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Pensions Act 2004 (c. 35)

(The document as of February, 2008)

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Pensions Act 2004

2004 CHAPTER 35

CONTENTS

Content

  1. Part 1

    The Pensions Regulator

    1. Establishment

      1. 1. The Pensions Regulator

      2. 2. Membership of the Regulator

      3. 3. Further provision about the Regulator

    2. General provisions about functions

      1. 4. Regulator's functions

      2. 5. Regulator's objectives

      3. 6. Supplementary powers

      4. 7. Transfer of OPRA's functions to the Regulator

    3. Non-executive functions

      1. 8. Non-executive functions

    4. The Determinations Panel

      1. 9. The Determinations Panel

      2. 10. Functions exercisable by the Determinations Panel

    5. Annual report

      1. 11. Annual reports to Secretary of State

    6. Provision of information, education and assistance

      1. 12. Provision of information, education and assistance

    7. New powers in respect of occupational and personal pension schemes

      1. 13. Improvement notices

      2. 14. Third party notices

      3. 15. Injunctions and interdicts

      4. 16. Restitution

      5. 17. Power of the Regulator to recover unpaid contributions

      6. 18. Pension liberation: interpretation

      7. 19. Pension liberation: court's power to order restitution

      8. 20. Pension liberation: restraining orders

      9. 21. Pension liberation: repatriation orders

    8. Powers in relation to winding up of occupational pension schemes

      1. 22. Powers to wind up occupational pension schemes

      2. 23. Freezing orders

      3. 24. Consequences of freezing order

      4. 25. Period of effect etc of freezing order

      5. 26. Validation of action in contravention of freezing order

      6. 27. Effect of determination to wind up scheme on freezing order

      7. 28. Effect of winding up order on freezing order

      8. 29. Effect of assessment period under Part 2 on freezing order

      9. 30. Power to give a direction where freezing order ceases to have effect

      10. 31. Notification of notice">40. Content and effect of a section 38 contribution notice

      11. 41. Section 38 contribution notice: relationship with employer debt

      12. 42. Section 38 contribution notice: clearance statements

    9. Financial support directions

      1. 43. Financial support directions

      2. 44. Meaning of "service company" and "insufficiently resourced"

      3. 45. Meaning of "financial support"

      4. 46. Financial support directions: clearance statements

      5. 47. Contribution notices where non-compliance with financial support direction

      6. 48. The sum specified in a section 47 contribution notice

      7. 49. Content and effect of a section 47 contribution notice

      8. 50. Section 47 contribution notice: relationship with employer debt

      9. 51. Sections 43 to 50: interpretation

    10. Transactions at an undervalue

      1. 52. Restoration orders where transactions at an undervalue

      2. 53. Restoration orders: supplementary

      3. 54. Content and effect of a restoration order

      4. 55. Contribution notice where failure to comply with restoration order

      5. 56. Content and effect of a section 55 contribution notice

    11. Sections 38 to 56: partnerships and limited liability partnerships

      1. 57. Sections 38 to 56: partnerships and limited liability partnerships

    12. Applications under the Insolvency Act 1986

      1. 58. Regulator's right to apply under section 423 of Insolvency Act 1986

    13. Register of schemes

      1. 59. Register of occupational and personal pension schemes

      2. 60. Registrable information

      3. 61. The register: inspection, provision of information and reports etc

      4. 62. The register: duties of trustees or managers

      5. 63. Duty of the Regulator to issue scheme return notices

      6. 64. Duty of trustees or managers to provide scheme return

      7. 65. Scheme returns: supplementary

    14. Register of prohibited trustees

      1. 66. Register of prohibited trus

      2. 75. Inspection of premises: powers of inspectors

      3. 76. Inspection of premises: supplementary

      4. 77. Penalties relating to sections 72 to 75

      5. 78. Warrants

      6. 79. Sections 72 to 78: interpretation

    15. Provision of false or misleading information

      1. 80. Offences of providing false or misleading information

    16. Use of information

      1. 81. Use of information

    17. Disclosure of information

      1. 82. Restricted information

      2. 83. Information supplied to the Regulator by corresponding overseas authorities

      3. 84. Disclosure for facilitating exercise of functions by the Regulator

      4. 85. Disclosure for facilitating exercise of functions by the Board

      5. 86. Disclosure for facilitating exercise of functions by other supervisory authorities

      6. 87. Other permitted disclosures

      7. 88. Tax information

    18. Reports

      1. 89. Publishing reports etc

    19. Codes of practice

      1. 90. Codes of practice

      2. 91. Procedure for issue and publication of codes of practice

      3. 92. Revocation of codes of practice

    20. Exercise of regulatory functions

      1. 93. The Regulator's procedure in relation to its regulatory functions

      2. 94. Publication of procedure in relation to regulatory functions

      3. 95. Application of standard and special procedure

      4. 96. Standard procedure

      5. 97. Special procedure: applicable cases

      6. 98. Special procedure

      7. 99. Compulsory review

      8. 100. Duty to have regard to the interests of members etc

      9. 101. Powers to vary or revoke orders, notices or directions etc

    21. The Pensions Regulator Tribunal

      1. 102. The Pensions Regulator Tribunal

      2. 103. References to the Tribunal

      3. 104. Appeal on a point of law

      4. 105. Redetermination etc by the Tribunal

      5. 106. Legal assistance scheme

  2. Part 2

    The Board of the Pension Protection Fund

    1. Chapter 1

      The Board

      1. Establishment

        1. 107. The Board of the Pension Protection Fund

        2. 108. Membership of the Board

        3. 109. Further provision about the Board

      2. General provision about functions

        1. 110. Board's functions

        2. 111. Supplementary powers

      3. Non-executive functions

        1. 112. Non-executive functions

      4. Financial matters

        1. 113. Investment of funds

        2. 114. Investment principles

        3. 115. Borrowing

        4. 116. Grants

        5. 117. Administration levy

        6. 118. Fees

      5. Annual reports

        1. 119. Annual reports to Secretary of State

    2. Chapter 2

      Information relating to employer's insolvency etc

      1. Insolvency events

        1. 120. Duty to notify insolvency events in respect of employers

        2. 121. Insolvency event, insolvency date and insolvency practitioner

      2. Status of scheme

        1. 122. Insolvency practitioner's duty to issue notices confirming status of scheme

        2. 123. Approval of notices issued under section 122

      3. Board's duties

        1. 124. Board's duty where there is a failure to comply with section 122

        2. 125. Binding notices confirming status of scheme

    3. Chapter 3

      Pension protection

      1. Eligible schemes

        1. 126. Eligible schemes

      2. Circumstances in which Board assumes responsibility for eligible schemes

        1. 127. Duty to assume responsibility for schemes following insolvency event

        2. 128. Duty to assume responsibility for schemes following application or notification

        3. 129. Applications and notifications for the purposes of section 128

        4. 130. Board's duty where application or notification received under section 129

        5. 131. Protected liabilities

      3. Restrictions on schemes during the assessment period

        1. 132. Assessment periods

        2. 133. Admission of new members, payment of contributions etc

        3. 134. Directions

        4. 135. Restrictions on winding up, discharge of liabilities etc

        5. 136. Power to validate contraventions of section 135

        6. 137. Board to act as creditor of the employer

        7. 138. Payment of scheme benefits

        8. 139. Loans to pay scheme benefits

      4. Ill health pensions

        1. 140. Reviewable ill health pensions

        2. 141. Effect of a review

        3. 142. Sections 140 and 141: interpretation

      5. Valuation of assets and liabilities

        1. 143. Board's obligation to obtain valuation of assets and protected liabilities

        2. 144. Approval of valuation

        3. 145. Binding valuations

      6. Refusal to assume responsibility

        1. 146. Schemes which become eligible schemes

        2. 147. New schemes created to replace existing schemes

        3. 148. Withdrawal following issue of section 122(4) notice

      7. Cessation of involvement with a scheme

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

        2. 150. Consequences of the Board ceasing to be involved with a scheme

      8. Reconsideration

        1. 151. Application for reconsideration

        2. 152. Duty to assume responsibility following reconsideration

      9. Closed schemes

        1. 153. Closed schemes

      10. Winding up

        1. 161. Effect of Board assuming responsibility for a scheme

        2. 162. The pension compensation provisions

        3. 163. Adjustments to be made where the Board assumes responsibility for a scheme

        4. 164. Postponement of compensation entitlement for the assessment period

        5. 165. Guaranteed minimum pensions

        6. 166. Duty to pay scheme benefits unpaid at assessment date etc

        7. 167. Modification of Chapter where liabilities discharged during assessment period

        8. 168. Administration of compensation

      11. Discharge of Board's liabilities

        1. 169. Discharge of liabilities in respect of compensation

        2. 170. Discharge of liabilities in respect of money purchase benefits

      12. Equal treatment

        1. 171. Equal treatment

      13. Relationship with fraud compensation regime

        1. 172. Relationship with fraud compensation regime

      14. The fund

        1. 173. Pension Protection Fund

      15. The levies

        1. 174. Initial levy

        2. 175. Pension protection levies

        3. 176. Supplementary provisions about pension protection levies

        4. 177. Amounts to be raised by the pension protection levies

        5. 178. The levy ceiling

        6. 179. Valuations to determine scheme underfunding

        7. 180. Pension protection levies during the transitional period

        8. 181. Calculation, collection and recovery of levies

    4. Chapter 4

      Fraud compensation

      1. Entitlement to fraud compensation

        1. 182. Cases where fraud compensation payments can be made

        2. 183. Board's duties in respect of certain applications under section 182

        3. 184. Recovery of value

        4. 185. Fraud compensation payments

        5. 186. Interim payments

        6. 187. Board's powers to make fraud compensation transfer payments

      2. The fund

        1. 188. Fraud Compensation Fund

      3. The levy

        1. 189. Fraud compensation levy

    5. Chapter 5

      Gathering information

      1. 190. Information to be provided to the Board etc

      2. 191. Notices requiring provision of information

      3. 192. Entry of premises

      4. 193. Penalties relating to sections 191 and 192

      5. 194. Warrants

      6. Provision of false or misleading information

        1. 195. Offence of providing false or misleading information to the Board

      7. Use of information

        1. 196. Use of information

      8. Disclosure of information

        1. 197. Restricted information

        2. 198. Disclosure for facilitating exercise of functions by the Board

        3. 199. Disclosure for facilitating exercise of functions by the Regulator

        4. 200. Disclosure for facilitating exercise of functions by other supervisory authorities

        5. 201. Other permitted disclosures

        6. 202. Tax information

      9. Provision of information to members of schemes etc

        1. 203. Provision of information to members of schemes etc

      10. Interpretation

        1. 204. Sections 190 to 203: interpretation

      11. Reports

        1. 205. Publishing reports etc

    6. Chapter 6

      Reviews, appeals and maladministration

      1. Review etc by the Board

        1. 206. Meaning of "reviewable matters"

        2. 207. Review and reconsideration by the Board of reviewable matters

        3. 208. Investigation by the Board of complaints of maladministration

      2. The PPF Ombudsman

        1. 209. The Ombudsman for the Board of the Pension Protection Fund

        2. 210. Deputy PPF Ombudsmen

        3. 211. Status etc of the PPF Ombudsman and deputies

        4. 212. Annual reports to Secretary of State

      3. References to the PPF Ombudsman

        1. 213. Reference of reviewable matter to the PPF Ombudsman

        2. 214. Investigation by PPF Ombudsman of complaints of maladministration

        3. 215. Referral of questions of law

        4. 216. Publishing reports etc

        5. 217. Determinations of the PPF Ombudsman

        6. 218. Obstruction etc of the PPF Ombudsman

    7. Chapter 7

      Miscellaneous

      1. Backdating the winding up of eligible schemes

        1. 219. Backdating the winding up of eligible schemes

      2. Pension sharing

        1. 220. Pension sharing

  3. Part 3

    Scheme funding

    1. Introductory

      1. 221. Pension schemes to which this Part applies

    2. Scheme funding

      1. 222. The statutory funding objective

      2. 223. Statement of funding principles

      3. 224. Actuarial valuations and reports

      4. 225. Certification of technical provisions

      5. 226. Recovery plan

      6. 227. Schedule of contributions

      7. 228. Failure to make payments

      8. 229. Matters requiring agreement of the employer

      9. 230. Matters on which advice of actuary must be obtained

      10. 231. Powers of the Regulator

    3. Supplementary provisions

      1. 232. Power to modify provisions of this Part

      2. 233. Construction as one with the Pensions Act 1995

  4. Part 4

    Financial planning for retirement

    1. Retirement planning

      1. 234. Promoting and facilitating financial planning for retirement

      2. 235. Supply of information for purposes of section 234

      3. 236. Use and supply of information: private pensions policy and retirement planning

      4. 237. Combined pension forecasts

    2. Employee information and advice

      1. 238. Information and advice to employees

  5. Part 5

    Occupational and personal pension schemes: miscellaneous provisions

    1. Categories of pension scheme

      1. 239. Categories of pension scheme

      2. 240. Meaning of "employer" in Part 1 of the Pensions Act 1995

    2. Requirements for member-nominated trustees and directors

      1. 241. Requirement for member-nominated trustees

      2. 242. Requirement for member-nominated directors of corporate trustees

      3. 243. Member-nominated trustees and directors: supplementary

    3. Obligations of trustees of occupational pension schemes

      1. 244. Investment principles

      2. 245. Power to make regulations governing investment by trustees

      3. 246. Borrowing by trustees

      4. 247. Requirement for knowledge and understanding: individual trustees

      5. 248. Requirement for knowledge and understanding: corporate trustees

      6. 249. Requirement for knowledge and understanding: supplementary

    4. Payment of surplus to employer

      1. 250. Payment of surplus to employer

      2. 251. Payment of surplus to employer: transitional power to amend scheme

    5. Restrictions on payment into occupational pension schemes

      1. 252. UK-based scheme to be trust with effective rules

      2. 253. Non-European scheme to be trust with UK-resident trustee

      3. 254. Representative of non-European scheme to be treated as trustee

    6. Activities of occupational pension schemes

      1. 255. Activities of occupational pension schemes

    7. No indemnification for fines or civil penalties

      1. 256. No indemnification for fines or civil penalties

    8. Pension protection on transfer of employment

      1. 257. Conditions for pension protection

      2. 258. Form of protection

    9. Consultation by employers

      1. 259. Consultation by employers: occupational pension schemes

      2. 260. Consultation by employers: personal pension schemes

      3. 261. Further provisions about regulations relating to consultation

    10. Modification of pension rights

      1. 262. Modification of subsisting rights

    11. Short service benefit

      1. 270. Winding up

    12. Deficiency in assets of certain occupational pension schemes

      1. 271. Debt due from the employer when assets insufficient

      2. 272. Debt due from the employer in the case of multi-employer schemes

    13. Pension disputes

      1. 273. Resolution of disputes

    14. The Pensions Ombudsman

      1. 274. The Pensions Ombudsman and Deputy Pensions Ombudsmen

      2. 275. Jurisdiction

      3. 276. Investigations

    15. Pension compensation

      1. 277. Amendments relating to the Pensions Compensation Board

    16. Annual increases in rate of pensions

      1. 278. Annual increase in rate of certain occupational pensions

      2. 279. Annual increase in rate of certain personal pensions

      3. 280. Power to increase pensions giving effect to pension credits etc

    17. Revaluation

      1. 281. Exemption from statutory revaluation requirement

    18. Contracting out

      1. 282. Meaning of "working life" in Pension Schemes Act 1993

      2. 283. Power to prescribe conditions by reference to Inland Revenue approval

      3. 284. Restrictions on commutation and age at which benefits may be received

    19. Stakeholder pensions

      1. 285. Meaning of "stakeholder pension scheme"

  6. Part 6

    Financial assistance scheme for members of certain pension schemes

    1. 286. Financial assistance scheme for members of certain pension schemes

  7. Part 7

    Cross-border activities within European Union

    1. UK occupational pension scheme receiving contributions from European employer

      1. 287. Occupational pension scheme receiving contributions from European employer

      2. 288. General authorisation to accept contributions from European employers

      3. 289. Approval in relation to particular European employer

      4. 290. Notification of legal requirements of host member State outside United Kingdom

      5. 291. Duty of trustees or managers to act consistently with law of host member State

      6. 292. Power of Regulator to require ring-fencing of assets

    2. European occupational pension scheme receiving contributions from UK employer

      1. 293. Functions of Regulator in relation to institutions administered in other member States

    3. Assistance for other European regulators

      1. 294. Stopping disposal of assets of institutions administered in other member States

    4. Interpretation

      1. 295. Interpretation of Part

  8. Part 8

    State pensions

    1. Entitlement to more than one pension

      1. 296. Persons entitled to more than one Category B retirement pension

    2. Deferral of state pension

      1. 297. Deferral of retirement pensions and shared additional pensions

    3. Miscellaneous

      1. 298. Disclosure of state pension information

      2. 299. Claims for certain benefits following termination of reciprocal agreement with Australia

  9. Part 9

    Miscellaneous and supplementary

    1. Dissolution of existing bodies

      1. 300. Dissolution of OPRA

      2. 301. Transfer of employees from OPRA to the Regulator

      3. 302. Dissolution of the Pensions Compensation Board

    2. Service of notifications etc and electronic working

      1. 303. Service of notifications and other documents

      2. 304. Notification and documents in electronic form

      3. 305. Timing and location of things done electronically

    3. General

      1. 306. Overriding requirements

      2. 307. Modification of this Act in relation to certain categories of schemes

      3. 308. Modification of pensions legislation that refers to employers

      4. 309. Offences by bodies corporate and partnerships

      5. 310. Admissibility of statements

      6. 311. Protected items

      7. 312. Liens

      8. 313. Crown application

    4. Regulations and orders

      1. 314. Breach of regulations

      2. 315. Subordinate legislation (general provisions)

      3. 316. Parliamentary control of subordinate legislation

      4. 317. Consultations about regulations

    5. Interpretation

      1. 318. General interpretation

    6. Miscellaneous and supplementary

      1. 319. Minor and consequential amendments

      2. 320. Repeals and revocations

      3. 321. Pre-consolidation amendments

      4. 322. Commencement

      5. 323. Extent

      6. 324. Northern Ireland

      7. 325. Short title

    1. Schedule 1

      The Pensions Regulator

      1. Part 1

        Members of the Regulator

      2. Part 2

        Staff of the Regulator

      3. Part 3

        Members of the Determinations Panel

      4. Part 4

        Proceedings and delegation etc

      5. Part 5

        Funding and accounts

      6. Part 6

        Status and liability etc

    2. Schedule 2

      The reserved regulatory functions

      1. Part 1

        Functions under the Pension Schemes Act 1993 (c. 48)

      2. Part 2

        Functions under the Pensions Act 1995 (c. 26)

      3. Part 3

        Functions under the Welfare Reform and Pensions Act 1999 (c. 30)

      4. Part 4

        Functions under this Act

    3. Schedule 3

      Restricted information held by the Regulator: certain permitted disclosures to facilitate exercise of functions

    4. Schedule 4

      The Pensions Regulator Tribunal

      1. Part 1

        The Tribunal

      2. Part 2

        Constitution of the Tribunal

      3. Part 3

        Tribunal Procedure

      4. Part 4

        Status etc

    5. Schedule 5

      The Board of the Pension Protection Fund

      1. Part 1

        Members of the Board

      2. Part 2

        Staff of the Board

      3. Part 3

        Proceedings and delegation etc

      4. Part 4

        Accounts

      5. Part 5

        Status and liability etc

    6. Schedule 6

      Transfer of property, rights and liabilities to the Board

    7. Schedule 7

      Pension compensation provisions

    8. Schedule 8

      Restricted information held by the Board: certain permitted disclosures to facilitate exercise of functions

    9. Schedule 9

      Reviewable matters

    10. Schedule 10

      Use and supply of information: private pensions policy and retirement planning

    11. Schedule 11

      Deferral of retirement pensions and shared additional pensions

      1. Part 1

        Principal amendments of Social Security Contributions and Benefits Act 1992 (c. 4)

      2. Part 2

        Consequential amendments

      3. Part 3

        Transitional provisions

    12. Schedule 12

      Minor and consequential amendments

    13. Schedule 13

      Repeals and revocations

      1. Part 1

        Repeals

      2. Part 2

        Revocations

An Act to make provision relating to pensions and financial planning for retirement and provision relating to entitlement to bereavement payments, and for connected purposes.

[18th November 2004]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:--



Part 1 The Pensions Regulator

Establishment

1 The Pensions Regulator

There shall be a body corporate called the Pensions Regulator (in this Act referred to as "the Regulator").

2 Membership of the Regulator

(1) The Regulator is to consist of the following members--

(a) a chairman appointed by the Secretary of State,

(b) the Chief Executive of the Regulator, and

(c) at least five other persons appointed by the Secretary of State after consulting the chairman.

(2) The chairman must not be appointed from the staff of the Regulator or be the chairman of the Board of the Pension Protection Fund (see section 108).

(3) At least two of the members appointed under subsection (1)(c) must be appointed from the staff of the Regulator.

(4) In appointing persons under subsection (1)(c) the Secretary of State must secure that a majority of the members of the Regulator are non-executive members.

(5) No member of the staff of the Board of the Pension Protection Fund is eligible for appointment as a member of the Regulator.

(6) In this Part--

(a) references to executive members of the Regulator are to--

(i) the Chief Executive, and

(ii) the members appointed under subsection (1)(c) from the staff of the Regulator, and

(b) references to non-executive members of the Regulator are to members who are not executive members.

3 Further provision about the Regulator

Schedule 1 makes further provision about the Regulator, including provision as to--

  • the terms of appointment, tenure and remuneration of members,

  • the appointment of the Chief Executive and other staff,

  • the proceedings of the Regulator,

  • its funding and accounts, and

  • the status and liability of the Regulator, its members and staff.



General provisions about functions

4 Regulator's functions

(1) The Regulator has--

(a) the functions transferred to it from the Occupational Pensions Regulatory Authority by virtue of this Act or any provisions in force in Northern Ireland corresponding to this Act, and

(b) any other functions conferred by, or by virtue of, this or any other enactment.

(2) As regards the exercise of the Regulator's functions--

(a) the non-executive functions listed in subsection (4) of section 8 must, by virtue of subsection (2) of that section, be discharged by the committee established under that section,

(b) the functions mentioned in the following provisions are exercisable only by the Determinations Panel--

(i) section 10(1) (the power in certain circumstances to determine whether to exercise the functions listed in Schedule 2 and to exercise them), and

(ii) section 99(10) (the functions concerning the compulsory review of certain determinations), and

(c) the exercise of other functions of the Regulator may be delegated by the Regulator under paragraph 20 of Schedule 1.

(3) Subsection (2) is subject to any regulations made by the Secretary of State under paragraph 21 of Schedule 1 (power to limit or permit delegation of functions).

5 Regulator's objectives

(1) The main objectives of the Regulator in exercising its functions are--

(a) to protect the benefits under occupational pension schemes of, or in respect of, members of such schemes,

(b) to protect the benefits under personal pension schemes of, or in respect of, members of such schemes within subsection (2),

(c) to reduce the risk of situations arising which may lead to compensation being payable from the Pension Protection Fund (see Part 2), and

(d) to promote, and to improve understanding of, the good administration of work-based pension schemes.

(2) For the purposes of subsection (1)(b) the members of personal pension schemes within this subsection are--

(a) the members who are employees in respect of whom direct payment arrangements exist, and

(b) where the scheme is a stakeholder pension scheme, any other members.

(3) In this section--

  • "stakeholder pension scheme" means a personal pension scheme which is or has been registered under section 2 of the Welfare Reform and Pensions Act 1999 (c. 30) (register of stakeholder schemes);

  • "work-based pension scheme" means--

    (a)

    an occupational pension scheme,

    (b)

    a personal pension scheme where direct payment arrangements exist in respect of one or more members of the scheme who are employees, or

    (c)

    a stakeholder pension scheme.

6 Supplementary powers

The Regulator may do anything (except borrow money) which--

(a) is calculated to facilitate the exercise of its functions, or

(b) is incidental or conducive to their exercise.

7 Transfer of OPRA's functions to the Regulator

(1) Subject to the provisions of this Act, the functions of the Occupational Pensions Regulatory Authority ("OPRA") conferred by or by virtue of--

(a) the Pension Schemes Act 1993 (c. 48),

(b) the Pensions Act 1995 (c. 26), and

(c) the Welfare Reform and Pensions Act 1999,

are hereby transferred to the Regulator.

(2) Accordingly--

(a) in section 181(1) of the Pension Schemes Act 1993 (which defines "the Regulatory Authority" to mean OPRA), for the definition of "the Regulatory Authority" substitute--

" "the Regulatory Authority" means the Pensions Regulator; " ,

(b) in section 124(1) of the Pensions Act 1995 (which defines "the Authority", in Part 1 of that Act, to mean OPRA), for the definition of "the Authority" substitute--

" "the Authority" means the Pensions Regulator, " ,

(c) in section 8(1) of the Welfare Reform and Pensions Act 1999 (c. 30) (which defines "the Authority", in Part 1 of that Act to mean OPRA), for the definition of "the Authority" substitute--

" "the Authority" means the Pensions Regulator; " , and

(d) in section 33 of that Act (time for discharge of pension credit liability), in subsection (5) for "the Occupational Pensions Regulatory Authority" substitute "the Pensions Regulator".



Non-executive functions

8 Non-executive functions

(1) The functions listed in subsection (4) (in this Part referred to as "the non-executive functions") are functions of the Regulator.

(2) The Regulator must establish a committee to discharge the non-executive functions on its behalf.

(3) Only non-executive members of the Regulator may be members of the committee.

(4) The non-executive functions are--

(a) the duty to keep under review the question whether the Regulator's internal financial controls secure the proper conduct of its financial affairs;

(b) the duty to determine under paragraph 8(4)(b) of Schedule 1, subject to the approval of the Secretary of State, the terms and conditions as to remuneration of any Chief Executive appointed under paragraph 8(4)(a) of that Schedule.

(5) The committee established under this section must prepare a report on the discharge of the non-executive functions for inclusion in the Regulator's annual report to the Secretary of State under section 11.

(6) The committee's report must relate to the same period as that covered by the Regulator's report.

(7) The committee may establish sub-committees, and the members of any such sub-committee--

(a) may include persons who are not members of the committee or of the Regulator, but

(b) must not include persons who are executive members or other staff of the Regulator.

(8) The committee may authorise any of its members or any of its sub-committees to discharge on its behalf--

(a) any of the non-executive functions;

(b) the duty to prepare a report under subsection (5).

(9) The committee (or any of its sub-committees) may be authorised under paragraph 20(1) of Schedule 1 to exercise further functions of the Regulator.

(10) This section is subject to any regulations made by the Secretary of State under paragraph 21 of Schedule 1 (power to limit or permit delegation of functions).



The Determinations Panel

9 The Determinations Panel

(1) The Regulator must establish and maintain a committee consisting of--

(a) a chairman, and

(b) at least six other persons,

(in this Part referred to as "the Determinations Panel").

(2) The Regulator must appoint as the chairman of the Panel the person nominated in accordance with paragraph 11 of Schedule 1 (nomination by a committee established by the chairman of the Regulator).

(3) The chairman of the Panel must--

(a) decide the number of persons to be appointed as the other members of the Panel, and

(b) nominate a person suitable for each of those appointments.

(4) The Regulator must then appoint as the other members of the Panel the persons nominated by the chairman of the Panel.

(5) The following are ineligible for appointment as members of the Panel--

(a) any member of the Regulator;

(b) any member of the staff of the Regulator;

(c) any member of the Board of the Pension Protection Fund;

(d) any member of the staff of that Board.

(6) The Panel may establish sub-committees consisting of members of the Panel.

(7) Further provision about the Panel is made in Schedule 1, including provision as to the terms of appointment, tenure and remuneration of members and as to its procedure.

10 Functions exercisable by the Determinations Panel

(1) The Determinations Panel is to exercise on behalf of the Regulator--

(a) the power to determine, in the circumstances described in subsection (2), whether to exercise a reserved regulatory function, and

(b) where it so determines to exercise a reserved regulatory function, the power to exercise the function in question.

(2) Those circumstances are--

(a) where the Regulator considers that the exercise of the reserved regulatory function may be appropriate, or

(b) where an application is made under, or by virtue of, any of the provisions listed in subsection (6) for the Regulator to exercise the reserved regulatory function.

(3) Where subsection (1) applies, the powers mentioned in that subsection are not otherwise exercisable by or on behalf of the Regulator.

(4) For the purposes of this Part, a function of the Regulator is a "reserved regulatory function" if it is a function listed in Schedule 2.

(5) Regulations may amend Schedule 2 by--

(a) adding any function of the Regulator conferred by, or by virtue of, this or any other enactment,

(b) omitting any such function, or

(c) altering the description of any such function contained in that Schedule.

(6) The provisions referred to in subsection (2)(b) are--

(a) section 20(10) (application to permit payments out of an account that is subject to a restraining order);

(b) section 26(2) (application for order validating action taken in contravention of freezing order);

(c) section 41(7) (application for the issue of a revised contribution notice under section 41(9));

(d) section 50(7) (application for the issue of a revised contribution notice under section 50(9));

(e) section 3(3) of the Pensions Act 1995 (c. 26) (application for revocation of prohibition order);

(f) section 4(5) of that Act (application for revocation of a suspension order);

(g) section 7(5A) of that Act (application for appointment of a trustee under section 7(3)(a) or (c) of that Act);

(h) section 29(5) of that Act (application for waiver of disqualification);

(i) section 69(1) of that Act (application for order authorising modification or modifying a scheme);

(j) section 71A(2) of that Act (application for modifying a scheme to secure winding up);

(k) section 99(4A) of the Pension Schemes Act 1993 (c. 48) (application for extension under section 99(4) of that Act of a period for compliance);

(l) section 101J(6)(a) of that Act (application for extension under section 101J(2) of that Act of a period for compliance).

(7) Regulations may amend subsection (6) by--

(a) adding any provision of this or any other enactment to the list in that subsection, or

(b) omitting or altering the description of any provision mentioned in that list.

(8) The Panel may be authorised under paragraph 20(4) or (6) of Schedule 1 to exercise further functions of the Regulator on behalf of the Regulator.

(9) The Panel may authorise any of its members or any of its sub-committees to exercise on its behalf--

(a) any of the functions of the Regulator which are exercisable by the Panel on behalf of the Regulator, or

(b) any of the functions of the Panel under section 93(3), section 99(11) and paragraph 18(2) of Schedule 1 (procedure).

(10) This section is subject to any regulations made by the Secretary of State under paragraph 21 of Schedule 1 (power to limit or permit delegation of functions).



Annual report

11 Annual reports to Secretary of State

(1) The Regulator must prepare a report for each financial year.

(2) Each report--

(a) must deal with the activities of the Regulator in the financial year for which it is prepared, including the matters mentioned in subsection (3), and

(b) must include the report prepared under subsection (5) of section 8 by the committee established under that section.

(3) The matters referred to in subsection (2)(a) are--

(a) the strategic direction of the Regulator and the manner in which it has been kept under review;

(b) the steps taken to scrutinise the performance of the Chief Executive in securing that the Regulator's functions are exercised efficiently and effectively;

(c) the Regulator's objectives and targets (including its main objectives as set out in section 5 or in any corresponding provision in force in Northern Ireland) and the steps taken to monitor the extent to which they are being met.

(4) The Regulator must send each report to the Secretary of State as soon as practicable after the end of the financial year for which it is prepared.

(5) The Secretary of State must lay before each House of Parliament a copy of every report received by him under this section.

(6) In this section "financial year" means--

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