Pensions Act 1995

JurisdictionUK Non-devolved
Citation1995 c. 26


Pensions Act 1995

1995 CHAPTER 26

An Act to amend the law about pensions and for connected purposes.

[19th July 1995]

B e 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:—

I Occupational pensions

Part I

Occupational pensions

Occupational Pensions Regulatory Authority

Occupational Pensions Regulatory Authority

S-1 The new authority.

1 The new authority.

(1) There shall be a body corporate called the Occupational Pensions Regulatory Authority (referred to in this Part as ‘the Authority’).

(2) The Authority shall consist of not less than seven members appointed by the Secretary of State, one of whom shall be so appointed as chairman.

(3) In addition to the chairman, the Authority shall comprise—

(a) a member appointed after the Secretary of State has consulted organisations appearing to him to be representative of employers,

(b) a member appointed after the Secretary of State has consulted organisations appearing to him to be representative of employees,

(c) a member who appears to the Secretary of State to be knowledgeable about life assurance business,

(d) a member who appears to the Secretary of State to have experience of, and to have shown capacity in, the management or administration of occupational pension schemes, and

(e) two members who appear to the Secretary of State to be knowledgeable about occupational pension schemes,

and such other member or members as the Secretary of State may appoint.

(4) Neither the Authority nor any person who is a member or employee of the Authority shall be liable in damages for anything done or omitted in the discharge or purported discharge of the functions of the Authority under this Part or the Pension Schemes Act 1993 , or any provisions in force in Northern Ireland corresponding to either of them, unless it is shown that the act or omission was in bad faith.

(5) Schedule 1 (constitution, procedure, etc. of the Authority) shall have effect.

(6) In this section, ‘life assurance business’ means the issue of, or the undertaking of liability under, policies of assurance upon human life, or the granting of annuities upon human life.

S-2 Reports to Secretary of State.

2 Reports to Secretary of State.

(1) The Authority must prepare a report for the first twelve months of their existence, and a report for each succeeding period of twelve months, and must send each report to the Secretary of State as soon as practicable after the end of the period for which it is prepared.

(2) A report prepared under this section for any period must deal with the activities of the Authority in the period.

(3) The Secretary of State must lay before each House of Parliament a copy of every report received by him under this section.

Supervision by the Authority

Supervision by the Authority

S-3 Prohibition orders.

3 Prohibition orders.

(1) The Authority may by order prohibit a person from being a trustee of a particular trust scheme in any of the following circumstances.

(2) The circumstances are—

(a) that the Authority are satisfied that while being a trustee of the scheme the person has been in serious or persistent breach of any of his duties under—

(i) this Part, other than the following provisions: sections 51 to 54, 62 to 65 and 110 to 112, or

(ii) the following provisions of the Pension Schemes Act 1993: section 6 (registration), Chapter IV of Part IV (transfer values), section 113 (information) and section 175 (levy),

(b) that the Authority are satisfied that, while being a trustee of the scheme, this section has applied to the person by virtue of any other provision of this Part,

(c) that the person is a company and any director of the company is prohibited under this section from being a trustee of the scheme,

(d) that the person is a Scottish partnership and any of the partners is prohibited under this section from being a trustee of the scheme, or

(e) that the person is a director of a company which, by reason of circumstances falling within paragraph (a) or (b), is prohibited under this section from being a trustee of the scheme and the Authority are satisfied that the acts or defaults giving rise to those circumstances were committed with the consent or connivance of, or attributable to any neglect on the part of, the director;

or any other prescribed circumstances.

(3) The making of an order under subsection (1) against a person who is a trustee of the scheme in question has the effect of removing him.

(4) The Authority may, on the application of any person against whom an order under subsection (1) is in force, by order revoke the order, but a revocation made at any time cannot affect anything done before that time.

S-4 Suspension orders.

4 Suspension orders.

(1) The Authority may by order suspend a trustee of a trust scheme—

(a) pending consideration being given to the making of an order against him under section 3(1),

(b) where proceedings have been instituted against him for an offence involving dishonesty or deception and have not been concluded,

(c) where a petition has been presented to the court for an order adjudging him bankrupt, or for the sequestration of his estate, and proceedings on the petition have not been concluded,

(d) where the trustee is a company, if a petition for the winding up of the company has been presented to the court and proceedings on the petition have not been concluded,

(e) where an application has been made to the court for a disqualification order against him under the Company Directors Disqualification Act 1986 and proceedings on the application have not been concluded, or

(f) where the trustee is a company or Scottish partnership and, if any director or, as the case may be, partner were a trustee, the Authority would have power to suspend him under paragraph (b), (c) or (e).

(2) An order under subsection (1)—

(a) if made by virtue of paragraph (a), has effect for an initial period not exceeding twelve months, and

(b) in any other case, has effect until the proceedings in question are concluded;

but the Authority may by order extend the initial period referred to in paragraph (a) for a further period of twelve months, and any order suspending a person under subsection (1) ceases to have effect if an order is made against that person under section 3(1).

(3) An order under subsection (1) has the effect of prohibiting the person suspended, during the period of his suspension, from exercising any functions as trustee of any trust scheme to which the order applies; and the order may apply to a particular trust scheme, a particular class of trust schemes or trust schemes in general.

(4) An order under subsection (1) may be made on one of the grounds in paragraphs (b) to (e) whether or not the proceedings were instituted, petition presented or application made (as the case may be) before or after the coming into force of that subsection.

(5) The Authority may, on the application of any person suspended under subsection (1), by order revoke the order, either generally or in relation to a particular scheme or a particular class of schemes; but a revocation made at any time cannot affect anything done before that time.

(6) An order under this section may make provision as respects the period of the trustee's suspension for matters arising out of it, and in particular for enabling any person to execute any instrument in his name or otherwise act for him and for adjusting any rules governing the proceedings of the trustees to take account of the reduction in the number capable of acting.

S-5 Removal of trustees: notices.

5 Removal of trustees: notices.

(1) Before the Authority make an order under section 3 against a person without his consent, the Authority must, unless he cannot be found or has no known address, give him not less than one month's notice of their proposal, inviting representations to be made to them within a time specified in the notice.

(2) Where any such notice is given, the Authority must take into...

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