Pensions
Amendments made: No. 106, in page 165, line 20, at end insert:
'Payments in final discharge of liabilities under s.52(1) of the Transport Act 1980
7A.—(1) In section 52 of the Transport Act 1980, in subsection (1) (which requires the Secretary of State to make payments each year to B.R. pension schemes in respect of unfunded pension obligations owed by the Board), after the words "Subject to the provisions of this section" there shall be inserted the words ", section 52A" and after that section there shall be inserted—
"Power to make payments by way of final discharge of
liabilities under s.52(1).
52A.—(1) If the Minister is desirous of making to the persons administering a B.R. pension scheme one or more payments by way of final discharge of his liability to make payments to them under section 52(1) in respect of the proportion which has not been funded, as determined for the purposes of section 52(1)(a), of so much of any relevant pension obligations as are owed in respect of —
he may give to the persons administering the scheme a notice identifying the pension rights in question and specifying in relation to those pension rights the matters set out in subsection (2), as determined in accordance with the following provisions of this section.
(2) The matters mentioned in subsection (1) are—
(3) In making any determination for the purposes of paragraph (b) of subsection (2), the amount or, as the case may be, the aggregate of the amounts mentioned in that paragraph shall be such as to include—
(4) For the purposes of this section, the capital value mentioned in paragraph (a) of subsection (2) shall either—
and it shall be for the Minister to determine the matters mentioned in paragraphs (b) and (c) of that subsection.
(5) Notice under subsection (1) above shall only he given after consultation—
and any such notice must be given not less than one month before the beginning of the financial year mentioned in subsection (2)(a).
(6) The giving of a notice under subsection (1) shall—
(7) Where notice has been given under subsection (1), the Minister may—
amend that notice by giving notice of the amendment to the persons administering the scheme.
(8) If notice is given under subsection (7) of an amendment affecting the amount of a payment which has been made pursuant to this section, the Minister may also give notice to the persons administering the scheme in question requiring them—
and where notice is given under paragraph (a) or (b), the amount required to be repaid or, as the case may he, the amount of interest required to be paid from time to time, shall be treated as a debt due from those persons to the Minister.
(9) Nothing in this section affects the liability of the Board in respect of any relevant pension obligations, but where any liability of the Minister to make payments under section 52(1) has been terminated by virtue of paragraph (a) of subsection (6), the amount of any payments required to be made by the Minister under section 52(1) shall be determined for each of the financial years mentioned in that paragraph as if the Board's liability in respect of the attributable unfunded obligations mentioned in that paragraph had been discharged.
(10) In this section
"attributable unfunded obligations" means the proportion which has not been funded, as determined for the purposes of section 52(1)(a), of so much of the relevant pension obligations mentioned in subsection (1) as are owed in respect of the pension rights identified pursuant to that subsection;
"capital value", in relation to any attributable unfunded obligations, means the capital equivalent, actuarially determined, of the payments that would, apart from this section, have been expected to be made by the Minister under section 52(1) in respect of those attributable unfunded obligations for the successive financial years beginning with the one mentioned in subsection (2)(a).
(11) Any sums required for the making of payments under this section by the Minister shall be paid out of money provided by Parliament."
(2) In section 70 of that Act, in subsection (2), (interpretation) for the definition of "the Minister" there shall be substituted—
""the Minister" means the Secretary of State;"
Application And Modification Of Part Iii Of The 1980 Act
7B.—(1) The Secretary of State may by order designate—
as a pension scheme which is to be treated as included among those schemes for the purpose of requiring or enabling him to make to the persons administering the scheme payments under section 52(1) or 52A of that Act in respect of qualifying pension rights transferred (whether under paragraph 4 above or otherwise) so as to become pension rights under that scheme.
(2) An order under sub-paragraph (1) above may make provision, in any case where qualifying pension rights of any persons are transferred as mentioned in that sub-paragraph, for treating those persons as constituting a section of the occupational pension scheme to which those qualifying pension rights are so transferred.
(3) No order shall be made under sub-paragraph (1) above except after consultation with the trustees of the occupational pension scheme to which the qualifying pension rights are transferred.
(4) Subject to the following provisions of this paragraph, Part III of the 1980 Act shall have effect as if any reference in that Part to a B.R. pension scheme included a reference to a designated scheme.
(5) Where qualifying pension rights are transferred to a designated scheme as mentioned in sub-paragraph (1) above, the proportion referred to in section 52(1)(a) of the 1980 Act in its application by virtue of this paragraph in relation to the designated scheme shall, instead of being determined under section 54 of that Act, be taken to be the proportion which has been determined under that section in relation to the B.R. pension scheme from which the qualifying pension rights are transferred; and references in Part III of that Act to that proportion shall be construed accordingly.
(6) In the application of Part III of the 1980 Act in relation to a designated scheme, references in that Part to "the relevant pension obligations" shall, in relation to the designated scheme, be construed—
(7) In the application of section 55 of the 1980 Act in relation to a designated scheme, paragraph (a) of subsection (1) (which requires the proportion of the scheme's outgoings which corresponds to the relevant pension obligations to be determined before the beginning of each financial year or, in the case of the first financial year, as soon as practicable after
the passing of that Act) shall be taken to require the proportion mentioned in that paragraph to be determined—
and paragraph (b) of that subsection shall be construed accordingly.
(8) The power to give a direction under section 57 of the 1980 Act (which provides for certain determinations to be made as if no transfer had taken place) shall be exercisable in any case where the whole or any part of a person's accrued pension rights under a B.R. pension scheme or a designated scheme are transferred (whether under paragraph 4 above or otherwise) to—
as it is in the case of any such transfer as is mentioned in that section.
(9) Without prejudice to section 59(1) of the 1980 Act (which provides that the making of payments under section 52(1) does not discharge certain relevant pension obligations), the making of any payment under section 52(1) of the 1980 Act to the persons administering a designated scheme shall not discharge any relevant pension obligation, so far as it is an obligation to pay pensions or increases of pensions under that or any other designated scheme, or under a B.R. pension scheme, or is an obligation to secure the payment of those pensions or increases.
(10) Without prejudice to section 59(2) of the 1980 Act (power to amend pension scheme for certain purposes), if the persons administering an occupational pension scheme would not otherwise have power to do so, they may amend the scheme by instrument in writing for the purpose of enabling persons to be admitted as members of the scheme on the basis that payments will fall to be made under Part III of the 1980 Act in respect of qualifying pension rights of theirs which are transferred so as to become pension rights under the scheme.
(11) Where the persons administering an occupational scheme have power, apart from sub-paragraph (10) above, to amend the scheme for the purpose mentioned in that sub-paragraph, they may exercise that power for that purpose without regard to any limitations on the exercise of the power and without compliance with any procedural provisions applicable to its exercise.
(12) Any reference in Part III of the 1980 Act to a "financial year" shall, in relation to a designated scheme, be taken as a reference—
(13) Where any provision of Part III of the 1980 Act requires anything to be done in, or in relation to, the first financial year of a B.R. pension scheme, that provision shall (so far as so requiring) be disregarded in the application of that Part in relation to a designated scheme.
(14) In any case where—
(15) Where the benefit of any relevant pension obligations is transferred by virtue of sub-paragraph (14) above, the persons administering the pension scheme to which the benefit of those obligations is transferred shall have, in relation to the relevant pension obligations the benefit of which is so transferred, all the rights of the persons administering the pension scheme from which the benefit of those obligations is transferred.
(16) In this paragraph—
"the 1980 Act" means the Transport Act 1980;
"designated scheme" means an occupational pension scheme or, as the case may be, a section of any such scheme, which is designated under sub-paragraph (1) above;
"pension scheme" includes a section of a pension scheme;
"qualifying pension rights" means any pension rights as respects the whole or some part of which there are subsisting relevant pension obligations a proportion of which, as determined for the purposes of section 52(1)(a) of the 1980 Act, has not been funded;
and, subject to that, expressions used in this paragraph and in Part III of the 1980 Act have the same meaning in this paragraph as they have in that Part.'.
No. 107, in page 165, line 29, leave out sub-paragraph (2).— [Mr. MacGregor]