Energy Act 2004

This section has no associated Explanatory Notes

2(1)The NDA may, by direction, make such modifications of a relevant pension scheme as it considers appropriate for purposes connected with extending the groups of persons who may participate in the scheme to—U.K.

(a)employees of a qualifying employer;

(b)directors or other officers of a qualifying employer who are not employees of the employer.

(2)The NDA may also, by direction, make such further modifications of a relevant pension scheme that has been modified by a direction under sub-paragraph (1) as it considers appropriate for purposes connected with conferring functions in relation to the scheme’s operation or management on the NDA.

(3)For the purposes of this paragraph a person is a qualifying employer in relation to a relevant pension scheme if—

(a)a transfer is made in accordance with a nuclear transfer scheme; and

(b)in consequence of that transfer persons falling within sub-paragraph (4) become employees, or directors or other officers, of that person.

(4)A person falls within this sub-paragraph if immediately before the transfer in question takes effect, he—

(a)is a participant in the relevant pension scheme in question;

(b)is eligible to become such a participant; or

(c)would be eligible to become such a participant had he attained an age, or fulfilled a condition, specified in that scheme.

(5)Where employees, or directors or other officers, of a qualifying employer participate in a pension scheme by virtue of a direction under this paragraph, the employer must pay to the trustee of the scheme in respect of that participation—

(a)such amounts as may be determined in accordance with the rules of the scheme; or

(b)such higher amounts as may be determined by the Secretary of State.

(6)The modifications of a pension scheme that may be made under this paragraph include modifications that make supplemental, consequential or transitional provision.

(7)The modifications of a pension scheme that may be made under this paragraph do not include modifications that would, to any extent, deprive a member of the scheme of pension rights that accrued to him under the scheme before the coming into force of the modification.

(8)Before making a modification of a pension scheme under this paragraph the NDA must consult—

(a)the trustee of the scheme; and

(b)such persons as appear to the NDA to represent the employees, or directors or other officers, likely to be affected by the modification.

(9)The consent of the Secretary of State is required for the giving of a direction under this paragraph.

(10)In this paragraph “relevant pension scheme” means—

(a)a nuclear pension scheme maintained by or on behalf of a nuclear company which is wholly-owned by the Crown;

(b)a nuclear pension scheme designated as a relevant pension scheme for the purposes of this paragraph by an order made by the Secretary of State.

Commencement Information

I1Sch. 8 para. 2 in force at 5.10.2004 by S.I. 2004/2575, art. 2(1), Sch. 1