(1)In section 51 of the Pensions Act 1995 (annual increase in rate of pension)—
(a)in subsection (1), for “Subject to subsections (6) and (7)” substitute “Subject to subsections (6) to (7A)”;
(b)after subsection (7) insert—
“(7A)This section does not apply to any pension, or part of a pension, that is a collective benefit.”
(2)Omit section 21(2) of the Pensions Act 2011, which is no longer needed given subsection (1).
(1)Section 51 of the Pensions Act 1995 (annual increase in rate of pension) is amended as follows.
(2)In subsection (1)(a)(ii) (scheme based exemption) after “public service pension scheme” insert “or a regulatory own fund scheme (see subsection (9))”.
(3)After subsection (8) insert—
“(9)In subsection (1)(a)(ii) “regulatory own fund scheme” means a scheme in respect of which Article 17 of Council Directive 2003/41/EC of 3 June 2003 on the activities and supervision of institutions for occupational retirement provision applies.
(10)Regulations may amend subsection (9) to replace the reference to the Article mentioned there with a reference to any provision of an EU instrument that replaces it (with or without changes).”
(1)In section 51 of the Pensions Act 1995 (annual increase in rate of pension), after subsection (5) insert—
“(5A)Regulations may provide that this section does not apply to a pension, or part of a pension, of a specified description.
(5B)But regulations under subsection (5A) may not be made in respect of—
(a)a pension, or any part of a pension, under a defined benefits scheme,
(b)a pension, or any part of a pension, which came into payment before the day on which the regulations come into force, or
(c)a pension, or any part of a pension, which is attributable to pensionable service before the day on which the regulations come into force.
(5C)Regulations under subsection (5A) may amend this Part.”
(2)In section 175(2) of that Act (statutory instruments subject to affirmative procedure), before paragraph (a) insert—
“(za)section 51(5A),”.