Pension Schemes Act 2015 PART 1 Categories of pension scheme Introduction 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Defined benefits scheme 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Shared risk scheme (sometimes known as “defined ambition”) 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Defined contributions scheme 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Meaning of “pensions promise” etc 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Treatment of a scheme as two or more separate schemes 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interpretation of Part 1 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART 2 Collective benefits Introduction and nature of collective benefits Introduction and definition 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Duty to set targets for collective benefits 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Policy about factors used to determine each benefit 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Power to impose requirements about factors used to determine each benefit 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Contributions Payment schedule 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Overdue contributions and other payments 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Investment Statement of investment strategy 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Investment performance reports 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Investment powers 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Restriction on borrowing by trustees or managers 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Investment powers: duty of care 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Valuation Valuation reports 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Valuation process 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dealing with deficits and surpluses Policy for dealing with a deficit or surplus 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Power to impose requirements about dealing with a deficit or surplus 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Deficits attributable to an offence or the imposition of a levy 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Payment of amounts out of collective benefit funds 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cash equivalents Policy for calculating cash equivalent of benefits 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Winding up Winding up 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Requirement to wind up scheme in specified circumstances 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Policies about winding up 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Identifying assets Working out which assets are available for the provision of which benefits 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Regulations under Part 2: general Requirement to obtain actuarial advice 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sub-delegation 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Publication of documents etc 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Enforcement 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Overriding requirements 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interpretation of Part 2 Interpretation of Part 2 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART 3 General changes to legislation about pension schemes Administration and governance Pensions promise obtained from third party 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Duty to act in the best interests of members 37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Disclosure of information about schemes 38 1 Section 113 of the Pension Schemes Act 1993 (disclosure of information about schemes to members etc) is amended as follows. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Before subsection (3) insert— 2A In complying with requirements specified in the regulations, a person must have regard to any guidance prepared from time to time by the Secretary of State. 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Early leavers Extension of preservation of benefit under occupational pension schemes 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Revaluation of accrued benefits 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Indexation Collective benefits exempt from indexation 41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Regulatory own fund schemes exempt from indexation 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Power to create other exemptions from indexation 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Independent trustees Removal of requirement to maintain register of independent trustees 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rules about modification of schemes Rules about modification of schemes 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other amendments Other amendments to do with Parts 1 and 2 46 Schedule 2— a contains amendments to do with Parts 1 and 2, and b replaces references to “money purchase scheme” so as to limit the number of different ways of categorising pension schemes. PART 4 Pensions flexibilities CHAPTER 1 Pensions guidance Pensions guidance 47 Schedule 3 contains amendments of the Financial Services and Markets Act 2000, and of other legislation, that are about the giving of pensions guidance to pension scheme members, and survivors of pension scheme members, with a right or entitlement to flexible benefits. CHAPTER 2 Independent advice Great Britain Independent advice in respect of conversions and transfers: Great Britain 48 1 Where a member of a pension scheme has subsisting rights in respect of any safeguarded benefits, or a survivor of a member has subsisting rights in respect of any safeguarded benefits, the trustees or managers must check that the member or survivor has received appropriate independent advice before— a converting any of the benefits into different benefits that are flexible benefits under the scheme; b making a transfer payment in respect of any of the benefits with a view to acquiring a right or entitlement to flexible benefits for the member or survivor under another pension scheme; c paying a lump sum that would be an uncrystallised funds pension lump sum in respect of any of the benefits. 2 The Secretary of State may by regulations make provision about— a what the trustees or managers must do to check that a member or survivor has received appropriate independent advice for the purposes of subsection (1), and b when the check must be carried out for the purposes of that subsection. 3 The Secretary of State may by regulations— a create an exception to subsection (1) in the case of a member or survivor whose subsisting rights in respect of safeguarded benefits under the scheme, or safeguarded benefits under the scheme and any other schemes, are worth less than a specified amount; b create other exceptions to subsection (1). 4 Regulations under subsection (3)(a) may, in particular, make provision about— a the valuation of the subsisting rights; b the process for determining whether the exception applies. 5 In subsection (1)(b) the reference to another pension scheme includes a scheme established in a country or territory outside Great Britain. 6 Where the trustees or managers fail to carry out a check required by this section, section 10 of the Pensions Act 1995 (civil penalties) applies to any trustee or manager who failed to take reasonable steps to ensure that the check was carried out. 7 Failure to carry out a check required by this section does not affect the validity of any transaction. 8 In this section— “ appropriate independent advice ” means advice that— is given by an authorised independent adviser, and meets any other requirements specified in regulations made by the Secretary of State; “ authorised independent adviser ” means a person who— has permission under Part 4A of the Financial Services and Markets Act 2000, or resulting from any other provision of that Act, to carry on a regulated activity specified in regulations made by the Secretary of State, or is acting as an appointed representative (within the meaning given by section 39(2) of that Act) in relation to a regulated activity so specified, and meets such other requirements as may be specified in regulations made by the Secretary of State for the purpose of ensuring that the person is independent; “ safeguarded benefits ” means benefits other than— money purchase benefits, and cash balance benefits. Power to require employer to arrange advice for purposes of section 48 49 1 The Secretary of State may by regulations specify circumstances in which an employer must arrange or pay for a member of a pension scheme, or a survivor of a member of a pension scheme, to receive appropriate independent advice for the purpose of satisfying a requirement imposed by section 48. 2 Regulations under subsection (1) may, in particular— a impose limitations on the amount that an employer may be required to pay; b prohibit an employer from seeking in any way to recover, from a member or survivor, costs incurred by the employer in complying with the regulations; c provide for section 10 of the Pensions Act 1995 (civil penalties) to apply to a failure by an employer to comply with the regulations. 3 In this section “ employer ” has the meaning given by regulations made by the Secretary of State. Independent advice: consequential amendments: Great Britain 50 1 The Pension Schemes Act 1993 is amended as follows. 2 In section 99 (trustees' duties after exercise of option), after subsection (2) insert— 2A Subsection (2) does not apply if— a the trustees or managers have been unable to carry out the check required by section 48 of the Pension Schemes Act 2015 by reason of factors outside their control, or b the trustees or managers have carried out the check required by section 48 of the Pension Schemes Act 2015 but the check did not confirm that the member had received appropriate independent advice. 3 In section 101J (time for compliance with transfer notice in respect of pension credit benefits), after subsection (2A) (inserted by paragraph 18(3) of Schedule 4 to this Act) insert— 2B Subsection (1) does not apply if— a the trustees or managers have been unable to carry out the check required by section 48 of the Pension Schemes Act 2015 by reason of factors outside their control, or b the trustees or managers have carried out the check required by section 48 of the Pension Schemes Act 2015 but the check did not confirm that the member had received appropriate independent advice. Northern Ireland Independent advice in respect of conversions and transfers: Northern Ireland 51 1 Where a member of a pension scheme has subsisting rights in respect of any safeguarded benefits, or a survivor of a member has subsisting rights in respect of any safeguarded benefits, the trustees or managers must check that the member or survivor has received appropriate independent advice before— a converting any of the benefits into different benefits that are flexible benefits under the scheme; b making a transfer payment in respect of any of the benefits with a view to acquiring a right or entitlement to flexible benefits for the member or survivor under another pension scheme; c paying a lump sum that would be an uncrystallised funds pension lump sum in respect of any of the benefits. 2 The Department for Social Development in Northern Ireland may by regulations make provision about— a what the trustees or managers must do to check that a member or survivor has received appropriate independent advice for the purposes of subsection (1), and b when the check must be carried out for the purposes of that subsection. 3 The Department for Social Development in Northern Ireland may by regulations— a create an exception to subsection (1) in the case of a member or survivor whose subsisting rights in respect of safeguarded benefits under the scheme, or safeguarded benefits under the scheme and any other schemes, are worth less than a specified amount; b create other exceptions to subsection (1). 4 Regulations under subsection (3)(a) may, in particular, make provision about— a the valuation of the subsisting rights; b the process for determining whether the exception applies. 5 In subsection (1)(b) the reference to another pension scheme includes a scheme established in a country or territory outside Northern Ireland. 6 Where the trustees or managers fail to carry out a check required by this section, Article 10 of the Pensions (Northern Ireland) Order 1995 ( S.I. 1995/3213 (N.I. 22)) (civil penalties) applies to any trustee or manager who failed to take reasonable steps to ensure that the check was carried out. 7 Failure to carry out a check required by this section does not affect the validity of any transaction. 8 In this section— “ appropriate independent advice ” means advice that— is given by an authorised independent adviser, and meets any other requirements specified in regulations made by the Department for Social Development in Northern Ireland; “ authorised independent adviser ” means a person who— has permission under Part 4A of the Financial Services and Markets Act 2000, or resulting from any other provision of that Act, to carry on a regulated activity specified in regulations made by the Department for Social Development in Northern Ireland, or is acting as an appointed representative (within the meaning given by section 39(2) of that Act) in relation to a regulated activity so specified, and meets such other requirements as may be specified in regulations made by the Department for Social Development in Northern Ireland for the purpose of ensuring that the person is independent; “ safeguarded benefits ” means benefits other than— money purchase benefits, and cash balance benefits. Power to require employer to arrange advice for purposes of section 51 52 1 The Department for Social Development in Northern Ireland may by regulations specify circumstances in which an employer must arrange or pay for a member of a pension scheme, or a survivor of a member of a pension scheme, to receive appropriate independent advice for the purpose of satisfying a requirement imposed by section 51. 2 Regulations under subsection (1) may, in particular— a impose limitations on the amount that an employer may be required to pay; b prohibit an employer from seeking in any way to recover, from a member or survivor, costs incurred by the employer in complying with the regulations; c provide for Article 10 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (civil penalties) to apply to a failure by an employer to comply with the regulations. 3 In this section “ employer ” has the meaning given by regulations made by the Department for Social Development in Northern Ireland. Independent advice: consequential amendments: Northern Ireland 53 1 The Pension Schemes (Northern Ireland) Act 1993 is amended as follows. 2 In section 95 (trustees' duties after exercise of option), after subsection (2) insert— 2A Subsection (2) does not apply if— a the trustees or managers have been unable to carry out the check required by section 51 of the Pension Schemes Act 2015 by reason of factors outside their control, or b the trustees or managers have carried out the check required by section 51 of the Pension Schemes Act 2015 but the check did not confirm that the member had received appropriate independent advice. 3 In section 97J (time for compliance with transfer notice in respect of pension credit benefits), after subsection (2A) (inserted by paragraph 64(3) of Schedule 4 to this Act) insert— 2B Subsection (1) does not apply if— a the trustees or managers have been unable to carry out the check required by section 51 of the Pension Schemes Act 2015 by reason of factors outside their control, or b the trustees or managers have carried out the check required by section 51 of the Pension Schemes Act 2015 but the check did not confirm that the member had received appropriate independent advice. Income tax exemption Independent advice: income tax exemption 54 1 In Part 4 of the Income Tax (Earnings and Pensions) Act 2003 (employment income: exemptions), in Chapter 9 (exemptions: pension provision), after section 308A insert— Independent advice in respect of conversions and transfers of pension scheme benefits 308B 1 No liability to income tax arises in respect of— a the provision to an employee or former employee of appropriate independent advice, or b the payment or reimbursement, to or in respect of an employee or former employee, of the cost of such advice, if conditions A to C are met. 2 Condition A is that the provision, payment or reimbursement is required by regulations under section 49 or 52 of the Pension Schemes Act 2015 (power to require employer to arrange independent advice in respect of conversions and transfers). 3 If condition A is met only as respects part of the payment or reimbursement because the amount of the payment or reimbursement exceeds the amount required to be paid or reimbursed, subsection (1) applies in respect of that part. 4 Condition B is that the provision, payment or reimbursement is not pursuant to relevant salary sacrifice arrangements. 5 Condition C is that such other requirements as may be specified in regulations made by the Treasury are satisfied in relation to the provision, payment or reimbursement. 6 In this section— “appropriate independent advice”— in relation to England and Wales and Scotland, has the meaning given by regulations under section 48 of the Pension Schemes Act 2015; in relation to Northern Ireland, has the meaning given by regulations under section 51 of that Act; “ relevant salary sacrifice arrangements ” means arrangements (whenever made, whether before or after the employment began) under which an employee gives up the right to receive an amount of general earnings or specific employment income in return for the provision of appropriate independent advice or the payment or reimbursement of the cost of such advice. 2 In that Part of that Act, in section 228 (effect of exemptions on liability under provisions outside Part 2), in subsection (2), after paragraph (d) insert— da section 308B (independent advice in respect of conversions and transfers of pension scheme benefits), . 3 The amendments made by this section have effect for the tax year 2015-16 and subsequent tax years. CHAPTER 3 Drawdown, conversion of benefits and lump sums Great Britain Sums or assets that may be designated as available for drawdown: Great Britain 55 1 In the case of a member of an occupational pension scheme the only sums or assets that may be designated as available for the payment of drawdown pension for the member under the scheme are sums or assets held for the purposes of providing money purchase benefits to or in respect of the member. 2 In the case of a survivor of a member of an occupational pension scheme the only sums or assets that may be designated as available for the payment of dependants' drawdown pension, nominees' drawdown pension or successors' drawdown pension for the survivor under the scheme are sums or assets held for the purposes of providing money purchase benefits to the survivor. 3 This section overrides any provision of an occupational pension scheme to the extent that there is a conflict. 4 This section does not apply in relation to sums or assets designated before 6 April 2015. Provision about conversion of certain benefits for drawdown: Great Britain 56 1 The Secretary of State may by regulations make provision about the conversion of benefits under an occupational pension scheme in circumstances where— a a member of the scheme, or a survivor of a member of the scheme, has subsisting rights in respect of any flexible benefits other than money purchase benefits under the scheme, and b the member or survivor exercises an option to convert any of the benefits into money purchase benefits for the purposes of enabling sums or assets to be designated as available for the payment of drawdown pension, dependants' drawdown pension, nominees' drawdown pension or successors' drawdown pension. 2 Regulations under subsection (1) may, in particular, make provision about how the rate or amount of any benefits not converted are to be calculated in future. 3 In relation to a conversion that takes place before the member or survivor reaches normal pension age, regulations under subsection (1) may in particular make provision about— a the manner in which benefits are to be calculated for the purpose of converting them into money purchase benefits; b the use of any power to reduce benefits. 4 Regulations made under this section may include provision for them to override the provisions of a pension scheme to the extent that there is a conflict. Provision about calculation of lump sums: Great Britain 57 1 The Secretary of State may by regulations make provision about the calculation of lump sums in circumstances where— a a member of an occupational pension scheme, or a survivor of a member of the scheme, has subsisting rights in respect of any flexible benefits other than money purchase benefits under the scheme, and b the member or survivor exercises an option to be paid a lump sum in respect of any of those benefits. 2 Regulations under subsection (1) may, in particular, make provision about how the rate or amount of any remaining benefits are to be calculated in future. 3 In a case where a member or survivor exercises an option to be paid a lump sum before reaching normal pension age, regulations under subsection (1) may in particular make provision about— a the manner in which benefits are to be calculated for the purpose of determining the amount available for the payment of the lump sum; b the use of any power to reduce the amount of the lump sum. 4 Regulations made under this section may include provision for them to override the provisions of a pension scheme to the extent that there is a conflict. Restrictions on conversion of benefits during winding up etc: Great Britain 58 1 In section 73A of the Pensions Act 1995 (operation of scheme during winding up period), after subsection (6) insert— 6A During the winding up period no right or entitlement of any member, or of any other person in respect of a member, to a benefit that is not a money purchase benefit is to be converted into, or replaced with, a right or entitlement to a money purchase benefit under the scheme rules. 2 In section 73B of that Act (sections 73 and 73A: supplementary), in subsections (1) and (3), after “section 73A(3)” insert “ or (6A) ” . 3 In section 135 of the Pensions Act 2004 (restrictions on winding up, discharge of liabilities etc during assessment period), in subsection (4), before paragraph (a) insert— za no right or entitlement of any member, or of any other person in respect of a member, to a benefit that is not a money purchase benefit is to be converted into, or replaced with, a right or entitlement to a money purchase benefit under the scheme rules, . Restriction on payment of lump sums during PPF assessment period: Great Britain 59 1 Section 138 of the Pensions Act 2004 (payment of scheme benefits during assessment period) is amended as follows. 2 In subsection (1), after “Subsections (2)” insert “ , (2A) ” . 3 After subsection (2) insert— 2A Benefits in the form of a lump sum may be paid to or in respect of a member under the scheme rules during the assessment period only in the circumstances in which, and to the extent to which, lump sum compensation would be payable to or in respect of the member in accordance with this Chapter if— a the Board assumed responsibility for the scheme in accordance with this Chapter, and b the assessment date referred to in Schedule 7 were the date on which the assessment period began. 4 In subsection (3), omit “But”. 5 In subsection (5), for “subsection (2)” substitute “ subsections (2) and (2A) ” . 6 In subsection (6), for “subsection (3)” substitute “ subsections (2A) and (3) ” . 7 In subsection (7), after “Subsections (2),” insert “ (2A), ” . 8 In subsection (8), after “subsections (2)” insert “ , (2A) ” . 9 In subsection (9), for “subsections (2) and (3)” substitute “ subsections (2) to (3) ” . 10 After subsection (9) insert— 9A Regulations may make provision as to circumstances in which benefits in the form of a lump sum are to be treated for the purposes of subsection (2A) as being paid in the circumstances in which lump sum compensation would be payable in accordance with this Chapter. 9B Regulations may create exceptions to subsection (2A). 11 In subsection (12), for “subsection (2)” substitute “ subsections (2) and (2A) ” . 12 In subsection (13), after “subsection (2)” insert “ , (2A) ” . Sections 55 to 57: consequential amendments 60 1 In section 101AI of the Pension Schemes Act 1993 (early leavers: cash transfer sums and contribution refunds - further provisions), in subsection (8)— a in paragraph (a), after sub-paragraph (ix) insert— x section 55 of the Pension Schemes Act 2015; xi regulations made under section 56 or 57 of the Pension Schemes Act 2015; ; b in paragraph (b), after sub-paragraph (vii) insert— viii section 55(3) of the Pension Schemes Act 2015; ix regulations made under section 56(4) or 57(4) of the Pension Schemes Act 2015. 2 In section 67A of the Pensions Act 1995 (the subsisting rights provisions: interpretation), in subsection (9)— a in paragraph (a), after sub-paragraph (x) (inserted by section 45 of this Act) insert— xi section 55 of the Pension Schemes Act 2015; xii regulations made under section 56 or 57 of the Pension Schemes Act 2015; ; b in paragraph (b), after sub-paragraph (viii) (inserted by section 45 of this Act) insert— ix section 55(3) of the Pension Schemes Act 2015; x regulations made under section 56(4) or 57(4) of the Pension Schemes Act 2015. 3 In section 318 of the Pensions Act 2004 (interpretation), in subsection (3)— a in paragraph (a), after sub-paragraph (x) (inserted by Schedule 2 to this Act) insert— xi section 55 of the Pension Schemes Act 2015; xii regulations made under section 56 or 57 of the Pension Schemes Act 2015; ; b in paragraph (b), after sub-paragraph (viii) (inserted by Schedule 2 to this Act) insert— ix section 55(3) of the Pension Schemes Act 2015; x regulations made under section 56(4) or 57(4) of the Pension Schemes Act 2015. Northern Ireland Sums or assets that may be designated as available for drawdown: Northern Ireland 61 1 In the case of a member of an occupational pension scheme the only sums or assets that may be designated as available for the payment of drawdown pension for the member under the scheme are sums or assets held for the purposes of providing money purchase benefits to or in respect of the member. 2 In the case of a survivor of a member of an occupational pension scheme the only sums or assets that may be designated as available for the payment of dependants' drawdown pension, nominees' drawdown pension or successors' drawdown pension for the survivor under the scheme are sums or assets held for the purposes of providing money purchase benefits to the survivor. 3 This section overrides any provision of an occupational pension scheme to the extent that there is a conflict. 4 This section does not apply in relation to sums or assets designated before 6 April 2015. Provision about conversion of certain benefits for drawdown: Northern Ireland 62 1 The Department for Social Development in Northern Ireland may by regulations make provision about the conversion of benefits under an occupational pension scheme in circumstances where— a a member of the scheme, or a survivor of a member of the scheme, has subsisting rights in respect of any flexible benefits other than money purchase benefits under the scheme, and b the member or survivor exercises an option to convert any of the benefits into money purchase benefits for the purposes of enabling sums or assets to be designated as available for the payment of drawdown pension, dependants' drawdown pension, nominees' drawdown pension or successors' drawdown pension. 2 Regulations under subsection (1) may, in particular, make provision about how the rate or amount of any benefits not converted are to be calculated in future. 3 In relation to a conversion that takes place before the member or survivor reaches normal pension age, regulations under subsection (1) may in particular make provision about— a the manner in which benefits are to be calculated for the purpose of converting them into money purchase benefits; b the use of any power to reduce benefits. 4 Regulations made under this section may include provision for them to override the provisions of a pension scheme to the extent that there is a conflict. Provision about calculation of lump sums: Northern Ireland 63 1 The Department for Social Development in Northern Ireland may by regulations make provision about the calculation of lump sums in circumstances where— a a member of an occupational pension scheme, or a survivor of a member of the scheme, has subsisting rights in respect of any flexible benefits other than money purchase benefits under the scheme, and b the member or survivor exercises an option to be paid a lump sum in respect of any of those benefits. 2 Regulations under subsection (1) may, in particular, make provision about how the rate or amount of any remaining benefits are to be calculated in future. 3 In a case where a member or survivor exercises an option to be paid a lump sum before reaching normal pension age, regulations under subsection (1) may in particular make provision about— a the manner in which benefits are to be calculated for the purpose of determining the amount available for the payment of the lump sum; b the use of any power to reduce the amount of the lump sum. 4 Regulations made under this section may include provision for them to override the provisions of a pension scheme to the extent that there is a conflict. Restrictions on conversion of benefits during winding up etc: Northern Ireland 64 1 In Article 73A of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (operation of scheme during winding up period), after paragraph (6) insert— 6A During the winding up period no right or entitlement of any member, or of any other person in respect of a member, to a benefit that is not a money purchase benefit is to be converted into, or replaced with, a right or entitlement to a money purchase benefit under the scheme rules. 2 In Article 73B of that Order (Articles 73 and 73A: supplementary), in paragraphs (1) and (3), after “Article 73A(3)” insert “ or (6A) ” . 3 In Article 119 of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)) (restrictions on winding up, discharge of liabilities etc during assessment period), in paragraph (4), before sub-paragraph (a) insert— za no right or entitlement of any member, or of any other person in respect of a member, to a benefit that is not a money purchase benefit is to be converted into, or replaced with, a right or entitlement to a money purchase benefit under the scheme rules, . Restriction on payment of lump sums during PPF assessment period: Northern Ireland 65 1 Article 122 of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)) (payment of scheme benefits during assessment period) is amended as follows. 2 In paragraph (1), after “Paragraphs (2)” insert “ , (2A) ” . 3 After paragraph (2) insert— 2A Benefits in the form of a lump sum may be paid to or in respect of a member under the scheme rules during the assessment period only in the circumstances in which, and to the extent to which, lump sum compensation would be payable to or in respect of the member in accordance with this Chapter if— a the Board assumed responsibility for the scheme in accordance with this Chapter, and b the assessment date referred to in Schedule 6 were the date on which the assessment period began. 4 In paragraph (3), omit “But”. 5 In paragraph (5), for “paragraph (2)” substitute “ paragraphs (2) and (2A) ” . 6 In paragraph (6), for “paragraph (3)” substitute “ paragraphs (2A) and (3) ” . 7 In paragraph (7), after “Paragraphs (2),” insert “ (2A), ” . 8 In paragraph (8), after “paragraphs (2)” insert “ , (2A) ” . 9 In paragraph (9), for “paragraphs (2) and (3)” substitute “ paragraphs (2) to (3) ” . 10 After paragraph (9) insert— 9A Regulations may make provision as to circumstances in which benefits in the form of a lump sum are to be treated for the purposes of paragraph (2A) as being paid in the circumstances in which lump sum compensation would be payable in accordance with this Chapter. 9B Regulations may create exceptions to paragraph (2A). 11 In paragraph (12), for “paragraph (2)” substitute “ paragraphs (2) and (2A) ” . 12 In paragraph (13), after “paragraph (2)” insert “ , (2A) ” . Sections 61 to 63: consequential amendments 66 1 In section 97AI of the Pension Schemes (Northern Ireland) Act 1993 (early leavers: cash transfer sums and contribution refunds - further provisions), in subsection (7)— a in paragraph (a), after sub-paragraph (vii) insert— viii section 61 of the Pension Schemes Act 2015; ix regulations made under section 62 or 63 of the Pension Schemes Act 2015; ; b in paragraph (b), after sub-paragraph (v) insert— vi section 61(3) of the Pension Schemes Act 2015; vii regulations made under section 62(4) or 63(4) of the Pension Schemes Act 2015. 2 In Article 67A of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (the subsisting rights provisions: interpretation), in paragraph (9)— a in sub-paragraph (a), after head (vii) insert— viii section 61 of the Pension Schemes Act 2015; ix regulations made under section 62 or 63 of the Pension Schemes Act 2015; ; b in sub-paragraph (b), after head (v) insert— vi section 61(3) of the Pension Schemes Act 2015; vii regulations made under section 62(4) or 63(4) of the Pension Schemes Act 2015. 3 In Article 2 of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)) (interpretation), in paragraph (4)— a in sub-paragraph (a), after head (vii) insert— viii section 61 of the Pension Schemes Act 2015; ix regulations made under section 62 or 63 of the Pension Schemes Act 2015; ; b in sub-paragraph (b), after head (v) insert— vi section 61(3) of the Pension Schemes Act 2015; vii regulations made under section 62(4) or 63(4) of the Pension Schemes Act 2015. CHAPTER 4 Transfers Rights to transfer benefits Rights to transfer benefits 67 Schedule 4 contains amendments that confer new statutory rights to transfer benefits. Great Britain Restriction on transfers out of unfunded public service defined benefits schemes: Great Britain 68 1 The Pension Schemes Act 1993 is amended as follows. 2 In section 95 (ways of taking right to cash equivalent), in subsection (2), after “occupational pension scheme” insert “ that is not an unfunded public service defined benefits scheme ” . 3 In section 95, after subsection (2) insert— 2A In the case of a member of an occupational pension scheme that is an unfunded public service defined benefits scheme, the ways referred to in subsection (1) are— a for acquiring transfer credits allowed under the rules of another occupational pension scheme if— i the benefits that may be provided under the other scheme by virtue of the transfer credits are not flexible benefits, ii the trustees or managers of the other scheme are able and willing to accept payment in respect of the member's transferrable rights, and iii the other scheme satisfies requirements prescribed in regulations made by the Secretary of State or the Treasury; b for acquiring rights allowed under the rules of a personal pension scheme if— i the benefits that may be provided under the personal pension scheme by virtue of the acquired rights are not flexible benefits, ii the trustees or managers of the personal pension scheme are able and willing to accept payment in respect of the member's transferrable rights, and iii the personal pension scheme satisfies requirements prescribed in regulations made by the Secretary of State or the Treasury; c for purchasing from one or more insurers such as are mentioned in section 19(4)(a), chosen by the member and willing to accept payment on account of the member from the trustees or managers, one or more annuities which satisfy requirements prescribed in regulations made by the Secretary of State or the Treasury; d for subscribing to other pension arrangements which satisfy requirements prescribed in regulations made by the Secretary of State or the Treasury. 2B The Treasury may by regulations provide for sub-paragraph (i) of subsection (2A)(a) or (b) not to apply in prescribed circumstances or in relation to prescribed schemes or schemes of a prescribed description. 2C In subsections (2) and (2A) “ unfunded public service defined benefits scheme ” means a public service pension scheme that— a is a defined benefits scheme within the meaning given by section 37 of the Public Service Pensions Act 2013, and b meets some or all of its liabilities otherwise than out of a fund accumulated for the purpose during the life of the scheme. 4 After section 95(5) insert— 5A Except in such circumstances as may be prescribed in regulations made by the Secretary of State or the Treasury, subsection (2A) is to be construed as if paragraph (d) were omitted. 5 In section 95(6)— a after “subsections (2)” insert “ , (2A) ” ; b after “subsection (2)” insert “ or (2A) ” . 6 In section 96 (further provisions concerning exercise of option under section 95), in subsection (2)(b), after “subsection (2)” insert “ , subsection (2A) ” . 7 In section 100 (withdrawal of applications), in subsection (2), after “subsection (2)” insert “ , subsection (2A) ” . 8 The amendments made by this section have no effect in relation to an application made under section 95(1) of the Pension Schemes Act 1993 before 6 April 2015. 9 Until the coming into force of the first regulations made under a provision of the Pension Schemes Act 1993 specified in the first column of the table, regulations made under the provision of that Act specified in the corresponding entry in the second column apply (with any necessary modifications) for the purposes of the provision specified in the first column— New provision of Act Existing provision of Act Section 95(2A)(a)(iii) Section 95(2)(a)(ii) Section 95(2A)(b)(iii) Section 95(2)(b)(ii) Section 95(2A)(c) Section 95(2)(c) Section 95(2A)(d) Section 95(2)(d) Section 95(5A) Section 95(5)(a). Reduction of cash equivalents: funded public service defined benefits schemes: Great Britain 69 1 The Pension Schemes Act 1993 is amended as follows. 2 In section 97 (calculation of cash equivalents), in subsection (1)— a after “verified” insert — a ; b at the end insert , and b where a designation has been made under section 97A or 97B, in accordance with regulations under section 97C. 3 After section 97 insert— Designation of funded public service defined benefits schemes 97A 1 This section applies to funded public service defined benefits schemes other than schemes to which section 97B applies (equivalent provision for certain Scottish schemes). A scheme to which this section applies is referred to below as an “eligible scheme”. 2 The relevant person may designate an eligible scheme as a scheme to which regulations under section 97C are to apply for a specified period of no more than 2 years. 3 The power under subsection (2) may be exercised only if the relevant person considers that— a there is an increased likelihood of payments out of public funds, or increased payments out of public funds, having to be made into the scheme so that it can meet its liabilities, and b the increased likelihood is connected with the exercise or expected future exercise of rights to take a cash equivalent acquired under section 94. 4 The power under subsection (2) may be exercised in relation to the whole or any part of a scheme. 5 In the application of subsection (3) to part of a scheme, paragraph (a) is to be read as if it referred to the scheme's liabilities relating to that part. 6 A designation under subsection (2)— a may be extended (on more than one occasion) for a period of no more than 2 years; b may be revoked. 7 The relevant person must give notice in writing of a designation or its extension or revocation to the trustees or managers of the scheme (except in a case where the relevant person is the trustees or managers). 8 If the trustees or managers of an eligible scheme, or part of such a scheme, which is not designated under this section consider that the conditions in paragraphs (a) and (b) of subsection (3) are met in relation to the scheme or part they must notify— a the Treasury, and b (where relevant) each Minister of the Crown by whom, or with whose approval, the scheme was established. 9 If the trustees or managers of a scheme, or part of a scheme, which is designated under this section consider that the conditions in paragraphs (a) and (b) of subsection (3) are no longer met in relation to the scheme or part they must notify— a the Treasury, and b (where relevant) each Minister of the Crown by whom, or with whose approval, the scheme was established. 10 In this section— “ eligible scheme ” has the meaning given by subsection (1); “ funded public service defined benefits scheme ” means a public service pension scheme that— is a defined benefits scheme within the meaning given by section 37 of the Public Service Pensions Act 2013, and meets its liabilities out of a fund accumulated for the purpose during the life of the scheme; “ local authority ” means— a county or district council in England, a county or county borough council in Wales, a London borough council, the Greater London Authority, the Common Council of the City of London in its capacity as a local authority, or the Council of the Isles of Scilly; “ payment out of public funds ” means a payment provided directly or indirectly— out of— the Consolidated Fund or any other account or source of money which cannot be drawn or spent other than by, or with the authority of, the Treasury, or the Welsh Consolidated Fund, or by a local authority; “ the relevant person ” means— in relation to a scheme established by virtue of paragraph 12 of Schedule 6 to the Constitutional Reform and Governance Act 2010 (or treated as so established), the Independent Parliamentary Standards Authority and the trustees of the Parliamentary Contributory Pension Fund; in relation to a scheme established by virtue of paragraph 16 of Schedule 6 to the Constitutional Reform and Governance Act 2010 (or treated as so established), the trustees of the Parliamentary Contributory Pension Fund; in any other case, either of the following— the Treasury, or any Minister of the Crown by whom, or with whose approval, the scheme was established. 11 The Treasury may by regulations modify the definitions of “local authority” and “the relevant person” in subsection (10). Designation of funded public service defined benefits schemes: Scotland 97B 1 This section applies to a funded public service defined benefits scheme that is— a a scheme established by, or with the approval of, the Scottish Ministers; b a scheme established by virtue of section 81(4)(b) of the Scotland Act 1998. A scheme to which this section applies is referred to below as an “eligible scheme”. 2 The relevant person may designate an eligible scheme as a scheme to which regulations under section 97C are to apply for a specified period of no more than 2 years. 3 The power under subsection (2) may be exercised only if the relevant person considers that— a there is an increased likelihood of payments out of public funds, or increased payments out of public funds, having to be made into the scheme so that it can meet its liabilities, and b the increased likelihood is connected with the exercise or expected future exercise of rights to take a cash equivalent acquired under section 94. 4 The power under subsection (2) may be exercised in relation to the whole or any part of a scheme. 5 In the application of subsection (3) to part of a scheme, paragraph (a) is to be read as if it referred to the scheme's liabilities relating to that part. 6 A designation under subsection (2)— a may be extended (on more than one occasion) for a period of no more than 2 years; b may be revoked. 7 The relevant person must give notice in writing of a designation or its extension or revocation to the trustees or managers of the scheme (except in a case where the relevant person is the trustees or managers). 8 If the trustees or managers of an eligible scheme, or part of such a scheme, which is not designated under this section consider that the conditions in paragraphs (a) and (b) of subsection (3) are met in relation to the scheme or part they must notify the Scottish Ministers. 9 If the trustees or managers of a scheme, or part of a scheme, that is designated under this section consider that the conditions in paragraphs (a) and (b) of subsection (3) are no longer met in relation to the scheme or part they must notify the Scottish Ministers. 10 In this section— “ eligible scheme ” has the meaning given by subsection (1); “ funded public service defined benefits scheme ” means a public service pension scheme that— is a defined benefits scheme within the meaning given by section 37 of the Public Service Pensions Act 2013, and meets its liabilities out of a fund accumulated for the purpose during the life of the scheme; “ payment out of public funds ” means a payment provided directly or indirectly— out of the Scottish Consolidated Fund, or by a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994; “ the relevant person ” means— in relation to a scheme falling within subsection (1)(a), the Scottish Ministers; in relation to a scheme falling with subsection (1)(b), the trustees of the Scottish Parliamentary Contributory Pension Fund. 11 The Scottish Ministers may by regulations modify the definition of “the relevant person” in subsection (10). 4 After section 97B (inserted by subsection (3)) insert— Reduction of cash equivalents in case of designated schemes 97C 1 The Treasury may by regulations provide that where, under section 95(1), a member of a designated scheme requires the trustees or managers to use a cash equivalent for acquiring a right or entitlement to flexible benefits under the rules of another pension scheme the cash equivalent must be reduced by an amount determined in accordance with the regulations. 2 Regulations under subsection (1) may not require a reduction in cases where a scheme ceases to be a designated scheme before the date on which the trustees or managers do what is needed to carry out what the member requires. 3 Regulations under subsection (1) may produce the result (alone or in conjunction with regulations under section 97) that the amount by which a cash equivalent is to be reduced is such an amount that a member has no right to receive anything. 4 In subsection (1), “ designated scheme ” means a funded public service defined benefits scheme, or part of such a scheme, that (on the date of the application under section 95(1)) is designated under section 97A or 97B. Sections 68 and 69: consequential amendments 70 1 In the Pension Schemes Act 1993, in section 182 (orders and regulations: general provisions), after subsection (1) insert— 1A Subsection (1) does not apply to the power of the Scottish Ministers to make regulations under section 97B(11). 2 In that Act, in section 185 (consultations about other regulations), after subsection (5) insert— 5A Subject to subsection (5C), before the Treasury (acting alone) make any regulations under section 95, 97A or 97C they shall consult such persons as they may consider appropriate. 5B Subject to subsection (5C), before the Scottish Ministers make any regulations under section 97B(11) they shall consult such persons as they may consider appropriate. 5C Subsections (5A) and (5B) do not apply to regulations in the case of which the Treasury or (as the case may be) the Scottish Ministers consider consultation inexpedient because of urgency or to regulations of the type described in subsection (2)(b) or (e). 3 In that Act, in section 186 (Parliamentary control of orders and regulations)— a in subsection (1) (negative procedure), after “Secretary of State” insert “ or the Treasury ” ; b in subsection (3) (affirmative procedure), after paragraph (e) insert , or f regulations made under section 97A(11) ; c after subsection (5) insert— 6 Regulations made by the Scottish Ministers under section 97B(11) are subject to the affirmative procedure (see Part 2 of the Interpretation and Legislative Reform (Scotland) Act 2010 (asp 10)). 4 In the Pensions Act 2004, in section 18 (pension liberation: interpretation), in subsection (4)(a) (meaning of “authorised way”), omit “subsection (2) or, as the case may be, subsection (3) of”. 5 The consultation requirement in section 185(5A) of the Pension Schemes Act 1993 (inserted by subsection (2)) may be satisfied by things done before the day on which this Act is passed. Northern Ireland Restriction on transfers out of unfunded public service defined benefits schemes: Northern Ireland 71 1 The Pension Schemes (Northern Ireland) Act 1993 is amended as follows. 2 In section 91(2), after “occupational pension scheme” insert “ that is not an unfunded public service defined benefits scheme ” . 3 In section 91, after subsection (2) insert— 2A In the case of a member of an occupational pension scheme that is an unfunded public service defined benefits scheme, the ways referred to in subsection (1) are— a for acquiring transfer credits allowed under the rules of another occupational pension scheme if— i the benefits that may be provided under the other scheme by virtue of the transfer credits are not flexible benefits, ii the trustees or managers of the other scheme are able and willing to accept payment in respect of the member's transferrable rights, and iii the other scheme satisfies requirements prescribed in regulations made by the Department or the Department of Finance and Personnel; b for acquiring rights allowed under the rules of a personal pension scheme if— i the benefits that may be provided under the personal pension scheme by virtue of the acquired rights are not flexible benefits, ii the trustees or managers of the personal pension scheme are able and willing to accept payment in respect of the member's transferrable rights, and iii the personal pension scheme satisfies requirements prescribed in regulations made by the Department or the Department of Finance and Personnel; c for purchasing from one or more insurers such as are mentioned in section 15(4)(a), chosen by the member and willing to accept payment on account of the member from the trustees or managers, one or more annuities which satisfy requirements prescribed in regulations made by the Department or the Department of Finance and Personnel; d for subscribing to other pension arrangements which satisfy requirements prescribed in regulations made by the Department or the Department of Finance and Personnel. 2B The Department of Finance and Personnel may by regulations provide for sub-paragraph (i) of subsection (2A)(a) or (b) not to apply in specified circumstances or in relation to specified schemes or schemes of a specified description. 2C In subsections (2) and (2A) “ unfunded public service defined benefits scheme ” means a public service pension scheme that— a is a defined benefits scheme within the meaning given by section 34 of the Public Service Pensions Act (Northern Ireland) 2014, and b meets some or all of its liabilities otherwise than out of a fund accumulated for the purpose during the life of the scheme. 4 After section 91(5) insert— 5A Except in such circumstances as may be prescribed in regulations made by the Department or the Department of Finance and Personnel, subsection (2A) is to be construed as if paragraph (d) were omitted. 5 In section 91(6)— a after “subsections (2)” insert “ , (2A) ” ; b after “subsection (2)” insert “ or (2A) ” . 6 In section 92 (further provisions concerning exercise of option under section 91), in subsection (2)(b), after “subsection (2)” insert “ , subsection (2A) ” . 7 In section 96 (withdrawal of applications), in subsection (2), after “subsection (2)” insert “ , subsection (2A) ” . 8 The amendments made by this section have no effect in relation to an application made under section 91 of the Pension Schemes (Northern Ireland) Act 1993 before 6 April 2015. 9 Until the coming into force of the first regulations made under a provision of the Pension Schemes (Northern Ireland) Act 1993 specified in the first column of the table, regulations made under the provision of that Act specified in the corresponding entry in the second column apply (with any necessary modifications) for the purposes of the provision specified in the first column— New provision of Act Existing provision of Act Section 91(2A)(a)(iii) Section 91(2)(a)(ii) Section 91(2A)(b)(iii) Section 91(2)(b)(ii) Section 91(2A)(c) Section 91(2)(c) Section 91(2A)(d) Section 91(2)(d) Section 91(5A) Section 91(5)(a). Reduction of cash equivalents: funded public service defined benefits schemes: Northern Ireland 72 1 The Pension Schemes (Northern Ireland) Act 1993 is amended as follows. 2 In section 93 (calculation of cash equivalents), in subsection (1)— a after “verified” insert — a ; b at the end insert , and b where a designation has been made under section 93A, in accordance with regulations under section 93B. 3 After section 93 insert— Designation of funded public service defined benefits schemes 93A 1 The relevant Department may designate a funded public service defined benefits scheme as a scheme to which regulations under section 93B are to apply for a specified period of no more than 2 years. 2 The power under subsection (1) may be exercised only if the relevant Department considers that— a there is an increased likelihood of payments out of public funds, or increased payments out of public funds, having to be made into the scheme so that it can meet its liabilities, and b the increased likelihood is connected with the exercise or expected future exercise of rights to take a cash equivalent acquired under section 90. 3 The power under subsection (1) may be exercised in relation to the whole or any part of a scheme. 4 In the application of subsection (2) to part of a scheme, paragraph (a) is to be read as if it referred to the scheme's liabilities relating to that part. 5 A designation under subsection (1)— a may be extended (on more than one occasion) for a period of no more than 2 years; b may be revoked. 6 The relevant Department must give notice in writing of a designation or its extension or revocation to the trustees or managers of the scheme (except in a case where the relevant Department is the trustees or managers). 7 If the trustees or managers of a funded public service defined benefits scheme, or part of such a scheme, that is not designated under this section consider that the conditions in paragraphs (a) and (b) of subsection (2) are met in relation to the scheme or part they must notify— a the Department of Finance and Personnel, and b (where relevant) each Northern Ireland department by whom, or with whose approval, the scheme was established. 8 If the trustees or managers of a scheme, or part of a scheme, that is designated under this section consider that the conditions in paragraphs (a) and (b) of subsection (2) are no longer met in relation to the scheme or part they must notify— a the Department of Finance and Personnel, and b (where relevant) each Northern Ireland department by whom, or with whose approval, the scheme was established. 9 In this section— “ funded public service defined benefits scheme ” means a public service pension scheme that— is a defined benefits scheme within the meaning given by section 34 of the Public Service Pensions Act (Northern Ireland) 2014, and meets its liabilities out of a fund accumulated for the purpose during the life of the scheme; “ local authority ” means a district council constituted under section 1 of the Local Government Act (Northern Ireland) 1972; “ payment out of public funds ” means a payment provided directly or indirectly— out of the Northern Ireland Consolidated Fund, or by a local authority; “ the relevant Department ”, in relation to a funded public service defined benefits scheme, means either of the following— the Department of Finance and Personnel, or any Northern Ireland department by whom, or with whose approval, the scheme was established. 10 The Department of Finance and Personnel may by regulations make modifications of the definition of “the relevant Department” in subsection (9). 4 After section 93A (inserted by subsection (3)) insert— Reduction of cash equivalents in case of section 93A designated schemes 93B 1 The Department of Finance and Personnel may by regulations provide that where, under section 91(1), a member of a designated scheme requires the trustees or managers to use a cash equivalent for acquiring a right or entitlement to flexible benefits under the rules of another pension scheme the cash equivalent must be reduced by an amount determined in accordance with the regulations. 2 Regulations under subsection (1) may not require a reduction in cases where a scheme ceases to be a designated scheme before the date on which the trustees or managers do what is needed to carry out what the member requires. 3 Regulations under subsection (1) may produce the result (alone or in conjunction with regulations under section 93) that the amount by which a cash equivalent is to be reduced is such an amount that a member has no right to receive anything. 4 In subsection (1), “ designated scheme ” means a funded public service defined benefits scheme, or part of such a scheme, that (on the date of the application under section 91(1)) is designated under section 93A. Sections 71 and 72: consequential amendments 73 1 In the Pension Schemes (Northern Ireland) Act 1993, in section 176 (general interpretation), in subsection (1), in the definition of “regulations”, after “means” insert “ , unless the context otherwise requires, ” . 2 In that Act, in section 181 (Assembly etc control of regulations and orders)— a in subsection (2) (regulations and orders subject to confirmatory procedure), at the end insert “ and to regulations made by the Department of Finance and Personnel under section 93A(10) ” ; b in subsection (4) (regulations and orders subject to negative resolution), for “shall” substitute “ and regulations made by the Department of Finance and Personnel under section 91 or 93B shall ” . 3 In the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)), in Article 14 (pension liberation: interpretation), in paragraph (4)(a) (meaning of “authorised way”), omit “subsection (2) or, as the case may be, subsection (3) of”. CHAPTER 5 Interpretation of Part 4 Meaning of “flexible benefit” 74 In this Part “ flexible benefit ”, in relation to a member of a pension scheme or a survivor of a member, means— a a money purchase benefit, b a cash balance benefit, or c a benefit, other than a money purchase benefit or cash balance benefit, calculated by reference to an amount available for the provision of benefits to or in respect of the member (whether the amount so available is calculated by reference to payments made by the member or any other person in respect of the member or any other factor). Meaning of “cash balance benefit” 75 1 In this Part “ cash balance benefit ”, in relation to a member of a pension scheme or a survivor of a member, means a benefit calculated by reference to an amount available for the provision of benefits to or in respect of the member (“the available amount”) where there is a promise about that amount. 2 But a benefit is not a “cash balance benefit” if, under the scheme— a a pension may be provided from the available amount to or in respect of the member, and b there is a promise about the rate of that pension. 3 The promise mentioned in subsection (1) includes, in particular, a promise about the change in the value of, or the return from, payments made by the member or any other person in respect of the member. 4 The promise mentioned in subsection (2)(b) includes a promise that— a the available amount will be sufficient to provide a pension of a particular rate; b the rate of a pension will represent a particular proportion of the available amount. 5 A benefit is not excluded from the definition of “cash balance benefit” by subsection (2) merely because under the scheme there is a promise that— a the rate or amount of the benefit payable in respect of a deceased member will be a particular proportion of the rate or amount of the benefit which was (or would have been) payable to the member, or b the amount of a lump sum payable to a member, or in respect of a deceased member, will represent a particular proportion of the available amount. Interpretation of Part 4 76 UK definitions 1 In this Part— “ cash balance benefit ” has the meaning given by section 75; “dependants' drawdown pension”, in relation to a survivor, has the meaning given by paragraph 18 of Schedule 28 to the Finance Act 2004; “ drawdown pension ”, in relation to a member, has the meaning given by paragraph 4 of Schedule 28 to the Finance Act 2004; “ flexible benefit ” has the meaning given by section 74; “nominees' drawdown pension”, in relation to a survivor, has the meaning given by paragraph 27B of Schedule 28 to the Finance Act 2004; “ normal pension age ”, in relation to a benefit for a member of a pension scheme or a survivor of a member, means— the earliest age at which, or earliest occasion on which, the member or survivor is entitled to receive the benefit without adjustment for taking it early or late (disregarding any special provision as to early payment on the grounds of ill health or otherwise), or if there is no such age or occasion, normal minimum pension age as defined by section 279(1) of the Finance Act 2004; “subsisting right”— in relation to a member of a pension scheme means— any right which has accrued to or in respect of the member to future benefits under the scheme, or any entitlement to benefits under the scheme, in relation to a survivor of a member of a pension scheme, means any right to future benefits, or entitlement to benefits, which the survivor has under the scheme in respect of the member; “successors' drawdown pension”, in relation to a survivor, has the meaning given by paragraph 27G of Schedule 28 to the Finance Act 2004; “ survivor ”, in relation to a member of a pension scheme, means a person who has survived the member and has a right to future benefits, or is entitled to benefits, under the scheme in respect of the member; “ trustees or managers ” means— in relation to a scheme established under a trust, the trustees, and in relation to any other scheme, the managers; “ uncrystallised funds pension lump sum ” has the meaning given by paragraph 4A of Schedule 29 to the Finance Act 2004. Great Britain only definitions 2 In any provision of this Part as it extends to England and Wales and Scotland— “ money purchase benefits ” has the meaning given by section 181 of the Pension Schemes Act 1993; “ occupational pension scheme ” has the meaning given by section 1 of the Pension Schemes Act 1993; “ pension scheme ” has the meaning given by section 1(5) of the Pension Schemes Act 1993. Northern Ireland only definitions 3 In any provision of this Part as it extends to Northern Ireland— “ money purchase benefits ” has the meaning given by section 176 of the Pension Schemes (Northern Ireland) Act 1993; “ occupational pension scheme ” has the meaning given by section 1 of the Pension Schemes (Northern Ireland) Act 1993; “ pension scheme ” has the meaning given by section 1(5) of the Pension Schemes (Northern Ireland) Act 1993. PART 5 Miscellaneous Remploy Payments into Remploy Limited Pension and Assurance Scheme 77 The Secretary of State may make payments into the Remploy Limited Pension and Assurance Scheme. Judicial and public service pensions Pension scheme for fee-paid judges 78 1 In the Judicial Pensions and Retirement Act 1993, after Part 1 insert— PART 1A FEE-PAID JUDGES Pension scheme for fee-paid judges 18A 1 The appropriate Minister may by regulations establish a scheme for the payment of pensions and other benefits to or in respect of fee-paid judges. 2 The scheme may make provision for payments to or in respect of a person in relation to the person's service before the scheme is established. 3 No benefits are to be provided under a new public service pension scheme in relation to service in relation to which benefits are to be provided under a scheme under this section. “ New public service pension scheme ” means a scheme under— a section 1 of the Public Service Pensions Act 2013, or b section 1 of the Public Service Pensions Act (Northern Ireland) 2014 (c. 2). 4 The power under section 18(5) of the Public Service Pensions Act 2013 is to include power to provide for exceptions in the case of a person who— a served as a fee-paid judge before 1 April 2012, and b has been notified by the appropriate Minister that he or she will potentially be eligible for benefits under a scheme under this section in relation to that service, (and section 18(6) to (8) of the 2013 Act apply accordingly). 5 The power under section 18(5) of the Public Service Pensions Act (Northern Ireland) 2014 is to include power to provide for exceptions in the case of a person who— a served as a fee-paid judge before 1 April 2012, and b has been notified by the appropriate Minister that he or she will potentially be eligible for benefits under a scheme under this section in relation to that service, (and section 18(7) to (9) of the 2014 Act apply accordingly). 6 Regulations under this section may, in particular, include provision corresponding or similar to— a any provision made by Part 1, section 20 or Schedule 2 or 2A; b any provision that may be made by regulations under Part 1, section 20 or Schedule 2 or 2A. 7 In this section— “ judge ” means a person who holds an office specified in the regulations; “ fee-paid judge ” means a judge whose service is remunerated by the payment of fees (as opposed to the payment of a salary). 2 Schedule 5 contains related amendments. Judicial pensions: pension sharing on divorce etc 79 In paragraph 1(5) of Schedule 2A to the Judicial Pensions and Retirement Act 1993 (pension credits), for the words from “in respect of the office” to the end substitute “ in respect of the rights from which the pension credit is derived ” . Public service pension schemes 80 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Marriage of same sex couples Extension to Scotland of certain provisions about marriage of same sex couples 81 Sections 17(11), 24D(5), 37(7) and 38A of the Pension Schemes Act 1993 (regulations about relevant gender change cases) extend to Scotland. Pension sharing Pension sharing and normal benefit age 82 1 The Pension Schemes Act 1993 is amended as follows. 2 In section 101B (interpretation), for the definition of “normal benefit age” substitute— “ normal benefit age ”, in relation to a pension credit benefit for a member of a scheme, is the earliest age at which the member is entitled to receive the benefit without adjustment for taking it early or late (disregarding any special provision as to early payment on the grounds of ill-health or otherwise); “ normal pension age ”, in relation to a benefit for a member of a scheme, means the earliest age at which the member is entitled to receive the benefit without adjustment for taking it early or late (disregarding any special provision as to early payment on the grounds of ill-health or otherwise). 3 In section 101C (basic principle as to pension credit benefit), for subsection (1) substitute— 1 The normal benefit age in relation to a pension credit benefit for a member of a scheme— a must not be lower than 60, and b must not be higher than the permitted maximum. 1A The “permitted maximum” is 65 or, if higher, the highest normal pension age for any benefit that is payable under the scheme to or in respect of any of the members by virtue of rights which are not attributable (directly or indirectly) to a pension credit. PART 6 General Power to make consequential amendments 83 1 The appropriate national authority may by regulations make provision that is consequential on any provision made by this Act. 2 Regulations under this section may amend, repeal, revoke or otherwise modify any primary or subordinate legislation (whenever passed or made). 3 In this section— “ appropriate national authority ” means— in relation to provision which could be made by an Act of the Northern Ireland Assembly without the consent of the Secretary of State (see sections 6 to 8 of the Northern Ireland Act 1998), the Department for Social Development in Northern Ireland, and in relation to any other provision, the Secretary of State or the Treasury; “ primary legislation ” means— an Act; Northern Ireland legislation; “ subordinate legislation ” means— subordinate legislation as defined by section 21(1) of the Interpretation Act 1978; an instrument made under Northern Ireland legislation. Regulations 84 1 Regulations made by the Secretary of State or the Treasury under this Act are to be made by statutory instrument. 2 A statutory instrument containing— a the first regulations under section 8(3)(b), 9, 10, 11 or 21, b regulations under section 48(3)(b), or c regulations under section 83 that amend, repeal or otherwise modify a provision of primary legislation, (whether alone or with other provision) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament. 3 Any other statutory instrument containing regulations under this Act is subject to annulment in pursuance of a resolution of either House of Parliament. 4 Subsection (3) does not apply to a statutory instrument containing regulations under section 89(4) or (6) only. Regulations: Northern Ireland 85 1 A power of the Department for Social Development in Northern Ireland to make regulations under this Act is exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)). 2 Subsection (3) applies where regulations made by the Department for Social Development in Northern Ireland contain— a provision made under section 51(3)(b), or b provision made under section 83 that amends, repeals, revokes or otherwise modifies a provision of primary legislation, (whether alone or with other provision). 3 Where this subsection applies, the regulations— a must be laid before the Northern Ireland Assembly after being made; b take effect on such date as may be specified in the regulations but (without prejudice to the validity of anything done under them or to the making of new regulations) cease to have effect on the expiry of a period of 6 months from that date unless at some time before the expiry of that period the regulations are approved by a resolution of the Northern Ireland Assembly. 4 Any other regulations made by the Department for Social Development in Northern Ireland under this Act are subject to negative resolution within the meaning of section 41(6) of the Interpretation Act (Northern Ireland) 1954 (c. 33 (N.I.)). 5 Subsection (4) does not apply to regulations containing provision under section 89(6) only. Regulations: supplementary 86 1 A power to make regulations under this Act may be used— a to make different provision for different purposes; b in relation to all or only some of the purposes for which it may be used. 2 Regulations under this Act may include incidental, supplementary, consequential, transitional, transitory or saving provision. Crown application 87 1 In this section “ the relevant provisions ” means— a Part 2, b section 36, c section 37, d in Chapter 2 of Part 4, sections 48, 49, 51 and 52, and e in Chapter 3 of Part 4, sections 55 to 57 and 61 to 63. 2 The relevant provisions apply to a pension scheme managed by or on behalf of the Crown as they apply to other pension schemes. 3 Accordingly, references in those provisions to a person in the person's capacity as a trustee or manager of a pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity. 4 References in the relevant provisions to a person in the person's capacity as an employer include the Crown, or a person acting on behalf of the Crown, in that capacity. 5 Nothing in the relevant provisions applies to Her Majesty in Her private capacity (within the meaning of the Crown Proceedings Act 1947). Extent 88 1 This Act extends to England and Wales and Scotland only, subject to the following provisions of this section. 2 Any amendment or repeal made by this Act has the same extent as the enactment to which it relates. 3 Section 81 extends to Scotland only. 4 The following extend also to Northern Ireland— a section 54(3); b Chapter 5 of Part 4; c this Part. 5 The following extend to Northern Ireland only— a in Chapter 2 of Part 4, sections 51 and 52; b in Chapter 3 of Part 4, sections 61 to 63; c section 71(8) and (9). Commencement 89 1 The following come into force on the day on which this Act is passed— a section 47 and Schedule 3; b any other provision of Part 4 so far as is necessary for enabling the exercise on or after the day on which this Act is passed of any power to make provision by regulations; c sections 78 and 79 and Schedule 5; d section 80; e this Part. 2 Section 82 comes into force on 1 April 2015. 3 The following come into force on 6 April 2015— a paragraphs 24, 30, 33 and 36 of Schedule 2 (and section 46 so far as relating to those provisions); b Part 4, so far as not already in force. 4 The following come into force on such day or days as may be appointed by regulations made by the Secretary of State— a Parts 1 to 3 other than paragraphs 24, 30, 33 and 36 of Schedule 2 (and section 46 so far as relating to those provisions); b sections 77 and 81. 5 Regulations under subsection (4) may appoint different days for different purposes. 6 The Secretary of State or the Department for Social Development in Northern Ireland may by regulations make transitional, transitory or saving provision in connection with the coming into force of any provision of this Act. Short title 90 This Act may be cited as the Pension Schemes Act 2015.