Pension Schemes Act 1993

79 Charges, liens and set-offs. E+W+S

[F1 (1) A scheme must not enable a member’s employer to exercise any description of charge or lien on, or set-off against, short service benefit, to the extent that it includes transfer credits.

(2) Subject to subsection (1), a scheme may enable a charge or lien on, or set-off against, a member’s short service benefit for the purpose of enabling the employer to obtain the discharge by the member of some monetary obligation due to the employer and arising out of a criminal, negligent or fraudulent act or omission by the member.

(3) Subject to subsection (4), a scheme must not enable the employer to recover from, or retain out of, the resources of the scheme any sum in respect of a monetary or other obligation due to him from any member.

(4) Subsection (3) does not apply to an obligation arising as mentioned in subsection (2) but, if the scheme permits recovery or retainer of sums in respect of such an obligation, it must provide that—

(a) unless the employer and the member agree otherwise in writing, the recovery or retainer is limited—

(i) to the actuarial value of the member’s actual or prospective benefits at that time, or

(ii) to the amount of the obligation,

whichever is the less; and

(b) the member is entitled to a certificate showing the amount retained or recovered and its effect on his benefits or prospective benefits; and

(c) in the event of any dispute as to the amount to be retained or recovered, the employer is only entitled to enforce the charge, lien or set-off after the obligation has become enforceable under an order of a competent court or the award of an arbitrator or, in Scotland, an arbiter to be appointed (failing agreement between the parties) by the sheriff.]

Textual Amendments

F1 Ss. 77-80 repealed (6.4.1997) by Pensions Act 1995 (c. 26), s. 180(1), Sch. 3 para. 24, Sch. 7 Pt. I; S.I. 1997/664, art. 2(3), Sch. Pt. II (with art. 8)

Commencement Information

I1 Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2