Social Security Act 1973

Miscellaneous

69 Rule against perpetuities.

(1) At any time when an occupational pension scheme qualifies under this section it shall be exempt from the operation of any rules of law relating to perpetuities which would otherwise invalidate, or might be taken to invalidate, any of the trusts of the scheme or any disposition made under it or for its purposes (whether trusts created, or dispositions made, before or after the scheme first qualified under this section).

(2) A public service pension scheme qualifies under this section at all times ; and otherwise a scheme qualifies at any time when—

(a) it is recognised under this Part of this Act in relation to any employment; or

(b) it satisfies the requirements of regulations under this subsection.

(3) Regulations under subsection (2) above may require a scheme—

(a) to contain provisions in any prescribed form, or to any prescribed effect; or

(b) to have, or to be such that it may be expected to qualify for, tax-exemption or tax-approval;

and the regulations may be so framed that, in prescribed circumstances, the requirements can be treated as satisfied if application has been duly made to the Inland Revenue with a view to obtaining tax-approval for the scheme.

(4) In subsection (3) above, " tax-exemption" and " tax-approval " mean respectively exemption from tax and approval of the Inland Revenue in either case under any such provision of the Income Tax Acts as may be prescribed by regulations.

(5) Regulations may include provision whereby a scheme which ceases to be recognised, or ceases to satisfy the requirements of regulations under subsection (2) above, may nevertheless be treated as continuing to qualify under this section for a further period of 2 years from the cesser, or for such longer period as the Occupational Pensions Board consider to be reasonable in the case of a particular scheme.

(6) As respects the operation of the rules of law referred to in subsection (1) above—

(a) this section does not validate with retrospective effect any trusts created or dispositions made under or for the purpose of a scheme if (taking into account, where applicable, section 3(1) of the [1964 c. 55.] Perpetuities and Accumulations Act 1964 (" wait and see ") or the corresponding Northern Ireland enactment) those trusts or dispositions were already required to be treated as void under the rules before the scheme qualified under this section ; and

(b) if a scheme ceases to qualify, trusts so created and dispositions so made shall then again be subject to the rules as if the scheme had never qualified (but without prejudice to any rights which vested during the period of qualification).

(7) There shall cease to have effect—

(a) the [1927 c. 41.] Superannuation and other Trust Funds (Validation) Act 1927 (power to register superannuation schemes, with consequent exemption from the rule against perpetuities), except section 9 and section 11 so far as it provides for citation and extends section 9 to Northern Ireland; and

(b) the corresponding Northern Ireland enactment, that is to say the [1928 c. 6 (N.I.).] Superannuation and other Trust Funds (Validation) Act (Northern Ireland) 1928 ;

but regulations may provide, in relation to a scheme whose fund was registered under either Act immediately before its repeal took effect, for the scheme to retain the benefit of the Act, subject to prescribed conditions and either indefinitely or for a prescribed period.

(8) The said Acts of 1927 and 1928 shall each, until its repeal by subsection (7) above, have effect with the following modifications—

(a) no new application shall be made under section 3 of the Act for the registration of any fund (without prejudice to the effectiveness of any application previously made or pending); and

(b) the registration of a fund may be cancelled notwithstanding that the fund has not been wound up, if the trustees apply in writing to the registrar stating that they desire its cancellation.

70 Legal restrictions of doubtful application.

(1) This section has effect for the removal of doubt as to the application, or possible application, of certain enactments in relation to occupational pension schemes.

(2) Nothing in the Truck Acts 1831 to 1940. or the Truck Acts (Northern Ireland) 1831 to 1940, the [1874 c. 48.] Hosiery Manufacture (Wages) Act 1874 or the [1887 c. 43.] Stannaries Act 1887 has, or ever has had, effect so as to prevent the deduction from a person's earnings, on their payment to him, of his contributions to an occupational pension scheme, or of sums to be applied for the purpose of acquiring rights under such a scheme, whether for himself or for his widow or dependants.

(3) An occupational pension scheme is not, nor ever has been, a shop club or thrift fund for the purposes of the [1902 c. 21.] Shop Clubs Act 1902.

71 Friendly societies.

(1) The Secretary of State may, after consultation with the Chief Registrar of Friendly Societies or, in Northern Ireland, the Registrar of Friendly Societies for Northern Ireland, make such regulations as he thinks appropriate for enabling a registered society to conduct approved group insurance business with a view to the establishment of occupational pension schemes by reference to which the employment of members of the society can be recognised pensionable employment.

(2) The power to make regulations under this section shall extend to enabling registered societies to conduct such business as is mentioned in subsection (1) above freed from any restrictions of the relevant legislation as to the amounts which a member, or a person claiming through a member, is entitled to receive from any one or more societies or branches.

(3) Regulations under this section may include such adaptations and modifications of the relevant legislation, and such other supplementary and incidental provisions, as the Secretary of State considers to be necessary or expedient for achieving the purposes referred to in subsection (1) above.

(4) In this section—

(a) as it applies to Great Britain—

(i) " the relevant legislation " means the Friendly Societies Acts 1896 to 1971 and Part II of Schedule 8 to the [1966 c. 18.] Finance Act 1966,

(ii) " registered society " has the same meaning as in the said Acts of 1896 to 1971, and

(iii) " approved group insurance business " has the same meaning as in section 10 of the [1971 c. 66.] Friendly Societies Act 1971;

(b) as it applies to Northern Ireland—

(i) " the relevant legislation " means the [1970 c. 31 (N.I.).] Friendly Societies Act (Northern Ireland) 1970,

(ii) " registered society " has the same meaning as in that Act, and

(iii) " approved group insurance business " has the same meaning as in paragraph 11(5) of Schedule 2 to that Act.

72 Fees for official services to schemes.

Where at the request of the trustees or managers of an occupational pension scheme or of any employer of earners who are members of such a scheme, official services are provided in connection with the operation or administration of the scheme either by the Secretary of State or by the Occupational Pensions Board on his behalf, the Secretary of State may require the payment of fees for the provision of those services.