Pension Schemes Act 1993
Part I Preliminary
1 Categories of pension schemes.
Part II Administration
The Occupational Pensions Board
2 Constitution and functions of the Board.
3 Membership of the Board.
4 Reports of the Board.
5 Further provisions as to constitution and procedure of the Board.
Registration of schemes
6 Registration of occupational and personal pension schemes.
Part III Certification of Pension Schemes and Effects on Members’ State Scheme Rights and Duties
Chapter I Certification
Preliminary
7 Issue of contracting-out and appropriate scheme certificates.
8 Meaning of “contracted-out employment”, “guaranteed minimum pension” and “minimum payment”.
General requirements for certification
9 Requirements for certification of schemes: general.
10 Protected rights and money purchase benefits.
11 Elections as to employments covered by contracting-out certificates.
12 Determination of basis on which scheme is contracted-out.
Requirements for certification of occupational pension schemes applying from the principal appointed day of the Pensions Act 1995
12AThe statutory standard
12BReference scheme
12CTransfer, commutation, etc
12DEntitlement to benefit
Requirements for certification of occupational pension schemes providing guaranteed minimum pensions
13 Minimum pensions for earners.
14 Earner’s guaranteed minimum.
15 Increase of guaranteed minimum where commencement of guaranteed minimum pension postponed.
15A Reduction of guaranteed minimum in consequence of pension debit.
16 Revaluation of earnings factors for purposes of s. 14: early leavers etc.
17 Minimum pensions for widows and widowers.
18 Treatment of insignificant amounts.
19 Discharge of liability where guaranteed minimum pensions secured by insurance policies or annuity contracts.
20 Transfer of accrued rights.
21 Commutation, surrender and forfeiture.
22 Financing of benefits.
23 Securing of benefits.
24 Sufficiency of resources.
Discretionary requirements
25 Power for Board to impose conditions as to investments and resources.
Requirements for certification of occupational and personal money purchase schemes
26 Persons who may establish scheme.
27 Identification and valuation of protected rights.
28 Ways of giving effect to protected rights.
28ARequirements for interim arrangements
28BInformation about interim arrangements
29 The pension and annuity requirements.
30 Securing of liability for protected rights.
31 Investment and resources of schemes.
32 Suspension or forfeiture.
32ADischarge of protected rights on winding up: insurance policies
33 Tax requirements to prevail over certification requirements.
33AAppropriate schemes: “Blowing the whistle”
Cancellation, variation, surrender and refusal of certificates
34 Cancellation, variation, surrender and refusal of certificates.
35 Surrender and cancellation of contracting-out certificates: issue of further certificates.
36 Surrender and cancellation of contracting-out certificates: cancellation of further certificates.
Alteration of scheme rules after certification
37 Alteration of rules of contracted-out schemes.
38 Alteration of rules of appropriate schemes.
General regulations as to administration of Part III
39 General power to make regulations.
Chapter II Reduction in state scheme contributions and Social Security benefits for members of certified schemes
Preliminary
40 Scope of Chapter II.
Reduced rates of contributions for members of salary related contracted-out schemes
41Reduced rates of Class 1 contributions
42 Review and alteration of rates of contributions applicable under s. 41.
Reduced rates of contributions, and rebates, for members of money purchase contracted-out schemes
42AReduced rates of Class 1 contributions, and rebates
42BDetermination and alteration of rates of contributions, and rebates, applicable under section 42A
Minimum contributions: members of appropriate personal pension schemes
43 Payment of minimum contributions to personal pension schemes.
44 Earner’s chosen scheme.
45 Amount of minimum contributions.
45ADetermination and alteration of rates of minimum contributions under section 45
45BMoney purchase and personal pension schemes: verification of ages
Effect of entitlement to guaranteed minimum pensions on payment of social security benefits
46 Effect of entitlement to guaranteed minimum pensions on payment of social security benefits.
47 Further provisions concerning entitlement to guaranteed minimum pensions for the purposes of s. 46.
48 Reduced benefits where minimum payments or minimum contributions paid.
Effect of reduced contributions and rebates on social security benefits
48AAdditional pension and other benefits
Women, married women and widows
49Women, married women and widows.
Chapter III Termination of contracted-out or appropriate scheme status: state scheme premiums
Approval of arrangements for schemes ceasing to be certified
50 Powers of Inland Revenue to approve arrangements for scheme ceasing to be certified.
51 Calculation of guaranteed minimum pensions preserved under approved arrangements.
Supervision of formerly certified schemes
52 Supervision of schemes which have ceased to be certified.
53 Supervision: former contracted-out schemes.
54 Supervision: former appropriate personal pension schemes.
State scheme premiums
55 Payment of state scheme premiums on termination of certified status.
56 Provisions supplementary to s. 55.
57 Elections to pay contributions equivalent premiums.
58 Amount of premiums payable under s. 55.
59 Alternative basis for revaluation of earnings factors for calculation of certain premiums.
60 Effect of payment of premiums on rights.
61 Deduction of contributions equivalent premium from refund of scheme contributions.
62 No recovery of state scheme premiums from earners etc.
63 Further provisions concerning calculations relating to premiums.
64 Actuarial tables for purposes of calculations relating to premiums.
65 Inclusion of former and future earners for some purposes of this Chapter.
66 Power to apply certain provisions to widowers.
67 Non-payment of contributions equivalent premiums.
68 Unpaid premiums: supplementary.
Part IIIA Safeguarded rights
68A Safeguarded rights.
68B Requirements relating to safeguarded rights.
68C Reserve powers in relation to non-complying schemes.
68D Power to control transfer or discharge of liability.
Part IV Protection for early leavers
Chapter I preservation of benefit under occupational schemes
69 Scope of Chapter I: the preservation requirements.
70 Interpretation.
71 Basic principle as to short service benefit.
72 No discrimination between short service and long service beneficiaries.
73 Form of short service benefit and its alternatives.
74 Computation of short service benefit.
75 Credits.
76 Pension increases.
77 Assignment, surrender and commutation of benefit.
78 Forfeiture, etc.
79 Charges, liens and set-offs.
80 Power to modify ss. 77 to 79 as respects alternative benefits.
81 Discharge of liability where short service or alternative benefits secured by insurance policies or annuity contracts.
82 Supplementary regulations.
Chapter II Revaluation of accrued benefits (excluding guaranteed minimum pensions)
83 Scope of Chapter II.
84 Basis of revaluation.
85 Revaluation not to apply to substituted benefit.
86 Supplementary provisions.
Chapter III Protection of increases in guaranteed minimum pensions (“anti-franking”)
87 General protection principle.
88 The relevant sum.
89 The appropriate addition.
90 The later earnings addition.
91 Special provision where employment continues after it ceases to be contracted-out by reference to scheme.
92 Supplementary provisions.
Chapter IV Transfer values
93 Scope of Chapter IV.
93ASalary related schemes: right to statement of entitlement
94 Right to cash equivalent.
95 Ways of taking right to cash equivalent.
96 Further provisions concerning exercise of option under s. 95.
97 Calculation of cash equivalents.
98 Variation and loss of rights under s. 94.
99 Trustees’ duties after exercise of option.
100 Withdrawal of applications.
101 Supplementary provisions.
Part IVA Requirements relating to pension credit benefit
Chapter I Pension credit benefit under occupational schemes
101A Scope of Chapter I.
101B Interpretation.
101C Basic principle as to pension credit benefit.
101D Form of pension credit benefit and its alternatives.
101E Discharge of liability where pension credit or alternative benefits secured by insurance policies or annuity contracts.
Chapter II Transfer values
101F Power to give transfer notice.
101G Restrictions on power to give transfer notice.
101H Salary related schemes: statements of entitlement.
101I Calculation of cash equivalents.
101J Time for compliance with transfer notice.
101K Withdrawal of transfer notice.
101L Variation of the amount required to be used.
101M Effect of transfer on trustees’ duties.
101N Matters to be disregarded in calculations.
101O Service of notices.
101P Interpretation of Chapter II.
101Q Power to modify Chapter II in relation to hybrid schemes.
Part V Annual Increases of Pensions in Payment
Chapter I Pensions under Final Salary Schemes etc.
102 Scope of Chapter I: annual increase of certain occupational pensions.
103 Annual increase of later service component.
104 Annual increase of earlier service component where scheme is in surplus.
105 Proportional increase where first period is less than 12 months.
106 Restriction on increase where member is under 55.
107 Application of Chapter I to pensions not attributable to pensionable service.
108 No payments to employers from non-complying schemes.
Chapter II Guaranteed minimum pensions
109 Annual increase of guaranteed minimum pensions.
110 Requirement as to resources for annual increase of guaranteed minimum pensions.
Part VI Further Requirements for Protection of Scheme Members
111 Voluntary contributions.
111A Monitoring of employers’ payments to personal pension schemes.
111B Obtaining information for purposes of section 111A and corresponding Northern Ireland legislation.
112 Restrictions on investment of scheme’s resources in employer-related assets.
113 Disclosure of information about schemes to members etc.
114 Additional documents for members etc. and Registrar.
115 Powers as respects failure to comply with information requirements.
116 Regulations as to auditors.
117 Regulations as to form and content of advertisements.
118 Equal access requirements.
Part VII Insolvency of employers
Chapter I Independent trustees
119 Requirement for independent trustee where employer becomes insolvent etc.
120 Members’ powers to apply to court to enforce duty under s. 119.
121 Further provisions as to appointment and powers of independent trustees.
122 Duty of insolvency practitioner or official receiver to give information to scheme trustees.
Chapter II Payment by Secretary of State of unpaid scheme contributions
123 Interpretation of Chapter II.
124 Duty of Secretary of State to pay unpaid contributions to schemes.
125 Certification of amounts payable under s. 124 by insolvency officers.
126 Complaint to industrial tribunal.
127 Transfer to Secretary of State of rights and remedies.
Chapter III Priority in bankruptcy
128 Priority in bankruptcy etc.
Part VIII Relationship between requirements and scheme rules
129 Overriding requirements.
130 Extra-statutory benefits.
131 Relationship of preservation requirements and scheme rules.
132 Duty to bring schemes into conformity with indirectly-applying requirements.
133 Advice of the Board as to conformity of schemes with requirements.
134 Determination of questions whether schemes conform with requirements.
135 Persons competent to make applications under s. 134.
Part IX Modification and winding up of schemes
Modification
136 Applications to the Board to modify schemes (other than public service schemes).
137 Persons competent to make applications under s. 136.
138 Further provisions concerning the Board’s powers under s. 136.
139 Other functions of the Board as respects modification of schemes.
140 Effect of orders under ss. 136 and 139.
141 Modification of public service schemes.
Winding up
142 Powers of the Board to wind up schemes.
143 Winding up of public service schemes.
144 Deficiencies in the assets of a scheme on winding up.
Part X Investigations: the Pensions Ombudsman
145 The Pensions Ombudsman.
146 Functions of the Pensions Ombudsman.
147 Death, insolvency or disability of authorised complainant.
148 Staying court proceedings where a complaint is made or a dispute is referred.
149 Procedure on an investigation.
150 Investigations: further provisions.
151 Determinations of the Pensions Ombudsman.
151AInterest on late payment of benefit
152 Power to make special county court rules.
Part XI General and miscellaneous provisions
Modification powers
153 Power to modify certain provisions of this Act.
154 Application of enactments as respects personal pension schemes.
Information about schemes
155 Requirement to give information to the Secretary of State or the Board for the purposes of certain provisions.
156 Information as to guaranteed minimum pensions.
157 Power of Secretary of State to obtain information in connection with applications under s. 124.
158 Disclosure of information between government departments etc.
158AOther disclosures by the Secretary of State.
Avoidance of certain transactions and provisions
159 Inalienability of guaranteed minimum pension and protected rights payments.
159A No forfeiture on bankruptcy of rights under personal pension schemes.
160 Terms of contracts of service or schemes restricting choice to be void.
161 Provisions excluding Chapter II of Part VII to be void.
162 Removal of restrictions on friendly societies’ pension business.
163 Exemption of certain schemes from rule against perpetuities.
Special classes of earner
164 Crown employment.
165 Application of certain provisions to cases with foreign element.
Reciprocity with other countries
166 Reciprocity with other countries.
Application of provisions relating to social security administration
167 Application of general provisions relating to administration of social security.
General provisions as to offences
168 Breach of regulations.
168AOffence in connection with the Registrar
169 Offences by bodies corporate.
General provisions as to determinations and appeals
170Decisions and appeals
171 Questions arising in proceedings.
171A Reports by Inland Revenue.
172 Review of the Board’s determinations.
173 References and appeals from the Board.
Financial provisions
174 Grants by the Board to advisory bodies etc.
175 ...Levies towards certain expenditure
176 Fees for official services to schemes.
177 General financial arrangements.
Part XII Supplementary Provisions
Interpretation
178 Trustees and managers of schemes.
179 Linked qualifying service.
180 Normal pension age.
181 General interpretation.
181BMoney purchase benefits: supplementary
Subordinate legislation etc.
182 Orders and regulations (general provisions).
183 Sub-delegation.
184 Consultation with Social Security Advisory Committee about regulations under s. 36(6).
185 Consultations about other regulations.
186 Parliamentary control of orders and regulations.
187 Northern Ireland Constitution Act 1973: “reserved matters”.
Supplemental provisions
188 Repeals.
189 Transitional provisions and savings.
190 Prospective and consequential amendments.
191 Transitory modifications.
192 Extent.
193 Short title and commencement.
SCHEDULES
SCHEDULE 1 The Occupational Pensions Board
Introductory
1The following provisions of this Schedule shall have effect as...
Membership
2Subject to the following provisions, a person shall hold and...
3A person may at any time resign office as chairman,...
4(1) If a member of the Board becomes or ceases...
5(1) If the Secretary of State is satisfied that a...
Expenses, remuneration, etc. of members
6The expenses of the Board, to such an amount as...
7There may be paid as part of the expenses of...
8The Secretary of State may with the consent of the...
9Where— (a) a person ceases to be a member of...
Procedure
10(1) The Secretary of State may make regulations generally as...
11Subject to regulations made by the Secretary of State under...
Proceedings
12The quorum of the Board and the arrangements relating to...
13The validity of the proceedings of the Board shall not...
14(1) Where the Board give a decision on any matter...
Staff etc.
15(1) The Secretary of State may make available to the...
Fees
16Regulations made by the Secretary of State may authorise the...
Instruments and contracts
17The fixing of the common seal of the Board shall...
18A document purporting to be duly executed under the seal...
SCHEDULE 2 Certification Regulations
Part I Occupational Pension Schemes
General regulations: beginning and ending of employment
1(1) In relation to employments which are or at any...
2(1) Subject to sub-paragraph (2), regulations may enable the Inland...
3Provision may be made by regulations for requiring an employer...
Power to modify Part III etc.
4(1) Regulations may modify the provisions of Part III (other...
State scheme premiums
5(1) Regulations may make provision for requiring persons to furnish...
Schemes covering different employers
6(1) Regulations may modify Chapters I and III of Part...
Special provisions for certain public service pension schemes
7(1) This paragraph applies to the following classes of employments,...
Incidental matters
8Regulations may make provision— (a) for any incidental matters connected...
Part II Personal Pension Schemes
9(1) Subject to the following provisions, paragraph 5 applies in...
SCHEDULE 3 Methods of revaluing accrued pension benefits
The final salary method
1(1) The final salary method is to add to the...
The revaluation percentage and the appropriate revaluation percentage
2(1) For the purposes of paragraph 1 the Secretary of...
The average salary method
3(1) The average salary method is to revalue the member’s...
The flat rate method
4The flat rate method is to revalue the benefits which...
The money purchase method
5(1) Subject to sub-paragraphs (2) and (3), the money purchase...
SCHEDULE 4 Priority in Bankruptcy etc
Earner’s contributions to occupational pension scheme
1This Schedule applies to any sum owed on account of...
Employer’s contributions to occupational pension scheme
2(1) This Schedule applies to any sum owed on account...
State scheme premiums
3(1) This Schedule applies to any sum owed on account...
Interpretation
4(1) In this Schedule— (a) in its application in England...
SCHEDULE 5 Repeals
Part I General
Part II Provisions relating to equal access
Part III Provisions repealed as respects Great Britain only
Part IV Subordinate legislation revoked
SCHEDULE 6 Transitional Provisions and Savings
Part I General Provisions
1In this Schedule “the repealed enactments” means the enactments repealed...
2(1) The substitution of this Act for the repealed enactments...
3Where— (a) this Act repeals an enactment relating to the...
4(1) The repeal or revocation by this Act of an...
5The repeal or revocation by this Act of an enactment...
6Any document made, served or issued after this Act comes...
Part II Specific Provisions
Contracting-out requirements for schemes providing guaranteed minimum pensions
7An occupational pension scheme which— (a) at any time before...
8Any document the contents of which are in terms corresponding...
9The requirement of the Social Security Pensions Act 1975 that...
10(1) Where in the tax year 1989-90 the trustees or...
Overriding effect of certain requirements for existing contracted-out and appropriate schemes
11(1) Subject to sub-paragraph (2), if immediately before paragraph 7...
12If immediately before 13th July 1990— (a) there was in...
Transactions discharging trustees
13Without prejudice to section 16 of the Interpretation Act 1978—...
Contributions equivalent premiums: earnings before 1987-88
14(1) Where an earner’s earnings paid in any period before...
Preservation
15Without prejudice to paragraph 3, in any case where—
Anti-franking
16(1) If before 21st July 1989 an earner ceased to...
Modifications in consequence of enactment of Part I of the Social Security Act 1986
17(1) Regulations may provide that any provision of this Act...
Savings for statutory instruments
18The repeal by this Act of section 26 of the...
19The repeal of subsection (2) of section 17A of the...
Provisions contained in this Act by virtue of statutory instruments
20Without prejudice to any express provision in this Act, where...
Saving for application of general provisions relating to social security
21The repeals made by this Act do not affect the...
Saving for section 7 of the Social Security Act 1986
22The repeal by this Act of section 7 of the...
SCHEDULE 7 Re-enactment or amendment of certain provisions not in force
The Equal Pay Act 1970 (c. 41)
1In section 6(1A)(a) of the Equal Pay Act 1970 for...
The Social Security Act 1989 (c.24)
2In Schedule 5 to the Social Security Act 1989—
This Act
3The following provisions of this Act shall cease to have...
SCHEDULE 8 Consequential Amendments
The Parliamentary Commissioner Act 1967 (c. 13)
1In paragraph 10 of Schedule 1 to the Parliamentary Commissioner...
The Administration of Justice Act 1970 (c. 31)
2In paragraph 3 of Schedule 4 to the Administration of...
The Equal Pay Act 1970 (c. 41)
3In section 6(1A)(a) of the Equal Pay Act 1970—
The Attachment of Earnings Act 1971 (c. 32)
4In section 24(2) of and paragraph 3 of Schedule 2...
The Pensions (Increase) Act 1971 (c. 56)
5In section 17(1) of the Pensions (Increase) Act 1971, in...
The Superannuation Act 1972 (c. 11)
6In section 1(9) of the Superannuation Act 1972, in the...
7In sections 9(6) and 10(6) of that Act, in the...
8In section 13(15), in the definition of “judicial pension scheme”,...
The Social Security Pensions Act 1975 (c. 60)
9(1) In section 59 of the Social Security Pensions Act...
The Rent Act 1977 (c. 42)
10In section 653(3) of the Rent Act 1977 for the...
The Employment Protection (Consolidation) Act 1978 (c. 44)
11(1) In section 11(4)(b) of the Employment Protection (Consolidation) Act...
The Justices of the Peace Act 1979 (c. 55)
12In sections 55(2)(b)(ii) and 58(2)(ii) of the Justices of the...
The Judicial Pensions Act 1981 (c. 20)
13In section 33A(9) of the Judicial Pensions Act 1981—
14In Schedule 1A to that Act— (a) in paragraph 1...
The Forfeiture Act 1982 (c. 34)
15In the definition of “relevant enactment” in section 4(5) of...
The Companies Act 1985 (c. 6)
16In Schedule 2 to the Companies Act 1985—
The Bankruptcy (Scotland) Act 1985 (c. 66)
17In paragraph 4 of Schedule 3 to the Bankruptcy (Scotland)...
The Insolvency Act 1986 (c. 45)
18In section 386(3) of and paragraph 8 of Schedule 6...
The Coal Industry Act 1987 (c. 3)
19In section 7 of the Coal Industry Act 1987 for...
The Income and Corporation Taxes Act 1988 (c. 1)
20(1) In section 464(5)(b) of the Income and Corporation Taxes...
The Official Secrets Act 1989 (c. 6)
21In paragraph 4 of Schedule 1 to the Official Secrets...
The Finance Act 1989 (c. 26)
22In paragraph 11(2)(b) of Schedule 7 to the Finance Act...
The Electricity Act 1989 (c. 29)
23In paragraph 5(1) of Schedule 14 and in paragraph 5(1)...
The Social Security Administration Act 1992 (c. 5)
24In section 3(1)(c)(ii) of the Social Security Administration Act 1992...
25At the end of section 70(3) of that Act there...
26In section 110(8) of that Act for paragraphs (d) and...
27In section 148(7) of that Act for the words “section...
28In section 150 of that Act— (a) in subsection (1)(e),...
29In section 151 of that Act— (a) in subsection (4),...
30In section 155(7) of that Act, for the words “the...
31In section 191 of that Act— (a) the following definitions...
The Social Security Contributions and Benefits Act 1992 (c. 4)
32In section 1(3) of the Social Security Contributions and Benefits...
33In section 8(1) of that Act for the words “section...
34In section 9(4) of that Act for the words “section...
35In section 20(3) of that Act for the words from...
36In section 23(2) of that Act after the words “the...
37In section 34(5) of that Act for the words “section...
38In section 44(8) of that Act for the words “section...
39In section 47(3) of that Act for the words “section...
40In section 50(2) of that Act for the words “section...
41In section 174 of that Act, in the definition of...
42In Schedule 5 to that Act— (a) in paragraph 2(6)...
43In paragraph 3 of Schedule 7 to that Act—
The Tribunals and Inquiries Act 1992 (c. 53)
44In the Tribunals and Inquiries Act 1992—
The Social Security Act 1993 (c.3)
45In section 2(4)(b) of the Social Security Act 1993—
The Judicial Pensions and Retirement Act 1993 (c.8)
46(1) In section 10(8) of the Judicial Pensions and Retirement...
SCHEDULE 9 Transitory Modifications
1(1) If— (a) no date has been appointed as the...
Rule against perpetuities
2In section 163, subsection (9) shall be omitted.
Limited price indexation
3(1) Sections 102 to 107 shall have effect only for...
Guaranteed minimum for married women and widows paying reduced rate contributions
4(1) In section 13(2)(a), the words from “and does” onwards...
5In section 111, subsection (3) shall be omitted.
Friendly societies
6In section 162(4)(c)(i), for the words “section 65A” there shall...
Judicial pensions
7(1) In section 146, subsection (3) shall be omitted.
TABLE OF DERIVATIONS
1Notes:
2The following abbreviations are used in the Table:— Acts of...
3The abbreviation “Law Com Rec No.” followed by a number...
4The entry “drafting” indicates a provision of a mechanical or...
5The Table does not show the effect of transfer of...
6The Table does not show the effect of the saving...

Royal arms

Pension Schemes Act 1993

1993 CHAPTER 48

An Act to consolidate certain enactments relating to pension schemes with amendments to give effect to recommendations of the Law Commission and the Scottish Law Commission.

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:—