(1)No amount may be paid out of the assets of an occupational or personal pension scheme for the purpose of reimbursing, or providing for the reimbursement of, any trustee or manager of the scheme in respect of—
(a)a fine imposed by way of penalty for an offence of which he is convicted, or
(b)a penalty which he is required to pay under or by virtue of [F1section 77A, 77B [F2, 88A or 238G] of this Act,] section 10 of the Pensions Act 1995 (c. 26) [F3, section] 168(4) of the Pension Schemes Act 1993 (c. 48) [F4or section 40 or 41 of the Pensions Act 2008] [F5or paragraph 3 of Schedule 18 to that Act] (civil penalties).
(2)For the purposes of subsection (1), providing for the reimbursement of a trustee or manager in respect of a fine or penalty includes (among other things) providing for the payment of premiums in respect of a policy of insurance where the risk is or includes the imposition of such a fine or the requirement to pay such a penalty.
(3)Where any amount is paid out of the assets of an occupational or personal pension scheme in contravention of this section, section 10 of the Pensions Act 1995 (civil penalties) applies to any trustee or manager who fails to take all reasonable steps to secure compliance.
(4)Where a trustee or manager of an occupational or personal pension scheme—
(a)is reimbursed, out of the assets of the scheme or in consequence of provision for his reimbursement made out of those assets, in respect of any of the matters mentioned in subsection (1)(a) or (b), and
(b)knows, or has reasonable grounds to believe, that he has been reimbursed as mentioned in paragraph (a),
then, unless he has taken all reasonable steps to secure that he is not so reimbursed, he is guilty of an offence.
(5)A person guilty of an offence under subsection (4) is liable—
(a)on summary conviction, to a fine not exceeding the statutory maximum, and
(b)on conviction on indictment, to imprisonment for a term not exceeding two years, or a fine, or both.
Textual Amendments
F1Words in s. 256(1)(b) inserted (1.10.2021) by Pension Schemes Act 2021 (c. 1), s. 131(1), Sch. 7 para. 10; S.I. 2021/950, reg. 2(4)(f)
F2Words in s. 256(1)(b) substituted (1.1.2024) by Pensions Dashboards (Prohibition of Indemnification) Act 2023 (c. 14), ss. 1(1), 2(4); S.I. 2023/1414, reg. 2
F3Word in s. 256(1)(b) substituted (3.11.2011 for specified purposes, 30.6.2012 so far as not already in force) by Pensions Act 2011 (c. 19), ss. 17(a), 38(1); S.I. 2012/1681, art. 2(2)(c)
F4Words in s. 256(1)(b) inserted (3.11.2011 for specified purposes, 30.6.2012 so far as not already in force) by Pensions Act 2011 (c. 19), ss. 17(b), 38(1); S.I. 2012/1681, art. 2(2)(c)
F5Words in s. 256(1)(b) inserted (11.9.2014) by Pensions Act 2014 (c. 19), s. 56(1), Sch. 18 para. 10; S.I. 2014/2377, art. 2(1)(a)(i)(2)(k)
Commencement Information
I1S. 256 in force at 30.6.2005 by S.I. 2005/1720, art. 2(8)