Pensions Act 2008

Part 1Pension scheme membership for jobholders

Chapter 1Employers' duties

Employers' duties

2Continuity of scheme membership

3Automatic enrolment

4Postponement or disapplication of automatic enrolment

5Automatic re-enrolment

6Timing of automatic re-enrolment

7Jobholder's right to opt in

8Jobholder's right to opt out

Duty in relation to workers without qualifying earnings

9Workers without qualifying earnings

Supplementary provision about the duties

10Information to be given to workers

11Information to be given to the Pensions Regulator

12Introduction of employers' duties

Qualifying earnings and earnings trigger

13Qualifying earnings

14Review of earnings trigger and qualifying earnings band

15Pay reference period

15APower to specify rounded figures

Qualifying schemes and automatic enrolment schemes

16Qualifying schemes

17Automatic enrolment schemes

18Occupational pension schemes

19Personal pension schemes

Quality requirements

20Quality requirement: UK money purchase schemes

21Quality requirement: UK defined benefits schemes

22Test scheme standard

23AAlternative quality requirements for UK defined benefits schemes

24Quality requirement: UK hybrid schemes

25Quality requirement: non-UK occupational pension schemes

26Quality requirement: UK personal pension schemes

27Quality requirement: other personal pension schemes

28Certification that quality requirement or alternative requirement is satisfied

29Transitional periods for money purchase and personal pension schemes

30Transitional period for defined benefits and hybrid schemes

31Effect of freezing order , assessment period or pause order

32Power of trustees or managers to modify by resolution

33Deduction of contributions

Chapter 2Compliance

Effect of failure to comply

34Effect of failure to comply

Compliance notices and unpaid contributions notices

35Compliance notices

36Third party compliance notices

37Unpaid contributions notices

38Calculation and payment of contributions

39Meaning of “relevant contributions”

Penalty notices

40Fixed penalty notices

41Escalating penalty notices

42Penalty notices: recovery

Reviews and references

43Review of notices

44References to First-tier Tribunal or Upper Tribunal

Offences and monitoring

45Offences of failing to comply

46Offences by bodies corporate

47Offences by partnerships and unincorporated associations

48Offences of providing false or misleading information

49Monitoring of employers' payments to personal pension schemes

Chapter 3Safeguards: employment and pre-employment

Prohibited recruitment conduct

50Prohibited recruitment conduct

51Compliance notices

52Penalty notices

53Review of notices and references to First-tier Tribunal or Upper Tribunal

Protection of employment rights

55The right not to suffer detriment

56Enforcement of the right

57Right of employee not to be unfairly dismissed

58Restrictions on agreements to limit operation of this Part

Employment Appeal Tribunal

59Employment Appeal Tribunal

Chapter 4Supplementary provision about compliance and information-sharing

Records and information

60Requirement to keep records

61Powers to require information and to enter premises

62Disclosure of tax information etc

63Information for private pensions policy and retirement planning

64Penalty for disclosure

Objectives of the Regulator

65Objectives of the Regulator

Functions of the Pensions Ombudsman

66Functions of the Pensions Ombudsman

Chapter 5Duty to establish a pension scheme

Pension scheme

67Duty to establish a pension scheme

68Scheme orders: general

69Consultation of members and employers

70Contribution limits

71Procedure for scheme orders

72Procedure for rules

73Application of enactments

Trustee corporation

75Trustee corporation

77Application of pension trustee legislation

Interpretation

78Interpretation of Chapter

Chapter 6Personal Accounts Delivery Authority

81Directions and guidance

83Disclosure of information by the Regulator

84Non-executive committee

85Executive members

86Winding up of the Authority

Chapter 7Stakeholder pension schemes

87Stakeholder pension schemes

Chapter 8Application and interpretationExceptions

87APower to create exceptions from the employer duties etc

88“Employer”, “worker” and related expressions

89Agency workers

91Crown employment

93House of Lords staff

94House of Commons staff

96Persons working on vessels

97Persons in offshore employment

98Extension of definition of worker

99Interpretation of Part

99AMoney purchase benefits: supplementary

Part 2Simplification etc

Private pensions

100Abolition of safeguarded rights

101Revaluation of accrued benefits etc

State pensions etc

102Consolidation of additional pension

103Effect of entitlement to guaranteed minimum pension

104Additional pension etc: minor and consequential amendments

105State pension credit: extension of assessed income period for those aged 75 or over

106Contracting-out: abolition of all protected rights

Part 3Pension compensation

Chapter 1Pension compensation on divorce etc

107Scope of mechanism

108Interpretation

109Activation of pension compensation sharing

110Activation of pension compensation sharing: supplementary (Scotland)

111Creation of pension compensation debits and credits

112Cash equivalents

113Reduction of compensation

114Time for discharge of liability

115“Implementation period”

116Discharge of liability

117Charges in respect of pension compensation sharing costs

118Supply of information about pension compensation in relation to divorce etc

119Supply of information about pension compensation sharing

120Pension compensation sharing and attachment on divorce etc

Chapter 2Other provision about pension compensation

121Charges in respect of pension sharing etc

122Amendments of Schedule 7 to the Pensions Act 2004

123Consequential amendments

Part 4Financial assistance scheme

124Financial assistance scheme

125Restriction on purchase of annuities

Part 5Miscellaneous

Miscellaneous provision relating to pensions

126Amendments of provisions of Pensions Act 2004 relating to contribution notices or financial support directions

127Review of the initial operation of sections 38A and 38B of Pensions Act 2004

128Pension sharing: power of Court of Session to extend time limits

129Interest on late payment of levies

130Payments to employers

131Appointment of trustees

132Intervention by Regulator where scheme's technical provisions improperly determined

133Delegation of powers by the Regulator

134Exclusion of transfers out in certain cases

State and official pensions

135Additional Class 3 contributions

136Additional Class 3 contributions (Northern Ireland)

137Official pensions: adjustment of increases in survivors' pensions

138War pensions: effect of later marriage or civil partnership

139Polish Resettlement Act 1947: effect of residence in Poland

140Pre-1948 insurance affecting German pension entitlement

141Pre-1948 insurance: supplementary

Information relating to state pension credit recipients

142Disclosure of information relating to state pension credit recipients

143Orders and regulations

144Orders and regulations: supplementary

144AService of documents and electronic working

145Power to make further provision

146Pre-consolidation amendments

147General financial provisions

149Commencement

SCHEDULE 1The trustee corporation

Part 1Members and employees

1(1) Appointments of members of the corporation, and of a...

Conflicts of interest

2(1) The Secretary of State and, under paragraph 1(1)(b), the...

Disqualification and removal

3(1) A person is disqualified for appointment as a member...

4(1) A person is disqualified for appointment as a member...

5The Secretary of State may remove a member from office...

Tenure of office

6(1) A person holds and vacates office as a member...

Remuneration etc

7(1) The trustee corporation may— (a) pay to the members...

8(1) The trustee corporation may appoint employees and make any...

Part 2Proceedings etc

Committees and advisory committees

9(1) The trustee corporation may— (a) establish a committee for...

10(1) A committee of the trustee corporation may establish a...

11(1) The trustee corporation may, subject to this Schedule—

12The trustee corporation must make arrangements for the keeping of...

Disqualification for acting in relation to certain matters

13(1) This paragraph applies if at any meeting of—

14The trustee corporation may, subject to an order or rules...

Validity of proceedings

15The validity of proceedings of the trustee corporation, a committee...

Authentication of the trustee corporation's seal

16(1) The application of the trustee corporation's seal must be...

Annual report

17(1) As soon as is reasonably practicable after the end...

18(1) The Secretary of State may, with the consent of...

19The trustee corporation may make charges in connection with the...

20(1) The trustee corporation must— (a) keep proper accounting records,...

Part 4Supplementary

Disqualification

21In Part 2 of Schedule 1 to the House of...

22In Part 2 of Schedule 1 to the Northern Ireland...

Records and freedom of information

23In Schedule 1 to the Public Records Act 1958 (c....

24In Part 6 of Schedule 1 to the Freedom of...

25The trustee corporation

Interpretation

26(1) In this Schedule— “financial year” means such period as...

SCHEDULE 2Revaluation of accrued benefits etc

Part 1Revaluation of accrued pension benefits

Amendments to Schedule 3 to the 1993 Act

1This Part makes amendments to Schedule 3 to the Pension...

2In paragraph 1 (the final salary method), for sub-paragraphs (1)...

3(1) Paragraph 2 (the revaluation percentage and the appropriate revaluation...

Part 2Revaluation of accrued amounts etc

Amendments to Schedule 7 to the 2004 Act

4This Part makes amendments to Schedule 7 to the Pensions...

5(1) Paragraph 12 (active members who have not attained normal...

6(1) Paragraph 17 (deferred members who have not attained normal...

7In paragraph 29 (Board's powers to alter rates of revaluation...

Part 3Consequential amendments

8(1) Section 51ZA of the Pensions Act 1995 (c. 26)...

SCHEDULE 3Consolidation of additional pension

After Schedule 4B to the Social Security Contributions and Benefits...

SCHEDULE 4Additional pension etc: minor and consequential amendments

Social Security Contributions and Benefits Act 1992 (c. 4)

1The Social Security Contributions and Benefits Act 1992 is amended...

2In section 21(5A)(c) (contribution conditions), after “5(2)(b) and (4)(a)” insert...

3In section 39(1) (rate of widowed mother's allowance and widow's...

4(1) Section 39C (rate of widowed parent's allowance and bereavement...

5(1) After section 45 (additional pension in Category A retirement...

6(1) Section 46 (modifications of section 45 for calculating the...

7In section 48A(4) (category B retirement pension for married person)—...

8In section 48B(2) (category B retirement pension for widows and...

9(1) Section 48BB (category B retirement pension: entitlement by reference...

10In section 48C(4) (category B retirement pension: general), for “and...

11In section 51(2) and (3) (category B retirement pension for...

12(1) Schedule 4B (additional pension: accrual rates for purposes of...

13In Schedule 7 (industrial injuries benefits) in paragraph 3(3), after...

Social Security Administration Act 1992 (c. 5)

14After section 148AA of the Social Security Administration Act 1992...

Pension Schemes Act 1993 (c. 48)

15The Pension Schemes Act 1993 is amended as follows.

16(1) Section 46 (effect of entitlement to guaranteed minimum pensions...

17(1) Section 47 (further provisions concerning entitlement to guaranteed minimum...

18In section 48(2) (reduced benefits where minimum payments or minimum...

19In section 49(b) (women, married women and widows), after “46(1),”...

20In section 164(5) (Crown employment), after “46(1),” insert “ 46A(2),...

21In section 165(2)(b) (cases with a foreign element), after “those...

22(1) In section 167(4) (application of provisions relating to social...

SCHEDULE 5Pension compensation payable on discharge of pension compensation credit

Part 1Introductory

1This Schedule applies for the purposes of determining the compensation...

Interpretation

2In this Schedule— “the initial annual rate of compensation” is...

Pension compensation age

3(1) This paragraph applies for the purpose of determining the...

Part 2Transferee attains pension compensation age before or on transfer day

Compensation payable to transferee

4(1) Compensation is payable in accordance with this paragraph where...

Compensation payable to widow, widower or surviving civil partner

5(1) This paragraph applies where — (a) the transferee dies...

Part 3Transferee attains pension compensation age after transfer day

Compensation payable to transferee

6(1) Compensation is payable in accordance with this paragraph where...

Compensation payable to widow, widower or surviving civil partner

7(1) This paragraph applies where— (a) the transferee dies after...

8(1) This paragraph applies for the purpose of calculating the...

Commutation of periodic compensation

9(1) A transferee who is entitled to periodic compensation under...

Early payment of compensation

10(1) Regulations may prescribe circumstances in which, and conditions subject...

Deferral of compensation

11Pension compensation payable on discharge of pension compensation credit

Terminal illness lump sum: eligibility

12(1) This paragraph applies where all of the following conditions...

Terminal illness lump sum: application and evidence

13An application for a terminal illness lump sum—

Terminal illness lump sum: determination of application

14(1) The Board must determine an application for a terminal...

Terminal illness lump sum: effect of successful application

15(1) If the Board grants an application for a terminal...

Terminal illness lump sum: information

16(1) Relevant information held by the Secretary of State about...

Part 4Provisions applicable irrespective of age of transferee on transfer day

Postponement of compensation

16A(1) Regulations may prescribe circumstances in which, and conditions subject...

Annual increase in periodic compensation

17(1) This paragraph provides for annual increases to compensation payable...

Compensation cap

18(1) The Secretary of State may by regulations make provision...

Compensation in form of dependant's benefits

19(1) The Secretary of State may by regulations make provision...

Board's power to alter rates of revaluation and indexation

20(1) The Board may determine the percentage that is to...

SCHEDULE 6Pension compensation on divorce etc: England and Wales

Part 1Amendments of the Matrimonial Causes Act 1973

1The Matrimonial Causes Act 1973 (c. 18) is amended as...

2After section 21A (pension sharing orders) insert— Pension compensation sharing...

3After section 24D (pension sharing orders: apportionment of charges) insert—...

4(1) Section 25 (matters to which court is to have...

5In section 25A(1) (exercise of court's powers in favour of...

6In section 25E(9) (the Pension Protection Fund), omit the definition...

7After section 25E insert— Attachment of pension compensation (1) This section applies where, having regard to any PPF...

8(1) Section 31 (variation, discharge etc of certain orders for...

9After section 40A (appeals relating to pension sharing orders which...

Part 2Amendments of the Matrimonial and Family Proceedings Act 1984

10The Matrimonial and Family Proceedings Act 1984 (c. 42) is...

11In section 17 (orders for financial provision and property adjustment),...

12In section 18(7) (matters to which court to have regard),...

13(1) Section 21 (application of certain provisions of Part 2...

Part 3Amendments of the Civil Partnership Act 2004

14The Civil Partnership Act 2004 (c. 33) is amended as...

15After Part 4 of Schedule 5 (pension sharing orders on...

16(1) Part 5 of Schedule 5 (matters to which court...

17(1) Part 7 of Schedule 5 (pension protection fund compensation...

18(1) Part 11 of Schedule 5 (variation, discharge etc of...

19In Part 14 of Schedule 5 (miscellaneous and supplementary) after...

20(1) In Schedule 7 (financial relief in England and Wales...

SCHEDULE 7Pension compensation on divorce etc: Scotland

1The Family Law (Scotland) Act 1985 (c. 37) is amended...

2In section 8 (orders for financial provision)—

3After section 8A insert— Pension compensation sharing orders: apportionment of...

4In section 10 (sharing of value of matrimonial property or...

5In section 12A (orders for payment of capital sum: pensions...

6After section 12A insert— Order for payment of capital sum:...

7In section 13 (order for periodical allowance), in subsection (2)(b),...

8In section 16 (agreements on financial provision)—

9In section 27 (interpretation)— (a) in subsection (1), before the...

SCHEDULE 8Amendments of Schedule 7 to the Pensions Act 2004

1Schedule 7 to the Pensions Act 2004 (c. 35) (pension...

2In paragraph 3(6), at the end, add “ to the...

3In paragraph 5(5), at the end, add “ to the...

4In paragraph 11(8), after “paragraph 24 (commutation),” insert— “ paragraph...

5In paragraph 13, after sub-paragraph (3) insert—

6In paragraph 14(9), after “paragraph 20 (compensation in respect of...

7In paragraph 15(6), after “paragraph 24 (commutation),” insert— “ paragraph...

8In paragraph 18, after sub-paragraph (3) insert—

9In paragraph 19(8), after “This paragraph is subject to—” insert—...

10Amendments of Schedule 7 to the Pensions Act 2004

11Amendments of Schedule 7 to the Pensions Act 2004

12In paragraph 25(3), after “before that person attains normal pension...

13After paragraph 25 insert— Deferral of compensation (1) Regulations may prescribe circumstances in which, and conditions subject...

14After paragraph 25A (inserted by paragraph 13 above) insert— Terminal...

15In paragraph 33, make the existing provision sub-paragraph (1) and...

16In paragraph 34(1), after “ill health” insert “ or otherwise...

17For paragraph 35(2)(a) substitute— (a) in the case of a...

18For paragraph 35(3) substitute— (3) This sub-paragraph applies to a...

SCHEDULE 9Contribution notices and financial support directions under Pensions Act 2004

1The Pensions Act 2004 (c. 35) is amended as follows....

Contribution notices: material detriment test

2(1) In section 38(5)(a) (main purpose or one of main...

3In section 90(2) (the matters in relation to which the...

4In section 96 (standard procedure), after subsection (1) insert—

5In section 316(2) (subordinate legislation that is subject to affirmative...

Contribution notices: acting or failing to act otherwise than in good faith

6In section 38(5) (acts or failures to act in relation...

Whether reasonable for Pensions Regulator to issue contribution notice

7(1) Section 38 (contribution notices where avoidance of employer debt)...

Contribution notices: series of acts or failures to act

8(1) In section 38 (contribution notices where avoidance of employer...

Contribution notices and financial support directions: bulk transfers

9After section 39 (the sum specified in a section 38...

10After section 43 (financial support directions) insert— Financial support directions:...

11In section 306(2) (overriding requirements)— (a) after paragraph (d) insert—...

12In section 316(2) (subordinate legislation that is subject to affirmative...

13In Part 4 of Schedule 2 (the reserved regulatory functions...

Financial support directions: meaning of “insufficiently resourced”

14(1) In section 44(3) (meaning of “insufficiently resourced”), for paragraph...

Effect of amendments made by this Schedule

15(1) The amendments made by paragraphs 2, 6 and 7...

Transitional provision

16(1) In the case of the first set of regulations...

SCHEDULE 10Interest on late payment of levies

Pension Schemes Act 1993 (c. 48)

1After section 175 of the Pension Schemes Act 1993 (levies...

Pensions Act 2004 (c. 35)

2The Pensions Act 2004 is amended as follows.

3After section 117 (PPF administration levy) insert— Administration levy: interest...

4In section 173 (Pension Protection Fund), after subsection (1)(b) insert—...

5After section 181 (calculation, collection and recovery of levies) insert—...

6In section 188 (Fraud Compensation Fund), after subsection (1)(b) insert—...

7After section 189 (fraud compensation levy) insert— Fraud compensation levy:...

8In section 209 (Ombudsman for the Board of the Pension...

9In section 323(2)(b)(i) (provisions extending to Northern Ireland), for “subsections...

SCHEDULE 11Repeals

Part 1Pension scheme membership for jobholders

Part 2Safeguarded rights

Part 3Contracting-out: abolition of all protected rights

Part 4Pension compensation

Part 5Financial assistance scheme

Part 6Miscellaneous

Royal arms

Pensions Act 2008

2008 CHAPTER 30

An Act to make provision relating to pensions; and for connected purposes.

[26th November 2008]

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:—