Public Service Pensions Act 2013

Public Service Pensions Act 2013

2013 CHAPTER 25

Commentary on Sections and Schedules

Public body pension schemes

Section 30: New public body pension schemes

175. There are a number of defined benefits pension schemes for those in public service aside from the main schemes for civil servants, local government workers, NHS, teachers, police, fire and rescue services, the armed forces, and the judiciary. Many of these are pension schemes run for the staff and office holders of non-departmental public bodies, non-ministerial departments, arms length bodies and similar bodies and offices (‘public bodies’).

176. The Government’s policy is to reduce the number of different pension schemes that operate across the public service. It is anticipated that most of these pension schemes will be reformed by moving the staff and office holders into one of the new schemes established under section 1 of the Act. However, where that is not possible or appropriate public bodies may be allowed to reform their current schemes or to set up new bespoke pension schemes along reformed lines. This section deals with the latter situation.

177. This section imposes constraints on the design of new pension schemes that may be created under the power in section 31(7) for those bodies and offices whose pension schemes are closed for future accrual by section 31(2) and whose members cannot join one of the schemes established under section 1. It also governs the design of pension schemes that are set up in the future or established under future legislation for public bodies (unless future legislation makes specific, different provision).

178. Subsection (1) identifies the provisions of the Act which apply to new public body pension schemes. These provisions ensure that such schemes contain the same core design, cost control and governance features of the schemes established under section 1.

179. Subject to that, the rules of such schemes can make such provision as the public authority establishing the scheme considers appropriate, because section 3(1) is applied to them by this subsection.

180. Subsection (3) requires the Treasury to consent to the establishment of a new public body pension scheme after this section is commenced, or the subsequent variation of the rules of such a scheme.

181. Subsection (5) sets out the meaning of ‘public body pension scheme’ and ‘new public body pension scheme’. See also the definition of “public authority” in section 37.