Statutory Instruments
1997 No. 664 (C. 23)

PENSIONS
The Pensions Act 1995 (Commencement No. 10) Order 1997

Made
6th March 1997

The Secretary of State for Social Security, in exercise of the powers conferred on him by section 180(1) and (4) of the Pensions Act 1995(1) and of all other powers enabling him in that behalf, hereby makes the following Order:

Citation, interpretation and appointed days

Citation and interpretation

1.—(1) This Order may be cited as the Pensions Act 1995 (Commencement No. 10) Order 1997.

(2) In this Order—

“the 1993 Act” means the Pension Schemes Act 1993(2);

“the 1995 Act” means the Pensions Act 1995;

“the Authority” means the Occupational Pensions Regulatory Authority(3); and

“the Board” means the Occupational Pensions Board(4).

Appointed days

2.—(1) For the purposes of making regulations relating to the compensation provisions(5) the day appointed for the coming into force of section 81(7) of the 1995 Act is the day on which this Order is made.

(2) The day appointed for the coming into force of the provisions specified in Part I of the Schedule to this Order, insofar as they are not already in force, is 1st April 1997.

(3) The day appointed for the coming into force of the provisions specified in Part II of the Schedule to this Order, insofar as they are not already in force, is 6th April 1997.

Transitional adaptations, modifications and savings

Revaluation of earnings factors: early leavers

3.  Section 16(3) of the 1993 Act (revaluation of earnings factors: early leavers) shall continue to have effect as if this Order had not come into force in relation to an earner whose service in contracted-out employment in relation to the scheme in question has terminated before the principal appointed day(6).

Termination of contracted-out or appropriate scheme status and state scheme premiums

4.—(1) Any function of the Board under section 50 of the 1993 Act (powers of Board to approve arrangements for scheme ceasing to be certified) which fell to be exercised before the principal appointed day but has not been exercised may be exercised by the Secretary of State and, for the purposes of determining the date on which any state scheme premium has become payable, any certificate issued under subsection (2) of that section shall be taken to have had effect from the date specified by the Secretary of State.

(2) Sections 55 to 68, 170(1) and 171(1) of the 1993 Act (state scheme premiums) shall continue to have effect as if this Order had not come into force in relation to any state scheme premium which has been paid before the principal appointed day or is payable immediately before that day, and nothing in this Order shall affect the operation of any other provision of the 1993 Act or any provision of any other Act in relation to any such premium.

(3) Any function of the Board in relation to state scheme premiums under the provisions referred to in paragraph (2) falling to be exercised after the principal appointed day shall be exercised by the Secretary of State.

Transfer Values—extensions granted by the Board

5.  Section 99 of the 1993 Act (trustees' duties after exercise of option under section 95) shall have effect in relation to any extension granted or refused by the Board under subsection (4) of that section before the principal appointed day as though it had been granted or refused by the Authority.

Payments to employers

6.  For the purposes of—

(a)any payment to the employer out of funds held for the purposes of a scheme where an application to modify the scheme rules for the purposes of making that payment has been made in accordance with the Occupational Pension Schemes (Modification) Regulations 1990(7) before the principal appointed day; or

(b)any distribution of excess assets to the employer in relation to a scheme which begins to be wound up before the principal appointed day,

section 108 of the 1993 Act (no payments to employers from non-complying schemes) shall continue to have effect as if this Order had not come into force.

Actuarial statements pending the first minimum funding requirement valuation

7.  Section 114 of the 1993 Act and regulations 8 and 9 of the Occupational Pension Schemes (Disclosure of Information) Regulations 1986 shall, in so far as they relate to the actuarial statement, remain in force in respect of a scheme to which section 56 of the 1995 Act applies until such time as the trustees or managers of the scheme are required by regulation 30 of the Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations 1996 to obtain the first valuation.

Preservation—determinations of the Board

8.  Where, before the principal appointed day, the Board has determined in accordance with section 134 of the 1993 Act that any provision of Chapter I of Part IV of the 1993 Act (the preservation requirements) shall not apply to a scheme, that determination shall continue to have effect as if this Order had not come into force until there is an alteration to the rules of the scheme relating to any requirement imposed by that provision.

Modification of schemes

9.  Nothing in this Order shall affect the operation of sections 136 to 140 of the 1993 Act (application to modify schemes other than public service schemes) in relation to an application made to the Board before the principal appointed day, and any functions of the Board exercisable after the principal appointed day under those sections as saved by this article shall be exercised by the Authority.

Minimum payments and minimum contributions payable before the principal appointed day

10.  Notwithstanding section 140(3) of the 1995 Act, section 48 of the 1993 Act shall remain in force in respect of minimum payments and minimum contributions paid or payable before the principal appointed day.

Winding up

11.—(1) Sections 73 and 74 of the 1995 Act (preferential liabilities on winding up and discharge of liabilities by insurance, etc.) do not apply to any scheme which has begun to be wound up before the principal appointed day; and for the purposes of this paragraph the time when a scheme begins to be wound up shall be determined in accordance with regulation 2 of the Occupational Pension Schemes (Winding Up) Regulations 1996(8).

(2) At the end of paragraph 31 of Schedule 5 to the 1995 Act insert the words “and for the purposes of this paragraph the time when a scheme begins to be wound up shall be determined in accordance with regulation 2 of the Occupational Pension Schemes (Winding Up) Regulations 1996”.

(3) Section 144 of the 1993 Act (which is repealed by the 1995 Act, Schedule 7, Part I) shall remain in force as regards schemes that began to wind up before 19th December 1996 and in respect of debts which arose at any applicable time before 6th April 1997.

Schedules of payments to money purchase schemes

12.—(1) The trustees or managers of an occupational pension scheme to which section 87 of the 1995 Act (schedules of payments to money purchase schemes) applies, shall not be obliged to secure the preparation, maintenance or revision of a payment schedule in respect of any period before the beginning of the first scheme year which begins on or after 6th April 1997.

(2) In paragraph (1) above “scheme year” has the same meaning as in the Occupational Pension Schemes (Scheme Administration) Regulations 1996(9).

The National Insurance (Non-participation-Certificates) Regulation 1959—functions of the Board

13.  Any function of the Board under the National Insurance (Non-participation-Certificates) Regulations 1959(10) falling to be exercised on or after the principal appointed day, or which fell to be exercised before that day but which has not been exercised may be exercised by the Secretary of State.

Property, rights and liabilities of the Board

14.  All property, rights and liabilities to which the Board is entitled or subject immediately before the principal appointed day shall become the property, rights and liabilities of the Secretary of State.

Signed by authority of the Secretary of State for Social Security.

Oliver Heald
Parliamentary Under-Secretary of State,
Department of Social Security
6th March 1997

Article 2
SCHEDULE

PART IPROVISIONS OF THE 1995 ACT COMING INTO FORCE ON 1ST APRIL 1997 INSOFAR AS THEY ARE NOT ALREADY IN FORCE

Provisions of the 1995 Act
Subject matter

section 165
levy

Schedule 3, paragraph 23 and section 122 insofar as it relates to that paragraph
provision of information by the Registrar of Occupational and Personal Pension Schemes

Schedule 5, paragraph 20 and section 151 insofar as it relates to that paragraph
Occupational Pensions Regulatory Authority as Registrar of Occupational and Personal Pension Schemes

Schedule 5, paragraph 73 and section 151 insofar as it relates to that paragraph
minor amendments to section 174 of the 1993 Act

PART IIPROVISIONS OF THE 1995 ACT COMING INTO FORCE ON 6TH APRIL 1997 INSOFAR AS THEY ARE NOT ALREADY IN FORCE

Provisions of the 1995 Act
Subject matter

section 1(5)
constitution, procedure, etc. of the Occupational Pensions Regulatory Authority

sections 3 to 15
supervision by the Occupational Pensions Regulatory Authority

sections 16 to 21
member-nominated trustees and directors

sections 22 to 26
independent trustees

sections 27 to 31
trustees: general

sections 32 to 38
functions of trustees

sections 40 and 41
functions of trustees or managers

sections 47 and 48(1) and (3) to (6)
advisers

section 49
receipts, payments and records

section 50
resolution of disputes

sections 51 to 54
indexation

sections 56 to 61
minimum funding requirement

sections 67 to 72
modification of schemes

sections 73 to 77
winding up

sections 78(4) and (8), 79 and 80(1) to (3) and (5)
the Pensions Compensation Board

sections 81 to 86
the compensation provisions

sections 87 to 89
money purchase schemes

sections 91(1) and (2) and (4) to (7) and 92 to 94
assignment, forfeiture, bankruptcy, etc.

sections 96 and 97
questioning the decisions of the Authority

sections 98 to 103
gathering information: the Authority

sections 104 to 109
disclosure of information: the Authority

sections 110 to 114
gathering information: the Compensation Board

sections 115, 116(2) and (3), 117, 122, 123(1) and (2) and 125(1)
general (Part I)

section 137
state scheme contributions and rebates

sections 138, 139 and 140(1) and (3)
reduction in state scheme contributions, payments of rebates and reduction in state scheme benefits

section 141
premiums and return to state scheme

sections 147, 149 and 150
miscellaneous

section 151
minor and consequential amendments

sections 152 to 154
transfer values

section 155
penalties

sections 157 to 160
Pensions Ombudsman

section 161
modification and winding up of schemes

sections 162 to 164
personal pensions

section 173
general minor and consequential amendments

sections 177, 178 and 181
general (Part IV)

Schedule 1
Occupational Pensions Regulatory Authority

Schedule 2
Pensions Compensation Board

Schedule 3
Amendments consequential on Part I

Schedule 5 (except paragraph 38)
Amendments relating to Part III

Schedule 6
General minor and consequential amendments

Schedule 7 (except the references to sections 35 and 36 of the 1993 Act)
Repeals

Explanatory Note

(This note is not part of the Order)
This Order provides for the coming into force of further provisions of the Pensions Act 1995 on the following dates—
(a)on the day the Order is made for section 81(7) for the purposes of making regulations relating to the compensation provisions,
(b)1st April 1997 for provisions relating to the levy, the provision of information by the Registrar of Occupational and Personal Pension Schemes, the appointment of the Occupational Pensions Regulatory Authority as that Registrar and minor amendments to the Pensions Schemes Act 1993, and
(c)6th April 1997 for all the remaining provisions of the Act except sections 48(2) and (7) to (13), 95 and 145 and paragraph 38 of Schedule 5 and a corresponding reference in Schedule 7.
The Order also makes transitional adaptations, modifications and savings.
Article 4 makes savings in respect of the termination of contracted-out or appropriate schemes status and state scheme premiums.
Article 5 makes a transitional modification in relation to transfer values and extensions granted or refused by the Occupational Pensions Board.
Article 6 makes transitional savings as regards payments to employers.
Article 7 makes a transitional saving relating to the disclosure to members of actuarial statements.
Article 8 makes a transitional saving as regards determinations by the Occupational Pensions Board in relation to the preservation requirements.
Article 9 makes transitional savings and modifications as regards applications to modify schemes other than public service schemes.
Article 10 makes a transitional saving relating to minimum payments and minimum contributions paid or payable before 6th April 1997.
Article 11 makes transitional savings and modifications as regards winding up.
Article 12 makes a transitional modification as regards schedules of payments to money purchase schemes.
Article 13 provides for the functions of the Board under the National Insurance (Non-participation-Certificates) Regulations 1959 to be exercised by the Secretary of State.
Article 14 transfers all outstanding property, rights and liabilities of the Board to the Secretary of State.
Note as to Earlier Commencement Orders

(This note is not part of the Order)
The following provisions have been brought into force by:—

the Pensions Act 1995 (Commencement No. 1) Order 1995 (S.I. 1995/2548) (C.51),

the Pensions Act 1995 (Commencement No. 2) Order 1995 (S.I. 1995/3104) (C.71),

the Pensions Act 1995 (Commencement No. 3) Order 1996 (S.I. 1996/778) (C.13),

the Pensions Act 1995 (Commencement No. 4) Order 1996 (S.I. 1996/1412) (C.26),

the Pensions Act 1995 (Commencement No. 5) Order 1996 (S.I. 1996/1765) (C.36),

the Pensions Act 1995 (Commencement No. 6) Order 1996 (S.I. 1996/1843) (C.37) (S.151),

the Pensions Act 1995 (Commencement No. 7) Order 1996 (S.I. 1996/1853) (C.38) (see also S.I. 1996/2150) (C.51),

the Pensions Act 1995 (Commencement No. 8) Order 1996 (S.I. 1996/2637) (C.73), or

the Pensions Act 1995 (Commencement No. 9) Order 1997 (S.I. 1997/216) (C.11).

Provision

Date of Commencement
S.I. No.

section 1(1) to (4) and (6)

1st April 1996
1996/778

section 1(5)
(partially)
1st April 1996
1996/778

section 2

1st April 1996
1996/778

section 3(2)
(partially)
16th October 1996
1996/2637

section 10(1)
(partially)
1st June 1996
1996/1412

section 10(2) and (3)
(partially)
6th April 1996
1996/778

sections 16 to 21
(partially)
6th April 1996
1996/778

section 21(3)
(partially)
6th October 1996
1996/778

section 23
(partially)
1st June 1996
1996/1412

section 27
(partially)
6th April 1996
1996/778

sections 32 and 33
(partially)
6th April 1996
1996/778

section 35
(partially)
6th April 1996
1996/778

sections 37 and 38
(partially)
6th April 1996
1996/778

section 39

1st January 1996
1996/3104

sections 40 and 41
(partially)
6th April 1996
1996/778

section 47
(partially)
6th April 1996
1996/778

sections 49 to 51
(partially)
6th April 1996
1996/778

section 55

4th February 1997
1997/216

section 56 to 61
(partially)
6th April 1996
1996/778

section 62 to 66
(partially)
4th December 1995
1995/3104

1st January 1996
1995/3104

sections 67 to 69
(partially)
6th April 1996
1996/778

section 68
(partially)
6th October 1996
1996/778

section 73
(partially)
6th April 1996
1996/778

section 74(1) and (5)(a)
(partially)
16th October 1996
1996/2637

section 74(2), (3) and (5)(b)
(partially)
6th April 1996
1996/778

sections 75 to 77
(partially)
6th April 1996
1996/778

section 78(1) to (3) and (5)

1st August 1996
1996/1412

section 78(6)
(partially)
1st June 1996
1996/1412

1st August 1996
1996/1412

section 78(7)

1st August 1996
1996/1412

section 78(8)

1st August 1996
1996/1412

4th February 1997
1997/216

6th April 1997
1997/216

section 80(4)

4th February 1997
1997/216

6th April 1997
1997/216

section 81(1)(c), (2) and (3)(f)(i)
(partially)
1st June 1996
1996/1412

section 82(1)
(partially)
1st June 1996
1996/1412

section 83(2) and (3)(a)
(partially)
1st June 1996
1996/1412

section 84(1)(b), (2) and (3)
(partially)
1st June 1996
1996/1412

section 85(3)(a)

1st August 1996
1996/1412

section 86
(partially)
1st June 1996
1996/1412

sections 87 to 89
(partially)
6th April 1996
1996/778

section 90

2nd October 1995
1995/2548

sections 91 to 95
(partially)
6th April 1996
1996/778

section 96(2) and (5)
(partially)
1st June 1996
1996/1412

section 116(1)

16th July 1996
1996/1853

section 117
(partially)
4th December 1995
1995/3104

(partially)
1st January 1996
1996/3104

6th October 1996
1996/778

section 118
(partially)
6th April 1996
1996/778

16th October 1996
1996/2637

section 119

6th April 1996
1996/778

section 120

4th December 1995
1995/3104

1st January 1996
1995/3104

6th April 1996
1996/778

section 121

4th December 1995
1995/3104

6th April 1996
1996/778

section 122
(partially)
1st January 1996
1995/3104

section 123(3)

6th April 1996
1996/778

section 124

4th December 1995
1995/3104

1st January 1996
1995/3104

6th April 1996
1996/778

section 125
(partially)
6th April 1996
1996/778

(partially)
16th October 1996
1996/2637

section 136

6th April 1996
1996/778

6th April 1997
1996/778

section 137
(partially)
13th March 1996
1996/778

(partially)
6th April 1996
1996/778

section 138(5)
(partially)
13th March 1996
1996/778

section 139
(partially)
6th April 1996
1996/778

section 140(1)
(partially)
6th April 1996
1996/778

section 140(2)

13th March 1996
1996/778

6th April 1996
1996/778

section 141
(partially)
6th April 1996
1996/778

sections 142 to 144

13th March 1996
1996/778

6th April 1996
1996/778

section 146

13th March 1996
1996/778

6th April 1996
1996/778

section 148

6th April 1996
1996/778

section 149
(partially)
1st June 1996
1996/778

sections 152 to 154
(partially)
6th April 1996
1996/778

section 155
(partially)
6th April 1996
1996/778

(partially)
1st June 1996
1996/1412

section 156

2nd October 1995
1995/2548

section 157(2)
(partially)
1st June 1996
1996/1412

section 158

(partially)
1st June 1996
1996/1412

(partially)
16th October 1996
1996/2637

section 160
(partially)
1st June 1996
1996/1412

section 165
(partially)
16th October 1996
1996/2637

section 166
(partially)
27th June 1996
1996/1675

1st August 1996
1996/1675

section 167
(partially)
15th July 1996
1996/1843

19th August 1996
1996/1843

section 169

2nd October 1995
1995/2548

section 172

2nd October 1995
1995/2548

section 173
(partially)
2nd October 1995
1995/2548

(partially)
6th April 1996
1996/778

section 174

2nd October 1995
1995/2548

4th December 1995
1995/3104

1st January 1996
1995/3104

6th April 1996
1996/778

section 175

2nd October 1995
1995/2548

4th December 1995
1995/3104

1st January 1996
1995/3104

6th April 1996
1996/778

section 176

6th April 1996
1996/778

section 177
(partially)
6th April 1996
1996/778

Schedule 1
(partially)
1st April 1996
1996/778

(partially)
1st June 1996
1996/1412

Schedule 2
(partially)
1st August 1996
1996/1412

(partially)
4th February 1997
1997/216

6th April 1997
1997/216

Schedule 3
(partially)
1st January 1996
1995/3104

(partially)
16th October 1996
1996/2637

Schedule 5
(partially)
6th April 1996
1996/778

(partially)
1st June 1996
1996/1412

(partially)
16th October 1996
1996/2637

Schedule 6
(partially)
2nd October 1995
1995/2548

(partially)
6th April 1996
1996/778

Schedule 7
(partially)
6th April 1996
1996/778

(1)
1995 c. 26.

(2)
1993 c. 48.

(3)
See section 1 of the Pensions Act 1995.

(4)
See section 2 of the Pension Schemes Act 1993.

(5)
See section 81(3) of the Pensions Act 1995.

(6)
6th April 1997: see section 135 of the Pensions Act 1995 and the Pensions Act 1995 (Commencement No. 3) Order 1996, S.I. 1996/778 (C.13).

(7)
S.I. 1990 No. 2021; the relevant amending instruments are S.I. 1994/1062 and S.I. 1996/2156.

(8)
S.I. 1996/3126.

(9)
S.I. 1996/1715.

(10)
S.I. 1959/1860; the relevant amending instruments are S.I. 1961/2176, S.I. 1963/676, S.I. 1965/40 and S.I. 1983/118.