Pensions Act 2007

Pensions Act 2007

2007 CHAPTER 22

Commentary on Sections

Schedule 5: Removal of Secretary of State’s role in approving actuarial guidance

Part 3: Personal Accounts Delivery Authority

Section 21: Initial function of the Authority

366. The Authority may do what it thinks appropriate to prepare for the implementation of, or for advising on the modification of, any relevant proposals about personal accounts.

367. In this section the phrase ‘advising on the modification of any relevant proposals about personal accounts’ relates to the Authority’s advisory role in helping the Government understand the commercial and operational implications on implementation of policy proposals. This could amount to suggesting additions, omissions or variations in the proposals to reflect, for example, industry best practice.

368. Subsection (2) defines the meaning of ‘relevant proposals’ as being any proposals made by the Secretary of State connected with the establishment of a national low-cost portable pensions savings scheme, and any additional proposals that relate to this subject matter, or relate to matters that are incidental or supplemental to the proposals or to consequential or transitional matters. Proposals are to be considered relevant whether or not Parliament has given the approval on which their implementation would depend. The Government will make proposals relating to personal accounts and the Authority needs to be able to prepare for these before Parliament has given its approval. However, by virtue of subsection (4) the Authority will not be able to implement any proposals requiring the approval of Parliament in advance of Parliament giving its approval.

369. Subsection (3) provides the Authority with incidental powers in connection with the discharge of its main function.

370. Subsection (4) provides that the Authority may not implement any of the proposals requiring Parliament’s approval unless such approval has been received. Before any such approval is given the Authority can only formulate proposals and take preparatory steps towards their implementation when approved and carry out any connected activities.

371. Subsection (5) provides that the Authority may not borrow money for the purpose of, or in connection with, performing its functions from anyone.

372. Subsection (6) provides that the Secretary of State may issue guidance to the Authority from time to time about the discharge of the Authority’s functions as outlined in the section.

373. Subsection (7) obliges the Authority to have regard to any guidance that may be issued by the Secretary of State under subsection (6) in discharging its functions as outlined in the section.