House of Lords portcullis
House of Lords
Session 2003 - 04
Internet Publications
Other Bills before Parliament

Pensions Bill


 

Pensions Bill

 
 

EXPLANATORY NOTES

Explanatory notes to the Bill, prepared by the Department for Work and Pensions, are

published separately as HL Bill 73—EN.

EUROPEAN CONVENTION ON HUMAN RIGHTS

The Baroness Hollis of Heigham has made the following statement under section

19(1)(a) of the Human Rights Act 1998:

In my view the provisions of the Pensions Bill are compatible with the Convention

rights.

 
HL Bill 7353/3
 
 

 

Pensions Bill

 

 
 

The Bill is divided into two Volumes. Volume I contains Clauses 1 to 228, and

Volume II contains Clauses 229 to 310 and the Schedules.

Contents

Part 1

The Pensions Regulator

Establishment

1   

The Pensions Regulator

2   

Membership of the Regulator

3   

Further provision about the Regulator

General provisions about functions

4   

Regulator’s functions

5   

Regulator’s objectives

6   

Supplementary powers

7   

Transfer of OPRA’s functions to the Regulator

The Non-Executive Committee and the Determinations Panel

8   

The Non-Executive Committee

9   

Functions exercisable by the Non-Executive Committee

10   

The Determinations Panel

11   

Functions exercisable by the Determinations Panel

Annual report

12   

Annual reports to Secretary of State

Provision of information, education and assistance

13   

Provision of information, education and assistance

New powers in respect of occupational and personal pension schemes

14   

Improvement notices

15   

Third party notices

16   

Injunctions and interdicts

17   

Restitution

 
HL Bill 7353/3
 
 

Pensions Bill

iv

 

18   

Power of the Regulator to recover unpaid contributions

Powers in relation to winding up of occupational pension schemes

19   

Powers to wind up occupational pension schemes

20   

Freezing orders

21   

Consequences of freezing order

22   

Period of effect etc of freezing order

23   

Validation of action in contravention of freezing order

24   

Effect of determination to wind up scheme on freezing order

25   

Effect of winding up order on freezing order

26   

Effect of assessment period under Part 2 on freezing order

27   

Power to give a direction where freezing order ceases to have effect

28   

Notification of trustees, managers, employers and members

29   

Sections 20 to 28: supplementary

Trustees of occupational pension schemes

30   

Prohibition orders

31   

Suspension orders

32   

Appointments of trustees by the Regulator

33   

Independent trustees

34   

Disqualification

Contribution notices where avoidance of employer debt

35   

Contribution notices where avoidance of employer debt

36   

The sum specified in a section 35 contribution notice

37   

Content and effect of a section 35 contribution notice

38   

Section 35 contribution notice: relationship with employer debt

Financial support directions

39   

Financial support directions

40   

Meaning of “service company” and “insufficiently resourced”

41   

Meaning of “financial support”

42   

Contribution notices where non-compliance with financial support direction

43   

The sum specified in a section 42 contribution notice

44   

Content and effect of a section 42 contribution notice

45   

Section 42 contribution notice: relationship with employer debt

46   

Sections 39 to 45: interpretation

Transactions at an undervalue

47   

Restoration orders where transactions at an undervalue

48   

Restoration orders: supplementary

49   

Content and effect of a restoration order

50   

Contribution notice where failure to comply with restoration order

51   

Content and effect of a section 50 contribution notice

Applications under the Insolvency Act 1986

52   

Regulator’s right to apply under section 423 of Insolvency Act 1986

 
 

Pensions Bill

v

 

Register of schemes

53   

Register of occupational and personal pension schemes

54   

Registrable information

55   

The register: inspection, provision of information and reports etc

56   

The register: duties of trustees or managers

57   

Duty of the Regulator to issue scheme return notices

58   

Duty of trustees or managers to provide scheme return

59   

Scheme returns: supplementary

Register of prohibited trustees

60   

Register of prohibited trustees

61   

Accessibility of register of prohibited trustees

Collecting information relevant to the Board of the Pension Protection Fund

62   

Information relevant to the Board

63   

Duty to notify the Regulator of certain events

Reporting breaches of the law

64   

Duty to report breaches of the law

Reports by skilled persons

65   

Reports by skilled persons

Gathering information

66   

Provision of information

67   

Inspection of premises

68   

Inspection of premises in respect of employers’ obligations

69   

Inspection of premises: powers of inspectors

70   

Inspection of premises: supplementary

71   

Penalties relating to sections 66 to 69

72   

Warrants

73   

Sections 66 to 72: interpretation

Provision of false or misleading information

74   

Offences of providing false or misleading information

Use of information

75   

Use of information

Disclosure of information

76   

Restricted information

77   

Information supplied to the Regulator by corresponding overseas authorities

78   

Disclosure for facilitating exercise of functions by the Regulator

79   

Disclosure for facilitating exercise of functions by the Board

80   

Disclosure for facilitating exercise of functions by other supervisory authorities

 
 

Pensions Bill

vi

 

81   

Other permitted disclosures

82   

Disclosure of information by the Inland Revenue

Reports

83   

Publishing reports etc

Codes of practice

84   

Codes of practice

85   

Procedure for issue and publication of codes of practice

86   

Revocation of codes of practice

Exercise of regulatory functions

87   

The Regulator’s procedure in relation to its regulatory functions

88   

Publication of procedure in relation to regulatory functions

89   

Application of standard and special procedure

90   

Standard procedure

91   

Special procedure: applicable cases

92   

Special procedure

93   

Compulsory review

94   

Duty to have regard to the interests of members etc

95   

Powers to vary or revoke orders, notices or directions etc

The Pensions Regulator Tribunal

96   

The Pensions Regulator Tribunal

97   

References to the Tribunal

98   

Appeal on a point of law

99   

Redetermination etc by the Tribunal

100   

Legal assistance scheme

Part 2

The Board of the Pension Protection Fund

Chapter 1

The Board

Establishment

101   

The Board of the Pension Protection Fund

102   

Membership of the Board

103   

Further provision about the Board

General provision about functions

104   

Board’s functions

105   

Supplementary powers

 
 

Pensions Bill

vii

 

The Non-Executive Committee

106   

The Non-Executive Committee

Financial matters

107   

Investment of funds

108   

Investment principles

109   

Borrowing

110   

Grants

111   

Administration levy

112   

Fees

Annual reports

113   

Annual reports to Secretary of State

Chapter 2

Information relating to employer’s insolvency etc

Insolvency events

114   

Duty to notify insolvency events in respect of employers

115   

Insolvency event, insolvency date and insolvency practitioner

Status of scheme

116   

Insolvency practitioner’s duty to issue notices confirming status of scheme

Board’s duties

117   

Board’s duty where there is a failure to comply with section 116

Chapter 3

Pension protection

Eligible schemes

118   

Eligible schemes

Circumstances in which Board assumes responsibility for eligible schemes

119   

Duty to assume responsibility for schemes following insolvency event

120   

Duty to assume responsibility for schemes following application or

notification

121   

Applications and notifications for the purposes of section 120

122   

Board’s duty where application or notification received under section 121

123   

Protected liabilities

Restrictions on schemes during the assessment period

124   

Assessment periods

125   

Admission of new members, payment of contributions etc

 
 

Pensions Bill

viii

 

126   

Directions

127   

Restrictions on winding up, discharge of liabilities etc

128   

Power to validate contraventions of section 127

129   

Board to act as creditor of the employer

130   

Payment of scheme benefits

131   

Loans to pay scheme benefits

Ill health pensions

132   

Reviewable ill health pensions

133   

Effect of a review

134   

Sections 132 and 133: interpretation

Valuation of assets and liabilities

135   

Board’s obligation to obtain valuation of assets and protected liabilities

136   

Approval of valuation

137   

Binding valuations

Refusal to assume responsibility

138   

Schemes which become eligible schemes

139   

New schemes created to replace existing schemes

Cessation of involvement with a scheme

140   

Circumstances in which Board ceases to be involved with an eligible scheme

141   

Consequences of the Board ceasing to be involved with a scheme

Reconsideration

142   

Application for reconsideration

143   

Duty to assume responsibility following reconsideration

Closed schemes

144   

Closed schemes

Winding up

145   

Requirement to wind up schemes with sufficient assets to meet protected liabilities

Provisions applying to closed schemes

146   

Treatment of closed schemes

147   

Valuations of closed schemes

Reconsideration of closed schemes

148   

Applications and notifications where closed schemes have insufficient assets

149   

Duty to assume responsibility for closed schemes

150   

Closed schemes: further assessment periods

 
 

 
contents continue
 
House of Lords home page Houses of Parliament home page House of Commons home page search page enquiries

© Parliamentary copyright 2004
Revised 24 May 2004