner for Administration

16

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Judicial Pensions and Retirement Act 1993

17

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disclosure of information

18

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 5

Part 1 — Members of the Board

Appointment of chairman

1

The chairman of the Board is to be appointed by the Secretary of State.

Appointment of ordinary members

2

(1) The appointments of the first five ordinary members are to be made by the Secretary of State.

(2) Subsequent appointments of ordinary members are to be made by the Board, subject to sub-paragraph (4).

(3) In making any appointment by virtue of sub-paragraph (2) the Board must act in accordance with any procedure for making such appointments that may be prescribed.

(4) If, at any time, there are less than five ordinary members, the Secretary of State must appoint such number of ordinary members as is required to bring the number of ordinary members to five.

Terms of appointment

3

(1) The chairman and the ordinary members appointed by the Secretary of State are to be appointed on such terms and conditions as are determined by the Secretary of State.

(2) The ordinary members appointed by the Board are to be appointed on such terms and conditions as are determined—

(a) in the case of a non-executive member, by the chairman with the approval of the Secretary of State, and

(b) in the case of an executive member, by the Chief Executive.

(3) This paragraph is subject to paragraph 7 (remuneration of members).

Tenure of members

4

(1) Subject to the following provisions, the chairman and any ordinary member—

(a) is to hold and vacate office in accordance with the terms and conditions of his appointment, and

(b) may resign or be removed from office in accordance with those terms and conditions.

(2) A person must cease to be a member of the Board where—

(a) in the case of the chairman, he ceases to hold that office or becomes a member of the staff of the Board;

(b) in the case of any other non-executive member, he becomes a member of the staff of the Board;

5

Where a person ceases to be employed as Chief Executive, he ceases to be a member of the Board.

6

No person is to be prevented from being a member of the Board (whether as chairman or otherwise) merely because he has previously been such a member.

Remuneration etc of members

7

The Board may pay, or make provision for paying, its non-executive members such remuneration as the Secretary of State may determine.

8

The Board may—

(a) pay to or in respect of any person who is or has been a non-executive member such pension, allowances or gratuities as the Secretary of State may determine, or

(b) make such payments as the Secretary of State may determine towards provision for the payment of a pension, allowance or gratuity to or in respect of such a person.

9

Where—

(a) a non-executive member ceases to be a member otherwise than on the expiry of his term of office, and

(b) it appears to the Secretary of State that there are circumstances which make it right for that person to receive compensation,

the Board may make a payment to that person of such amount as the Secretary of State may determine.

Interpretation of Part 1

10

In this Part “ordinary member” has the same meaning as in section 108.

Part 2 — Staff of the Board

The staff

11

(1) The staff of the Board consists of—

(a) the Chief Executive of the Board appointed under paragraph 12,

(b) the other employees of the Board appointed under paragraph 13, and

(2) No member of the Regulator, or of the Determinations Panel established by the Regulator under section 9, is eligible for appointment as a member of the staff of the Board.

The Chief Executive

12

(1) The Board is to employ a person as its Chief Executive.

(2) The Chief Executive’s main function is to be responsible for securing that the functions of the Board are exercised efficiently and effectively.

(3) The first appointment of a Chief Executive—

(a) is to be made by the Secretary of State, and

(b) is to be on such terms and conditions as to remuneration and other matters as are determined by the Secretary of State.

(4) Subsequent appointments of a Chief Executive are to be made by the Board with the approval of the Secretary of State.

(5) Appointments under sub-paragraph (4) are to be—

(a) on such terms and conditions as to remuneration as may be determined by the Board with the approval of the Secretary of State, and

(b) on such other terms and conditions as may be determined by the Secretary of State.

(6) By virtue of subsection (2) of section 112 (non-executive functions), the function conferred on the Board by sub-paragraph (5)(a) is exercisable on its behalf by the committee established under that section.

Other employees

13

(1) Other employees of the Board may be appointed by the Board with the approval of the Secretary of State as to numbers.

(2) Subject to sub-paragraph (3), an appointment under sub-paragraph (1) is to be on such terms and conditions as may be determined by the Chief Executive.

(3) The terms and conditions relating to remuneration are—

(a) in the case of an appointment of an employee who is also to be an executive member of the Board, to be determined by the Board with the approval of the Secretary of State,

(b) in the case of an appointment of an employee of a prescribed description, to be determined by the Board.

(4) By virtue of subsection (2) of section 112 (non-executive functions), the functions conferred on the Board by sub-paragraph (3)(a) and (b) are exercisable on its behalf by the committee established under that section.

Additional staff etc

14

(1) The Secretary of State may make available to the Board such additional staff and such other facilities as he considers appropriate.

(2) The availability of such staff and facilities may be on such terms as to payment by the Board as the Secretary of State may determine.

Part 3 — Proceedings and delegation etc

Committees

15

(1) The Board may establish committees for any purpose.

(2) Any committee established by the Board may establish sub-committees.

(3) The members of such committees or sub-committees may include persons who are not members of the Board.

(4) The members of a sub-committee may include persons who are not members of the committee.

(5) Sub-paragraphs (3) and (4) do not apply to the committee established under section 112 or any of its sub-committees.

Procedure

16

The Board may determine—

(a) its own procedure (including quorum), and

(b) the procedure (including quorum) of any of its committees or sub-committees.

Delegation

17

(1) The Board may authorise—

(a) any executive member of the Board,

(b) any other member of its staff, or

(c) any of its committees or sub-committees (other than the committee established under section 112 or any of its sub-committees),

to exercise on behalf of the Board, such of its functions, in such circumstances, as the Board may determine.

(2) But sub-paragraph (1) does not apply to the non-executive functions of the Board (which must, by virtue of subsection (2) of section 112, be discharged by the committee established under that section).

18

(1) The Board may make arrangements for any of its functions mentioned in sub-paragraph (2) to be exercised, in accordance with those arrangements, by a person on behalf of the Board.

(2) The functions are those conferred by or by virtue of—

(a) the pension compensation provisions (see section 162);

(b) section 163 (adjustments to be made where Board assumes responsibility for a scheme);

(d) section 166 (duty to pay scheme benefits unpaid at assessment date);

(da) section 168A (charges in respect of pension sharing etc);

(e) sections 169 and 170 (discharge of liabilities in respect of compensation or money purchase benefits);

(f) section 191 (notices requiring provision of information);

(g) section 203(1)(a) (provision of information to members of schemes etc);

(ga) section 116 of, and Schedule 5 to, the Pensions Act 2008 (discharge of liability in respect of pension compensation credit);

(gb) section 117 of that Act (charges in respect of pension compensation sharing costs);

(gc) section 118 of that Act (supply of information about pension compensation in relation to divorce etc);

(gd) section 119 of that Act (supply of information about pension compensation sharing);

(h) section 111 of this Act (supplementary powers), so far as that section relates to any function conferred by or by virtue of any provision mentioned in paragraphs (a) to (gd) .

(3) Where arrangements are made under this paragraph for any functions of the Board to be exercised by another person on its behalf—

(a) section 195(1)(b) (offence of providing false or misleading information to the Board) and section 196 (use of information) apply in relation to that person and any functions of the Board exercised by him as they apply in relation to the Board and its functions;

(b) subject to paragraph (c), sections 197 to 202 and 203(2) to (6) (disclosure of information) apply in relation to that person and any information obtained by him in the exercise of the Board’s function as they apply in relation to the Board and information obtained by it in the exercise of its functions;

(c) nothing in paragraph (b) authorises any person to determine on behalf of the Board under section 201(1) whether the disclosure of any restricted information is desirable or expedient in the interests of members of occupational pension schemes or in the public interest.

19

(1) Where the Board makes arrangements under paragraph 18(1) for any of its functions to be exercised by a person on its behalf, those arrangements may also provide for that person to exercise on behalf of the Board any delegable review function.

(2) Where the Regulator is required to or may exercise any function on behalf of the Board by virtue of—

(a) section 181(4) or 189(8) (administrative functions relating to levies),

(b) section 181(7)(b) or 189(10)(b) (recovery of levies), or

the Board may also require the Regulator to exercise on behalf of the Board any delegable review function.

(3) In this paragraph, “delegable review function”, in relation to a delegated function, means—

(a) any function, by virtue of section 207(1)(a) or (3)(a), to give a review decision in respect of any reviewable matter arising from the exercise of the delegated function;

(b) in relation to any function exercisable by virtue of paragraph (a) above, any other function under regulations under section 207(1) in connection with the giving of a review decision;

(c) any function conferred by section 111 (supplementary powers), so far as that section relates to any function mentioned in paragraph (a) or (b).

(4) In sub-paragraph (3)—

“delegated function” means a function which is exercisable on behalf of the Board as mentioned in sub-paragraph (1) or (2);

“review decision” has the meaning given by section 207(1).

Application of seal and proof of instruments

20

(1) The fixing of the common seal of the Board must be authenticated by the signature of a person authorised for that purpose by the Board (whether generally or specifically).

(2) Sub-paragraph (1) does not apply in relation to any document which is or is to be signed in accordance with the law of Scotland.

21

A document purporting to be duly executed under the seal of the Board or purporting to be signed on its behalf—

(a) is to be received in evidence, and

(b) is to be taken to be so executed or signed unless the contrary is proved.

Part 4 — Accounts

Accounts

22

(1) The Board must—

(a) keep proper accounts and proper records in relation to the accounts, and

(b) prepare in respect of each financial year a statement of accounts.

(2) Each statement of accounts must—

(a) contain an actuarial valuation of the Pension Protection Fund, and

(b) comply with any accounting directions given by the Secretary of State with the approval of the Treasury.

(3) For the purposes of sub-paragraph (2)—

“actuarial valuation”, with respect to the Fund, means a valuation, prepared and signed by the appointed actuary, of the assets and liabilities of the Fund;

“accounting direction” means a direction regarding—the information to be contained in a statement of accounts and the manner in which it is to be presented;the methods and principles according to which the statement is to be prepared;the additional information (if any) which is to be provided for the information of Parliament.

(4) In sub-paragraph (3)—

(a) “the appointed actuary” means a person with prescribed qualifications or experience, or a person approved by the Secretary of State, who is appointed by the Board for the purposes of this paragraph, and

(b) the liabilities and assets to be taken into account in preparing the actuarial valuation, and their amount or value, are to be determined, calculated and verified by the appointed actuary in the prescribed manner.

(5) The Board must send a copy of each statement of accounts—

(a) to the Secretary of State, and

(b) to the Comptroller and Auditor General,

before the end of the month of August next following the financial year to which the statement relates.

(6) The Comptroller and Auditor General must—

(a) examine, certify and report on each statement of accounts which he receives under sub-paragraph (5), and

(b) lay a copy of each statement and of his report before each House of Parliament.

(7) In this paragraph “financial year” means—

(a) the period beginning with the date on which the Board is established and ending with the next following 31st March, and

(b) each successive period of 12 months.

Other expenses

23

The Board may—

(a) pay, or make provision for paying, persons attending proceedings of the Board at its request such travelling and other allowances (including compensation for loss of remunerative time) as the Board may determine, and

(b) pay, or make provision for paying, persons from whom the Board may decide to seek advice, as being persons considered by the Board to be specially qualified to advise it on particular matters, such fees as the Board may determine.

Part 5 — Status and liability etc

Status

24

(1) The Board is not to be regarded—

(a) as the servant or agent of the Crown, or

(b) as enjoying any status, privilege or immunity of the Crown.

(2) Accordingly, the Board’s property is not to be regarded as property of, or held on behalf of, the Crown.

Validity

25

The validity of any proceedings of the Board (including any proceedings of any of its committees or sub-committees) is not to be affected by—

(a) any vacancy among the members of the Board or of any of its committees or sub-committees,

(b) any defect in the appointment of any member of the Board or of any of its committees or sub-committees, or

Disqualification

26

In Schedule 1 to the House of Commons Disqualification Act 1975 (c. 24), in Part 2 (bodies whose members are disqualified), at the appropriate place insert— “ The Board of the Pension Protection Fund. ”

27

In Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 (c. 25), in Part 2 (bodies whose members are disqualified), at the appropriate place insert— “ The Board of the Pension Protection Fund. ”

The Superannuation Act 1972

28

(1) The persons to whom section 1 of the Superannuation Act 1972 (c. 11) (persons to or in respect of whom benefits may be provided by schemes under that section) applies are to include—

the chairman of the Board

the employees of the Board.

(2) The Board must pay to the Minister for the Civil Service, at such times as he may direct, such sums as he may determine in respect of the increase attributable to sub-paragraph (1) in the sums payable out of money provided by Parliament under that Act.

Exemption from liability in damages

29

(1) Neither the Board nor any person who is a member of the Board, a member of any of its committees or sub-committees, or a member of its staff is to be liable in damages for anything done or omitted in the exercise or purported exercise of the functions of the Board conferred by, or by virtue of, this or any other enactment.

(2) Any person who is the Chief Executive of the Board is not to be liable in damages for anything done or omitted in the exercise or purported exercise of any function conferred on the Chief Executive by, or by virtue of, this Act or any provisions in force in Northern Ireland corresponding to this Act.

(3) Any person who is a member of the committee established under section 112 or of any of its sub-committees is not to be liable in damages for anything done or omitted in the discharge or purported discharge of the duty to prepare a report under subsection (5) of that section on the discharge of the non-executive functions.

(4) Sub-paragraphs (1) to (3) do not apply—

(a) if it is shown that the action or omission was in bad faith, or

(b) so as to prevent an award of damages made in respect of an act or omission on the ground that the act or omission was unlawful as a result of section 6(1) of the Human Rights Act 1998 (c. 42).

(5) This paragraph does not prevent the Board being required to pay compensation on a direction of the PPF Ombudsman by virtue of regulations under section 213(1) or 214 or any provision in force in Northern Ireland corresponding to either of those provisions.

SCHEDULE 6

1

This Schedule applies where the property, rights and liabilities of an occupational pension scheme are transferred to the Board in accordance with section 161.

2

(1) Subject to sub-paragraph (2), the property, rights and liabilities so transferred include—

(a) property, rights and liabilities that would not otherwise be capable of being transferred or assigned,

(b) property situated anywhere in the United Kingdom or elsewhere, and

(c) rights and liabilities under the law of any part of the United Kingdom or of any country or territory outside the United Kingdom.

(2) Where, but for this sub-paragraph, any rights or liabilities under a contract of employment between the trustees or managers of the scheme and an individual would be transferred to the Board under section 161, this sub-paragraph operates to terminate the contract of employment on the day preceding the day on which the transfer notice is received by the trustees or managers of the scheme.

3

(1) Without prejudice to the generality of section 161 and subject to sub-paragraph (2), any legal proceedings or applications to any authority pending immediately before the transfer by or against any of the trustees or managers of the scheme in their capacity as trustees or managers shall be continued by or against the Board.

(2) The liabilities transferred by section 161 do not include any liabilities in respect of an existing or future cause of action against the trustees or managers of the scheme if, disregarding the transfer, the trustees or managers would have been personally liable to meet the claim and would not have been indemnified from the assets of the scheme.

4

The transfer is binding on all persons, even if, apart from this paragraph, it would have required the consent or concurrence of any person.

5

No person shall have any power, in consequence of the transfer, to terminate or modify any interest or right which was vested in the trustees or managers of the scheme.

6

Any reference in any agreement, document or instrument of any description to the trustees or managers of the scheme shall have effect so far as necessary for the purposes of giving effect to the transfer as a reference to the Board.

7

(1) The Board must take all such steps as may be required to secure that the vesting in the Board, by virtue of section 161, of any foreign property, right or liability is effective under the relevant foreign law.

(2) Until the vesting of any foreign property, right or liability in the Board is effective under the relevant foreign law, the persons who were the trustees or managers of the scheme immediately before the transfer effected by section 161 must hold that property or right for the benefit of, or discharge that liability on behalf of, the Board.

(3) Nothing in this paragraph prejudices the effect under the law of England and Wales or of Scotland of the vesting in the Board, in accordance with section 161, of any foreign property, right or liability.

(4) In this paragraph references to any foreign property, right or liability are references to any property, right or liability as respects which any issue arising in any proceedings would have to be determined (in accordance with the rules of private international law) by reference to the law of a country or territory outside the United Kingdom.

SCHEDULE 7

Introductory

1

This Schedule applies for the purposes of determining the compensation payable where the Board assumes responsibility for an eligible scheme (“the scheme”) in accordance with this Chapter.

2

In this Schedule references to “the assessment date” are to the date on which the assessment period in relation to the scheme, or (where there has been more than one such assessment period) the last one, began.

Pensions in payment at assessment date

3

(1) Compensation is payable in accordance with this paragraph where, immediately before the assessment date, a person is entitled to present payment of a pension under the admissible rules of the scheme.

(2) That person (“the pensioner”) is entitled to periodic compensation in respect of that pension (“the pension”) commencing at the assessment date and continuing for life or, in a case to which sub-paragraph (8) applies, until such time as entitlement to the pension would have ceased under the admissible rules.

(3) The annual rate of the periodic compensation is the appropriate percentage of the aggregate of—

(a) the protected pension rate, and

(b) any increases under paragraph 28 (annual increases in periodic compensation).

(4) In sub-paragraph (3) “the appropriate percentage” means—

(a) in a case to which sub-paragraph (7) applies, 90%, and

(b) in any other case, 100%.

(5) In sub-paragraph (3) “the protected pension rate” means the annual rate of the pension, under the admissible rules, immediately before the assessment date.

(6) In determining for the purposes of sub-paragraph (5) the annual rate of the pension immediately before the assessment date, any recent discretionary increase is to be disregarded if paragraph 35(3A) applies to the scheme.

(7) This sub-paragraph applies where the pensioner has not attained normal pension age in respect of the pension before the assessment date and his entitlement to the pension—

(a) is attributable to his pensionable service, and

(b) did not arise by virtue of any provision of the admissible rules of the scheme making special provision as to early payment of pension on grounds of ill health.

(8) This sub-paragraph applies where the pension was not attributable—

(a) to the pensioner’s pensionable service, or

(b) (directly or indirectly) to a pension credit to which the pensioner became entitled under section 29(1)(b) of the Welfare Reform and Pensions Act 1999 (c. 30).

(9) This paragraph does not apply if compensation is payable in respect of the pension in accordance with paragraph 5 (pension benefits postponed at assessment date).

(10) This paragraph is subject to—

paragraph 22A (calculation of compensation on and after 1 January 2024),

... and

paragraph 30 (power of Secretary of State to change percentage rates by order).

4

(1) This paragraph applies where—

(a) the pensioner dies on or after the assessment date, and

(b) the pension was attributable—

(i) to the pensioner’s pensionable service, or

(ii) (directly or indirectly) to a pension credit to which the pensioner became entitled under section 29(1)(b) of the Welfare Reform and Pensions Act 1999.

(2) Subject to sub-paragraph (4), the pensioner’s widow or widower is entitled to periodic compensation commencing on the day following the pensioner’s death and continuing for life.

(3) The annual rate of the periodic compensation at any time is half of the annual rate of the periodic compensation (including any increases under paragraph 28) to which the pensioner would at that time have been entitled under paragraph 3 in respect of the pension had the pensioner not died.

(4) The pensioner’s widow or widower is not entitled to periodic compensation under this paragraph in such circumstances as may be prescribed.

(5) In this paragraph “the pension” and “the pensioner” are to be construed in accordance with paragraph 3.

Pension benefits postponed at assessment date

5

(1) Compensation is payable in accordance with this paragraph where immediately before the assessment date—

(a) a person is entitled to present payment of a pension under the admissible rules of the scheme,

(b) payment of that pension is postponed, and

(2) That person (“the postponed pensioner”) is entitled to periodic compensation in respect of that pension (“the pension”) commencing at the assessment date and continuing for life or, in a case to which sub-paragraph (7) applies, until such time as entitlement to the pension would have ceased under the admissible rules.

(3) The annual rate of the periodic compensation is 100% of the aggregate of—

(a) the protected pension rate, ...

(aa) if the commencement of periodic compensation under this paragraph has been postponed for any period by virtue of paragraph 25A, the amount of the actuarial increase under that paragraph, and

(b) any increases under paragraph 28 (annual increases in periodic compensation).

(4) In sub-paragraph (3) “the protected pension rate” means what would have been the annual rate of the pension, under the admissible rules, if the postponement of payment had ceased immediately before the assessment date.

(5) In determining for the purposes of sub-paragraph (4) the annual rate of the pension immediately before the assessment date, any recent discretionary increase is to be disregarded if paragraph 35(3A) applies to the scheme .

(6) Where the pension is attributable (directly or indirectly) to a pension credit, the reference in sub-paragraph (1)(c) to “normal pension age” is to be read as a reference to “normal benefit age”.

(7) This sub-paragraph applies where the pension was not attributable—

(a) to the postponed pensioner’s pensionable service, or

(b) (directly or indirectly) to a pension credit to which the postponed pensioner became entitled under section 29(1)(b) of the Welfare Reform and Pensions Act 1999 (c. 30).

(8) This paragraph is subject to—

paragraph 22A (calculation of compensation on and after 1 January 2024),

paragraph 24 (commutation), and

paragraph 30 (power of Secretary of State to change percentage rates by order).

6

(1) This paragraph applies where the postponed pensioner—

(a) dies on or after the assessment date, and

(b) the pension was attributable—

(i) to the postponed pensioner’s pensionable service, or

(ii) (directly or indirectly) to a pension credit to which the postponed pensioner became entitled under section 29(1)(b) of the Welfare Reform and Pensions Act 1999.

(2) Subject to sub-paragraph (4), the postponed pensioner’s widow or widower is entitled to periodic compensation commencing on the day following the postponed pensioner’s death and continuing for life.

(3) The annual rate of the periodic compensation at any time is half of the annual rate of the periodic compensation (including any actuarial increase under paragraph 25A and any increases under paragraph 28) to which the postponed pensioner would at that time have been entitled under paragraph 5 in respect of the pension had the postponed pensioner not died.

(3A) If, on the day the postponed pensioner (“P”) died, commencement of P's periodic compensation under paragraph 5 was postponed by virtue of paragraph 25A, assume for the purposes of sub-paragraph (3) that the periodic compensation commenced immediately before the date of P's death.

(4) The postponed pensioner’s widow or widower is not entitled to periodic compensation under this paragraph in such circumstances as may be prescribed.

(5) In this paragraph “the postponed pensioner” and “the pension” are to be construed in accordance with paragraph 5.

7

(1) Compensation is payable in accordance with this paragraph where immediately before the assessment date—

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