Pension Schemes Act 1993

Part XII Supplementary Provisions

Interpretation

178 Trustees and managers of schemes

The Secretary of State may by regulations provide—

(a) who is to be treated as a manager of an occupational pension scheme for any of the purposes of the provisions of this Act (except Chapter II of Part VII or section 157), the Social Security Acts 1975 to 1991, or Part VI of the [1992 c. 5.] Social Security Administration Act 1992; or

(b) who is to be treated as a trustee of a scheme for the purposes of sections 2 to 5, Chapter I of Part IV, Part VIII so far as it applies for the purposes of Chapter I of Part IV, sections 136 to 138, 139(2) and (3), 140, 141, 142(1) to (4), 143, 153(2), 158(1) to (5), 162, 163, 172, 173 and 176 and Schedule 1.

179 Linked qualifying service

(1) Subject to subsections (2) to (4), for the purposes of this Act any period of an earner’s service in an employment is linked qualifying service in relation to a later period of service (whether in the same or another employment) if—

(a) under the rules of a scheme applying to him in the earlier period of service—

(i) there was made a transfer of his accrued rights under that scheme (including any transfer credits allowed under the scheme) to another scheme applying to him in the later period of service; or

(ii) those rights were secured by a policy of insurance or an annuity contract and were subsequently transferred to another scheme applying to him in the later period of service; and

(b) in consequence of the transfer of his accrued rights to the second scheme, there are (or were) allowed to him transfer credits under the rules of that other scheme.

(2) For any service to be taken into account as linked qualifying service, it must be actual service and no regard shall be had to any scheme rule which provides for service to be treated for any purposes of benefit or otherwise as longer or shorter than it actually was.

(3) Only so much of the earlier period as is a period of service in respect of which there accrued under the first scheme any of the rights transferred to the second scheme shall be linked qualifying service in relation to the later period of service.

(4) For the purposes of Chapter I of Part IV, as respects any case where the rules of the scheme provide—

(a) that an earner is not entitled to become a member unless he satisfies specified conditions, but

(b) that, if he becomes a member, rights are to accrue to him in respect of periods of service before he satisfied any such conditions,

regulations may provide for any such periods to be treated, in such cases and to such extent as may be prescribed, as linked qualifying service with later periods of service.

180 Normal pension age

(1) In this Act “normal pension age”, in relation to a scheme and a member’s pensionable service under it, means—

(a) in a case where the scheme provides for the member only a guaranteed minimum pension, the earliest age at which the member is entitled to receive the guaranteed minimum pension on retirement from any employment to which the scheme applies; and

(b) in any other case, the earliest age at which the member is entitled to receive benefits (other than a guaranteed minimum pension) on his retirement from such employment.

(2) For the purposes of subsection (1) any scheme rule making special provision as to early retirement on grounds of ill-health or otherwise is to be disregarded.

181 General interpretation

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

• “accrued rights premium” has the meaning given in section 55(6)(a);

• “age”, in relation to any person, shall be construed so that—

  (a)

  he is over or under a particular age if he has or, as the case may be, has not attained that age;

  (b)

  he is between two particular ages if he has attained the first but not the second;

• “appropriate scheme certificate” and references to an appropriate scheme shall be construed in accordance with section 7;

• “the Board” means the Occupational Pensions Board;

• “Category A retirement pension” and “Category B retirement pension” mean the retirement pensions of those descriptions payable under Part II of the [1992 c. 4.] Social Security Contributions and Benefits Act 1992;

• “contract of service” has the same meaning as in section 122(1) of the [1992 c. 4.] Social Security Contributions and Benefits Act 1992;

• “contracted-out employment” shall be construed in accordance with section 8;

• “contracted-out protected rights premium” has the meaning given in section 55(6)(c);

• “contracting-out certificate” and references to a contracted-out scheme and to contracting-out shall be construed in accordance with section 7;

• “contributions equivalent premium” has the meaning given in section 55(6)(e);

• “earner” and “earnings” shall be construed in accordance with sections 3, 4 and 112 of the [1992 c. 4.] Social Security Contributions and Benefits Act 1992;

• “earnings factors” shall be construed in accordance with sections 22 and 23 of the [1992 c. 4.] Social Security Contributions and Benefits Act 1992;

• “employed earner” has the same meaning as in section 2 of the [1992 c. 4.] Social Security Contributions and Benefits Act 1992;

• “employee” means a person gainfully employed in Great Britain either under a contract of service or in an office (including an elective office) with emoluments chargeable to income tax under Schedule E;

• “employer” means—

  (a)

  in the case of an employed earner employed under a contract of service, his employer;

  (b)

  in the case of an employed earner employed in an office with emoluments—

  (c)

  such person as may be prescribed in relation to that office; or

  (ii)

  if no person is prescribed, the government department, public authority or body of persons responsible for paying the emoluments of the office;

• “employment” includes any trade, business, profession, office or vocation and “employed” shall be construed accordingly except in the expression “employed earner”;

• “equal access requirements” has the meaning given in section 118(1);

• “guaranteed minimum pension” has the meaning given in section 8(2);

• “independent trade union” has the same meaning as in the [1992 c. 52.] Trade Union and Labour Relations (Consolidation) Act 1992;

• “industrial tribunal” means a tribunal established or having effect as if established under section 128 of the [1978 c. 44.] Employment Protection (Consolidation) Act 1978;

• “the Inland Revenue” means the Commissioners of Inland Revenue;

• “insurance company” has the meaning given in section 96(1) of the [1982 c. 50.] Insurance Companies Act 1982;

• “limited revaluation premium” has the meaning given in section 55(6)(g);

• “linked qualifying service” has the meaning given in section 179;

• “long-term benefit” has the meaning given in section 20(2) of the [1992 c. 4.] Social Security Contributions and Benefits Act 1992;

• “lower earnings limit” and “upper earnings limit” shall be construed in accordance with section 5 of the [1992 c. 4.] Social Security Contributions and Benefits Act 1992 and “current”, in relation to those limits, means for the time being in force;

• “minimum contributions” shall be construed in accordance with sections 43 to 45;

• “minimum payment” has the meaning given in section 8(2);

• “modifications” includes additions, omissions and amendments, and related expressions shall be construed accordingly;

• “money purchase benefits”, in relation to a member of a personal or occupational pension scheme or the widow or widower of a member of such a 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 are not average salary benefits;

• “money purchase contracted-out scheme” has the meaning given in section 8(1)(a)(ii);

• “money purchase scheme” means a pension scheme under which all the benefits that may be provided are money purchase benefits;

• “normal pension age” has the meaning given in section 180;

• “occupational pension scheme” has the meaning given in section 1;

• “pensionable age” has the same meaning as in section 122 of the [1992 c. 4.] Social Security Contributions and Benefits Act 1992;

• “pensionable service” has the meaning given in section 70(2);

• “pensioner’s rights premium” has the meaning given in section 55(6)(b);

• “personal pension protected rights premium” has the meaning given in section 55(6)(d);

• “personal pension scheme” has the meaning given in section 1;

• “prescribe” means prescribe by regulations and “prescribed” shall be construed accordingly;

• “the prescribed equivalent” means the equivalent prescribed under sections 6(1) and 8(3) of the [1992 c. 4.] Social Security Contributions and Benefits Act 1992;

• “the preservation requirements” has the meaning given in section 69(2);

• “primary Class 1 contributions” and “secondary Class 1 contributions” have the same meanings as in the [1992 c. 4.] Social Security Contributions and Benefits Act 1992;

• “protected rights” has the meaning given in section 10;

• “public service pension scheme” has the meaning given in section 1;

• “the register” has the meaning given in section 6;

• “the Registrar” has the meaning given in section 6;

• “regulations” means regulations made by the Secretary of State under this Act;

• “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;

• “rights”, in relation to accrued rights (within the meaning of section 73, 136 or 179) or transfer credits, includes rights to benefit and also options to have benefits paid in a particular form or at a particular time;

• “self-employed pension arrangement” means an approved personal pension scheme within the meaning of Chapter IV of Part XIV of the [1988 c. 1.] Income and Corporation Taxes Act 1988, being neither—

  (a)

  a contract or scheme approved under Chapter III of that Part, nor

  (b)

  a personal pension scheme within the meaning of this Act;

• “short service benefit” has the meaning given in section 71(2);

• “state scheme premium” means a state scheme premium under Chapter III of Part III or under any corresponding provision in force in Northern Ireland;

• “tax-exemption” and “tax-approval” mean respectively exemption from tax and approval of the Inland Revenue, in either case under any such provision of the Income Tax Acts as may be prescribed;

• “tax week” means one of the successive periods in a tax year beginning with the first day of that year and every seventh day thereafter, the last day of a tax year (or, in a leap year, the last two days) being treated accordingly as a separate tax week;

• “tax year” means the 12 months beginning with 6th April in any year;

• “trade or business”, in relation to a public or local authority, includes the exercise and performance of the powers and duties of the authority;

• “transfer credits” means rights allowed to an earner under the rules of an occupational pension scheme by reference to a transfer to that scheme of his accrued rights from another scheme (including any transfer credits allowed by that scheme);

• “transfer premium” has the meaning given in section 55(6)(f);

• “voluntary contributions requirements” has the meaning given in section 111(2);

• “week” means a period of seven days beginning with Sunday;

• “working life” has the meaning given in paragraph 5(8) of Schedule 3 to the [1992 c. 4.] Social Security Contributions and Benefits Act 1992.

(2) References to employers in the provisions of this Act (other than sections 123 to 127, 157, 160 and section 137 so far as it relates to the voluntary contributions requirements (“the excluded provisions”)) are to be treated, in relation to persons within the application of an occupational pension scheme and qualifying or prospectively qualifying for its benefits, as including references to persons who in relation to them and their employment are treated by regulations as being employers for the purposes of those provisions.

(3) Subject to any such regulations, references to an employer in any of the provisions of this Act (other than the excluded provisions or sections 2 to 6, Chapter I of Part IV, Part VIII so far as it applies for the purposes of Chapter I of Part IV, sections 136 to 138, 139(2) and (3), 140, 141, 142(1) to (4), 143, 153(2), 158(1) to (5), 162, 163, 172, 173 and 176 and Schedule 1) shall, in relation to an earner employed in an office with emoluments, be construed as references to—

(a) such person as may be prescribed in relation to that office; or

(b) if no person is prescribed, the government department, public authority or body of persons responsible for paying the emoluments of that office.

(4) Regulations may for any purpose of any provision of this Act (other than the excluded provisions or section 6, 27, 28, 29, 31, 32, 43, 44, 111, 160, 164, 165 or 169) prescribe the persons who are to be regarded as members or prospective members of an occupational pension scheme and as to the times at which and the circumstances in which a person is to be treated as becoming, or as ceasing to be, a member or prospective member.

(5) In sections 165 and 166—

(a) references to the United Kingdom include references to the territorial waters of the United Kingdom; and

(b) references to Great Britain include references to the territorial waters of the United Kingdom adjacent to Great Britain.

(6) Any reference in section 185 or 186 to an order or regulations under this Act includes a reference to an order or regulations made under any provision of an enactment passed after this Act and directed to be construed as one with it; but this subsection applies only so far as a contrary intention is not expressed in the enactment so passed, and shall be without prejudice to the generality of any such direction.

(7) In the application of section 158 and Schedule 1 to Northern Ireland any reference to a government department is to be taken to be, or to include (as the context may require), a Northern Ireland department.

Subordinate legislation etc.

182 Orders and regulations (general provisions)

(1) Any power under this Act to make regulations or orders (except a power of the Board or the court to make orders) and the powers to make rules under sections 149(2) and 152(1) shall be exercisable by statutory instrument.

(2) Except in so far as this Act otherwise provides, any power conferred by it to make an Order in Council, regulations or an order (except an order under section 153(8)) may be exercised—

(a) either in relation to all cases to which the power extends, or in relation to those cases subject to specified exceptions, or in relation to any specified cases or classes of case;

(b) so as to make, as respects the cases in relation to which it is exercised—

(i) the full provision to which the power extends or any less provision (whether by way of exception or otherwise),

(ii) the same provision for all cases in relation to which the power is exercised, or different provision for different cases or different classes of case or different provision as respects the same case or class of case for different purposes of this Act,

(iii) any such provision either unconditionally or subject to any specified condition,

and where such a power is expressed to be exercisable for alternative purposes it may be exercised in relation to the same case for any or all of those purposes; and any power to make an Order in Council, regulations or an order for the purposes of any one provision of this Act shall be without prejudice to any power to make an Order in Council, regulations or an order for the purposes of any other provision.

(3) Any power conferred by it to make an Order in Council, regulations or an order shall include power to make such incidental, supplementary, consequential or transitional provision as appears to Her Majesty or the authority making the regulations or order to be expedient for the purposes of the Order in Council, regulations or order.

(4) Any power conferred by this Act to make an order shall include power to vary or revoke any such order by a subsequent order.

(5) Any power conferred on the Secretary of State by any provision of this Act to make any regulations or order (except an order under section 153(8)), where the power is not expressed to be exercisable with the consent of the Treasury, shall if the Treasury so direct be exercisable only in conjunction with them.

183 Sub-delegation

(1) Without prejudice to any specific provisions in this Act, a power conferred by this Act to make an Order in Council, regulations or an order (other than regulations and orders made under sections 2 to 5, Chapter I of Part IV, Part VIII so far as it applies for the purposes of Chapter I of Part IV, sections 136 to 138, 139(2) and (3), 140, 141, 142(1) to (4), 143, 153(2), 158(1) to (5), 162, 163, 172, 173 and 176 or Schedule 1) includes power to provide for a person to exercise a discretion in dealing with any matter.

(2) Where any provision in Parts I to VI (except section 6), Chapter I or III of Part VII, Part VIII or IX or section 153 (except subsection (8)), 156, 162, 163, or 174 allows for specified matters to be dealt with by, or determined in accordance with, regulations made by the Secretary of State or by him and the Treasury acting jointly, any regulations made by virtue of that provision may provide—

(a) for those matters to be dealt with by the Board in their discretion or to be determined in accordance with the exercise by the Board of a discretion vested in them by the regulations, and

(b) for the Board’s discretion to be exercised either generally in regard to those matters or differently in regard to particular cases or classes of case.

(3) Regulations under section 27(3), 63(2), 97(1), 104(8) and 144(5) may provide that the values there mentioned shall be calculated and verified or, in the case of regulations under section 104(8), that the percentage there mentioned shall be determined—

(a) in such manner as may, in the particular case, be approved—

(i) by a prescribed person;

(ii) by a person with prescribed professional qualifications or experience; or

(iii) by a person approved by the Secretary of State; or

(b) in accordance with guidance prepared by a prescribed body;

and regulations under section 104(8) may also provide that such calculation and verification or, as the case may be, determination shall be—

(i) in accordance with prescribed principles and requirements; or

(ii) in accordance with principles determined by the person who performs the duties of calculation and verification.

184 Consultation with Social Security Advisory Committee about regulations under s. 36(6)

(1) Subject to section 173 of the [1992 c. 5.] Social Security Administration Act 1992 (cases where consultation not required), where the Secretary of State proposes to make regulations under section 36(6), he shall refer the proposals, in the form of draft regulations or otherwise, to the Social Security Advisory Committee (“the Committee”).

(2) The Committee shall consider any proposals referred to it by the Secretary of State under subsection (1) and shall make to the Secretary of State a report containing such recommendations with respect to the subject-matter of the proposals as the Committee thinks appropriate.

(3) If after receiving a report of the Committee the Secretary of State lays before Parliament regulations which comprise the whole or part of the subject-matter of the proposals referred to the Committee, he shall lay with the regulations a copy of the Committee’s report and a statement showing—

(a) the extent (if any) to which he has in framing the regulations given effect to the Committee’s recommendations; and

(b) in so far as effect has not been given to them, his reasons why not.

185 Consultations about other regulations

(1) Subject to subsections (2) and (6), where the Secretary of State proposes to make any regulations for the purposes of Parts I to VI, Chapter I or III of Part VII, Part VIII, IX or X or section 153, 154, 155, 156, 160, 162, 163, 174 or 175 of this Act he shall refer the proposals, in the form of draft regulations or otherwise, to the Board.

(2) Subsection (1) does not apply to—

(a) regulations prescribing actuarial tables; or

(b) regulations made for the purpose only of consolidating other regulations revoked by them; or

(c) regulations under section 36(6).

(3) The Board shall consider any proposals referred to them under subsection (1) and make a report to the Secretary of State containing such recommendations as they think fit with regard to the subject matter of the proposals.

(4) If after receiving the Board’s report under subsection (3) the Secretary of State lays before Parliament regulations or draft regulations which comprise the whole or any part of the subject matter of proposals referred to the Board, he shall lay with the regulations or draft a copy of the report and a statement showing—

(a) the extent (if any) to which the Secretary of State has, in framing the regulations, given effect to the recommendations contained in the Board’s report; and

(b) in so far as he has not given effect to any such recommendations, his reasons for not doing so.

(5) In relation to any regulations required or authorised under this Act to be made by the Secretary of State in conjunction with the Treasury, any reference in subsections (1) to (4) to the Secretary of State shall be construed as a reference to him and the Treasury acting jointly.

(6) Section 173 of the [1992 c. 5.] Social Security Administration Act 1992 (cases in which consultation about regulations is not required) shall apply as if references in that section to the Social Security Advisory Committee included references to the Board.

(7) The power of the Secretary of State to make regulations under section 162 of this Act shall be exercisable only after consultation with the Chief Registrar of Friendly Societies or the Friendly Societies Commission.

(8) The power of the Secretary of State to make regulations under section 172(4) shall be exercisable only after consultation with the Council on Tribunals.

(9) Before making any regulations under paragraph 7 of Schedule 2 the Secretary of State shall consult with such bodies concerned with employments of the class in question as appear to him fairly to represent the interests of the employers and earners in those employments.

186 Parliamentary control of orders and regulations

(1) Subject to subsections (2) and (3), a statutory instrument which contains (whether alone or with other provisions) any regulations or order made under this Act by the Secretary of State shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(2) Subsection (1) shall not apply to any order which under any provision of this Act is required to be laid before Parliament after being made or is subject to a requirement that a draft of the instrument shall be laid before and approved by a resolution of each House of Parliament or to any order made under section 193 or paragraph 1 of Schedule 9.

(3) Subject to subsection (4), a statutory instrument which contains (whether alone or with other provisions)—

(a) regulations made by virtue of section 49, or

(b) an order under section 153(8), or

(c) regulations made by virtue of subsection (1)(a) of section 165 applying such provisions as mentioned in subsection (2)(b) of that section,

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

(4) Subsection (3) does not apply to such regulations as mentioned in paragraph (a) or (c) of that subsection if—

(a) they are made for the purpose only of consolidating regulations which they revoke, or

(b) so far as they are made under powers conferred by the provisions mentioned in that paragraph, they only replace provisions of previous regulations with new provisions to the same effect.

(5) In the case of any regulations laid before Parliament at a time when Parliament is not sitting, the requirements of section 184(3) or section 185(4) shall be deemed to be satisfied as respects either House of Parliament if a copy of the report and the statement in question are laid before that House not later than the second day on which the House sits after the laying of the regulations.

187 Northern Ireland Constitution Act 1973: “reserved matters”

(1) Subject to any Order made after 13th July 1990 by virtue of subsection (1)(a) of section 3 of the [1973 c. 36.] Northern Ireland Constitution Act 1973, the matters specified in subsection (2) shall not be transferred matters for the purposes of that Act but shall for the purposes of subsection (2) of that section be treated as specified in Schedule 3 to that Act.

(2) The matters referred to in subsection (1) are the matters dealt with by section 6(1) and (2) (except paragraph (a)(ii)), (3), (4) and (8) and by section 145 (except subsections (4) and (5)(b)).

Supplemental provisions

188 Repeals

(1) The enactments specified in Parts I, II and III of Schedule 5 are repealed to the extent specified in the third column.

(2) The subordinate legislation specified in Part IV of that Schedule is revoked to the extent specified in the third column.

(3) The repeals and revocations have effect subject to any relevant savings in Schedule 6.

189 Transitional provisions and savings

(1) Schedule 6 (which makes transitional provision and contains savings in connection with the repeals and revocations made by this Act) shall have effect.

(2) Nothing in that Schedule affects the general operation of section 16 of the [1978 c. 30.] Interpretation Act 1978 (general savings implied on repeal).

190 Prospective and consequential amendments

Schedule 7 (which re-enacts or makes consequential amendments of provisions which make prospective amendments of enactments including those repealed by this Act, so that the re-enacted or amended provisions prospectively amend this Act and other enactments) and Schedule 8 (which makes other consequential amendments) shall have effect, subject to any relevant transitional provisions in Schedule 6.

191 Transitory modifications

Schedule 9 (which makes transitory modifications of this Act pending the commencement of the provisions there mentioned) shall have effect.

192 Extent

(1) Where any enactment repealed or amended by this Act extends to any part of the United Kingdom, the repeal or amendment extends to that part, except that the repeals in Part III of Schedule 5 do not extend to Northern Ireland.

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

• sections 1 to 5,

• section 6(1) and (2) (except paragraph (a)(ii)), (3), (4), and (8),

• section 145 (except subsections (4) and (5)(b)),

• section 154 (as it has effect for the purposes of provisions extending to Northern Ireland),

• section 172(4) and (5),

• section 179,

• sections 181 to 183 (as they have effect for those purposes),

• sections 185 and 186 (as they have effect for those purposes),

• section 187,

• sections 188 to 191 (as they have effect for those purposes, but subject to subsection (1)),

• this section,

• section 193,

• paragraph 17 of Schedule 6.

(3) Except as provided by subsection (2), this Act does not extend to Northern Ireland.

193 Short title and commencement

(1) This Act may be cited as the Pension Schemes Act 1993.

(2) Subject to the provisions of Schedule 9, this Act shall come into force on such day as the Secretary of State may by order appoint.

(3) As respects the coming into force of—

(a) Part II of Schedule 5 and section 188(1) so far as it relates to it; or

(b) Schedule 7 and section 190 so far as it relates to it,

an order under subsection (2) may appoint different days from the day appointed for the other provisions of this Act or different days for different purposes.