Superannuation Act 1972

2 Further provisions relating to schemes under s. 1. U.K.

(1) A scheme under section 1 of this Act which makes provision with respect to the pensions, allowances or gratuities which are to be, or may be, paid to or in respect of a person to whom that section applies and who is incapacitated or dies as a result of an injury sustained, or disease contracted, in circumstances prescribed by the scheme may make the like provision in relation to any other person, being a person who is employed in a civil capacity for the purposes of Her Majesty’s Government in the United Kingdom, whether temporarily or permanently and whether for reward or not, or is a person holding office in that Government and who is incapacitated or dies as a result of an injury or disease so sustained or contracted.

(2) Any scheme under the said section 1 may make provision for the payment by the Minister of pensions, allowances or gratuities by way of compensation to or in respect of persons—

(a) to whom that section applies; and

(b) who suffer loss of office or employment, or loss or diminution of emoluments, in such circumstances, or by reason of the happening of such an event, as may be prescribed by the scheme.

[F1 (3) [F2 Subject to subsection (3A) below,] no scheme under the said section 1 shall make any provision which would have the effect of reducing the amount of any pension, allowance or gratuity, in so far as that amount is directly or indirectly referable to rights which have accrued (whether by virtue of service rendered, contributions paid or any other thing done) before the coming into operation of the scheme, unless the persons consulted in accordance with section 1(3) of this Act have agreed to the inclusion of that provision.]

[F3 (3A) Subsection (3) above does not apply to a provision which would have the effect of reducing the amount of a compensation benefit except in so far as the compensation benefit is one provided in respect of a loss of office or employment which is the consequence of—

(a) a notice of dismissal given before the coming into operation of the scheme which would have that effect, or

(b) an agreement made before the coming into operation of that scheme.

(3B) In this section—

• “compensation benefit” means so much of any pension, allowance or gratuity as is provided under the civil service compensation scheme by way of compensation to or in respect of a person by reason only of the person's having suffered loss of office or employment;

• “the civil service compensation scheme” means so much of any scheme under the said section 1 (whenever made) as provides by virtue of subsection (2) above for benefits to be provided by way of compensation to or in respect of persons who suffer loss of office or employment.

(3C) In subsection (3B) above a reference to suffering loss of office or employment includes a reference to suffering loss or diminution of emoluments as a consequence of suffering loss of office or employment.]

[F4 (3D) So far as it relates to a provision of a scheme under the said section 1 which would have the effect of reducing the amount of a compensation benefit, the duty to consult in section 1(3) of this Act is a duty to consult with a view to reaching agreement with the persons consulted.]

(4) Subject to subsection (3) above, any scheme under the said section 1, or any provision thereof, may be framed—

(a) so as to have effect as from a date earlier than the date on which the scheme is made; or

(b) so as to apply in relation to the pensions, allowances or gratuities paid or payable to or in respect of persons who, having been persons to whom the said section 1 applies, have died or ceased to be persons to whom that section applies before the scheme comes into operation; or

(c) so as to require or authorise the payment of pensions, allowances or gratuities to or in respect of such persons.

(5) Where an order has been made under section 1(7) of this Act, any scheme under that section may provide for the payment to the Minister out of the fund specified in the order of benefits or other sums paid by him in accordance with the scheme to or in respect of persons to whom that section applies by virtue of the order, together with any administrative expenses incurred in connection with the payment of those sums, and for the payment into that fund of contributions paid in accordance with the scheme by or in respect of those persons and of any transfer values received in respect of them.

(6) Any scheme under the said section 1 may provide for the determination by the Minister of questions arising under the scheme and may provide that the decision of the Minister on any such question shall be final.

(7) Where under any such scheme any question falls to be determined by the Minister, then, at any time before the question is determined, the Minister may (and if so directed by any of the Courts hereinafter mentioned shall) state in the form of a special case for determination by the High Court, the Court of Session or the Court of Appeal in Northern Ireland any question of law arising out of the question which falls to be determined by him.

(8) Where such a case is stated for determination by the High Court, an appeal to the Court of Appeal from the determination by the High Court shall lie only with the leave of the High Court or of the Court of Appeal; and where such a case is stated for determination by the Court of Session then, subject to any rules of court, the Minister shall be entitled to appear and be heard when the case is being considered by that Court.

(9) Any scheme under the said section 1 may amend or revoke any previous scheme made thereunder.

(10) Different schemes may be made under the said section 1 in relation to different classes of persons to whom that section applies, and in this section “the principal civil service pension scheme” means the principal scheme so made relating to persons serving in employment in the [F5 civil service of the State].

(11) Before a scheme made under the said section 1, being the principal civil service pension scheme or a scheme amending or revoking that scheme, comes into operation the Minister shall lay a copy of the scheme before Parliament.

[F6 (11A) Subsection (11B) below applies if a scheme made under the said section 1 makes any provision which would have the effect of reducing the amount of a compensation benefit.

(11B) Before the scheme comes into operation, the Minister must have laid before Parliament a report providing information about—

(a) the consultation that took place for the purposes of section 1(3) of this Act, so far as relating to the provision,

(b) the steps taken in connection with that consultation with a view to reaching agreement in relation to the provision with the persons consulted, and

(c) whether such agreement has been reached.]

(12) Notwithstanding any repeal made by this Act, the existing civil service superannuation provisions, that is to say, the enactments and instruments listed in Schedule 2 to this Act, shall, with the necessary adaptations and modifications, have effect as from the commencement of this Act as if they constituted a scheme made under the said section 1 in relation to the persons to whom that section applies, being the principal civil service pension scheme, and coming into operation on the said commencement and may be revoked or amended accordingly.

Textual Amendments

F1 S. 2(3) substituted by Pensions (Miscellaneous Provisions) Act 1990 (c. 7, SIF 101A:3), s. 9

F2 Words in s. 2(3) inserted (16.12.2010 with application in accordance with s. 1(4)-(6) of the amending Act) by Superannuation Act 2010 (c. 37), ss. 1(2), 4(2)

F3 S. 2(3A)-(3C) inserted (16.12.2010 with application in accordance with s. 1(4)-(6) of the amending Act) by Superannuation Act 2010 (c. 37), ss. 1(3), 4(2)

F4 S. 2(3D) inserted (16.2.2011 with application in accordance with s. 2(4) of the amending Act) by Superannuation Act 2010 (c. 37), ss. 2(2), 4(3)

F5 Words in s. 2(10) substituted (11.11.2010) by Constitutional Reform and Governance Act 2010 (c. 25), s. 52, Sch. 2 para. 2; S.I. 2010/2703, art. 2(a)

F6 S. 2(11A)-(11B) inserted (16.2.2011 with application in accordance with s. 2(4) of the amending Act) by Superannuation Act 2010 (c. 37), ss. 2(3), 4(3)

Modifications etc. (not altering text)

C1 S. 2 modified (31.3.1995) by 1967 c. 13, s. 2, Sch. 1 (as substituted (31.3.1995) by 1993 c. 8, s. 25, Sch. 4 Pt. II para.2; S.I. 1995/631, art. 2)

C2 S. 2 applied (S.) (5.1.1994) by 1993 c. 45, s. 1, Sch. 1 para. 4(2).

S. 2: functions transferred (1.4.1995) by 1995/269, art. 3, Sch. para. 6