Public Service Pensions and Judicial Offices Act 2022

New public pension schemes U.K.

111 Establishment of new public schemes and transfer of rights U.K.

(1) The Treasury may by regulations establish one or more schemes (“new public schemes”) which provide for pensions or other benefits to be payable to or in respect of persons who are or have been members of the BBS Pension Scheme or the NRAM Pension Scheme.

(2) The Treasury may by regulations make provision for the transfer of qualifying accrued rights to a new public scheme (without the need for any approval or consent to the transfer).

(3) Regulations under subsection (2) may include provision for the discharge of liabilities in respect of qualifying accrued rights that are transferred.

(4) In this Part—

• “qualifying accrued rights” means—

  (a)

  any right to future benefits under the BBS Pension Scheme or the NRAM Pension Scheme which, at the qualifying time, has accrued to or in respect of a member of that scheme,

  (b)

  any entitlement under the BBS Pension Scheme or the NRAM Pension Scheme to the present payment of a pension or other benefit which a member of the BBS Pension Scheme or the NRAM Pension Scheme has at the qualifying time, or

  (c)

  any entitlement to benefits, or right to future benefits, under the BBS Pension Scheme or the NRAM Pension Scheme which a survivor of a member of the BBS Pension Scheme or the NRAM Pension Scheme has at the qualifying time in respect of the member;

• “the qualifying time” means the time immediately before the date specified or described in regulations made by the Treasury.

(5) For the purposes of the definition of “qualifying accrued rights”—

(a) references to pensions or other benefits (including future benefits) includes money purchase benefits, and

(b) references to a right include a pension credit right.

(6) Regulations under subsection (4) specifying or describing a date for the purposes of the definition of “the qualifying time” may make provision for the purposes of transfers of qualifying accrued rights generally, transfers of a particular description or a particular transfer.

Commencement Information

I1 S. 111 in force at 10.5.2022, see s. 131(3)

112 New public schemes: further provision U.K.

(1) A new public scheme may include provision—

(a) for pensions or other benefits to be payable to or in respect of some or all persons described in section 111(1);

(b) for the provision of money purchase benefits or benefits that are not money purchase benefits (or both);

(c) for increasing in particular circumstances the amounts payable in respect of qualifying accrued rights;

(d) for the payment or receipt of transfer values or other lump sum payments for the purpose of creating rights to benefits under a new public scheme or otherwise.

(2) Regulations under section 111(1) may—

(a) provide for a new public scheme to be treated as an occupational pension scheme, a previously contracted-out scheme or another type of occupational pension scheme for the purposes of an enactment specified or described in the regulations;

(b) provide for the enactment to apply in relation to a new public scheme subject to modifications specified in the regulations.

(3) Regulations under section 111(1) amending a new public scheme may make retrospective provision.

(4) Regulations under section 111(1) may—

(a) confer functions on the Treasury or another person;

(b) provide for a person to exercise a discretion in dealing with a matter.

(5) The Treasury may—

(a) make arrangements for a new public scheme to be administered by any person;

(b) delegate to any person a function exercisable by the Treasury under a new public scheme.

(6) In this section, a “previously contracted-out scheme” means a scheme that before 6 April 2016 was a salary related contracted-out scheme within the meaning of Part 3 of the Pension Schemes Act 1993.

Commencement Information

I2 S. 112 in force at 10.5.2022, see s. 131(3)

113 Protection against adverse treatment: transfer of rights U.K.

(1) When making regulations under section 111 which transfer qualifying accrued rights to a new public scheme, the Treasury must ensure that the following requirements are met in respect of each person whose qualifying accrued rights are transferred—

(a) the general scheme requirement (see subsection (2)), and

(b) where the qualifying accrued rights transferred are a person’s rights or entitlements to money purchase benefits other than pensions in payment, the money purchase requirement (see subsection (3)).

(2) The general scheme requirement is that, so far as relevant to the qualifying accrued rights transferred by the regulations, the provision in the new public scheme immediately after the regulations are made is in all material respects at least as good as the provision in the BBS Pension Scheme or the NRAM Pension Scheme (as appropriate) immediately before that time.

(3) The money purchase requirement is that the value of the rights or entitlements to money purchase benefits, other than pensions in payment, that a person has under the new public scheme immediately after, and as a result of, the transfer is at least equivalent to the value of the qualifying accrued rights of the person that are transferred.

(4) The Treasury may by regulations make provision about the determination of the value of rights or entitlements for the purposes of subsection (3).

(5) Regulations under subsection (4) may, among other things—

(a) make provision about the person by whom, and the manner in which, the value of rights or entitlements is to be determined,

(b) make provision about the date or period by reference to which the value of the qualifying accrued rights transferred is to be determined (subject to subsection (6)), and

(c) make provision that applies generally or only for a specific purpose (for example, in relation to a particular transfer).

(6) Regulations under subsection (4) may not make provision for the value of the qualifying accrued rights transferred to be determined by reference to a date which falls, or a period which ends, more than three months before the transfer.

(7) Subsection (1) does not require provision to be included in a new public scheme if the Treasury is of the opinion that the provision would be incompatible with an enactment (including an enactment applying as a result of any provision made by or under this Part).

(8) Nothing in subsections (1) to (3) is to be read as—

(a) requiring particular provisions of a new public scheme to take a particular form,

(b) requiring a new public scheme to be established in a particular way,

(c) requiring any power or duty conferred or imposed by a new public scheme to be exercised or performed in a particular way, or

(d) affecting any power of any person to amend a new public scheme.

Commencement Information

I3 S. 113 in force at 10.5.2022, see s. 131(3)

114 Protection against adverse treatment: amendment of new public schemes U.K.

(1) The Treasury may not make regulations under section 111 amending a new public scheme unless—

(a) in a case where the amendment, on coming into force, would or might adversely affect subsisting rights at that time, the consent requirements or the procedure requirements are satisfied in relation to the amendment, or

(b) in any other case, the consultation requirements are satisfied in relation to the amendment.

(2) The consent requirements are requirements specified or described in regulations made by the Treasury for the purpose of obtaining the consent of interested persons, or their representatives, to amendment of a new public scheme.

(3) The consultation requirements are requirements specified or described in regulations made by the Treasury for the purpose of consulting interested persons, or their representatives, about amendment of a new public scheme.

(4) The procedure requirements are requirements which—

(a) are specified or described in regulations made by the Treasury for steps to be taken before amending a new public scheme, and

(b) are not requirements for the purpose of obtaining the consent of, or consulting, interested persons or their representatives.

(5) In this section, “subsisting rights”, in relation to any time, means—

(a) any right to future benefits under a new public scheme which, at that time, has accrued to or in respect of a member of the scheme,

(b) any entitlement under a new public scheme to the present payment of a pension or other benefit which a member of the scheme has at that time, or

(c) any entitlement to benefits, or rights to future benefits, under a new public scheme which a survivor of a member of the scheme has at that time in respect of the member.

(6) For the purposes of the definition of “subsisting rights”—

(a) references to pensions or other benefits (including future benefits) include money purchase benefits, and

(b) references to a right include a pension credit right.

(7) In this section, “interested persons”, in relation to an amendment of a scheme, means persons who appear to the Treasury to be likely to be affected by the amendment.

Commencement Information

I4 S. 114 in force at 10.5.2022, see s. 131(3)

115 Transfer of assets and liabilities U.K.

(1) The Treasury may by regulations provide for the transfer of assets or liabilities of the BBS Pension Scheme or the NRAM Pension Scheme to—

(a) a nominee of the Treasury, or

(b) a company established by the Treasury for the purpose of holding the assets or the liabilities pending their disposal or discharge.

(2) Regulations may be made under this section only if regulations under section 111 have been made.

(3) Regulations under this section may include provision for the making of payments into the Consolidated Fund.

Commencement Information

I5 S. 115 in force at 10.5.2022, see s. 131(3)