Pensions Act 2004

Matrimonial Causes Act 1973 (c. 18)

3After section 25D of the Matrimonial Causes Act 1973 (pensions: supplementary) insert—

“25E“The Pension Protection Fund

(1)The matters to which the court is to have regard under section 25(2) include—

(a)in the case of paragraph (a), any PPF compensation to which a party to the marriage is or is likely to be entitled, and

(b)in the case of paragraph (h), any PPF compensation which, by reason of the dissolution or annulment of the marriage, a party to the marriage will lose the chance of acquiring entitlement to,

and, accordingly, in relation to PPF compensation, section 25(2)(a) shall have effect as if “in the foreseeable future” were omitted.

(2)Subsection (3) applies in relation to an order under section 23 so far as it includes provision made by virtue of section 25B(4) which—

(a)imposed requirements on the trustees or managers of an occupational pension scheme for which the Board has assumed responsibility in accordance with Chapter 3 of Part 2 of the Pensions Act 2004 (pension protection) or any provision in force in Northern Ireland corresponding to that Chapter, and

(b)was made before the trustees or managers of the scheme received the transfer notice in relation to the scheme.

(3)The order is to have effect from the time when the trustees or managers of the scheme receive the transfer notice—

(a)as if, except in prescribed descriptions of case—

(i)references in the order to the trustees or managers of the scheme were references to the Board, and

(ii)references in the order to any pension or lump sum to which the party with pension rights is or may become entitled under the scheme were references to any PPF compensation to which that person is or may become entitled in respect of the pension or lump sum, and

(b)subject to such other modifications as may be prescribed.

(4)Subsection (5) applies to an order under section 23 if—

(a)it includes provision made by virtue of section 25B(7) which requires the party with pension rights to exercise his right of commutation under an occupational pension scheme to any extent, and

(b)before the requirement is complied with the Board has assumed responsibility for the scheme as mentioned in subsection (2)(a).

(5)From the time the trustees or managers of the scheme receive the transfer notice, the order is to have effect with such modifications as may be prescribed.

(6)Regulations may modify section 25C as it applies in relation to an occupational pension scheme at any time when there is an assessment period in relation to the scheme.

(7)Where the court makes a pension sharing order in respect of a person’s shareable rights under an occupational pension scheme, or an order which includes provision made by virtue of section 25B(4) or (7) in relation to such a scheme, the Board subsequently assuming responsibility for the scheme as mentioned in subsection (2)(a) does not affect—

(a)the powers of the court under section 31 to vary or discharge the order or to suspend or revive any provision of it, or

(b)on an appeal, the powers of the appeal court to affirm, reinstate, set aside or vary the order.

(8)Regulations may make such consequential modifications of any provision of, or made by virtue of, this Part as appear to the Lord Chancellor necessary or expedient to give effect to the provisions of this section.

(9)In this section—

• “assessment period” means an assessment period within the meaning of Part 2 of the Pensions Act 2004 (pension protection) (see sections 132 and 159 of that Act) or an equivalent period under any provision in force in Northern Ireland corresponding to that Part;

• “the Board” means the Board of the Pension Protection Fund;

• “occupational pension scheme” has the same meaning as in the Pension Schemes Act 1993;

• “prescribed” means prescribed by regulations;

• “PPF compensation” means compensation payable under Chapter 3 of Part 2 of the Pensions Act 2004 (pension protection) or any provision in force in Northern Ireland corresponding to that Chapter;

• “regulations” means regulations made by the Lord Chancellor;

• “shareable rights” are rights in relation to which pension sharing is available under Chapter 1 of Part 4 of the Welfare Reform and Pensions Act 1999 or any provision in force in Northern Ireland corresponding to that Chapter;

• “transfer notice” has the same meaning as in section 160 of the Pensions Act 2004 or any corresponding provision in force in Northern Ireland.

(10)Any power to make regulations under this section is exercisable by statutory instrument, which shall be subject to annulment in pursuance of a resolution of either House of Parliament.”