Judicial Pensions and Retirement Act 1993

Additional voluntary contributions

3 (1) Section 33A of the 1981 Act (which confers power to make regulations entitling any member of a judicial pension scheme constituted by that Act or by the [1961 c. 42.] Sheriffs' Pensions (Scotland) Act 1961 to make voluntary contributions towards the provision of additional benefits under the scheme) shall be amended in accordance with the following provisions of this paragraph.

(2) In subsection (1), after the word “provision” there shall be inserted “(a)” and for the words “under the scheme” there shall be substituted the words “whether under the scheme or otherwise; or

(b) imposing conditions with respect to the exercise by any such person of any entitlement (whether or not under paragraph (a) above) which he may have to make any such voluntary contributions.”

(3) After that subsection there shall be inserted—

“(1A) The regulations may make provision for the purpose of imposing, in a case where a member makes voluntary contributions, upper limits with respect to—

(a) the aggregate value of the aggregable benefits which may be paid to or in respect of any such member; and

(b) the amount which any such member may pay by way of such contributions;

and, without prejudice to the generality of paragraph (b) above, the regulations may, in particular, impose such an upper limit on the amount which a member may pay by way of voluntary contributions as will, so far as reasonably practicable, secure that the aggregate value referred to in paragraph (a) above will not exceed the limit prescribed under that paragraph.

(1B) The regulations may—

(a) prescribe the manner in which aggregable benefits are to be valued for the purpose of any such aggregation as is mentioned in subsection (1A) above;

(b) confer on the administrators of a judicial pension scheme power to require a member who is making, or who wishes to make, voluntary contributions to provide such information as they may require concerning any retained benefits of his;

(c) permit the disclosure by those administrators of any information which they may obtain concerning any such retained benefits—

(i) to, or to any officers of, the Commissioners of Inland Revenue; or

(ii) to, or to any servants or agents of, any authorised provider who is, or may be, concerned in the investment of the voluntary contributions or the provision of the additional benefits in question.”

(4) In subsection (2), in paragraph (b) (no limit on voluntary contributions, other than an upper limit corresponding to that imposed by section 594 of the [1988 c. 1.] Income and Corporation Taxes Act 1988) after the words “other than” there shall be inserted the words “either or both of the following, that is to say—

(i) such upper limit as may be imposed by virtue of subsection (1A)(b) above; or

(ii)”.

(5) At the end of that subsection there shall be added the words—

“but paragraphs (c) and (d) above have effect only in relation to a voluntary contributions scheme constituted by or under this Act or the [1961 c. 42.] Sheriffs' Pensions (Scotland) Act 1961.”

(6) In subsection (3) (regulations about valuation of benefits etc)—

(a) the word “and” immediately preceding paragraph (b) shall be omitted; and

(b) in that paragraph, for the words “limit imposed by virtue of” there shall be substituted the words “such limit as is mentioned in”.

(7) At the end of that subsection there shall be added—

“(c) provide for any administrative expenses incurred by any person by virtue of this section to be defrayed out of sums received by way of voluntary contributions;

(d) provide for the manner in which voluntary contributions are to be made;

(e) make provision for, and in connection with, the valuation of a person’s accrued rights—

(i) under any occupational or personal pension scheme, which are to be transferred into a voluntary contributions scheme, or

(ii) under any voluntary contributions scheme, which on termination of his membership of that scheme may fall to be transferred into another scheme;

(f) prescribe the additional benefits which are to be available under a voluntary contributions scheme and the rates and times at which those benefits are to be payable;

(g) make provision for and in connection with the making of elections between different benefits available under voluntary contributions schemes;

(h) provide for the terms on which a person may terminate his membership of a voluntary contributions scheme;

(j) provide for the terms on which surplus funds may be refunded to a person who has made payments by way of voluntary contributions to a voluntary contributions scheme;

(k) specify any authorised providers—

(i) who are to invest any prescribed voluntary contributions, or

(ii) who are to provide any prescribed additional benefits,

and, if two or more authorised providers are so specified, may make provision entitling any person who makes prescribed payments by way of voluntary contributions to elect between those authorised providers.”

(8) Subsection (4) (limitation of voluntary contributions by reference to maximum entitlement of members) shall be omitted and before subsection (5) there shall be inserted—

“(4A) The regulations may provide for such additional benefits arising under or by virtue of this section as may be prescribed—

(a) to be charged on, and paid out of, the Consolidated Fund; or

(b) to be paid out of money provided by Parliament.”

(9) After subsection (5) there shall be inserted—

“(5A) The regulations may make different provision for different classes or descriptions of voluntary contributions scheme.”

(10) After subsection (8) there shall be added—

“(9) In this section—

• “administrators”, in relation to any scheme, means the persons entrusted with the administration of that scheme;

• “aggregable benefits” means—

  (a)

  any pensions or other benefits under a judicial pension scheme, other than such additional benefits as are mentioned in subsection (1) above;

  (b)

  such additional benefits so mentioned as may be prescribed; and

  (c)

  such retained benefits as may be prescribed;

• “authorised provider”, in relation to the investment of any sums paid by way of voluntary contributions or the provision of any benefit, means a person who is authorised under Chapter III of Part I of the [1986 c. 60.] Financial Services Act 1986 to invest those sums or, as the case may be, to provide that benefit;

• “employment” has the same meaning as it has in the [1975 c. 60.] Social Security Pensions Act 1975 (and accordingly includes employment as a self-employed earner, within the meaning of that Act);

• “judicial pension scheme” has the meaning given by section 14A(2) above;

• “member” means member of a judicial pension scheme;

• “occupational pension scheme” has the meaning given by section 66(1) of the [S.I. 1975/1503 (N.I. 15).] Social Security Pensions Act 1975 or, in relation to Northern Ireland, Article 2(2) of the Social Security Pensions (Northern Ireland) Order 1975;

• “personal pension scheme” has the meaning given by section 84(1) of the [1986 c. 50.] Social Security Act 1986 or, in relation to Northern Ireland, Article 2(2) of the [S.I. 1986/1888 (N.I. 18).] Social Security (Northern Ireland) Order 1986;

• “prescribed” means specified in, or determined in accordance with, the regulations;

• “relevant benefits” has the meaning given by section 612(1) of the [1988 c. 1.] Income and Corporation Taxes Act 1988;

• “retained benefits”, in the case of any person, means any rights retained by him to relevant benefits under any occupational or personal pension scheme which has, or which may be expected to qualify for, tax-exemption or tax-approval, being rights which accrued during some previous employment;

• “surplus funds”, in relation to a person and any voluntary contributions scheme, means any funds which are, or have been, held for the purposes of that voluntary contributions scheme and which fall to be returned to him in consequence of any such limit as is mentioned in subsection (2)(b) above;

• “tax-exemption” and “tax-approval” have the meaning given by section 84(1) of the Social Security Act 1986;

• “voluntary contributions”, in relation to any member of a judicial pension scheme, means voluntary contributions towards the provision of additional benefits, whether under that scheme or otherwise;

• “voluntary contributions scheme” means any occupational pension scheme if and to the extent that it is a scheme under which such additional benefits as are mentioned in subsection (1) above are, or are to be, provided;

and, where a person’s voluntary contributions are made by deduction from salary, any reference to payment of, or by way of, voluntary contributions shall be taken to include a reference to the making of voluntary contributions by deduction or, as the case may require, to any voluntary contributions so made.

(10) Without prejudice to subsections (3)(c) and (d) and (4A) above, there may be paid out of money provided by Parliament—

(a) any sums required for or in connection with the operation or administration of any prescribed voluntary contributions scheme; or

(b) any administrative expenses incurred under or by virtue of this section by a Minister of the Crown or government department.

(11) Any sums received under this section may be paid into the Consolidated Fund.”