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Pensions Act 1995 (c. 26)

(The document as of February, 2008)

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Pensions Act 1995 (c. 26)

1995 CHAPTER 26

ARRANGEMENT OF SECTIONS

Content
  1. Part I

    Occupational pensions

    1. Occupational Pensions Regulatory Authority

      1. 1. The new authority.

      2. 2. Reports to Secretary of State.

    2. Supervision by the Authority

      1. 3. Prohibition orders.

      2. 4. Suspension orders.

      3. 5. Removal of trustees: notices.

      4. 6. Removal or suspension of trustees: consequences.

      5. 7. Appointment of trustees.

      6. 8. Appointment of trustees: consequences.

      7. 9. Removal and appointment of trustees: property.

      8. 10. Civil penalties.

      9. 11. Powers to wind up schemes.

      10. 12. Powers to wind up public service schemes.

      11. 13. Injunctions and interdicts.

      12. 14. Restitution.

      13. 15. Directions.

    3. Member-nominated trustees and directors

      1. 16. Requirement for member-nominated trustees.

      2. 17. Exceptions.

      3. 18. Corporate trustees: member-nominated directors.

      4. 19. Corporate trustees: exceptions.

      5. 20. Selection, and eligibility, of member-nominated trustees and directors.

      6. 21. Member-nominated trustees and directors: supplementary.

    4. Independent trustees

      1. 22. Circumstances in which following provisions apply.

      2. 23. Requirement for independent trustee.

      3. 24. Members' powers to apply to court to enforce duty.

      4. 25. Appointment and powers of independent trustees: further provisions.

      5. 26. Insolvency practitioner or official receiver to give information to trustees.

    5. Trustees: general

      1. 27. Trustee not to be auditor or actuary of the scheme.

      2. 28. Section 27: consequences.

      3. 29. Persons disqualified for being trustees.

      4. 30. Persons disqualified: consequences.

      5. 31. Trustees not to be indemnified for fines or civil penalties.

    6. Functions of trustees

      1. 32. Decisions by majority.

      2. 33. Investment powers: duty of care.

      3. 34. Power proceedings.">44. Time limit for proceedings.

      4. 45. Remedies.

      5. 46. Right not to suffer detriment in employment or be unfairly dismissed.

    7. Advisers

      1. 47. Professional advisers.

      2. 48. "Blowing the whistle".

    8. Receipts, payments and records

      1. 49. Other responsibilities of trustees, employers, etc.

    9. Resolution of disputes

      1. 50. Resolution of disputes.

    10. Indexation

      1. 51. Annual increase in rate of pension.

      2. 52. Restriction on increase where member is under 55.

      3. 53. Effect of increases above the statutory requirement.

      4. 54. Sections 51 to 53: supplementary.

      5. 55. Section 51: end of annual increase in GMP.

    11. Minimum funding requirement

      1. 56. Minimum funding requirement.

      2. 57. Valuation and certification of assets and liabilities.

      3. 58. Schedules of contributions.

      4. 59. Determination of contributions: supplementary.

      5. 60. Serious underprovision.

      6. 61. Sections 56 to 60: supplementary.

    12. Equal treatment

      1. 62. The equal treatment rule.

      2. 63. Equal treatment rule: supplementary.

      3. 64. Equal treatment rule: exceptions.

      4. 65. Equal treatment rule: consequential alteration of schemes.

      5. 66. Equal treatment rule: effect on terms of employment, etc.

    13. Modification of schemes

      1. 67. Restriction on powers to alter schemes.

      2. 68. Power of trustees to modify schemes by resolution.

      3. 69. Grounds for applying for modifications.

      4. 70. Section 69: supplementary.

      5. 71. Effect of orders under section 69.

      6. 72. Modification of public service pension schemes.

    14. Winding up

      1. 73. Preferential liabilities on winding up.

      2. 74. Discharge of liabilities by insurance, etc.

      3. 75. Deficiencies in the assets.

      4. 76. Excess assets on winding up.

      5. 87. Schedules of payments to money purchase schemes.

      6. 88. Schedules of payments to money purchase schemes: supplementary.

      7. 89. Application of further provisions to money purchase schemes.

      8. 90. Unpaid contributions in cases of insolvency.

    15. Assignment, forfeiture, bankruptcy, etc.

      1. 91. Inalienability of occupational pension.

      2. 92. Forfeiture, etc.

      3. 93. Forfeiture by reference to obligation to the employer.

      4. 94. Sections 91 to 93: supplementary.

      5. 95. Pension rights of individuals adjudged bankrupt etc.

    16. Questioning the decisions of the Authority

      1. 96. Review of decisions.

      2. 97. References and appeals from the Authority.

    17. Gathering information: the Authority

      1. 98. Provision of information.

      2. 99. Inspection of premises.

      3. 100. Warrants.

      4. 101. Information and inspection: penalties.

      5. 102. Savings for certain privileges etc.

      6. 103. Publishing reports.

    18. Disclosure of information: the Authority

      1. 104. Restricted information.

      2. 105. Information supplied to the Authority by corresponding overseas authorities.

      3. 106. Disclosure for facilitating discharge of functions by the Authority.

      4. 107. Disclosure for facilitating discharge of functions by other supervisory authorities.

      5. 108. Other permitted disclosures.

      6. 109. Disclosure of information by the Inland Revenue.

    19. Gathering information: the Compensation Board

      1. 110. Provision of information.

      2. 111. Information: penalties.

      3. 112. Savings for certain privileges.

      4. 113. Publishing reports.

      5. 114. Disclosure of information.

    20. General

      1. 115. Offences by bodies corporate and partnerships.

      2. 116. Breach of regulations.

      3. 117. Overriding requirements.

      4. 118. Powers to modify this Part.

      5. Part II

        State Pensions

        1. 126. Equalisation of pensionable age and of entitlement to certain benefits.

        2. 127. Enhancement of additional pension, etc. where family credit or disability working allowance paid.

        3. 128. Additional pension: calculation of surpluses.

        4. 129. Contribution conditions.

        5. 130. Uprating of pensions increased under section 52 of the Social Security Contributions and Benefits Act.

        6. 131. Graduated retirement benefit.

        7. 132. Extension of Christmas bonus for pensioners.

        8. 133. Contributions paid in error.

        9. 134. Minor amendments.

      6. Part III

        Certification of pension schemes and effects on members' state scheme rights and duties

        1. Introductory

          1. 135. The "principal appointed day" for Part III.

        2. New certification requirements applying as from the principal appointed day

          1. 136. New requirements for contracted-out schemes.

        3. Reduction in State scheme contributions, payment of rebates and reduction in State scheme benefits

          1. 137. State scheme contributions and rebates.

          2. 138. Minimum contributions towards appropriate personal pension schemes.

          3. 139. Money purchase and personal pension schemes: verification of ages.

          4. 140. Reduction in benefits for members of certified schemes.

        4. Premiums and return to State scheme

          1. 141. State scheme etc. premiums and buyback into State scheme.

        5. Protected rights

          1. 142. Interim arrangements for giving effect to protected rights.

          2. 143. Requirements for interim arrangements.

          3. 144. Interim arrangements: supplementary.

          4. 145. Extension of interim arrangements to occupational pension schemes.

          5. 146. Discharge of protected rights on winding up: insurance policies.

        6. Miscellaneous

          1. 147. Monitoring personal pension schemes.

          2. 148. Earner employed in more than one employment.

          3. 149. Hybrid occupational pension schemes.

          4. 150. Dissolution of Occupational Pensions Board.

        7. Minor and consequential amendments

          1. 151. Minor and consequential amendments related to sections 136 to 150.

      7. Part IV

        Miscellaneous and General

        1. Transfer values

          1. 152. Extension of scope of right to cash equivalent.

          2. 153. Right to guaranteed cash equivalent.

          3. 154. Right to guaranteed cash equivalent: supplementary.

        2. Penalties

          1. 155. Breach of regulations under the Pension Schemes Act 1993.

        3. Pensions Ombudsman

          1. 156. Employment of staff by the Pensions Ombudsman.

          2. 157. Jurisdiction of Pensions Ombudsman.

          3. 158. Costs and expenses.

          4. 159. Disclosing information.

          5. 160. Interest on late payment of benefit.

        4. Modification and winding up of schemes

          1. 161. Repeal of sections 136 to 143 of the Pensions Schemes Act 1993.

        5. Personal pensions

          1. 162. Annual increase in rate of personal pension.

          2. 163. Section 162: supplementary.

          3. 164. Power to reject notice choosing appropriate personal pension scheme.

        6. Levy

          1. 165. Levy.

        7. Pensions on divorce, etc.

          1. 166. Pensions on divorce, etc.

          2. 167. Pensions on divorce, etc.: Scotland.

        8. War Pensions

          1. 168. War pensions for widows: effect of remarriage.

          2. 169. Extension of Pensions Appeal Tribunals Act 1943.

        9. Official and public service pensions

          1. 170. Pensions for dependants of the Prime Minister etc.

          2. 171. Equal treatment in relation to official pensions.

          3. 172. Information about public service schemes.

        10. General minor and consequential amendments

          1. 173. General minor and consequential amendments.

        11. Subordinate legislation etc.

          1. 174. Orders and regulations (general provisions).

          2. 175. Parliamentary control of orders and regulations.

        12. General

          1. 176. Interpretation.

          2. 177. Repeals.

          3. 178. Extent.

          4. 179. Northern Ireland.

          5. 180. Commencement.

          6. 181. Short title.

        1. Schedule 1

          Occupational Pensions Regulatory Authority.

        2. Schedule 2

          Pensions Compensation Board.

        3. Schedule 3

          Amendments consequential on Part I.

        4. Schedule 4

          Equalisation.

          1. Part I

            Pensionable ages for men and women.

          2. Part II

            Entitlement to certain pension and other benefits.

          3. Part III

            Consequential amendments.

        5. Schedule 5

          Amendments relating to Part III.

        6. Schedule 6

          General minor and consequential amendments.

        7. Schedule 7

          Repeals.

          1. Part I

            Occupational pensions.

          2. Part II

            State pensions.

          3. Part III

            Certification of pension schemes etc.

          4. Part IV

            Miscellaneous and General.

An Act to amend the law about pensions and for connected purposes.

[19th July 1995]

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 I Occupational pensions

Occupational Pensions Regulatory Authority

1 The new authority

(1) There shall be a body corporate called the Occupational Pensions Regulatory Authority (referred to in this Part as "the Authority").

(2) The Authority shall consist of not less than seven members appointed by the Secretary of State, one of whom shall be so appointed as chairman.

(3) In addition to the chairman, the Authority shall comprise--

(a) a member appointed after the Secretary of State has consulted organisations appearing to him to be representative of employers,

(b) a member appointed after the Secretary of State has consulted organisations appearing to him to be representative of employees,

(c) a member who appears to the Secretary of State to be knowledgeable about life assurance business,

(d) a member who appears to the Secretary of State to have experience of, and to have shown capacity in, the management or administration of occupational pension schemes, and

(e) two members who appear to the Secretary of State to be knowledgeable about occupational pension schemes,

and such other member or members as the Secretary of State may appoint.

(4) Neither the Authority nor any person who is a member or employee of the Authority shall be liable in damages for anything done or omitted in the discharge or purported discharge of the functions of the Authority under this Part or the [1993 c. 48.] Pension Schemes Act 1993, or any provisions in force in Northern Ireland corresponding to either of them, unless it is shown that the act or omission was in bad faith.

(5) Schedule 1 (constitution, procedure, etc. of the Authority) shall have effect.

(6) In this section, "life assurance business" means the issue of, or the undertaking of liability under, policies of assurance upon human life, or the granting of annuities upon human life.

2 Reports to Secretary of State

(1) The Authority must prepare a report for the first twelve months of their existence, and a report for each succeeding period of twelve months, and must send each report to the Secretary of State as soon as practicable after the end of the period for which it is prepared.

(2) A report prepared under this section for any period must deal with the activities of the Authority in the period.

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



Supervision by the Authority

3 Prohibition orders

(1) The Authority may by order prohibit a person from being a trustee of a particular trust scheme in any of the following circumstances.

(2) The circumstances are--

(a) that the Authority are satisfied that while being a trustee of the scheme the person has been in serious or persistent breach of any of his duties under--

(i) this Part, other than the following provisions: sections 51 to 54, 62 to 65 and 110 to 112, or

(ii) the following provisions of the Pension Schemes Act 1993: section 6 (registration), Chapter IV of Part IV (transfer values), section 113 (information) and section 175 (levy),

(b) that the Authority are satisfied that, while being a trustee of the scheme, this section has applied to the person by virtue of any other provision of this Part,

(c) that the person is a company and any director of the company is prohibited under this section from being a trustee of the scheme,

(d) that the person is a Scottish partnership and any of the partners is prohibited under this section from being a trustee of the scheme, or

(e) that the person is a director of a company which, by reason of circumstances falling within paragraph (a) or (b), is prohibited under this section from being a trustee of the scheme and the Authority are satisfied that the acts or defaults giving rise to those circumstances were committed with the consent or connivance of, or attributable to any neglect on the part of, the director;

or any other prescribed circumstances.

(3) The making of an order under subsection (1) against a person who is a trustee of the scheme in question has the effect of removing him.

(4) The Authority may, on the application of any person against whom an order under subsection (1) is in force, by order revoke the order, but a revocation made at any time cannot affect anything done before that time.

4 Suspension orders

(1) The Authority may by order suspend a trustee of a trust scheme--

(a) pending consideration being given to the making of an order against him under section 3(1),

(b) where proceedings have been instituted against him for an offence involving dishonesty or deception and have not been concluded,

(c) where a petition has been presented to the court for an order adjudging him bankrupt, or for the sequestration of his estate, and proceedings on the petition have not been concluded,

(d) where the trustee is a company, if a petition for the winding up of the company has been presented to the court and proceedings on the petition have not been concluded,

(e) where an application has been made to the court for a disqualification order against him under the [1986 c. 46.] Company Directors Disqualification Act 1986 and proceedings on the application have not been concluded, or

(f) where the trustee is a company or Scottish partnership and, if any director or, as the case may be, partner were a trustee, the Authority would have power to suspend him under paragraph (b), (c) or (e).

(2) An order under subsection (1)--

(a) if made by virtue of paragraph (a), has effect for an initial period not exceeding twelve months, and

(b) in any other case, has effect until the proceedings in question are concluded;

but the Authority may by order extend the initial period referred to in paragraph (a) for a further period of twelve months, and any order suspending a person under subsection (1) ceases to have effect if an order is made against that person under section 3(1).

(3) An order under subsection (1) has the effect of prohibiting the person suspended, during the period of his suspension, from exercising any functions as trustee of any trust scheme to which the order applies; and the order may apply to a particular trust scheme, a particular class of trust schemes or trust schemes in general.

(4) An order under subsection (1) may be made on one of the grounds in paragraphs (b) to (e) whether or not the proceedings were instituted, petition presented or application made (as the case may be) before or after the coming into force of that subsection.

(5) The Authority may, on the application of any person suspended under subsection (1), by order revoke the order, either generally or in relation to a particular scheme or a particular class of schemes; but a revocation made at any time cannot affect anything done before that time.

(6) An order under this section may make provision as respects the period of the trustee's suspension for matters arising out of it, and in particular for enabling any person to execute any instrument in his name or otherwise act for him and for adjusting any rules governing the proceedings of the trustees to take account of the reduction in the number capable of acting.

5 Removal of trustees: notices

(1) Before the Authority make an order under section 3 against a person without his consent, the Authority must, unless he cannot be found or has no known address, give him not less than one month's notice of their proposal, inviting representations to be made to them within a time specified in the notice.

(2) Where any such notice is given, the Authority must take into consideration any representations made to them about the proposals within the time specified in the notice.

(3) Before making an order under section 3 against a person, the Authority must give notice of their intention to do so to each of the trustees of the scheme, except that person (if he is a trustee) and any trustee who cannot be found or has no known address.

(4) Where the Authority make an order under section 4 against a person, they must--

(a) immediately give notice of that fact to that person, and

(b) as soon as reasonably practicable, give notice of that fact to the other trustees of any trust scheme to which the order applies, except any trustee who cannot be found or has no known address.

(5) Any notice to be given to any person under this section may be given by delivering it to him or by leaving it at his proper address or by sending it to him by post; and, for the purposes of this subsection and section 7 of the [1978 c. 30.] Interpretation Act 1978 in its application to this subsection, the proper address of any person is his latest address known to the Authority.

6 Removal or suspension of trustees: consequences

(1) A person who purports to act as trustee of a trust scheme while prohibited from being a trustee of the scheme under section 3 or suspended in relation to the scheme under section 4 is guilty of an offence and liable--

(a) on summary conviction, to a fine not exceeding the statutory maximum, and

(b) on conviction on indictment, to a fine or imprisonment or both.

(2) An offence under subsection (1) may be charged by reference to any day or longer period of time; and a person may be convicted of a second or subsequent offence under that subsection by reference to any period of time following the preceding conviction of the offence.

(3) Things done by a person purporting to act as trustee of a trust scheme while prohibited from being a trustee of the scheme under section 3 or suspended in relation to the scheme under section 4 are not invalid merely because of that prohibition or suspension.

(4) Nothing in section 3 or 4 or this section affects the liability of any person for things done, or omitted to be done, by him while purporting to act as trustee of a trust scheme.

7 Appointment of trustees

(1) Where a trustee of a trust scheme is removed by an order under section 3, or a trustee of such a scheme ceases to be a trustee by reason of his disqualification, the Authority may by order appoint another trustee in his place.

(2) Where a trustee appointed under subsection (1) is appointed to replace a trustee appointed under section 23(1)(b), sections 22 to 26 shall apply to the replacement trustee as they apply to a trustee appointed under section 23(1)(b).

(3) The Authority may also by order appoint a trustee of a trust scheme where they are satisfied that it is necessary to do so in order--

(a) to secure that the trustees as a whole have, or exercise, the necessary knowledge and skill for the proper administration of the scheme,

(b) to secure that the number of trustees is sufficient for the proper administration of the scheme, or

(c) to secure the proper use or application of the assets of the scheme.

(4) The Authority may also appoint a trustee of a trust scheme in prescribed circumstances.

(5) The power to appoint a trustee by an order under this section includes power by such an order--

(a) to determine the appropriate number of trustees for the proper administration of the scheme,

(b) to require a trustee appointed by the order to be paid fees and expenses out of the scheme's resources,

(c) to provide for the removal or replacement of such a trustee.

(6) Regulations may make provision about the descriptions of persons who may or may not be appointed trustees under this section.

8 Appointment of trustees: consequences

(1) An order under section 7 appointing a trustee may provide that an amount equal to the amount (if any) to which subsection (2) applies is to be treated for all purposes as a debt due from the employer to the trustees.

(2) This subsection applies to any amount which has been paid to the trustee so appointed out of the resources of the scheme and has not been reimbursed by the employer.

(3) Subject to subsection (4), a trustee appointed under that section shall, unless he is the independent trustee and section 22 applies in relation to the scheme, have the same powers and duties as the other trustees.

(4) Such an order may make provision--

(a) for restricting the powers or duties of a trustee so appointed, or

(b) for powers or duties to be exercisable by a trustee so appointed to the exclusion of other trustees.

9 Removal and appointment of trustees: property

Where the Authority have power under this Part to appoint or remove a trustee, they may exercise the same jurisdiction and powers as are exercisable by the High Court or, in relation to a trust scheme subject to the law of Scotland, the Court of Session for vesting any property in, or transferring any property to, trustees in consequence of the appointment or of the removal.

10 Civil penalties

(1) Where the Authority are satisfied that by reason of any act or omission this section applies to any person, they may by notice in writing require him to pay, within a prescribed period, a penalty in respect of that act or omission not exceeding the maximum amount.

(2) In this section "the maximum amount" means--

(a) £5,000 in the case of an individual and £50,000 in any other case, or

(b) such lower amount as may be prescribed in the case of an individual or in any other case,

and the Secretary of State may by order amend paragraph (a) by substituting higher amounts for the amounts for the time being specified in that paragraph.

(3) Regulations made by virtue of this Part may provide for any person who has contravened any provision of such regulations to pay, within a prescribed period, a penalty under this section not exceeding an amount specified in the regulations; and the regulations must specify different amounts in the case of individuals from those specified in other cases and any amount so specified may not exceed the amount for the time being specified in the case of individuals or, as the case may be, others in subsection (2)(a).

(4) An order made under subsection (2) or regulations made by virtue of subsection (3) do not affect the amount of any penalty recoverable under this section by reason of an act or omission occurring before the order or, as the case may be, regulations are made.

(5) Where--

(a) apart from this subsection, a penalty under this section is recoverable from a body corporate or Scottish partnership by reason of any act or omission of the body or partnership as a trustee of a trust scheme, and

(b) the act or omission was done with the consent or connivance of, or is attributable to any neglect on the part of, any persons mentioned in subsection (6),

this section applies to each of those persons who consented to or connived in the act or omission or to whose neglect the act or omission was attributable.

(6) The persons referred to in subsection (5)(b)--

(a) in relation to a body corporate, are--

(i) any director, manager, secretary, or other similar officer of the body, or a person purporting to act in any such capacity, and

(ii) where the affairs of a body corporate are managed by its members, any member in connection with his functions of management, and

(b) in relation to a Scottish partnership, are the partners.

(7) Where the Authority requires any person to pay a penalty by virtue of subsection (5), they may not also require the body corporate, or Scottish partnership, in question to pay a penalty in respect of the same act or omission.

(8) A penalty under this section is recoverable by the Authority.

(9) The Authority must pay to the Secretary of State any penalty recovered under this section.

11 Powers to wind up schemes

(1) Subject to the following provisions of this section, the Authority may by order direct or authorise an occupational pension scheme to be wound up if they are satisfied that--

(a) the scheme, or any part of it, ought to be replaced by a different scheme,

(b) the scheme is no longer required, or

(c) it is necessary in order to protect the interests of the generality of the members of the scheme that it be wound up.

(2) The Authority may not make an order under this section on either of the grounds referred to in subsection (1)(a) or (b) unless they are satisfied that the winding up of the scheme--

(a) cannot be achieved otherwise than by means of such an order, or

(b) can only be achieved in accordance with a procedure which--

(i) is liable to be unduly complex or protracted, or

(ii) involves the obtaining of consents which cannot be obtained, or can only be obtained with undue delay or difficulty,

and that it is reasonable in all the circumstances to make the order.

(3) An order made under this section on either of the grounds referred to in subsection (1)(a) or (b) may be made only on the application of--

(a) the trustees or managers of the scheme,

(b) any person other than the trustees or managers who has power to alter any of the rules of the scheme, or

(c) the employer.

(4) An order under this section authorising a scheme to be wound up must include such directions with respect to the manner and timing of the winding up as the Authority think appropriate having regard to the purposes of the order.

(5) The winding up of a scheme in pursuance of an order of the Authority under this section is as effective in law as if it had been made under powers conferred by or under the scheme.

(6) An order under this section may be made and complied with in relation to a scheme--

(a) in spite of any enactment or rule of law, or any rule of the scheme, which would otherwise operate to prevent the winding up, or

(b) except for the purpose of the Authority determining whether or not they are satisfied as mentioned in subsection (2), without regard to any such enactment, rule of law or rule of the scheme as would otherwise require, or might otherwise be taken to require, the implementation of any procedure or the obtaining of any consent, with a view to the winding up.

(7) In the case of a public service pension scheme--

(a) an order under subsection (1) directing or authorising the scheme to be wound up may only be made on the grounds referred to in paragraph (c), and

(b) such an order may, as the Authority think appropriate, adapt, amend or repeal any enactment in which the scheme is contained or under which it is made.

12 Powers to wind up public service schemes

(1) The appropriate authority may by order direct a public service pension scheme to be wound up if they are satisfied that--

(a) the scheme, or any part of it, ought to be replaced by a different scheme, or

(b) the scheme is no longer required.

(2) Subsection (2) of section 11 applies for the purposes of this section as it applies for the purposes of that, but as if references to the Authority were to the appropriate authority.

(3) In this section "the appropriate authority", in relation to a scheme, means such Minister of the Crown or government department as may be designated by the Treasury as having responsibility for the particular scheme.

(4) An order under this section must include such directions with respect to the manner and timing of the winding up as that authority think appropriate.

(5) Such an order may, as that authority think appropriate, adapt, amend or repeal any enactment in which the scheme is contained or under which it is made.

13 Injunctions and interdicts

(1) If, on the application of the Authority, the court is satisfied that--

(a) there is a reasonable likelihood that a particular person will do any act which constitutes a misuse or misappropriation of assets of an occupational pension scheme, or

(b) that a particular person has done any such act and that there is a reasonable likelihood that he will continue or repeat the act in question or do a similar act,

the court may grant an injunction restraining him from doing so or, in Scotland, an interdict prohibiting him from doing so.

(2) The jurisdiction conferred by this section is exercisable by the High Court or the Court of Session.

14 Restitution

(1) If, on the application of the Authority, the court is satisfied--

(a) that a power to make a payment, or distribute any assets, to the employer, has been exercised in contravention of section 37, 76 or 77, or

(b) that any act or omission of the trustees or managers of an occupational pension scheme was in contravention of section 40,

the court may order the employer and any other person who appears to the court to have been knowingly concerned in the contravention to take such steps as the court may direct for restoring the parties to the position in which they were before the payment or distribution was made, or the act or omission occurred.

(2) The jurisdiction conferred by this section is exercisable by the High Court or the Court of Session.

15 Directions

(1) The Authority may, where in the case of any trust scheme the employer fails to comply with any requirement included in regulations by virtue of section 49(5), direct the trustees to make arrangements for the payment to the members of the benefit to which the requirement relates.

(2) The Authority may--

(a) where in the case of any trust scheme an annual report is published, direct the trustees to include a statement prepared by the Authority in the report, and

(b) in the case of any trust scheme, direct the trustees to send to the members a copy of a statement prepared by the Authority.

(3) A direction under this section must be given in writing.

(4) Where a direction under this section is not complied with, sections 3 and 10 apply to any trustee who has failed to take all such steps as are reasonable to secure compliance.



Member-nominated trustees and directors

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16 Requirement for member-nominated trustees

(1) The trustees of a trust scheme must (subject to section 17) secure--

(a) that such arrangements for persons selected by members of the scheme to be trustees of the scheme as are required by this section are made, and

(b) that those arrangements, and the appropriate rules, are implemented.

(2) Persons who become trustees under the arrangements required by subsection (1) are referred to in this Part as "member-nominated trustees".

(3) The arrangements must provide--

(a) for any person who has been nominated and selected in accordance with the appropriate rules to become a trustee by virtue of his selection, and

(b) for the removal of such a person to require the agreement of all the other trustees.

(4) Where a vacancy for a member-nominated trustee is not filled because insufficient nominations are received, the arrangements must provide for the filling of the vacancy, or for the vacancy to remain, until the expiry of the next period in which persons may be nominated and selected in accordance with the appropriate rules.

(5) The arrangements must provide for the selection of a person as a member-nominated trustee to have effect for a period of not less than three nor more than six years.

(6) The arrangements must provide for the number of member-nominated trustees to be--

(a) at least two or (if the scheme comprises less than 100 members) at least one, and

(b) at least one-third of the total number of trustees;

but the arrangements must not provide for a greater number of member-nominated trustees than that required to satisfy that minimum unless the employer has given his approval to the greater number.

(7) The arrangements must not provide for the functions of member-nominated trustees to differ from those of any other trustee but, for the purposes of this subsection--

(a) any provision made by an order under section 8(4), and

(b) section 25(2),

shall be disregarded.

(8) The arrangements must provide that, if a member-nominated trustee who was a member of the scheme when he was appointed ceases to be a member of the scheme, he ceases to be a trustee by virtue of that fact.

17 Exceptions

(1) Section 16 does not apply to a trust scheme if--

(a) a proposal has been made by the employer for the continuation of existing arrangements, or the adoption of new arrangements, for selecting the trustees of the scheme,

(b) the arrangements referred to in the proposal are for the time being approved under the statutory consultation procedure, and

(c) such other requirements as may be prescribed are satisfied.

(2) Where--

(a) by virtue of subsection (1), section 16 does not apply to a trust scheme, and

(b) the employer's proposal was for the adoption of new arrangements which, in consequence of subsection (1)(b), are adopted,

the trustees shall secure that the proposed arrangements are made and implemented.

(3) For the purposes of this section, the arrangements for selecting the trustees of a scheme include all matters relating to the continuation in office of the existing trustees, the selection or appointment of new trustees and the terms of their appointments and any special rules for decisions to be made by particular trustees.

(4) Section 16 does not apply to a trust scheme if--

(a) the trustees of the scheme consist of all the members, or

(b) it falls within a prescribed class.

(5) Section 10 applies to any employer who--

(a) makes such a proposal as is referred to in subsection (1)(a), but

(b) fails to give effect to the statutory consultation procedure.

18 Corporate trustees: member-nominated directors

(1) Where a company is a trustee of a trust scheme and the employer is connected with the company or prescribed conditions are satisfied, the company must, subject to section 19, secure--

(a) that such arrangements for persons selected by the members of the scheme to be directors of the company as are required by this section are made, and

(b) that those arrangements, and the appropriate rules, are implemented.

(2) Persons who become directors under the arrangements required by subsection (1) are referred to in this Part as "member-nominated directors".

(3) The arrangements must provide--

(a) for any person who has been nominated and selected in accordance with the appropriate rules to become a director by virtue of his selection, and

(b) for the removal of such a person to require the agreement of all the other directors.

(4) Where a vacancy for a member-nominated director is not filled because insufficient nominations are received, the arrangements must provide for the filling of the vacancy, or for the vacancy to remain, until the expiry of the next period in which persons may be nominated and selected in accordance with the appropriate rules.

(5) The arrangements must provide for the selection of a person as a member-nominated director to have effect for a period of not less than three nor more than six years.

(6) The arrangements must provide for the number of member-nominated directors to be--

(a) at least two or (if the scheme comprises less than 100 members) at least one, and

(b) at least one-third of the total number of directors;

but the arrangements must not provide for a greater number of member-nominated directors than that required to satisfy that minimum unless the employer has given his approval to the greater number.

(7) The arrangements must provide that, if a member-nominated director who was a member of the scheme when he was appointed ceases to be a member of the scheme, he ceases to be a director by virtue of that fact.

(8) Where this section applies to a company which is--

(a) a trustee of two or more trust schemes, and

(b) a wholly-owned subsidiary (within the meaning of section 736 of [1985 c. 6.] the Companies Act 1985) of a company which is the employer in relation to those schemes,

the following provisions apply as if those schemes were a single scheme and the members of each of the schemes were members of that scheme, that is: the preceding provisions of this section, section 20 and section 21(8).

Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14 | P.15

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