(1) In section 82(5)(a) of the Pensions Act 2004 (penalty for disclosure of restricted information, on summary conviction), at the end insert “ , or imprisonment for a term not exceeding 12 months, or both ”.
(2) After subsection (5) insert—
(6) In relation to an offence under subsection (5) committed before the commencement of section 282 of the Criminal Justice Act 2003 (short sentences) the reference in subsection (5)(a) to 12 months has effect as if it were a reference to six months.
(7) Subsection (6) does not extend to Scotland.
In section 5(1) of the Pensions Act 2004 (c. 35) (Regulator's objectives), before “and” at the end of paragraph (c) insert—
(ca) to maximise compliance with the duties under Chapter 1 of Part 1 (and the safeguards in sections 50 and 54) of the Pensions Act 2008,
.
(1) Section 146 of the Pension Schemes Act 1993 (c. 48) (functions of the Pensions Ombudsman) is amended as follows.
(2) In subsection (7), after paragraph (ba) insert—
(bb) a person who has given notice in accordance with section 8 of the Pensions Act 2008 (right to opt out of membership of an automatic enrolment scheme);
(3) In paragraph (c)(i) of that subsection, for “or (ba)” substitute “ , (ba) or (bb) ”.
(1) The Secretary of State must establish a pension scheme and make provision for its administration and management.
(2) A scheme established under this section is to be treated for all purposes as established under an irrevocable trust.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) It must when registered under Chapter 2 of Part 4 of the Finance Act 2004 be a scheme such that a jobholder's employer, if a participating employer, may comply with an enrolment duty by arranging for the jobholder to become an active member of the scheme.
(5) It must be a scheme that complies with any provision of Northern Ireland legislation corresponding to subsection (4).
(6) The scheme administrator must ensure that the scheme is and remains registered under Chapter 2 of Part 4 of the Finance Act 2004.
(7) “Scheme administrator” has the same meaning here as in that Part.
(8) The power to make provision in pursuance of subsection (1) is exercisable by order.
(9) If an order establishes a scheme, any further provision that may be made by order in relation to the scheme may also be made by rules (and rules may be made so as to come into force at the same time as the establishing order).
(10) That is subject to subsections (11) and (12).
(11) Rules are subject to any provision made by order.
(12) No provision may be made by rules about—
(a) the purpose or object of the scheme;
(b) the appointment or removal of trustees;
(c) (as regards trustees, or members of any corporate trustee) meetings, committees or delegation of functions;
(d) any exclusion of liability on the part of trustees, or the provision of any indemnity or insurance out of the funds of the scheme.
(13) Except as expressly provided, nothing in this Act limits the generality of the powers conferred by this section.
(1) An order under section 67 establishing a scheme must provide for the trustee corporation (the body established by section 75) to be a trustee on the coming into force of the scheme.
(2) An order under section 67 may provide for any provision of the Trustee Act 2000 (c. 29) to apply as if an order or rules under section 67 were a trust instrument.
(3) An order under section 67 may provide for the trustees to have power to make rules under that section.
(4) Where the trustees have power to make rules, an order under section 67 may provide—
(a) that they may not exercise the power in specified circumstances;
(b) that they may exercise it subject to conditions;
(c) that they must comply with requirements for consultation or publication or other procedural requirements when exercising the power.
(5) An order under section 67 may make provision for the exclusion of, or indemnity against, liability of a trustee, or an officer or employee of a trustee, arising out of the administration or management of a scheme.
(1) If an order under section 67 establishes a scheme, the Secretary of State must by order under that section require the trustees to make and maintain arrangements for consulting the members of the scheme and participating employers about the operation, development and amendment of the scheme.
(2) The arrangements must include establishment and maintenance of—
(a) a panel of persons to represent members (“the members' panel”), and
(b) a panel of persons to represent employers (“the employers' panel”).
(3) The composition and functions of the panels are to be determined by order under section 67, or by the trustees under an order.
(4) The functions of the members' panel may include nominating individuals to be members of the trustee corporation.
(5) An order under section 67 may provide for payments to panel members out of scheme funds.
(1) Subsection (2) applies to any order under section 67 relating to a scheme, except the order establishing the scheme and an order taking effect at the same time as that order.
(2) The Secretary of State may not make the order without the consent of the trustees.
(3) But the trustees may not withhold their consent without giving reasons.
(4) The trustees must consult the members' panel and the employers' panel before deciding whether to give consent.
(1) A person who proposes to make rules under section 67 must publish a draft of the rules and invite comments.
(2) They must have regard to any comments made in accordance with the invitation.
(3) If they make the rules they must publish an account in general terms of those comments and their response to them.
(4) If the rules they make differ from the draft published under subsection (1), they must publish details of any differences that they think are significant.
(5) Subsection (6) applies to any rules made by the Secretary of State under section 67 relating to a scheme, except rules taking effect at the same time as the order establishing the scheme.
(6) The Secretary of State may not make the rules without the consent of the trustees.
(7) But the trustees may not withhold their consent without giving reasons.
(8) The trustees must consult the members' panel and the employers' panel—
(a) before making rules under section 67;
(b) before deciding whether to give consent under subsection (6).
(9) If the Secretary of State or the trustees make rules under section 67 they must publish them.
(10) Anything published under this section must be published in a way designed to bring it to the attention of the persons likely to be interested or affected.
(11) The publication must not be limited to electronic publication.
(1) The Interpretation Act 1978 (c. 30) applies in relation to rules under section 67 as if they were contained in a deed not made under an enactment.
(2) A scheme established under section 67 is not to be treated as a public service pension scheme for the purposes of any enactment.
(1) The Secretary of State must appoint a person to review in relation to a scheme established under section 67—
(a) the effect of provision made under section 70 (maximum amount of contributions),
(b) the effect of any restrictions on rights to transfer into the scheme or transfer out to another pension scheme, and
(c) such other matters as the Secretary of State may direct.
(2) The appointment under subsection (1) must be made on or after the later of—
(a) 1 January 2017;
(b) the end of five years beginning with the first day on which contributions are paid to the scheme by or in respect of members.
(3) The person appointed under subsection (1) must—
(a) prepare a report of the review, and
(b) send a copy of the report to the Secretary of State.
(4) The Secretary of State must lay before Parliament a copy of the report.
(5) The Secretary of State may pay to the person appointed under subsection (1) such remuneration and expenses as the Secretary of State may determine.
(1) There is to be a body corporate, referred to in this Chapter as the trustee corporation.
(2) The name of the body is to be determined by order made by the Secretary of State.
(3) The trustee corporation is not to be regarded as the servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown.
(4) Property held by the corporation is not to be regarded as property of, or property held on behalf of, the Crown.
(5) Schedule 1 makes provision about the trustee corporation.
(1) The functions of the trustee corporation are—
(a) to act as a trustee of any scheme established under section 67, and
(b) any other functions it is given by or under an enactment in connection with the scheme.
(2) The corporation may do anything calculated to facilitate, or incidental or conducive to, the carrying out of any of its functions.
(3) In particular the corporation may—
(a) enter into agreements;
(b) borrow money;
(c) invest money.
(4) The corporation's powers within subsection (3)(b) and (c) are exercisable only with the consent of the Secretary of State.
(5) Subsections (3) and (4) are without prejudice to the exercise by the trustee corporation of any power vested in it as a trustee of a scheme established under section 67.
(1) The Secretary of State may by regulations provide that legislation applying in relation to a person as trustee of a pension scheme, or as director of a company which is a trustee of a pension scheme, applies in relation to the trustee corporation, or its members, with any modifications prescribed in the regulations.
(2) In this section “legislation” means any provision of an Act or subordinate legislation (and “subordinate legislation” has the same meaning as in the Interpretation Act 1978 (c. 30)).
In this Chapter—
“employers' panel” has the meaning given by section 69(2)(b);
“members' panel” has the meaning given by section 69(2)(a);
“trustees”, in relation to a scheme established under section 67, means the trustee or trustees of the scheme.
(1) Section 23 of the Pensions Act 2007 (c. 22) (winding up of the Authority) is amended as follows.
(2) For subsection (1) substitute—
(1) The Secretary of State may by order provide for the winding up and dissolution of the Authority.
(3) Subsections (2) to (4) are omitted.
(4) In subsection (5)(a), after “Secretary of State” insert “ or any other person ”.
(5) In subsection (7)—
(a) the words after “ provision of ” become paragraph (a) of that subsection; and
(b) at the end of that paragraph insert —
;
(b) sections 79 to 85 of the Pensions Act 2008.
(1) The Welfare Reform and Pensions Act 1999 (c. 30) is amended as follows.
(2) Section 3 (duty of employers to facilitate access to stakeholder pension schemes) is amended as follows.
(3) In subsection (1), for “the requirements set out below” substitute “ the requirement in subsection (5) ”.
(4) After subsection (1) insert—
(1A) A relevant employee, in relation to an employer, is an employee of the employer who, on the relevant date, satisfies the conditions in subsection (1B).
(1B) The conditions are that—
(a) the employee is a member of a stakeholder pension scheme;
(b) the employee made a request under subsection (5) before the relevant date and that request has not been withdrawn;
(c) the employee pays contributions (which are deducted in accordance with that request) to the scheme at regular intervals;
(d) at least one deduction has been made before the relevant date in accordance with that request.
(1C) A person ceases to be a relevant employee—
(a) on ceasing to be employed by the employer;
(b) on withdrawing a request under subsection (5);
(c) on ceasing to pay contributions at regular intervals.
(5) Omit subsections (2) to (4).
(6) In subsection (5)—
(a) omit the word “fourth”;
(b) omit the words from “of his” to “qualifying scheme”;
(c) in paragraph (a), for “scheme” substitute “ stakeholder pension scheme ”.
(7) After subsection (5) insert—
(5A) That requirement only applies in relation to a request to make deductions made before the relevant date (whether or not that request is varied after that date).
(8) Omit subsection (6).
(9) In subsection (7), for “any of the requirements” substitute “ the requirement ”.
(10) In subsection (8)—
(a) for the words from “whether before” to “those purposes” substitute “ while subject to the requirement in subsection (5) ”;
(b) omit paragraph (a)(ii) and (iii).
(11) In subsection (9), after the definition of “employer” insert—
“relevant date” means the date on which section 87 of the Pensions Act 2008 comes into force.
(12) In that subsection—
(a) omit the definition of “qualifying scheme”;
(b) omit the definition of “relevant employees”.
(13) In section 6 (application of certain enactments), omit subsections (1), (2) and (4).
(14) In section 8 (interpretation), in subsection (1), omit the definition of “designated scheme”.
87A Power to create exceptions from the employer duties etc
(1) The Secretary of State may by regulations provide for exceptions to the employer duties; and an exception may in particular—
(a) turn an employer duty into a power;
(b) be framed by reference to a description of worker, particular circumstances or in some other way.
(2) But the regulations may not provide for an exception for employers of a particular size.
(3) Regulations which make provision under subsection (1)(a) may make provision modifying this Part or regulations made under it in connection with that provision.
(4) The regulations may make provision in connection with the coming to an end of the state of affairs that caused an exception to apply, including provision—
(a) modifying this Part or regulations made under it in relation to a person;
(b) for the purpose of putting a person, wholly or partly, in the position he or she would have been in if the exception had never applied.
(5) In this section “employer duties” means any duty of an employer under any provision of sections 2 to 11 and 54 or of regulations made under those sections.
(1) This section applies for the purposes of this Part.
(2) “Contract of employment” means a contract of service or apprenticeship, whether express or implied, and (if it is express) whether oral or in writing.
(3) “Worker” means an individual who has entered into or works under—
(a) a contract of employment, or
(b) any other contract by which the individual undertakes to do work or perform services personally for another party to the contract.
(4) But a contract is not within subsection (3)(b) if the status of the other party is by virtue of the contract that of a client or customer of a profession or business undertaking carried on by the individual concerned.
(5) For the purposes of subsection (3)(b), it does not matter whether the contract is express or implied or (if it is express) whether it is oral or in writing.
(6) Any reference to a worker's contract is to be read in accordance with subsections (3) to (5).
(7) “Employer”, in relation to a worker, means the person by whom the worker is employed (subject to sections 37(5) and 38(6)).
(8) “Employment” in relation to a worker, means employment under the worker's contract, and related expressions are to be read accordingly.
(1) This section applies to an individual (“the agency worker”)—
(a) who is supplied by a person (“the agent”) to do work for another person (“the principal”) under a contract or other arrangements made between the agent and the principal,
(b) who is not, as respects that work, a worker, because of the absence of a worker's contract between the individual and the agent or the principal, and
(c) who is not a party to a contract under which the agency worker undertakes to do the work for another party to the contract whose status is, by virtue of the contract, that of a client or customer of a profession or business undertaking carried on by the individual.
(2) Where this section applies, the other provisions of this Part have effect—
(a) as if there were a worker's contract for the doing of the work by the agency worker, made between the agency worker and the relevant person under subsection (3), and
(b) as if that person were the agency worker's employer.
(3) The relevant person is—
(a) whichever of the agent and the principal is responsible for paying the agency worker in respect of the work, or
(b) if neither the agent nor the principal is responsible for doing so, whichever of them pays the agency worker in respect of the work.
(1) A person who holds office as a director of a company is not, by virtue of that office or of any employment by the company, a worker for the purposes of this Part, unless—
(a) the person is employed by the company under a contract of employment, and
(b) there is at least one other person who is employed by the company under a contract of employment.
(2) In this section, “company” includes any body corporate.
(1) This Part has effect in relation to employment by or under the Crown as it has effect in relation to other employment.
(2) For the purposes of the application of the provisions of this Part in accordance with subsection (1)—
(a) references to a worker are to be construed as references to a person employed by or under the Crown;
(b) references to a worker's contract are to be construed as references to the terms of employment of a person employed by or under the Crown.
(3) This section does not impose criminal liability on the Crown.
(4) But on the application of the Regulator the High Court or the Court of Session may declare unlawful a failure by the Crown to comply with any of the duties mentioned in section 45(1).
(1) A person serving as a member of the naval, military or air forces of the Crown is not, by virtue of that service, a worker for the purposes of this Part.
(2) A member of any of the forces specified in subsection (3) who assists the activities of any of those forces is not, by virtue of anything done in assisting those activities, a worker for the purposes of this Part.
(3) The forces are—
(a) the Combined Cadet Force;
(b) the Sea Cadet Corps;
(c) the Army Cadet Force;
(d) the Air Training Corps.
(1) This Part has effect in relation to employment as a relevant member of the House of Lords staff as it has effect in relation to other employment.
(2) In this section, “relevant member of the House of Lords staff” means any person who is employed under a worker's contract with the Corporate Officer of the House of Lords.
(1) This Part has effect in relation to employment as a relevant member of the House of Commons staff as it has effect in relation to other employment.
(2) In this section, “relevant member of the House of Commons staff” means any person—
(a) who was appointed by the House of Commons Commission, or
(b) who is a member of the Speaker's personal staff.
(3) For the purposes of the application of the provisions of this Part in relation to a relevant member of the House of Commons staff—
(a) references to a worker are to be read as references to a relevant member of the House of Commons staff, and
(b) references to a worker's contract are to be read as references to the terms of employment of a relevant member of the House of Commons staff.
(1) This Part has effect in relation to a person who—
(a) holds the office of constable or an appointment as a police cadet, and
(b) does not hold that office or appointment under a contract of employment,
as if the person were employed by the relevant local policing body or relevant police authority under a worker's contract.
(2) A local policing body, or a police authority that maintains a police force is the relevant local policing body, or relevant police authority—
(a) in relation to a constable, if the constable is a member of that police force;
(b) in relation to a police cadet, if the cadet is undergoing training with a view to becoming a member of that police force.
(1) Subject to regulations under this section, a person employed or engaged in any capacity on board a ship is not, by virtue of that employment or engagement, a worker for the purposes of this Part.
(2) The Secretary of State may by regulations provide that, to the extent and for the purposes specified in the regulations, the relevant provisions apply, with or without modification, in relation to a person employed or engaged in any capacity on board a ship (whether or not that person is working or ordinarily works in any part of the United Kingdom).
(3) For the purposes of this section, the relevant provisions are—
(a) this Part (and any enactment as amended by this Part), and
(b) any provision in force in Northern Ireland corresponding to any provision of this Part (and any enactment as amended by such a provision).
(4) Regulations under this section—
(a) may provide for a provision to apply in relation to individuals whether or not they are British subjects;
(b) may provide for a provision to apply in relation to bodies corporate whether or not they are incorporated under the law of a part of the United Kingdom;
(c) may do so even where the application may affect the individual's or body's activities outside the United Kingdom.
(5) Regulations under this section—
(a) may provide for a court or tribunal on which jurisdiction is conferred by the relevant provisions to have jurisdiction, in respect of offences or other matters, for the purposes of any provision as it applies by virtue of the regulations;
(b) may exclude from the operation of section 3 of the Territorial Waters Jurisdiction Act 1878 (c. 73) (consents required for prosecutions) proceedings for offences under any provision as it applies by virtue of the regulations;
(c) may provide that such proceedings may not be brought without such consent as may be required by the regulations.
(6) Any jurisdiction conferred on a court or tribunal under this section is without prejudice to jurisdiction exercisable apart from this section by that or any other court or tribunal.
(7) In this section, “ship” includes—
(a) a hovercraft within the meaning of the Hovercraft Act 1968 (c. 59), and
(b) every description of vessel used in navigation.
(1) Her Majesty may by Order in Council provide that, to the extent and for the purposes specified in the Order, the relevant provisions apply, with or without modification, in relation to a person in offshore employment.
(2) For the purposes of this section, the relevant provisions are—
(a) this Part (and any enactment as amended by this Part), and
(b) any provision in force in Northern Ireland corresponding to any provision of this Part (and any enactment as amended by such a provision).
(3) In this section, “offshore employment” has the same meaning as in section 201(1) of the Employment Rights Act 1996 (c. 18).
(4) An Order in Council under this section—
(a) may provide for a provision to apply in relation to individuals whether or not they are British subjects;
(b) may provide for a provision to apply in relation to bodies corporate whether or not they are incorporated under the law of a part of the United Kingdom;
(c) may do so even where the application may affect the individual's or body's activities outside the United Kingdom.
(5) An Order in Council under this section—
(a) may make different provision for different cases;
(b) may provide for a court or tribunal on which jurisdiction is conferred by the relevant provisions to have jurisdiction, in respect of offences or other matters, for the purposes of any provision as it applies by virtue of the Order;
(c) may (without prejudice to subsection (1) and paragraph (a)) provide for a provision to apply in relation to any person in employment in a part of the areas referred to in section 201(1)(a) and (b) of the Employment Rights Act 1996 (c. 18);
(d) may exclude from the operation of section 3 of the Territorial Waters Jurisdiction Act 1878 (c. 73) (consents required for prosecutions) proceedings for offences under any provision as it applies by virtue of the Order;
(e) may provide that such proceedings may not be brought without such consent as may be required by the Order.
(6) Any jurisdiction conferred on a court or tribunal under this section is without prejudice to jurisdiction exercisable apart from this section by that or any other court or tribunal.
(7) No Order in Council may be made under this section unless a draft of the Order has been laid before and approved by a resolution of each House of Parliament.
The Secretary of State may by regulations make provision for this Part to apply with or without modifications—
(a) as if any individual of a prescribed description (who would not otherwise be a worker) were a worker,
(b) as if there were in the case of any such individual a worker's contract of a prescribed description under which the individual works, and
(c) as if a person of a prescribed description were the employer under that contract.
(1) In this Part—
“active member”—
in relation to an occupational pension scheme, means a person who is in pensionable service under the scheme;
in relation to a personal pension scheme, means a jobholder in relation to whom there is an agreement within section 26(4) between the provider of the scheme and the employer or (where section 9 applies) a worker in relation to whom there are direct payment arrangements (within the meaning of section 111A of the Pension Schemes Act 1993 (c. 48)) between the worker and the employer;
“automatic enrolment scheme” is to be read in accordance with section 3(8);
“average salary benefits” means benefits the rate or amount of which is calculated by reference to the average salary of a member over the period of service on which the benefits are based;
“collective money purchase benefit” has the meaning given by section 1 of the Pension Schemes Act 2021;
“contract of employment” has the meaning given by section 88;
“defined benefits”, in relation to a member of an occupational pension scheme, means benefits which are not money purchase benefits (but the rate or amount of which is calculated by reference to earnings or service of the member or any other factor other than an amount available for their provision);
“defined benefits scheme” means an occupational pension scheme under which all the benefits that may be provided are defined benefits;
“employer”, “employment” and related expressions have the meaning given by section 88;
“enrolment duty” means a duty under section 3(2), 5(2), 7(3) or 9(2);
“group personal pension scheme” means a personal pension scheme which is available, or intended to be available, to employees of the same employer or of employers within a group, but does not include—
a stakeholder pension scheme (as defined in section 1 of the Welfare Reform and Pensions Act 1999), or
any pension scheme that requires all its members to make a choice as to how their contributions are invested;”;
“hybrid scheme” means an occupational pension scheme which is neither a defined benefits scheme nor a money purchase scheme;
...
“jobholder” has the meaning given by section 1(1);
“money purchase benefits”, in relation to a member of a pension scheme, means—
benefits the rate or amount of which is calculated by reference to a payment or payments made by the member or by any other person in respect of the member and which fall within section 99A, and
collective money purchase benefits;
“money purchase scheme” means an occupational pension scheme under which all the benefits that may be provided are money purchase benefits;
“occupational pension scheme” has the meaning given by section 18;
“pension scheme” has the meaning given by section 1(5) of the Pension Schemes Act 1993 (c. 48);
“pensionable age” has the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995 (c. 26);
“pensionable service”, in relation to a member of an occupational pension scheme, means service in any description 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;
“personal pension scheme” has the meaning given by section 19;
“prescribed” means prescribed by regulations;
“provider”—
in relation to a personal pension scheme to which section 26 applies, means the person referred to in subsection (1)(b) of that section;
in relation to any other personal pension scheme, has the meaning prescribed;
“qualifying earnings” has the meaning given by section 13;
“qualifying scheme” is to be read in accordance with section 2(5);
“regulations” means regulations made by the Secretary of State;
“Regulatory Authority” has the meaning given by regulations under subsection (2);
“the Regulator” means the Pensions Regulator;
“relevant Master Trust” has the meaning given by section 20(4);
“tax year” means the 12 months beginning with 6th April in any year;
“trustee or manager”—
in relation to England and Wales or Scotland, is to be construed in accordance with section 178 of the Pension Schemes Act 1993 (c. 48) (trustees and managers of schemes: interpretation);
in relation to Northern Ireland, is to be construed in accordance with section 173 of the Pension Schemes (Northern Ireland) Act 1993 (c. 49) (trustees or managers of schemes);
“worker” has the meaning given by section 88.
(2) The Secretary of State may by regulations define “Regulatory Authority” for the purposes of this Part.
(1) This section applies for the purposes of paragraph (a) of the definition of “money purchase benefits” in section 99.
(2) A benefit other than a pension in payment falls within this section if its rate or amount is calculated solely by reference to assets which (because of the nature of the calculation) must necessarily suffice for the purposes of its provision to or in respect of the member.
(3) A benefit which is a pension in payment falls within this section if—
(a) its provision to or in respect of the member is secured by an annuity contract or insurance policy made or taken out with an insurer, and
(b) at all times before coming into payment the pension was a benefit falling within this section by virtue of subsection (2).
(4) For the purposes of subsection (2) it is immaterial if the calculation of the rate or amount of the benefit includes deductions for administrative expenses or commission.
(5) In this section references to a pension do not include income withdrawal or dependants' income withdrawal (within the meaning of paragraphs 7 and 21 of Schedule 28 to the Finance Act 2004).
(1) Schedule 2, which—
(a) amends Schedule 3 to the Pension Schemes Act 1993 (methods of revaluing accrued pension benefits),
(b) amends Schedule 7 to the Pensions Act 2004 (c. 35) (pension compensation provisions), and
(c) makes consequential amendments,
has effect.
(2) The amendments made by Parts 1 and 3 of Schedule 2 do not apply in relation to a revaluation period ending before this section comes into force.
(3) In subsection (2), “revaluation period” has the same meaning as in paragraph 2 of Schedule 3 to the Pension Schemes Act 1993.