Statutory Instruments
PENSIONS
Made
12th March 1996
The Secretary of State for Social Security, in exercise of the power conferred on him by section 180(1) of the Pensions Act 1995(1) and of all other powers enabling him in that behalf, hereby makes the following Order:
1.—(1) This Order may be cited as the Pensions Act 1995 (Commencement No. 3) Order 1996.
(2) In this Order, references to “the Act” are references to the Pensions Act 1995 and, except where the context otherwise requires, references to sections and Schedules are references to sections of, and Schedules to, the Act.
2.—(1) The day appointed for the coming into force of the provisions specified in Part I of the Schedule to this Order, for the purpose only of authorising the making of orders, is 13th March 1996.
(2) The day appointed for the coming into force of the provisions specified in Part II of the Schedule to this Order—
(a)for the purpose only of authorising the making of regulations, is 13th March 1996; and
(b)for all other purposes, is 1st April 1996.
(3) The day appointed for the coming into force of the provisions specified in Part III of the Schedule to this Order, is 6th April 1996.
(4) The day appointed for the coming into force of the provisions specified in Part IV of the Schedule to this Order, is 6th April 1996.
(5) The day appointed for the coming into force of—
(a)the provisions specified in Part V of the Schedule to this Order, for the purpose only of authorising the making of regulations, is 6th April 1996;
(b)sections 118 and 125, for the purpose only of authorising the making of regulations relating to those provisions of Part I of the Act specified in Part V of the Schedule to this Order, is 6th April 1996; and
(c)sections 21(3), 68 and 117, for the purpose only of any transitional provision contained in regulations made under sections 16 to 21 (member-nominated trustees and directors), is 6th October 1996.
(6) The day appointed for the coming into force of section 149 (hybrid occupational pension schemes), for the purpose only of authorising the making of regulations, is 1st June 1996.
(7) The day appointed for the coming into force of section 136 (new requirements for contracted-out schemes), insofar as not already in force, is 6th April 1997 and such day is designated as the principal appointed day for the purposes of Part III of the Act.
Signed by authority of the Secretary of State for Social Security.
Oliver Heald
Parliamentary Under-Secretary of State,
Department of Social Security
12th March 1996
Article 2
| Provisions of the Act | Subject matter |
|---|---|
| section 137(2) to (4) | reduced rates of Class 1 State scheme contributions in respect of members of salary related contracted-out schemes |
| section 137(1) and (5) | reduced rates of Class 1 State scheme contributions, and rebates, in respect of members of money purchase contracted-out schemes |
| section 138(5) | minimum contributions payable by the Secretary of State in respect of members of appropriate personal pension schemes |
| Provisions of the Act | Subject matter |
|---|---|
| section 140(2) | reduction in State benefits for members of money purchase contracted-out schemes and appropriate schemes |
| sections 142 to 144 | interim arrangements giving effect to protected rights |
| section 146 | discharge of protected rights on winding up: insurance policies |
| Provisions of the Act | Subject matter |
|---|---|
| section 1(1) to (4) and (6) | establishment of Occupational Pensions Regulatory Authority |
| section 2 | reports by the Authority |
| Schedule 1, paragraphs 1 to 12, 14 to 17, 19 and 20 and section 1(5) insofar as it relates to those paragraphs | Occupational Pensions Regulatory Authority |
| Provisions of the Act | Subject matter |
|---|---|
| section 119 | calculations under regulations |
| section 120, insofar as not already in force | consultation about regulations |
| section 121, insofar as not already in force | Crown application |
| section 123(3) | meaning of “connected” and “associated” persons |
| section 124, insofar as not already in force | interpretation of Part I |
| section 148 | Class 1 contributions where earner in more than one employment |
| section 174, insofar as not already in force | general provisions concerning regulations and orders |
| section 175, insofar as not already in force | Parliamentary control of regulations and orders |
| section 176 | interpretation |
| Schedule 6, paragraph 9 and section 173 insofar as it relates to that paragraph | disclosure of information by the Secretary of State |
| in Schedule 7, Part III, the entry relating to section 48(2)(b) and (c) of the Pension Schemes Act 1993(2) and section 177 insofar as it relates to that entry | repeals |
| Provisions of the Act | Subject matter |
|---|---|
| section 10(2) and (3) | civil penalties |
| sections 16 to 21 | member-nominated trustees and directors |
| section 27 | trustee not to be scheme auditor or actuary |
| section 32 | decisions by majority of trustees |
| section 33 | investment powers: duty of care |
| section 35 | investment principles |
| section 37 | payment of surplus to employer |
| section 38 | power to defer winding-up |
| section 40 | restriction on employer-related investments |
| section 41 | provision of documents for members |
| section 47 | professional advisers |
| section 49 | receipts, payments and records |
| section 50 | resolution of disputes |
| section 51 | annual increase in rate of pension |
| sections 56 to 61 | minimum funding requirement |
| section 67 | certification of detrimental amendments |
| section 68 | power of trustees to modify schemes by resolution |
| section 69 | grounds for applying to Authority for modification orders |
| section 73 | preferential liabilities on winding up |
| section 74(2), (3) and (5)(b) | discharge of liabilities by insurance etc |
| section 75 | deficiencies in the assets |
| section 76 | excess assets on winding up |
| section 77 | excess assets remaining after winding up: power to distribute |
| sections 87 to 89 | money purchase schemes |
| sections 91 to 95 | assignment, forfeiture, bankruptcy etc |
| section 136 | new requirements for contracted-out schemes |
| section 137 | State scheme contributions and rebates |
| section 139 | money purchase and personal pension schemes: verification of ages |
| section 140(1) | reduction of State benefits for members of certified schemes |
| section 141 | State scheme etc premiums and buyback into State scheme |
| sections 152 to 154 | transfer values |
| section 155 but for the purpose only of authorising the making of regulations relating to section 113 of the Pension Schemes Act 1993 | penalties for breach of regulations under the Pension Schemes Act 1993 |
| Schedule 5, paragraph 21 (but only insofar as it relates to sections 11(5)(d), 34(2)(a), 50(4) and 163(6) of the Pension Schemes Act 1993), paragraph 22(a) (but only insofar as it relates to section 7(1) of that Act), and paragraphs 28(a), 33(b), 34(a), 35, 37, 39, 45(b), 46, 48(c), 49(a), 65, 70(c) and 84 and section 151 insofar as it relates to the above mentioned paragraphs | amendments relating to Part III of the Act |
| Schedule 6, paragraphs 4, 5 and 6(c) and (e) and section 173 insofar as it relates to those paragraphs | amendments relating to Part IV of the Act |
(This note is not part of the Order)
This Order provides for the coming into force of further provisions of the Pensions Act 1995 (“the Act”) on the following dates—
13th March 1996, for the purpose only of authorising the making of orders under the Pension Schemes Act 1993 specifying the reduction in the rates of State scheme contributions and rebates payable in respect of members of contracted-out occupational pension schemes and appropriate personal pension schemes;
13th March 1996, for the purpose only of authorising the making of certain regulations, in particular, under provisions relating to interim arrangements in relation to appropriate personal pension schemes and the discharge of protected rights by money purchase occupational pension schemes. The provisions in question are brought fully into force on 6th April 1996;
1st April 1996, for provisions relating to the establishment of the Occupational Pensions Regulatory Authority;
6th April 1996, for nprovisions relating to the disclosure of information by the Secretary of State, the aggregation of earnings in relation to Class 1 contributions and certain other general provisions of the Act;
6th April 1996, for the purpose only of authorising the making of certain regulations under Part I of the Act concerning the regulation of occupational pension schemes, under Part III of the Act concerning contracting-out and under Part IV of the Act concerning transfer values. Provision is also made for certain provisions relating to member-nominated trustees and directors to come into force, for transitional purposes only, on 6th October 1996;
1st June 1996, for the purpose only of authorising the making of regulations about contracting-out by “hybrid schemes”;
6th April 1997, insofar as not already in force, for section 136 of the Act (new contracting-out requirements) and that day is designated as the principal appointed day for the purposes of Part III of the Act.
(This note is not part of the Order)
The following provisions have been brought into force by the Pensions Act 1995 (Commencement No. 1) Order 1995 (S.I. 1995/2548) (C.51) or the Pensions Act 1995 (Commencement No. 2) Order 1995 (S.I. 1995/3104) (C.71).
| Provision | Date of Commencement | S.I. No. |
|---|---|---|
| Section 39 | 1st January 1996 | 1995/3104 |
| Sections 62–66 (partially) | 4th December 1995 | 1995/3104 |
| (partially) | 1st January 1996 | 1995/3104 |
| Section 90 | 2nd October 1995 | 1995/2548 |
| Section 117 (partially) | 4th December 1995 | 1995/3104 |
| (partially) | 1st January 1996 | 1995/3104 |
| Section 120 (partially) | 4th December 1995 | 1995/3104 |
| (partially) | 1st January 1996 | 1995/3104 |
| Section 121 (partially) | 4th December 1995 | 1995/3104 |
| (partially) | 1st January 1996 | 1995/3104 |
| Section 122 (partially) | 1st January 1996 | 1995/3104 |
| Section 124 (partially) | 4th December 1995 | 1995/3104 |
| (partially) | 1st January 1996 | 1995/3104 |
| Section 156 | 2nd October 1995 | 1995/2548 |
| Section 169 | 2nd October 1995 | 1995/2548 |
| Section 172 | 2nd October 1995 | 1995/2548 |
| Section 173 (partially) | 2nd October 1995 | 1995/2548 |
| Section 174 (partially) | 2nd October 1995 | 1995/2548 |
| (partially) | 4th December 1995 | 1995/3104 |
| (partially) | 1st January 1996 | 1995/3104 |
| Section 175 (partially) | 2nd October 1995 | 1995/2548 |
| (partially) | 4th December 1995 | 1995/3104 |
| (partially) | 1st January 1996 | 1995/3104 |
| Schedule 3 (partially) | 1st January 1996 | 1995/3104 |
| Schedule 6, paragraph 1 | 2nd October 1995 | 1995/2548 |