88 Schedules of payments to money purchase schemes: supplementary.
(1) Where, in the case of an occupational pension scheme to which section 87 applies—
(a) there is a failure to pay on or before the due date any amounts payable in accordance with the payment schedule, and
(b) the trustees or managers have reasonable cause to believe that the failure is likely to be of material significance in the exercise by the Authority of any of their functions,
they must, except in prescribed circumstances, give notice of the failure to the Authority and to the members of the scheme within a reasonable period after the due date.
(2) Any such amounts which for the time being remain unpaid after that date (whether payable by the employer or not) shall, if not a debt due from the employer to the trustees or managers apart from this subsection, be treated as such a debt.
(3) Where any amounts payable in accordance with the payment schedule by or on behalf of the employer on the employer’s own account have not been paid on or before the due date, section 10 applies to the employer.
(4) If, in the case of an occupational pension scheme to which section 87 applies, subsection (1) is not complied with—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) section 10 applies to any trustee or manager who has failed to take all such steps.
89 Application of further provisions to money purchase schemes.
(1) In the case of money purchase schemes falling within a prescribed class or description, regulations may—
(a) provide for any of the provisions of Part 3 of the Pensions Act 2004 to apply, or apply with prescribed modifications (in spite of anything in that Part), and
(b) provide for any of the provisions of sections 87 and 88 to apply with prescribed modifications or not to apply,
to such extent as may be prescribed.
(2) Regulations may provide for any of the provisions of section 75 to apply, or apply with prescribed modifications, to money purchase schemes to such extent as may be prescribed (in spite of anything in that section), and the power conferred by this subsection includes power to apply section 75 in circumstances other than those in which the scheme is being wound up or a relevant ... event occurs (within the meaning of that section).
(3) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this section as a separate money purchase scheme.
In section 124 of the Pension Schemes Act 1993 (duty of Secretary of State to pay unpaid contributions to schemes), after subsection (3) there is inserted—
(3A) Where the scheme in question is a money purchase scheme, the sum payable under this section by virtue of subsection (3) shall be the lesser of the amounts mentioned in paragraphs (a) and (c) of that subsection
, and, accordingly, at the beginning of subsection (3) there is inserted “Subject to subsection (3A),”.
(1) Subject to subsection (5), where a person is entitled to a pension under an occupational pension scheme or has a right to a future pension under such a scheme—
(a) the entitlement or right cannot be assigned, commuted or surrendered,
(b) the entitlement or right cannot be charged or a lien exercised in respect of it, and
(c) no set-off can be exercised in respect of it,
and an agreement to effect any of those things is unenforceable.
(2) Where by virtue of this section a person’s entitlement to a pension under an occupational pension scheme, or right to a future pension under such a scheme, cannot, apart from subsection (5), be assigned, no order can be made by any court the effect of which would be that he would be restrained from receiving that pension.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) Subsection (2) does not prevent the making of—
(a) an attachment of earnings order under the Attachment of Earnings Act 1971, or
(b) an income payments order under the Insolvency Act 1986.
(5) In the case of a person (“the person in question”) who is entitled to a pension under an occupational pension scheme, or has a right to a future pension under such a scheme, subsection (1) does not apply to any of the following, or any agreement to effect any of the following—
(a) an assignment in favour of the person in question’s widow, widower , surviving civil partner or dependant,
(b) a surrender, at the option of the person in question, for the purpose of—
(i) providing benefits for that person’s widow, widower , surviving civil partner or dependant, or
(ii) acquiring for the person in question entitlement to further benefits under the scheme,
(c) a commutation—
(i) of the person in question’s benefit on or after retirement or in exceptional circumstances of serious ill health,
(ii) in prescribed circumstances, of any benefit for that person’s widow, widower , surviving civil partner or dependant, or
(iii) in other prescribed circumstances,
(d) subject to subsection (6), a charge or lien on, or set-off against, the person in question’s entitlement, or right, (except to the extent that it includes transfer credits other than prescribed transfer credits) for the purpose of enabling the employer to obtain the discharge by him of some monetary obligation due to the employer and arising out of a criminal, negligent or fraudulent act or omission by him,
(e) subject to subsection (6), except in prescribed circumstances a charge or lien on, or set-off against, the person in question’s entitlement, or right, for the purpose of discharging some monetary obligation due from the person in question to the scheme and—
(i) arising out of a criminal, negligent or fraudulent act or omission by him, or
(ii) in the case of a trust scheme of which the person in question is a trustee, arising out of a breach of trust by him,
(f) subject to subsection (6), a charge or lien on, or set-off against, the person in question’s entitlement, or right, for the purpose of discharging some monetary obligation due from the person in question to the scheme arising out of a payment made in error in respect of the pension.
(6) Where a charge, lien or set-off is exercisable by virtue of subsection (5)(d) , (e) or (f) —
(a) its amount must not exceed the amount of the monetary obligation in question, or (if less) the value (determined in the prescribed manner) of the person in question’s entitlement or accrued right, and
(b) the person in question must be given a certificate showing the amount of the charge, lien or set-off and its effect on his benefits under the scheme,
and where a dispute has arisen as to the amount of the monetary obligation in question, the charge, lien or set-off must not be exercised unless one of the following conditions is met.
(6A) The conditions mentioned in subsection (6) are—
(a) that the dispute has been resolved by the parties to it;
(b) that the Pensions Ombudsman has made a determination under Part 10 of the Pension Schemes Act 1993 or Part 10 of the Pension Schemes (Northern Ireland) Act 1993 (investigations) as to the amount of the monetary obligation in question;
(c) that the monetary obligation in question has become enforceable—
(i) under an order of a competent court, or
(ii) in consequence of an award of an arbitrator or, in Scotland, an arbiter to be appointed (failing agreement between the parties) by the sheriff.
(7) This section is subject to section 159 of the Pension Schemes Act 1993 (inalienability of guaranteed minimum pension ... ).
(1) Subject to the provisions of this section and section 93, an entitlement to a pension under an occupational pension scheme or a right to a future pension under such a scheme cannot be forfeited.
(2) Subsection (1) does not prevent forfeiture by reference to—
(a) a transaction or purported transaction which under section 91 is of no effect, ...
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
whether or not that event occurred before or after the pension became payable.
(3) Where such forfeiture as is mentioned in subsection (2) occurs, any pension which was, or would but for the forfeiture have become, payable may, if the trustees or managers of the scheme so determine, be paid to all or any of the following—
(a) the member of the scheme to or in respect of whom the pension was, or would have become, payable,
(b) the spouse, civil partner, widow, widower or surviving civil partner of the member,
(c) any dependant of the member, and
(d) any other person falling within a prescribed class.
(4) Subsection (1) does not prevent forfeiture by reference to the pensioner, or prospective pensioner, having been convicted of one or more offences—
(a) which are committed before the pension becomes payable, and
(b) which are—
(i) offences of treason,
(ii) offences under the Official Secrets Acts 1911 to 1989 for which the person has been sentenced on the same occasion to a term of imprisonment of, or to two or more consecutive terms amounting in the aggregate to, at least 10 years, ...
(iia) offences under section 18 of, or listed in section 33(3)(a) of, the National Security Act 2023 for which the person has been sentenced on the same occasion to a term of imprisonment of, or to two or more consecutive terms amounting in the aggregate to, at least 10 years, or
(iii) prescribed offences.
(5) Subsection (1) does not prevent forfeiture by reference to a failure by any person to make a claim for pension—
(a) where the forfeiture is in reliance on any enactment relating to the limitation of actions, or
(b) where the claim is not made within six years of the date on which the pension becomes due.
(6) Subsection (1) does not prevent forfeiture in prescribed circumstances.
(7) In this section and section 93, references to forfeiture include any manner of deprivation or suspension.
93 Forfeiture by reference to obligation to employer.
(1) Subject to subsection (2), section 92(1) does not prevent forfeiture of a person’s entitlement to a pension under an occupational pension scheme or right to a future pension under such a scheme by reference to the person having incurred some monetary obligation due to the employer and arising out of a criminal, negligent or fraudulent act or omission by the person.
(2) A person’s entitlement or right may be forfeited by reason of subsection (1) to the extent only that it does not exceed the amount of the monetary obligation in question, or (if less) the value (determined in the prescribed manner) of the person’s entitlement or right.
(3) Such forfeiture as is mentioned in subsection (1) must not take effect where a dispute has arisen as to the amount of the monetary obligation in question, unless —
(a) the dispute has been resolved by the parties to it,
(b) the Pensions Ombudsman has made a determination under Part 10 of the Pension Schemes Act 1993 or Part 10 of the Pension Schemes (Northern Ireland) Act 1993 (investigations) as to the amount of the monetary obligation in question, or
(c) the monetary obligation in question has become enforceable—
(i) under an order of a competent court, or
(ii) in consequence of an award of an arbitrator or, in Scotland, an arbiter to be appointed (failing agreement between the parties) by the sheriff.
(4) Where a person’s entitlement or right is forfeited by reason of subsection (1), the person must be given a certificate showing the amount forfeited and the effect of the forfeiture on his benefits under the scheme.
(5) Where such forfeiture as is mentioned in subsection (1) occurs, an amount not exceeding the amount forfeited may, if the trustees or managers of the scheme so determine, be paid to the employer.
(1) Regulations may—
(a) modify sections 91 to 93 in their application to public service pension schemes or to other schemes falling within a prescribed class or description, or
(b) provide that those sections do not apply in relation to schemes falling within a prescribed class or description.
(2) In those sections, “pension” in relation to an occupational pension scheme, includes any benefit under the scheme and any part of a pension and any payment by way of pension.
(3) In the application of sections 91 and 92 to Scotland—
(a) references to a charge are to be read as references to a right in security or a diligence and “charged” is to be interpreted accordingly,
(b) references to assignment are to be read as references to assignation and “assign” is to be interpreted accordingly,
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) the reference to an income payments order under the Insolvency Act 1986 is to be read as a reference to an order under section 90 or 95 of the Bankruptcy (Scotland) Act 2016, ...
(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(f) after subsection 91(4) there is inserted—
(4A) Subject to section 73(3)(d) of the Debtors (Scotland) Act 1987, nothing in this section prevents any diligence mentioned in section 46 of that Act being done against a pension under an occupational pension scheme.
115 Offences by bodies corporate and partnerships.
(1) Where an offence under this Part committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, a director, manager, secretary or other similar officer of the body, or a person purporting to act in any such capacity, he as well as the body corporate is guilty of the offence and liable to be proceeded against and punished accordingly.
(2) Where the affairs of a body corporate are managed by its members, subsection (1) applies in relation to the acts and defaults of a member in connection with his functions of management as to a director of a body corporate.
(3) Where an offence under this Part committed by a Scottish partnership is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, a partner, he as well as the partnership is guilty of the offence and liable to be proceeded against and punished accordingly.
(1) Regulations made by virtue of any provision of this Part may provide for the contravention of any provision contained in any such regulations to be an offence under this Part and for the recovery on summary conviction for any such offence of a fine not exceeding level 5 on the standard scale.
(2) An offence under any provision of the regulations may be charged by reference to any day or longer period of time; and a person may be convicted of a second or subsequent offence under such a provision by reference to any period of time following the preceding conviction of the offence.
(3) Where by reason of the contravention of any provision contained in regulations made by virtue of this Part—
(a) a person is convicted of an offence under this Part, or
(b) a person pays a penalty under section 10 or under provision contained in regulations made by virtue of section 41C,
then, in respect of that contravention, he shall not, in a case within paragraph (a), be liable to pay such a penalty or, in a case within paragraph (b), be convicted of such an offence.
(1) Where any provision mentioned in subsection (2) conflicts with the provisions of an occupational pension scheme—
(a) the provision mentioned in subsection (2), to the extent that it conflicts, overrides the provisions of the scheme, and
(b) the scheme has effect with such modifications as may be required in consequence of paragraph (a).
(2) The provisions referred to in subsection (1) are those of—
(a) this Part,
(b) any subordinate legislation made or having effect as if made under this Part, ...
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) Regulations may modify any provisions of this Part, in their application—
(a) to a trust scheme which applies to earners in employments under different employers,
(b) to a trust scheme of which there are no members who are in pensionable service under the scheme, or
(c) to any case where a partnership is the employer, or one of the employers, in relation to a trust scheme.
(2) Regulations may provide for some or all of the provisions of sections 22 to 26, and section 117 (so far as it applies to those sections), not to apply in relation to a trust scheme falling within a prescribed class or description.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
119 Calculations etc. under regulations: sub-delegation.
Regulations made by virtue of section ... 73B(4)(a) or 75 may provide for the values of the assets and the amounts of the liabilities there mentioned to be calculated and verified in accordance with guidance prepared and from time to time revised by a prescribed body.
(1) Before the Secretary of State makes any regulations by virtue of this Part, he must consult such persons as he considers appropriate.
(2) Subsection (1) does not apply—
(a) to regulations made for the purpose only of consolidating other regulations revoked by them,
(b) to regulations in the case of which the Secretary of State considers consultation inexpedient because of urgency,
(c) to regulations made before the end of the period of six months beginning with the coming into force of the provision of this Part by virtue of which the regulations are made, or
(d) to regulations which—
(i) state that they are consequential upon a specified enactment, and
(ii) are made before the end of the period of six months beginning with the coming into force of that enactment.
(1) This Part applies to an occupational pension scheme managed by or on behalf of the Crown as it applies to other occupational pension schemes; and, accordingly, references in this Part to a person in his capacity as a trustee or manager of an occupational pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity.
(2) References in this Part to a person in his capacity as employer in relation to an occupational pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity.
(3) This section does not apply to any provision made by or under this Part under which a person may be prosecuted for an offence; but such a provision applies to persons in the public service of the Crown as it applies to other persons.
(4) This section does not apply to sections 42 to 46.
(5) Nothing in this Part applies to Her Majesty in Her private capacity (within the meaning of the Crown Proceedings Act 1947).
(1) Sections 249 and 435 of the Insolvency Act 1986 (connected and associated persons) shall apply for the purposes of the provisions of this Act listed in subsection (3) as they apply for the purposes of that Act.
(2) Section 229 of the Bankruptcy (Scotland) Act 2016 (meaning of “associate”) shall apply for the purposes of the provisions so listed as it applies for the purposes of that Act.
(3) The provisions referred to in subsections (1) and (2) are—
(a) section 23(3)(b),
(b) sections 27 and 28,
(c) section 40,
but in the case of section 40 the provisions mentioned in subsections (1) and (2) shall apply for those purposes with any prescribed modifications.
(1) In this Part—
“active member”, in relation to an occupational pension scheme, means a person who is in pensionable service under the scheme,
“the actuary” and “the auditor”, in relation to an occupational pension scheme, have the meanings given by section 47,
“the Authority” means the Pensions Regulator,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“the Compensation Board” has the meaning given by section 78(1),
“the compensation provisions” has the meaning given by section 81(3),
“contravention” includes failure to comply,
“deferred member”, in relation to an occupational pension scheme, means a person (other than an active or pensioner member) who has accrued rights under the scheme,
“employer”, in relation to an occupational pension scheme, means the employer of persons in the description or category of employment to which the scheme in question relates (but see section 125(3)),
“equal treatment rule” has the meaning given by section 62,
“firm” means a body corporate or a partnership,
“fund manager”, in relation to an occupational pension scheme, means a person who manages the investments held for the purposes of the scheme,
“independent trustee” has the meaning given by section 23(3),
“managers”, in relation to an occupational pension scheme other than a trust scheme, 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 (but see section 125(4)),
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“normal pension age” has the meaning given by section 180 of the Pension Schemes Act 1993,
“payment schedule” has the meaning given by section 87(2),
“pension credit” means a credit under section 29(1)(b) of the Welfare Reform and Pensions Act 1999, or under corresponding Northern Ireland legislation,
“pension credit member”, in relation to an occupational pension scheme, means a person who has rights under the scheme which are attributable (directly or indirectly) to a pension credit,
“pension credit rights”, in relation to an occupational pension scheme, means rights to future benefits under the scheme which are attributable (directly or indirectly) to a pension credit,
“pensionable service”, in relation to a member of an occupational pension scheme, means service in any description or category of employment to which the scheme relates which qualifies the member (on the assumption that it continues for the appropriate period) for pension or other benefits under the scheme,
“pensioner member”, in relation to an occupational pension scheme, means a person who in respect of his pensionable service under the scheme or by reason of transfer credits, is entitled to the present payment of pension or other benefits ... ,
“prescribed” means prescribed by regulations,
“professional adviser”, in relation to a scheme, has the meaning given by section 47,
“public service pension scheme” has the meaning given by section 1 of the Pension Schemes Act 1993,
“regulations” means regulations made by the Secretary of State,
“resources”, in relation to an occupational pension scheme, means the funds out of which the benefits provided by the scheme are payable from time to time, including the proceeds of any policy of insurance taken out, or annuity contract entered into, for the purposes of the scheme,
“Scottish partnership” means a partnership constituted under the law of Scotland,
“the Taxes Act 1988” means the Income and Corporation Taxes Act 1988,
“transfer credits” means rights allowed to a member under the rules of an occupational pension scheme by reference to —
a transfer to the scheme of, or transfer payment to the trustees or managers of the scheme in respect of, any of his rights (including transfer credits allowed) under another occupational pension scheme or a personal pension scheme, other than pension credit rights, or
a cash transfer sum paid under Chapter 2 of Part 4ZA of the Pension Schemes Act 1993 (transfers and contribution refunds) in respect of him, to the trustees or managers of the scheme,
“trustees or managers”, in relation to an occupational pension scheme, means—
in the case of a trust scheme, the trustees of the scheme, and
in any other case, the managers of the scheme,
“trust scheme” means an occupational pension scheme established under a trust.
(2) For the purposes of this Part—
(a) the accrued rights of a member of an occupational pension scheme at any time are the rights which have accrued to or in respect of him at that time to future benefits under the scheme, and
(b) at any time when the pensionable service of a member of an occupational pension scheme is continuing, his accrued rights are to be determined as if he had opted, immediately before that time, to terminate that service;
and references to accrued pension or accrued benefits are to be interpreted accordingly.
(2A) In subsection (2)(a), the reference to rights which have accrued to or in respect of the member does not include any rights which are pension credit rights.
(3) In determining what is “pensionable service” for the purposes of this Part—
(a) service notionally attributable for any purpose of the scheme is to be disregarded, and
(b) no account is to be taken of any rules of the scheme by which a period of service can be treated for any purpose as being longer or shorter than it actually is but, in its application for the purposes of section 51, paragraph (b) does not affect the operation of any rules of the scheme by virtue of which a period of service is to be rounded up or down by a period of less than a month.
(3A) In a case of the winding-up of an occupational pension scheme in pursuance of an order of the Authority under section 11 or of an order of a court, the winding-up shall (subject to subsection (3E) and to sections 28, 154 and 219 of the Pensions Act 2004) be taken for the purposes of this Part to begin—
(a) if the order provides for a time to be the time when the winding-up begins, at that time; and
(b) in any other case, at the time when the order comes into force.
(3B) In a case of the winding-up of an occupational pension scheme in accordance with a requirement or power contained in the rules of the scheme, the winding-up shall (subject to subsections (3C) to (3E) and to sections 154 and 219 of the Pensions Act 2004) be taken for the purposes of this Part to begin—
(a) at the time (if any) which under those rules is the time when the winding-up begins; and
(b) if paragraph (a) does not apply, at the earliest time which is a time fixed by the trustees or managers as the time from which steps for the purposes of the winding-up are to be taken.
(3C) Subsection (3B) shall not require a winding-up of a scheme to be treated as having begun at any time before the end of any period during which effect is being given—
(a) to a determination under section 38 that the scheme is not for the time being to be wound up; or
(b) to a determination in accordance with the rules of the scheme to postpone the commencement of a winding-up.
(3D) In subsection (3B)(b) the reference to the trustees or managers of the scheme shall have effect in relation to any scheme the rules of which provide for a determination that the scheme is to be wound up to be made by persons other than the trustees or managers as including a reference to those other persons.
(3E) Subsections (3A) to (3D) above do not apply for such purposes as may be prescribed.
(4) In the application of this Part to Scotland, in relation to conviction on indictment, references to imprisonment are to be read as references to imprisonment for a term not exceeding two years.
(5) Subject to the provisions of this Act, expressions used in this Act and in the Pension Schemes Act 1993 have the same meaning in this Act as in that.
(1) For the purposes of this Part, an occupational pension scheme is salary related if—
(a) the scheme is not a money purchase scheme, and
(b) the scheme does not fall within a prescribed class or description,
and “salary related trust scheme” is to be read accordingly.
(2) Regulations may apply this Part with prescribed modifications to occupational pension schemes—
(a) which are not money purchase schemes, but
(b) where some of the benefits that may be provided are money purchase benefits.
(3) Regulations may, in relation to occupational pension schemes, extend for the purposes of this Part the meaning of “employer” to include persons who have been the employer in relation to the scheme.
(4) For any of the purposes of this Part, regulations may in relation to occupational pension schemes—
(a) extend or restrict the meaning of “member”,
(b) determine who is to be treated as a prospective member, and
(c) determine the times at which a person is to be treated as becoming, or as ceasing to be, a member or prospective member.
126 Equalisation of pensionable age and of entitlement to certain benefits and increase in pensionable age.
Schedule 4 to this Act, of which—
(a) Part I has effect to equalise pensionable age for men and women and then to increase it,
(b) Part II makes provision for bringing equality for men and women to certain pension and other benefits, and
(c) Part III makes consequential amendments of enactments,
shall have effect.