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In force since 2026-07-31, as the publisher states.
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Pensions Act 1995 1995 c.26 An Act to amend the law about pensions and for connected purposes. [19th July 1995] Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
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Propose a change(1) The Authority may by order prohibit a person from being a trustee of— (a) a particular trust scheme, (b) a particular description of trust schemes, or (c) trust schemes in general, if they are satisfied that he is not a fit and proper person to be a trustee of the scheme or schemes to which the order relates. (2) Where a prohibition order is made under subsection (1) against a person in respect of one or more schemes of which he is a trustee, the order has the effect of removing him. (3) The Authority may, on the application of any person prohibited under this section, by order revoke the order either generally or in relation to a particular scheme or description of schemes. (4) An application under subsection (3) may not be made— (a) during the period within which the determination to exercise the power to make the prohibition order may be referred to a tribunal under section 96(3) or 99(7) of the Pensions Act 2004, and (b) if the determination is so referred, until the reference, and any appeal against the determination of the tribunal concerned, has been finally disposed of. (5) A revocation made at any time under this section cannot affect anything done before that time. (6) The Authority must prepare and publish a statement of the policies they intend to adopt in relation to the exercise of their powers under this section. (7) The Authority may revise any statement published under subsection (6) and must publish any revised statement. (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Propose a change(1) A company or Scottish partnership is prohibited from being a trustee of a trust scheme at any time when an individual who is a director of the company or a partner in the partnership is prohibited from being a trustee of the scheme by an order under section 3. (2) Where a company or partnership which is a trustee of a trust scheme becomes prohibited under subsection (1) in relation to the scheme, that subsection has the effect of removing the company or partnership as a trustee. (3) The Authority may, on the application of a company or Scottish partnership, give notice in writing to the applicant waiving the prohibition under subsection (1)— (a) in relation to an individual against whom an order under section 3 has been made, and (b) either generally or in relation to a particular scheme or particular description of schemes. (4) A notice may be given under subsection (3) only if the Authority is satisfied that the applicant would be a fit and proper person to be a trustee of the scheme or schemes to which the notice relates despite the individual being, or even if the individual were to become, a director of or partner in the applicant. (5) A notice given at any time under subsection (3) cannot affect anything done before that time. (6) An application under subsection (3) may not be made— (a) during the period within which the determination to exercise the power to make the order against the individual may be referred to the Tribunal under section 96(3) or 99(7) of the Pensions Act 2004 (whether by a company or partnership which became prohibited under subsection (1) on the making of the order or by another person), and (b) if the determination is so referred, until the reference, and any appeal against the Tribunal's determination, has been finally disposed of. (7) The Authority must prepare and publish a statement of the policies they intend to adopt in relation to the exercise of their powers under this section. (8) The Authority may revise any statement published under subsection (7) and must publish any revised statement. (9) References in this section to an order under section 3 are to an order under that section made on or after the date on which section 46(2) of the Pensions Act 2014 comes fully into force.
Propose a change(1) The Authority may by order suspend a trustee of a trust scheme— (a) pending consideration being given to the making of an order against him under section 3(1), (aa) pending consideration being given to the institution of proceedings against him for an offence involving dishonesty or deception, (b) where proceedings have been instituted against him for an offence involving dishonesty or deception and have not been concluded, (ba) where an application has been made under section 263H of the Insolvency Act 1986 for an order making him bankrupt and the application has not been determined, (c) where a petition has been presented to the court for an order adjudging him bankrupt, or for the sequestration of his estate, and proceedings on the petition have not been concluded or an application has been made by him for a debt relief order (under Part 7A of the Insolvency Act 1986) and the application has not been determined, (d) where the trustee is a company, if a petition for the winding up of the company has been presented to the court and proceedings on the petition have not been concluded, (e) where an application has been made to the court for a disqualification order against him under the Company Directors Disqualification Act 1986 or under the Company Directors Disqualification (Northern Ireland) Order 2002 and proceedings on the application have not been concluded, or (f) where the trustee is a company or Scottish partnership and, if any director or, as the case may be, partner were a trustee, the Authority would have power to suspend him under paragraph (aa), (b), (c) or (e). (2) An order under subsection (1)— (a) if made by virtue of paragraph (a) or (aa) or, in a case where the Authority would have power to suspend a director or partner under paragraph (aa), by virtue of paragraph (f), has effect for an initial period not exceeding twelve months, and (b) in any other case, has effect until the proceedings in question are concluded or, in the case of an application for a debt relief order, the application is determined; but the Authority may by order extend the initial period referred to in paragraph (a) for a further period of twelve months, and any order suspending a person under subsection (1) ceases to have effect in relation to a trust scheme if an order is made against that person under section 3(1) in relation to that scheme. (3) An order under subsection (1) has the effect of prohibiting the person suspended, during the period of his suspension, from exercising any functions as trustee of any trust scheme to which the order applies; and the order may apply to a particular trust scheme, a particular description of trust schemes or trust schemes in general. (4) An order under subsection (1) may be made on one of the grounds in paragraphs (b) to (e) whether or not the proceedings were instituted, petition presented or application made (as the case may be) before or after the coming into force of that subsection. (5) The Authority may, on the application of any person suspended under subsection (1), by order revoke the order, either generally or in relation to a particular scheme or a particular description of schemes; but a revocation made at any time cannot affect anything done before that time. (5A) An application under subsection (5) may not be made— (a) during the period within which the determination to exercise the power to make an order under subsection (1) may be referred to a tribunal under section 96(3) or 99(7) of the Pensions Act 2004, and (b) if the determination is so referred, until the reference, and any appeal against the determination of the tribunal concerned, has been finally disposed of. (6) An order under this section may make provision as respects the period of the trustee’s suspension for matters arising out of it, and in particular for enabling any person to execute any instrument in his name or otherwise act for him and for adjusting any rules governing the proceedings of the trustees to take account of the reduction in the number capable of acting. (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Propose a change(1) A person who purports to act as trustee of a trust scheme while prohibited from being a trustee of the scheme under section 3 or 3A or suspended in relation to the scheme under section 4 is guilty of an offence and liable— (a) on summary conviction, to a fine not exceeding the statutory maximum, and (b) on conviction on indictment, to a fine or imprisonment or both. (2) An offence under subsection (1) 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 that subsection by reference to any period of time following the preceding conviction of the offence. (3) Things done by a person purporting to act as trustee of a trust scheme while prohibited from being a trustee of the scheme under section 3 or 3A or suspended in relation to the scheme under section 4 are not invalid merely because of that prohibition or suspension. (4) Nothing in section 3 , 3A or 4 or this section affects the liability of any person for things done, or omitted to be done, by him while purporting to act as trustee of a trust scheme.
Propose a change(1) Where a trustee of a trust scheme is removed by an order under section 3, by section 3A or ... by reason of his disqualification, the Authority may by order appoint another trustee in his place. (2) Where a trustee appointed under subsection (1) is appointed to replace a trustee appointed under section 23(1), sections 22 to 26 shall apply to the replacement trustee as they apply to a trustee appointed under section 23(1). (3) The Authority may also by order appoint a trustee of a trust scheme where they are satisfied that it is reasonable to do so in order— (a) to secure that the trustees as a whole have, or exercise, the necessary knowledge and skill for the proper administration of the scheme, (aa) where subsection (3A) or (3B) applies, to secure that the trustees as a whole have the skills and knowledge necessary for ensuring that the scheme, or an arrangement under it, improves its performance as regards the provision of value for money; (b) to secure that the number of trustees is sufficient for the proper administration of the scheme, ... (c) to secure the proper use or application of the assets of the scheme , ... (ca) to secure compliance with the duties of trustees under Chapter 6 of Part 2 of the Pension Schemes Act 2026, or (d) otherwise to protect the interests of the generality of the members of the scheme. (3A) This subsection applies where— (a) the trust scheme is a regulated VFM scheme (as defined in section 11(1)(a) of the Pension Schemes Act 2026), and (b) the most recent rating assigned to the scheme under section 15(1) of that Act was an intermediate or “not delivering” rating. (3B) This subsection applies where— (a) an arrangement under the trust scheme is a regulated VFM arrangement, and (b) the most recent rating assigned to the arrangement under section 15(1) of that Act was an intermediate or “not delivering” rating. (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) The power to appoint a trustee by an order under this section includes power by such an order— (a) to determine the appropriate number of trustees for the proper administration of the scheme, (b) to require a trustee appointed by the order to be paid fees and expenses out of the scheme’s resources, (c) to provide for the removal or replacement of such a trustee. (5A) An application may be made to the Authority in relation to a trust scheme by— (a) the trustees of the scheme, (b) the employer, or (c) any member of the scheme, for the appointment of a trustee of the scheme under subsection (3)(a) or (c). (6) Regulations may make provision about the descriptions of persons who may or may not be appointed trustees under this section. (7) In this section “regulated VFM arrangement” and “regulated VFM scheme” are to be interpreted in accordance with section 21 of the Pension Schemes Act 2026.
Propose a change(1) An order under section 7 appointing a trustee may provide for any fees and expenses of trustees appointed under the order to be paid— (a) by the employer, (b) out of the resources of the scheme, or (c) partly by the employer and partly out of those resources. (2) Such an order may also provide that an amount equal to the amount (if any) paid out of the resources of the scheme by virtue of subsection (1)(b) or (c) is to be treated for all purposes as a debt due from the employer to the trustees of the scheme. (3) Subject to subsection (4), a trustee appointed under that section shall, unless he is the independent trustee and section 22 applies in relation to the scheme, have the same powers and duties as the other trustees. (4) Such an order may make provision— (a) for restricting the powers or duties of a trustee so appointed, ... (b) for powers or duties to be exercisable by a trustee so appointed to the exclusion of other trustees.
Propose a changeWhere the Authority have power under this Part to appoint or remove a trustee or a trustee is removed under section 3A, they may exercise by order the same jurisdiction and powers as are exercisable by the High Court or, in relation to a trust scheme subject to the law of Scotland, the Court of Session for vesting any property in, or transferring any property to, trustees in consequence of the appointment or of the removal.
Propose a change(1) Where the Authority are satisfied that by reason of any act or omission this section applies to any person, they may by notice in writing require him to pay, within a prescribed period, a penalty in respect of that act or omission not exceeding the maximum amount. (2) In this section “the maximum amount” means— (a) £5,000 in the case of an individual and £50,000 in any other case, or (b) such lower amount as may be prescribed in the case of an individual or in any other case, and the Secretary of State may by order amend paragraph (a) by substituting higher amounts for the amounts for the time being specified in that paragraph. (3) Regulations made by virtue of this Part may provide for any person who has contravened any provision of such regulations to pay, within a prescribed period, a penalty under this section not exceeding an amount specified in the regulations; and the regulations must specify different amounts in the case of individuals from those specified in other cases and any amount so specified may not exceed the amount for the time being specified in the case of individuals or, as the case may be, others in subsection (2)(a). (4) An order made under subsection (2) or regulations made by virtue of subsection (3) do not affect the amount of any penalty recoverable under this section by reason of an act or omission occurring before the order or, as the case may be, regulations are made. (5) Where— (a) apart from this subsection, a penalty under this section is recoverable from a body corporate or Scottish partnership by reason of any act or omission of the body or partnership ... , and (b) the act or omission was done with the consent or connivance of, or is attributable to any neglect on the part of, any persons mentioned in subsection (6), this section applies to each of those persons who consented to or connived in the act or omission or to whose neglect the act or omission was attributable. (6) The persons referred to in subsection (5)(b)— (a) in relation to a body corporate, are— (i) any director, manager, secretary, or other similar officer of the body, or a person purporting to act in any such capacity, and (ii) where the affairs of a body corporate are managed by its members, any member in connection with his functions of management, and (b) in relation to a Scottish partnership, are the partners. (7) Where the Authority requires any person to pay a penalty by virtue of subsection (5), they may not also require the body corporate, or Scottish partnership, in question to pay a penalty in respect of the same act or omission. (8) A penalty under this section is recoverable by the Authority. (8A) Any penalty recoverable under this section— (a) shall, if the county court so orders, be recoverable under section 85 of the County Courts Act 1984 or otherwise as if it were payable under an order of that court; and (b) may be enforced as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff court of any sheriffdom in Scotland. (9) The Authority must pay to the Secretary of State any penalty recovered under this section. (10) The Authority may not require a person to pay a penalty under this section in respect of an act or omission if the Authority have issued a notice to the person under section 88A of the Pensions Act 2004 (financial penalties) in respect of the same act or omission.
Propose a change(1) Subject to the following provisions of this section, the Authority may by order direct or authorise an occupational pension scheme to be wound up if they are satisfied that— (a) the scheme, or any part of it, ought to be replaced by a different scheme, (b) the scheme is no longer required, ... (c) it is necessary in order to protect the interests of the generality of the members of the scheme that it be wound up. (d) the scheme is a regulated VFM scheme and— (i) the rating most recently assigned to the scheme under section 15(1) of the Pension Schemes Act 2026 is “not delivering”, and (ii) the Authority are satisfied that the scheme is not capable of providing value for money, or (e) the following conditions are met in relation to a regulated VFM arrangement (“A”) under the scheme— (i) that the rating most recently assigned to A under section 15(1) of the Pension Schemes Act 2026 is “not delivering”, and (ii) the Authority are satisfied that A is not capable of providing value for money. (2) The Authority may not make an order under this section on either of the grounds referred to in subsection (1)(a) or (b) unless they are satisfied that the winding up of the scheme— (a) cannot be achieved otherwise than by means of such an order, or (b) can only be achieved in accordance with a procedure which— (i) is liable to be unduly complex or protracted, or (ii) involves the obtaining of consents which cannot be obtained, or can only be obtained with undue delay or difficulty, and that it is reasonable in all the circumstances to make the order. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3A) The Authority may, during an assessment period (within the meaning of section 132 of the Pensions Act 2004 (meaning of “assessment period” for the purposes of Part 2 of that Act)) in relation to an occupational pension scheme, by order direct the scheme to be wound up if they are satisfied that it is necessary to do so in order— (a) to ensure that the scheme’s protected liabilities do not exceed its assets, or (b) if those liabilities do exceed its assets, to keep the excess to a minimum. (3B) In subsection (3A)— (a) “protected liabilities” has the meaning given by section 131 of the Pensions Act 2004, and (b) references to the assets of the scheme are references to those assets excluding any assets representing the value of any rights in respect of money purchase benefits (within the meaning of that Act) under the scheme. (4) An order under this section authorising a scheme to be wound up must include such directions with respect to the manner and timing of the winding up as the Authority think appropriate having regard to the purposes of the order. This subsection is subject to sections 28, 135 and 219 of the Pensions Act 2004 (winding up order made when freezing order has effect in relation to scheme, during assessment period under Part 2 of that Act etc). (5) The winding up of a scheme in pursuance of an order of the Authority under this section is as effective in law as if it had been made under powers conferred by or under the scheme. (6) An order under this section may be made and complied with in relation to a scheme— (a) in spite of any enactment or rule of law, or any rule of the scheme, which would otherwise operate to prevent the winding up, or (b) except for the purpose of the Authority determining whether or not they are satisfied as mentioned in subsection (2), without regard to any such enactment, rule of law or rule of the scheme as would otherwise require, or might otherwise be taken to require, the implementation of any procedure or the obtaining of any consent, with a view to the winding up. (6A) Subsection (6) does not have effect to authorise the Authority to make an order as mentioned in paragraph (a) or (b) of that subsection, if their doing so would be unlawful as a result of section 6(1) of the Human Rights Act 1998 (unlawful for public authority to act in contravention of a Convention right). (7) In the case of a public service pension scheme— (a) an order under subsection (1) directing or authorising the scheme to be wound up may only be made on the grounds referred to in paragraph (c), and (b) such an order may, as the Authority think appropriate, adapt, amend or repeal any enactment (including the Scottish Parliamentary Pensions Act 2009 (asp 1)) in which the scheme is contained or under which it is made. (8) In subsection (1)— (a) “regulated VFM arrangement” and “regulated VFM scheme” have the same meaning as in Chapter 1 of Part 2 of the Pension Schemes Act 2026 (see section 21 of that Act); (b) the reference to the provision of value for money is to be interpreted in accordance with that Chapter.
Propose a change(1) The appropriate authority may by order direct a public service pension scheme to be wound up if they are satisfied that— (a) the scheme, or any part of it, ought to be replaced by a different scheme, or (b) the scheme is no longer required. (2) Subsection (2) of section 11 applies for the purposes of this section as it applies for the purposes of that, but as if references to the Authority were to the appropriate authority. (3) In this section “the appropriate authority”, in relation to a scheme, means such Minister of the Crown or government department as may be designated by the Treasury as having responsibility for the particular scheme. (4) An order under this section must include such directions with respect to the manner and timing of the winding up as that authority think appropriate. (5) Such an order may, as that authority think appropriate, adapt, amend or repeal any enactment in which the scheme is contained or under which it is made.
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Propose a change(1) If, on the application of the Authority, the court is satisfied— (a) that a power to make a payment, or distribute any assets, to the employer, has been exercised in contravention of section 37, 76 or 77, or (b) that any act or omission of the trustees or managers of an occupational pension scheme was in contravention of section 40, the court may order the employer and any other person who appears to the court to have been knowingly concerned in the contravention to take such steps as the court may direct for restoring the parties to the position in which they were before the payment or distribution was made, or the act or omission occurred. (2) The jurisdiction conferred by this section is exercisable by the High Court or the Court of Session.
Propose a change(1) The Authority may, where in the case of any trust scheme the employer fails to comply with any requirement included in regulations by virtue of section 49(5), direct the trustees to make arrangements for the payment to the members of the benefit to which the requirement relates. (2) The Authority may— (a) where in the case of any trust scheme an annual report is published, direct the trustees to include a statement prepared by the Authority in the report, and (b) in the case of any trust scheme, direct the trustees to send to the members a copy of a statement prepared by the Authority. (3) A direction under this section must be given in writing. (4) Where a direction under this section is not complied with, section 10 applies to any trustee who has failed to take all such steps as are reasonable to secure compliance.
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Propose a change(1) This section applies in relation to a trust scheme— (a) if a person (referred to in this section and sections 23 to 26 as “the practitioner”) begins to act as an insolvency practitioner in relation to a company which, or an individual who, is the employer in relation to the scheme, or (b) if the official receiver becomes— (i) the liquidator or provisional liquidator of a company which is the employer in relation to the scheme, ... (ia) the interim receiver of the property of a person who is the employer in relation to the scheme, or (ii) the receiver and the manager, or the trustee, of the estate of a bankrupt who is the employer in relation to the scheme. (2) Where this section applies in relation to a scheme by virtue of subsection (1), it ceases to do so— (a) if some person other than the employer mentioned in subsection (1) becomes the employer, or (b) if at any time neither the practitioner nor the official receiver is acting in relation to the employer; but this subsection does not affect the application of this section in relation to the scheme on any subsequent occasion when the conditions specified in subsection (1)(a) or (b) are satisfied in relation to it. (2A) To the extent that it does not already apply by virtue of subsection (1), this section also applies in relation to a trust scheme— (a) at any time during an assessment period (within the meaning of section 132 of the Pensions Act 2004) in relation to the scheme, and (b) at any time, not within paragraph (a), when the scheme is authorised under section 153 of that Act (closed schemes) to continue as a closed scheme. (2B) The responsible person must, as soon as reasonably practicable, give notice of an event within subsection (2C) to— (a) the Authority, (b) the Board of the Pension Protection Fund, and (c) the trustees of the scheme. (2C) The events are— (a) the practitioner beginning to act as mentioned in subsection (1)(a), if immediately before he does so this section does not apply in relation to the scheme; (b) the practitioner ceasing to so act, if immediately after he does so this section does not apply in relation to the scheme; (c) the official receiver beginning to act in a capacity mentioned in subsection (1)(b)(i), (ia) or (ii), if immediately before he does so this section does not apply in relation to the scheme; (d) the official receiver ceasing to act in such a capacity, if immediately after he does so this section does not apply in relation to the scheme. (2D) For the purposes of subsection (2B) “the responsible person” means— (a) in the case of an event within subsection (2C)(a) or (b) the practitioner, and (b) in the case of an event within subsection (2C)(c) or (d), the official receiver. (2E) Regulations may require prescribed persons in prescribed circumstances where this section begins or ceases to apply in relation to a trust scheme by virtue of subsection (2A) to give a notice to that effect to— (a) the Authority, (b) the Board of the Pension Protection Fund, and (c) the trustees of the scheme. (2F) A notice under subsection (2B), or regulations under subsection (2E), must be in writing and contain such information as may be prescribed. (3) In this section and sections 23 to 26— “acting as an insolvency practitioner” and “official receiver” shall be construed in accordance with sections 388 and 399 of the Insolvency Act 1986, “bankrupt” has the meaning given by section 381 of the Insolvency Act 1986, “company” means a company as defined in section 1(1) of the Companies Act 2006 or a company which may be wound up under Part V of the Insolvency Act 1986 (unregistered companies), ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Propose a change(1) While section 22 applies in relation to a trust scheme, the Authority may by order appoint as a trustee of the scheme a person who— (a) is an independent person in relation to the scheme, and (b) is registered in the register maintained by the Authority in accordance with regulations under subsection (4). (2) In relation to a particular trust scheme, no more than one trustee may at any time be an independent trustee appointed under subsection (1). (3) For the purposes of this section a person is independent in relation to a trust scheme only if— (a) he has no interest in the assets of the employer or of the scheme otherwise than as trustee of the scheme, (b) he is neither connected with, nor an associate of— (i) the employer, (ii) any person for the time being acting as an insolvency practitioner in relation to the employer, or (iii) the official receiver acting in any of the capacities mentioned in section 22(1)(b) in relation to the employer, and (c) he satisfies any prescribed requirements; and any reference in this Part to an independent trustee is to be construed accordingly. (4) Regulations must provide for the Authority to compile and maintain a register of persons who satisfy the prescribed conditions for registration. (5) Regulations under subsection (4) may provide— (a) for copies of the register or of extracts from it to be provided to prescribed persons in prescribed circumstances; (b) for the inspection of the register by prescribed persons in prescribed circumstances. (6) The circumstances which may be prescribed under subsection (5)(a) or (b) include the payment by the person to whom the copy is to be provided, or by whom the register is to be inspected, of such reasonable fee as may be determined by the Authority. (7) This section is without prejudice to the powers conferred by section 7.
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Propose a change(1) If, immediately before the appointment of an independent trustee under section 23(1), there is no trustee of the scheme other than the employer, the employer shall cease to be a trustee upon the appointment of the independent trustee. (2) While section 22 applies in relation to a scheme and there is an independent trustee of the scheme appointed under section 23(1)— (a) any power vested in the trustees of the scheme and exercisable at their discretion may be exercised only by the independent trustee, and (b) any power— (i) which the scheme confers on the employer (otherwise than as trustee of the scheme), and (ii) which is exercisable by him at his discretion but only as trustee of the power, may be exercised only by the independent trustee. ... (3) While section 22 applies in relation to a scheme and there is an independent trustee of the scheme appointed under section 23(1), the independent trustee may not be removed from being a trustee by virtue only of any provision of the scheme. (4) If a trustee appointed under section 23(1) ceases to be an independent person (within the meaning of section 23(3)), then— (a) he must as soon as reasonably practicable give written notice of that fact to the Authority, and (b) subject to subsection (5), he shall cease to be a trustee of the scheme. (5) If, in a case where subsection (4) applies, there is no other trustee of the scheme than the former independent trustee, he shall not cease by virtue of that subsection to be a trustee until such time as another trustee is appointed. (5A) Section 10 applies to any person who, without reasonable excuse, fails to comply with subsection (4)(a). (6) An order under section 23(1) may provide for any fees and expenses of the trustee appointed under the order to be paid— (a) by the employer, (b) out of the resources of the scheme, or (c) partly by the employer and partly out of those resources. (7) Such an order may also provide that an amount equal to the amount (if any) paid out of the resources of the scheme by virtue of subsection (6)(b) or (c) is to be treated for all purposes as a debt due from the employer to the trustees of the scheme. (8) Where, by virtue of subsection (6)(b) or (c), an order makes provision for any fees or expenses of the trustee appointed under the order to be paid out of the resources of the scheme, the trustee is entitled to be so paid in priority to all other claims falling to be met out of the scheme’s resources.
Propose a change(1) Notwithstanding anything in section 155 of the Insolvency Act 1986 (court orders for inspection etc.), while section 22 applies in relation to a scheme by virtue of subsection (1) of that section, the practitioner or official receiver must provide the trustees of the scheme, as soon as practicable after the receipt of a request, with any information which the trustees may reasonably require for the purposes of the scheme. (2) Any expenses incurred by the practitioner or official receiver in complying with a request under subsection (1) are recoverable by him as part of the expenses incurred by him in discharge of his duties. (3) The practitioner or official receiver is not required under subsection (1) to take any action which involves expenses that cannot be so recovered, unless the trustees of the scheme undertake to meet them.
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Propose a change(1) A trustee of a trust scheme, and any person who is connected with, or an associate of, such a trustee, is ineligible to act as an auditor or actuary of the scheme. (2) Subsection (1) does not make a person who is a director, partner or employee of a firm of actuaries ineligible to act as an actuary of a trust scheme merely because another director, partner or employee of the firm is a trustee of the scheme. (3) Subsection (1) does not make a person who falls within a prescribed class or description ineligible to act as an auditor or actuary of a trust scheme. (4) A person must not act as an auditor or actuary of a trust scheme if he is ineligible under this section to do so. (5) In this section and section 28 references to a trustee of a trust scheme do not include— (a) a trustee, or (b) a trustee of a scheme, falling within a prescribed class or description.
Propose a change(1) Any person who acts as an auditor or actuary of a trust scheme in contravention of section 27(4) is guilty of an offence and liable— (a) on summary conviction, to a fine not exceeding the statutory maximum, and (b) on conviction on indictment, to imprisonment or a fine, or both. (2) An offence under subsection (1) 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 that subsection by reference to any period of time following the preceding conviction of the offence. (3) Acts done as an auditor or actuary of a trust scheme by a person who is ineligible under section 27 to do so are not invalid merely because of that fact. (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Propose a change(1) Subject to subsection (5), a person is disqualified for being a trustee of any trust scheme if— (a) he has been convicted of any offence involving dishonesty or deception, (b) he has been made bankrupt or sequestration of his estate has been awarded and (in either case) he has not been discharged or he is the subject of a bankruptcy restrictions order or an interim bankruptcy restrictions order, (ba) a moratorium period under a debt relief order (under Part 7A of the Insolvency Act 1986) applies in relation to him or he is the subject of a debt relief restrictions order or an interim debt relief restrictions order (under Schedule 4ZB of the Insolvency Act 1986), (c) where the person is a company, if any director of the company is disqualified under this section, (d) where the person is a Scottish partnership, if any partner is disqualified under this section, (e) he has made a composition contract or an arrangement with, or granted a trust deed for the behoof of, his creditors and has not been discharged in respect of it, or (f) he is subject to a disqualification order or disqualification undertaking under the Company Directors Disqualification Act 1986 or the Company Directors Disqualification (Northern Ireland) Order 2002 or to an order made under section 429(2)(b) of the Insolvency Act 1986 (failure to pay under county court administration order). (2) In subsection (1)— (a) paragraph (a) applies whether the conviction occurred before or after the coming into force of that subsection, but does not apply in relation to any conviction which is a spent conviction for the purposes of the Rehabilitation of Offenders Act 1974, (b) paragraph (b) applies whether the adjudication of bankruptcy or the sequestration or the making of the bankruptcy restrictions order or an interim order occurred before or after the coming into force of that subsection, (c) paragraph (e) applies whether the composition contract or arrangement was made, or the trust deed was granted, before or after the coming into force of that subsection, and (d) paragraph (f) applies in relation to orders made before or after the coming into force of that subsection. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) The Authority may, on the application of any person disqualified under this section— (a) give notice in writing to him waiving his disqualification, (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . either generally or in relation to a particular scheme or particular description of schemes. (6) A notice given... at any time by virtue of subsection (5) cannot affect anything done before that time.
Propose a change(1) Where a person who is a trustee of a trust scheme becomes disqualified under section 29 in relation to the scheme, his becoming so disqualified has the effect of removing him as a trustee. (2) Where— (a) a trustee of a trust scheme becomes disqualified under section 29, ... (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . the Authority may exercise by order the same jurisdiction and powers as are exercisable by the High Court or, in relation to a trust scheme subject to the law of Scotland, the Court of Session for vesting any property in, or transferring any property to, the trustees. (3) A person who purports to act as a trustee of a trust scheme while he is disqualified under section 29 is guilty of an offence and liable— (a) on summary conviction to a fine not exceeding the statutory maximum, and (b) on conviction on indictment, to a fine or imprisonment or both. (4) An offence under subsection (3) 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 that subsection by reference to any period of time following the preceding conviction of the offence. (5) Things done by a person disqualified under section 29 while purporting to act as trustee of a trust scheme are not invalid merely because of that disqualification. (6) Nothing in section 29 or this section affects the liability of any person for things done, or omitted to be done, by him while purporting to act as trustee of a trust scheme. (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Propose a change(1) Decisions of the trustees of a trust scheme may, unless the scheme provides otherwise, be taken by agreement of a majority of the trustees. (2) Where decisions of the trustees of a trust scheme may be taken by agreement of a majority of the trustees— (a) the trustees may, unless the scheme provides otherwise, by a determination under this subsection require not less than the number of trustees specified in the determination to be present when any decision is so taken, and (b) notice of any occasions at which decisions may be so taken must, unless the occasion falls within a prescribed class or description, be given to each trustee to whom it is reasonably practicable to give such notice. (3) Notice under subsection (2)(b) must be given in a prescribed manner and not later than the beginning of a prescribed period. (4) This section is subject to sections 8(4)(b) and 25(2) of this Act and section 241(6) of the Pensions Act 2004. (5) If subsection (2)(b) is not complied with, section 10 applies to any trustee who has failed to take all such steps as are reasonable to secure compliance.
Propose a change(1) Liability for breach of an obligation under any rule of law to take care or exercise skill in the performance of any investment functions, where the function is exercisable— (a) by a trustee of a trust scheme, or (b) by a person to whom the function has been delegated under section 34, cannot be excluded or restricted by any instrument or agreement. (2) In this section, references to excluding or restricting liability include— (a) making the liability or its enforcement subject to restrictive or onerous conditions, (b) excluding or restricting any right or remedy in respect of the liability, or subjecting a person to any prejudice in consequence of his pursuing any such right or remedy, or (c) excluding or restricting rules of evidence or procedure. (3) This section does not apply— (a) to a scheme falling within any prescribed class or description, or (b) to any prescribed description of exclusion or restriction.
Propose a change(1) The trustees of a trust scheme have, subject to section 36(1) and to any restriction imposed by the scheme, the same power to make an investment of any kind as if they were absolutely entitled to the assets of the scheme. (2) Any discretion of the trustees of a trust scheme to make any decision about investments— (a) may be delegated by or on behalf of the trustees to a fund manager to whom subsection (3) applies to be exercised in accordance with section 36, but (b) may not otherwise be delegated except under section 25 of the Trustee Act 1925 (delegation of trusts during absence abroadfor period not exceeding twelve months) or subsection (5) below. (3) This subsection applies to a fund manager who, in relation to the investments, may take the decisions in question without contravening the prohibition imposed by section 19 of the Financial Services and Markets Act 2000 (prohibition on carrying on regulated activities unless authorised or exempt). (4) The trustees are not responsible for the act or default of any fund manager in the exercise of any discretion delegated to him under subsection (2)(a) if they have taken all such steps as are reasonable to satisfy themselves or the person who made the delegation on their behalf has taken all such steps as are reasonable to satisfy himself— (a) that the fund manager has the appropriate knowledge and experience for managing the investments of the scheme, and (b) that he is carrying out his work competently and complying with section 36. (5) Subject to any restriction imposed by a trust scheme— (a) the trustees may authorise two or more of their number to exercise on their behalf any discretion to make any decision about investments, and (b) any such discretion may, where giving effect to the decision would not constitute the carrying on, in the United Kingdom, of a regulated activity (within the meaning of the Financial Services and Markets Act 2000), be delegated by or on behalf of the trustees to a fund manager to whom subsection (3) does not apply to be exercised in accordance with section 36; but in either case the trustees are liable for any acts or defaults in the exercise of the discretion if they would be so liable if they were the acts or defaults of the trustees as a whole. (6) Section 33 does not prevent the exclusion or restriction of any liability of the trustees of a trust scheme for the acts or defaults of a fund manager in the exercise of a discretion delegated to him under subsection (5)(b) where the trustees have taken all such steps as are reasonable to satisfy themselves, or the person who made the delegation on their behalf has taken all such steps as are reasonable to satisfy himself— (a) that the fund manager has the appropriate knowledge and experience for managing the investments of the scheme, and (b) that he is carrying out his work competently and complying with section 36; and subsection (2) of section 33 applies for the purposes of this subsection as it applies for the purposes of that section. (7) The provisions of this section override any restriction inconsistent with the provisions imposed by any rule of law or by or under any enactment, other than an enactment contained in, or made under, this Part or the Pension Schemes Act 1993.
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