Legislation – Public Service Pensions and Judicial Offices Act 2022

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Introduction

PART 1
Public service pension schemes

CHAPTER 1 Schemes other than judicial schemes and local government schemes

Remediable service

1 Meaning of “remediable service”

Retrospective provision about remediable service

2 Remediable service treated as pensionable under Chapter 1 legacy schemes

3 Benefits already paid

4 Meaning of “the relevant Chapter 1 legacy scheme” etc

5 Election for retrospective provision to apply to opted-out service

Pensioner and deceased members: immediate choice of new scheme benefits

6 Immediate choice to receive new scheme benefits

7 Elections by virtue of section 6: timing and procedure

8 Power to deem election by virtue of section 6 to have been made

9 Persons with remediable service in more than one Chapter 1 legacy scheme

Active and deferred members: deferred choice of new scheme benefits

10 Deferred choice to receive new scheme benefits

11 Elections by virtue of section 10: timing and procedure

12 Power to deem election by virtue of section 10 to have been made

13 Persons with remediable service in more than one Chapter 1 legacy scheme

Pension benefits and contributions: corrections

14 Pension benefits and lump sum benefits: pensioner and deceased members

15 Pension contributions: pensioner and deceased members

16 Pension contributions: active and deferred members (immediate correction)

17 Pension contributions: active and deferred members (deferred correction)

18 Powers to reduce or waive liabilities

Powers to make provision in relation to special cases

19 Pension credit members

20 Voluntary contributions

21 Transfers

22 Further powers to make provision about special cases

Compensation

23 Power to pay compensation

24 Indirect compensation

25 Remedial arrangements to pay voluntary contributions to legacy schemes

Further provision about corrections, special cases and compensation

26 Interest and process

27 Treasury directions

Miscellaneous

28 Scheme rules that prohibit unauthorised payments

29 Remediable service statements

30 Section 61 of the Equality Act 2010 etc

Immediate detriment cases

31 Application of Chapter to immediate detriment cases

32 Whether an “immediate detriment remedy” has been obtained

Interpretation

33 Meaning of “Chapter 1 scheme” etc

34 Meaning of “new scheme benefits”

35 Meaning of “legacy scheme contributions” and “new scheme contributions”

36 Meaning of “opted-out service”

37 Scheme regulations

38 Interpretation of Chapter

CHAPTER 2 Judicial schemes

Remediable service

39 Meaning of “remediable service”

Options exercise

40 Legacy scheme elections

41 Partnership pension account: requirement to transfer and surrender rights

42 Legacy scheme elections: effect

43 Meaning of “the relevant judicial legacy salaried scheme”

44 2015 scheme elections

45 2015 scheme elections: effect

46 Person by whom election is to be made

Options exercise: further provision

47 Cases in which 2015 scheme election treated as made

48 Benefits for children where election made

49 Effect of elections on benefits previously paid or payable

50 Effect of elections on pension contributions previously paid or payable

Pension benefits and contributions: corrections

51 Pension benefits and lump sums benefits

52 Pension contributions

53 Effective pension age payments

54 Transitional protection allowance

55 Power to reduce benefits in lieu of paying liabilities owed to scheme

56 Powers to reduce or waive liabilities

Powers to make provision in relation to special cases

57 Pension credit members

58 Further powers to make provision about special cases

Compensation

59 Power to pay compensation

60 Remedial arrangements to pay voluntary contributions to judicial schemes

Further provision about corrections, special cases and compensation

61 Interest and process

62 Treasury directions

Miscellaneous

63 Scheme rules that prohibit unauthorised payments

64 Information statements

65 Power to delegate

66 Section 61 of the Equality Act 2010 etc

Immediate detriment cases

67 Application of Chapter to immediate detriment cases

68 Whether an “immediate detriment remedy” has been obtained

Interpretation

69 Meaning of “the election period”

70 Meaning of “a judicial scheme” etc

71 Meaning of “judicial office” etc

72 Meaning of “the relevant authority”

73 Meaning of “opted-out service” and “PPA opted-out service”

74 Scheme regulations

75 Interpretation of Chapter

76 Modifications of Chapter in relation to fee-paid judicial offices

CHAPTER 3 Local government schemes

Remediable service

77 Meaning of “remediable service”

Power to pay final salary benefits

78 Power to pay final salary benefits

79 Section 78: transitional provision

Power to make provision in relation to special cases

80 Pension credit members

81 Further powers to make provision about special cases

Compensation

82 Power to pay compensation

83 Indirect compensation

Further provision about final salary benefits, special cases and compensation

84 Interest and process

85 Treasury directions

Interpretation

86 Meaning of “local government scheme” etc

87 Interpretation of Chapter

CHAPTER 4 General

Restriction of schemes from 31 March 2022

88 Restriction of existing schemes

89 Restriction of existing schemes: savings and transitional provision

90 Restriction of other schemes

91 Prohibition of new arrangements to pay voluntary contributions

Employer cost cap

92 Amendments relating to employer cost cap

93 Operation of employer cost cap in relation to 2016/17 valuation

Other amendments of PSPA 2013 and PSPA(NI) 2014

94 Amendments relating to scheme regulations

95 Amendments relating to the establishment or restriction of schemes

96 Amendments relating to the Secret Intelligence Service etc

97 Amendments relating to the judiciary

98 Amendments relating to non-scheme benefits

99 Amendments relating to pension schemes for members of the Senedd

100 Guidance to public service pension scheme managers on investment decisions

Miscellaneous

101 Power of Treasury to make scheme for compensation

102 Power of Department of Finance to make scheme for compensation

103 Power to make provision in relation to certain fee-paid judges

104 HMRC information-sharing and other functions relating to compensation etc

105 Section 91 of Pensions Act 1995 and section 356 of Armed Forces Act 2006

106 Minor amendment

107 Parliamentary procedure for judicial schemes: transitory provision

108 Power to make consequential provision

Interpretation of Part

109 Meaning of “member” etc

110 Interpretation of Part

PART 2
Pensions and Banking (Special Provisions) Act 2008 Bodies

111 Establishment of new public schemes and transfer of rights

112 New public schemes: further provision

113 Protection against adverse treatment: transfer of rights

114 Protection against adverse treatment: amendment of new public schemes

115 Transfer of assets and liabilities

116 Transfer of other pensions and benefits

117 Taxation

118 Information

119 Regulations

120 Interpretation

PART 3
Judicial offices

121 Retirement date for holders of judicial offices etc

122 Allowances for judicial office holders

123 Sitting in retirement offices

124 Appointment to sitting in retirement offices

125 Appointment to sitting in retirement offices: further provision

126 Discipline and removal from office

127 Power to add new offices

128 Consequential etc provision

PART 4
General

129 Regulations and directions

130 Extent

131 Commencement

132 Short title

SCHEDULES

SCHEDULE 1 Retirement date for holders of judicial offices etc

SCHEDULE 2 Allowances payable to judicial office holders

SCHEDULE 3 Judicial offices

SCHEDULE 4 Consequential etc amendments in connection with Part 3

PART 1Public service pension schemes

CHAPTER 1Schemes other than judicial schemes and local government schemes

Retrospective provision about remediable service

2Remediable service treated as pensionable under Chapter 1 legacy schemes

(1)

A person’s remediable service in an employment or office that would, apart from this subsection, be pensionable service under a Chapter 1 new scheme—

(a)

is not, and is treated as never having been, pensionable service under that scheme, and

(b)

is treated as being, and as always having been, pensionable service under the relevant Chapter 1 legacy scheme.

For the meaning of “the relevant Chapter 1 legacy scheme”, see section 4.

(2)

Where a person has remediable service in multiple employments or offices, subsection (1) applies separately in relation to the person’s remediable service in each of them.

(3)

Subsection (1) has effect—

(a)

for the purposes of determining which Chapter 1 scheme is (or at any time was) required to pay benefits to or in respect of a member,

(b)

for the purposes of determining the amount of any benefits that are (or at any time were) payable under a Chapter 1 scheme to or in respect of a member, and

(c)

subject to subsection (4), and to any other provision of this Chapter to the contrary, for all other purposes.

(4)

Subsection (1) does not have effect for the purposes of determining the existence or amount of any liability that any member of a Chapter 1 scheme, or any employer in relation to such a scheme, has (or at any time had) to pay pension contributions in respect of a person’s remediable service.

(5)

Subsection (1) does not affect—

(a)

any arrangements under a Chapter 1 scheme under which a member pays contributions to the scheme on a voluntary basis so as to secure additional benefits, or the earlier payment of benefits, under the scheme, or

(b)

any rights under a Chapter 1 scheme in respect of a transfer in to the scheme of an amount in respect of rights accrued under another pension scheme.

(6)

For provision disapplying subsection (3)(b), or affecting the time at which that provision applies, in relation to pensioner and deceased members, see section 6 (immediate choice to receive new scheme benefits).

(7)

For further provision under which benefits determined by reference to a member’s remediable service may be new scheme benefits, see section 10 (deferred choice to receive new scheme benefits).

3Benefits already paid

(1)

Subsection (2) applies in relation to any benefits (“the paid benefits”) that a Chapter 1 new scheme has at any time paid to a person (“P”) so far as—

(a)

they are calculated by reference to P’s, or any other person’s, remediable service in an employment or office, and

(b)

they are benefits that, as a result of section 2(1)(a), P was not entitled to receive from the scheme.

(2)

The paid benefits are to be treated for all purposes—

(a)

as not having been paid to P by the Chapter 1 new scheme, but

(b)

as having been paid to P instead by the relevant Chapter 1 legacy scheme.

4Meaning of “the relevant Chapter 1 legacy scheme” etc

(1)

In this Chapter “the relevant Chapter 1 legacy scheme”, in relation to a person’s remediable service in an employment or office, means the Chapter 1 legacy scheme for people in that employment, or holders of that office, under which (disregarding section 2(1)) the person most recently accrued pensionable service.

This is subject to subsections (2) to (8).

(2)

In a case in which—

(a)

on or before the closing date, the person opted that their service in the employment or office in question should no longer be pensionable service under the Chapter 1 legacy scheme mentioned in subsection (1),

(b)

on the closing date, the rules of that scheme prohibited a person from becoming an active member of the scheme, and

(c)

on that date, the rules of another Chapter 1 legacy scheme for people in the employment, or holders of the office, in question did not include such a prohibition,

the relevant Chapter 1 legacy scheme”, in relation to the person’s remediable service in the employment or office, means the Chapter 1 legacy scheme mentioned in paragraph (c).

(3)

In a case in which—

(a)

at any time after the closing date, the person—

(i)

opted that their service in the employment or office in question should no longer be pensionable service under a Chapter 1 scheme, or

(ii)

ceased to be in service in the employment or office in question,

(b)

at any later time before 1 April 2022, the person—

(i)

opted that their service in the employment or office in question should again be pensionable service under a Chapter 1 scheme, or

(ii)

resumed service in the employment or office in question,

(c)

at that time, the rules of the Chapter 1 legacy scheme mentioned in subsection (1) prohibited a person from becoming an active member of the scheme, and

(d)

at that time, the rules of another Chapter 1 legacy scheme for people in the employment, or holders of the office, in question did not include such a prohibition,

the relevant Chapter 1 legacy scheme”, in relation to the person’s remediable service in the employment or office that takes place after the time mentioned in paragraph (b), means the Chapter 1 legacy scheme mentioned in paragraph (d).

(4)

In a case in which any of the person’s remediable service in the employment or office in question is excess teacher service, “the relevant Chapter 1 legacy scheme”, in relation to so much of the person’s remediable service as is excess teacher service, means the local government new scheme mentioned in section 110(2).

(5)

Subsection (6) applies in a case in which—

(a)

the person never accrued pensionable service as mentioned in subsection (1), or

(b)

paragraphs (a) and (b) of subsection (2) apply, but no Chapter 1 legacy scheme falls within paragraph (c) of that subsection.

(6)

Where this subsection applies, “the relevant Chapter 1 legacy scheme”, in relation to the person’s remediable service in the employment or office, means the Chapter 1 legacy scheme for people in the employment, or holders of the office, in question that the person would have been eligible to join on 31 March 2012 if, on that date, the person—

(a)

had been in that employment or a holder of that office, and

(b)

had met all other conditions as to eligibility (if any).

(7)

Subsection (8) applies in a case in which paragraphs (a) to (c) of subsection (3) apply, but no Chapter 1 legacy scheme falls within paragraph (d) of that subsection.

(8)

Where this subsection applies, “the relevant Chapter 1 legacy scheme”, in relation to the person’s remediable service in the employment or office that takes place after the time mentioned in subsection (3)(b), means the Chapter 1 legacy scheme for people in the employment, or holders of the office, in question that the person would have been eligible to join on 31 March 2012 if, on that date, the person—

(a)

had been in that employment or a holder of that office, and

(b)

had met all other conditions as to eligibility (if any).

(9)

Remediable service that is treated under section 2(1) as pensionable service under a Chapter 1 legacy scheme is, if the scheme has different sections or otherwise makes different provision in relation to different people, treated as pensionable service under—

(a)

the section or provision of the scheme under which the person most recently accrued pensionable service (disregarding section 2(1)), or

(b)

if the person has not (disregarding section 2(1)) accrued pensionable service under the scheme, the section or provision under which the person would have accrued service if on 31 March 2012 the person had been in service in the employment or in the office in question, and had joined the scheme on that date.

5Election for retrospective provision to apply to opted-out service

(1)

Scheme regulations for a Chapter 1 legacy scheme must make provision so as to secure that an election may be made in relation to relevant opted-out service in an employment or office.

(2)

Where an election by virtue of this section is made in relation to relevant opted-out service in an employment or office—

(a)

the second condition in section 1 is treated as met in relation to the service (so that the service becomes “remediable service”), and

(b)

section 2(1)(b) applies to the service (so that the service is treated as pensionable service under the relevant Chapter 1 legacy scheme).

(3)

An election by virtue of this section—

(a)

must be made before the end of the election period,

(b)

takes effect when it is made, and

(c)

is irrevocable.

(4)

In subsection (3)the end of the election period” means—

(a)

the end of the period of one year beginning with the day on which a remediable service statement is first provided in respect of the member, or

(b)

such later time as the scheme manager considers reasonable in all the circumstances.

(5)

Scheme regulations made by virtue of subsection (1) may, in particular, include provision—

(a)

under which an election may be made in relation to a person’s relevant opted-out service only on the making of an application by or on behalf of the person;

(b)

under which an application by virtue of paragraph (a) may be refused unless a condition specified in the regulations is met;

(c)

requiring information to be provided before an election is made;

(d)

about the form and manner in which an election is to be made;

(e)

about who may make an election in relation to the service of a deceased member.

(6)

The conditions that may be specified by virtue of subsection (5)(b) include in particular—

(a)

a condition relating to the reason why the person opted that the service to which the application relates should not be pensionable service (or did not opt that it should be pensionable service) under a Chapter 1 scheme;

(b)

a condition requiring—

(i)

the transfer to the scheme of any assets and liabilities held for the purposes of a partnership pension account that are referable to pension contributions made by or on behalf of the person in respect of the person’s relevant opted-out service, and

(ii)

the surrender of any entitlement to a pension under the scheme, and any right to a future pension under the scheme, that would otherwise arise under the rules of the scheme in respect of the value of the assets and liabilities transferred;

(c)

in cases in which any assets and liabilities that are referable to pension contributions made by or on behalf of the person have been transferred out of a partnership pension account, a condition requiring the payment to the scheme of an amount in respect of the transfer.

(7)

For the purposes of this section a person’s opted-out service is “relevant” in relation to a Chapter 1 legacy scheme if the scheme is the relevant Chapter 1 legacy scheme (within the meaning given by section 4) in relation to that service (reading any reference in that provision to remediable service as a reference to opted-out service).