Clause 7: Interpretation and application of Part I

Subsection (1) sets out definitions of certain terms referred to in this Part.

Subsections (2) to (5) apply all the provisions in Part I to pension schemes managed by, or on behalf of, the Crown, and to Crown employees. Subsection (4) provides the Crown with immunity from prosecution in respect of any offence committed under this Part, but provides that such immunity does not extend to public servants. This provision matches the immunity provision in section 121 of the Pensions Act 1995 (and the one inserted into the Pension Schemes Act 1993 by clause 8(13) below).

Schedule 1: Application of the 1993 and 1995 Acts to stakeholder pension schemes

Sub-paragraph (1) applies certain provisions of the Pension Schemes Act 1993 and the Pensions Act 1995 to trust-based schemes which are registered as stakeholder pension schemes and which are not occupational pension schemes as defined by the 1993 Act. This puts broadly similar requirements on the trustees of stakeholder pension schemes as apply to trustees of occupational pension schemes, and allows OPRA to supervise the conduct of stakeholder scheme trustees in much the same way as they supervise occupational pension scheme trustees.

The provisions in paragraph 2 of the Schedule only apply to schemes which are set up on a trust basis.

Sub-paragraph 2(a). Subsections (4) to (9) of section 175 of the Pension Schemes Act 1993 make provision for the Pensions Compensation Board to impose a levy on occupational pension schemes in order to meet the Board's expenditure. This sub-paragraph extends this power to all stakeholder pension schemes.

Sub-paragraph (2)(b) lists the provisions of the Pensions Act 1995 that will apply. Some parts of the provisions are not relevant to stakeholder schemes which are not occupational schemes, because they will not operate on a salary-related basis and will not normally have a sponsoring employer.

The provisions from the 1995 Act that need to be applied are:

Section 3 allows OPRA to prohibit named individuals from acting as trustees of an occupational pension scheme.

Section 4 gives OPRA the power to suspend trustees in certain specified circumstances.

Section 5 requires OPRA to give notice of prohibition and suspension orders both to the person concerned and to the other trustees of a trust scheme.

Section 6 makes it an offence to act as trustee while suspended or removed, and sets out provisions for a person who continues to act as a trustee whilst suspended or prohibited.

Section 7 gives OPRA the power to appoint new trustees if an existing one has been prohibited or disqualified and in certain other specified circumstance.

Section 8 defines the scope of the powers of trustees appointed under section 7. Subsections (1) and (2) provide for payments made to trustees appointed by OPRA from scheme resources to be treated as a debt due from the employer; they are not relevant to stakeholder pension schemes as there will generally be no sponsoring employer.

Section 9 gives OPRA the same power as the High Court (Court of Session in Scotland) to vest property in or transfer property to trustees as a consequence of the appointment or removal of a trustee.

Section 10 gives OPRA the power to impose a civil penalty on any person who has committed a specified breach of duty.

Section 11 gives OPRA the power to direct or authorise the winding up of schemes in certain specified circumstances and on the application of certain specified persons. Subsection (3)(c) is not needed because it refers to applications to wind up schemes by employers and there will normally be no sponsoring employer in relation to a stakeholder pension schemes.

Section 13 enables OPRA to obtain injunctions (interdicts in Scotland) if the court is satisfied that it is reasonably likely that a person will misuse/misappropriate scheme assets.

Section 15 gives OPRA the power to make certain directions. Subsection (1) is not relevant because it covers failure to comply with section 49(5) of the Pensions Act 1995, which does not apply to stakeholder pension schemes.

Section 27 provides that a trustee may not act as scheme actuary or auditor.

Section 28 provides that a trustee of a trust scheme who also acts as a scheme actuary/auditor in breach of section 27 is guilty of an offence.

Section 29 gives OPRA the power to disqualify a person from being the trustee of any trust scheme in certain specified circumstances.

Section 30 contains a number of provisions covering persons who act as trustees while disqualified.

Section 31 provides that trustees who are fined for an offence or who receive a civil penalty cannot be reimbursed from the assets of a trust scheme.

Section 32 provides that decisions taken by the trustees of a trust scheme may be taken by a majority of the trustees unless the scheme provides otherwise. The references to sections 16 and 25 of the Pensions Act 1995 do not apply to stakeholder schemes because those sections themselves are not relevant.

Section 33 provides that trustees cannot restrict their liability for a breach of an obligation under any rule of law to take care or exercise skill in carrying out investment function whether or not that function has been delegated to another person.

Section 34 gives trustees the power to make any investment of any kind as if they were absolutely entitled to the assets of the scheme, and to delegate investment decisions to a fund manager. It also provides that trustees are not responsible for any act or default of the fund manager in the exercise of the discretion delegated to him if they have taken reasonable steps to ensure that the fund manager has the appropriate knowledge and experience to manage the investments and that he is carrying out the work competently and in accordance with section 36 of the Pensions Act 1995.

Section 35 requires trustees to maintain a written statement of the principles governing their decisions. As section 56 of the 1995 Act will not apply to stakeholder schemes, the reference to that section in subsection (2) is not relevant. The obligation to consult the employer in subsection (5) is also not relevant because of the different role of employers in relation to stakeholder schemes.

Section 36 governs the exercise of discretion by the trustees and the fund manager.

Section 39. The general rule that trustees may not benefit where there is a conflict of interest between their personal interest in the scheme and trustee duties is relaxed in relation to member trustees to allow them to benefit in the same way as other members.

Section 41 places a duty on trustees to provide certain documents for scheme members and other specified persons.

Section 47 relates to the appointment of professional advisers. It imposes a duty on scheme trustees to appoint professional advisers and a duty on scheme professionals and employers to make information available to professional advisers and on scheme trustees to disclose information to professional advisers.

Section 48 provides for "whistle-blowing". Scheme professionals requirement to inform OPRA if they have reasonable cause to believe that trustees/manager, employer or professional adviser is not complying with duties in relation to the scheme.

Section 49 relates to the keeping of accounts etc. Section 49(5) is not relevant to stakeholder schemes. Section 49(8) imposes a duty on employers to remit deductions from earning to scheme trustees within a prescribed period. This section, as amended by clause 9, will apply to occupational pension schemes which are registered as stakeholder schemes. Clause 8 amends the Pension Schemes Act and introduces similar provisions for personal pension schemes. These will apply to stakeholder schemes which are not occupational schemes.

Section 50 imposes a duty upon scheme trustees to set up and operate procedures for resolving internal disputes.

Section 68 confers power on trustees to modify a scheme for certain purposes. Sub-paragraph (4) modifies this power in relation to stakeholder schemes.

Sections 81 to 86 set out circumstances where compensation is payable. These will apply to stakeholder pensions schemes in the same way as they apply to money-purchase occupational schemes but the condition for the application of the compensation provisions in section 81(1)(b), that the employer must be insolvent, is not relevant because of the limited scope of employer involvement in stakeholder schemes.

Sections 91 to 94 relate to assignment and forfeiture etc. for occupational pension schemes.

Section 96 deals with OPRA's powers to review its determinations.

Section 108 deals with the scope of OPRA's powers to disclose certain information in relation to the discharge of its functions

Sections 110 deals with provision of information in relation to the Compensation Board.

Section 117 provides for particular requirements of the Pensions Act 1995 to override provisions of an occupational pension scheme. This will apply to stakeholder pension schemes to the extent that any provision of Part 1 which applies to stakeholder pension schemes conflicts with any scheme rule.

Section 124 and 125 provide interpretation of terms used in Part 1 of the Pensions Act 1995.

Sections 78 to 80, 95, 97, 101 to 107, 109, 111 to 116, 120 and 123 of the 1995 Act are also relevant to stakeholder pension schemes but do not need to be expressly applied as they contain no specific reference to pension schemes.

Sub-paragraph (3) modifies the definition of employer in section 47(9) of the Pensions Act 1995 to reflect the different role of an employer in relation to stakeholder pension schemes. This section contains provisions that require sponsoring employers to carry out certain functions in relation to their occupational scheme: for example, they must disclose information to the scheme's trustees and professional advisers. For stakeholder pension schemes, the requirement will apply to any person who is or has been subject to the employer access requirement, as defined in clause 3.

Sub-paragraph (4). Section 68 of the Pensions Act 1995 gives scheme trustees the power to modify scheme rules for certain purposes. This subsection extends this power in relation to stakeholder pension schemes to enable them to ensure that schemes meet the conditions set out in clause 1.

Sub-paragraph (5). Sub-paragraph (2) applies section 124 (Definitions) of the Pensions Act 1995 to stakeholder pension schemes which are not occupational pension schemes. This sub-paragraph omits the definition of a "member" of an occupational pension scheme from the list of defined terms as it not appropriate to stakeholder schemes which are not occupational schemes.

Paragraph 2

Sub-paragraph (1): applies sections 98 to 100 of the 1995 Act to stakeholder pension schemes which are not occupational pension schemes, including those which may be set up other than on a trust basis:

Section 98 gives OPRA the power to demand the production of certain documents relating to their functions from trustees, professional advisers and employers. Sub-section 98(3) defines what is meant by a "document" for the purposes of sections 98 and 99 to 101.

Sections 99 and 100: see sub-paragraphs (2) and (3) below.

Sub-paragraph (2): section 99 of the Pensions Act 1995 gives OPRA powers to inspect certain premises and require the production of certain documents for the purposes of investigating whether certain "regulatory provisions" of the 1995 Act are being complied with. This paragraph modifies the definition of regulatory provisions in relation to stakeholder schemes, so that the power applies to:

• the relevant provisions of the 1995 Act set out in paragraph 1(2), other sections of that Act, and any corresponding provisions in force in Northern Ireland. Section 110 is specifically excluded. This section covers the information-gathering power of the Pensions Compensation Board: the exception reflects the division of duties between the two bodies;

• the requirements for stakeholder pension schemes set out in clauses 1 and 2(4 to 6).

Sub-paragraph (3): section 100 of the 1995 Act enables a justice of the peace to issue a warrant for OPRA to search premises in certain circumstances. This sub-paragraph modifies this provision so that it applies also where OPRA have reasonable grounds for believing that an offence has been committed under clause 2(5).

PART II: PENSIONS: GENERAL

This Part of the Bill provides a number of measures intended to make the pensions regulatory framework work better; to provide additional protection for scheme members; and to simplify and clarify the rules which pension schemes must follow.

Clause 8: Monitoring of employers' payments to personal pension schemes

It is important that contributions to occupational and personal pensions should be paid on time. The Pensions Act 1995 introduced new safeguards for occupational pension schemes. That Act, and associated regulations, provide for payments to be made within set time limits and establish penalties for non-compliance. The rules apply both to contributions by employers and to contributions which derive from deductions from employees' earnings.

Employers can also make payments to their employees' personal pensions. Currently, however, there are no equivalent rules requiring timely payment.

This clause inserts into the Pension Schemes Act 1993 a set of rules on the timely payment of contributions by employers into personal pension schemes. References below are to subsections of the newly inserted section 111A.

• Subsections (1) to (5) set out the new rules, which are consistent with rules introduced by the Pensions Act 1995 for occupational pension schemes. The regime will cover employee contributions deducted from employees' earnings and employers' contributions to pensions. The rules cover the time limits within which payments have to be made and to the sanctions that apply where payments are late or not made at all.

• Subsection (6) requires trustees and managers of personal pension schemes to monitor the timeliness of payments by employers. Where a payment is late, or not made at all, the trustees and managers will be required to report to the Occupational Pensions Regulatory Authority (OPRA). The time limits within which reports must be submitted and the circumstances in which such reports will not be required will be set out in regulations.

• Subsection (7) requires trustees and managers of schemes to provide information to employees on the amounts and dates of payments made to the scheme by employers.

• Subsections (8) and (10) to (12) relate to provision for civil or criminal sanctions against employers for late payment or non-payment of amounts payable to personal pension schemes. OPRA will have power to impose a civil penalty where there has been a breach of the requirement to make timely payment of contributions; however, if a person fraudulently evades an obligation to pay a contribution deducted from an employer's earnings, a criminal penalty will apply.

  --    Subsection (9) provides that OPRA may impose civil penalties on trustees and managers if they fail to carry out their monitoring role.

--    In relation to stakeholder pension schemes (see commentary on Part I), subsection (10)(a) ensures that an employer who has already been penalised under clause 3(6) (for failing to comply with a request to deduct contributions to a stakeholder pension scheme from earnings) is not penalised again under these provisions.

• Subsection (13) provides the Crown with immunity from prosecution in respect of an offence committed under subsection (11), but provides that such immunity does not extend to public servants who commit an offence under that subsection. This provision (inserted into the Pensions Schemes Act1993, and relating to personal pension schemes) matches the immunity provision in section 121(3) of the Pensions Act 1995 for occupational schemes.

• Subsection (14) defines the expression "due date" with respect to contributions paid by the employer and deductions from employees' earnings.

• As part of the provisions for stakeholder pension schemes in Part I of the Bill, clause 3(5) allows regulations to provide for cases where an employer would pay contributions to a person other than the trustees or managers of a scheme (for example, to a clearing house, if this was set up). Subsection (15) gives a power to modify the requirements of the new section 111A for such cases.

• Subsection (16) ensures that if an employee would have a right of action against his employer where contributions deriving from deductions from his earnings are not paid by the contractually agreed date, then that right will be unaffected (notwithstanding that such date may be later than the last day of the period prescribed in regulations within which such payment is required to be made).

Clause 9: Late payments by employers to occupational pension schemes

Section 49(8) of the Pensions Act 1995 at present makes it a criminal offence for employers to deduct money from their employees' salaries as contributions towards an occupational pension scheme and not pay it to the scheme trustees within a prescribed period, if there is no reasonable excuse. Regulation 16 of the Scheme Administration Regulations 1996 sets the prescribed period as 19 days from the end of the month in which the amount is deducted.

This clause gives the Occupational Pensions Regulatory Authority (OPRA) the power to impose a civil sanction for breaches of the requirement. Subsection (1) replaces 49(8) of the Pensions Act 1995 with new subsections (8) to (12).

• The time limit for payment of employee contributions will continue to be set out in regulations, under the new section 49(8).

• The new section 49(9) gives the power to impose civil penalties for any breach of the requirement. It also imposes a new obligation on trustees and managers to report to the Occupational Pensions Regulatory Authority (OPRA) and to the employee where employee contributions have not been paid within the time limit prescribed under the new section 49(8).

• The new subsections (10) to (12) impose a criminal sanction in circumstances where there has been fraudulent evasion of the obligation to make payment of employee contributions within the prescribed time limit. In relation to stakeholder pension schemes, subsection (12)(a) ensures that an employer who has been required to pay a penalty under clause 3(6) for failing to comply with the provisions of that clause is not penalised again under section 10 of the 1995 Act.

• Subsection (2) makes it clear that section 88(3) of the Pensions Act 1995, which provides for a civil sanction on employers who do not pay contributions to money purchase schemes on time, only applies to employer contributions (so that section 49(8) deals with employee contributions and section 88(3) deals with employer contributions).

Clause 10 Effect of person's insolvency on his pension rights

Where a person becomes bankrupt, his assets usually vest in the trustee in bankruptcy. However, the position of pensions on bankruptcy was considered by the Pensions Law Review Committee (PLRC), set up under the chairmanship of Professor Goode. The Committee's report, published in 1993, recommended that pension rights (as opposed to the pension payments themselves) should not be counted as an asset in bankruptcy. (The report was published as Pension Law Reform: The Report of the Pensions Law Review Committee - Cmd 2342-1.)

The recommendations on pensions and bankruptcy in the Report were accepted by the Government (Security, Equality, Choice: The Future for Pensions - Cmd 2594). The Committee's recommendations formed the basis for sections 91 to 95 of the Pensions Act 1995.

However, the provisions on bankruptcy in the Pensions Act only apply to occupational pension schemes. No equivalent protection for other types of pension, for example personal pensions, was included in the Act. The measures in the Bill provide statutory protection on bankruptcy for pension rights in approved schemes, as defined.

• Subsection (1) provides that where a bankruptcy order is made against a person, any rights that he has in an approved pension arrangement are to be excluded from his estate for the purposes of the bankruptcy proceedings.

• Subsections (2) and (3) define the expression "approved pension arrangement". Broadly, it is a pension arrangement recognised for tax purposes under Part XIV of the Income and Corporation Taxes Act 1988. Because of the variety of pension arrangements that exist, a regulation-making power is included as a safeguard to protect arrangements that might fall outside a strict interpretation of the definitions contained in paragraphs (a) to (h) of subsection (2).

• Subsections (4) and (5) provide for circumstances where a person has pension rights in a pension scheme that has applied to the Inland Revenue for approval but not yet received a decision. If approval is still being sought on the date that a bankruptcy order is made against a person, and subsequently the Inland Revenue decide not to grant approval, then the bankrupt's pension rights in that scheme are to vest in the trustee in bankruptcy (subject to regulations under clause 11).

• Subsections (6) to (8) provide for the circumstances where a bankrupt has pension rights in a pension scheme and the Inland Revenue withdraws approval from that scheme. If the Inland Revenue issue a notice withdrawing approval after a bankruptcy order is made and the effective date for the withdrawal of approval is before the date of the bankruptcy order itself, then any rights that the bankrupt has in the pension scheme are to vest in the trustee in bankruptcy (again subject to regulations under clause 11).

• Subsection (11) defines various terms for the purposes of this clause.

Schedule 10 makes a number of repeals as a consequence of this clause and clause 12. (The Schedule is introduced by clause 72.)

Clause 11 Effect of insolvency on unapproved pension rights

Regulations made under this clause will enable the rights of a person under an unapproved pension arrangement to be protected in the same way as a person's rights under an approved pension arrangement in prescribed circumstances. It is anticipated that the circumstances in which the statutory exemption will extend to such rights will be where other pension benefits the bankrupt is likely to receive are likely to be inadequate to meet his reasonable needs and those of his dependants.

Clause 12 Forfeiture of rights under pension arrangements

This clause provides that trustees or managers of a scheme will no longer be able to forfeit pension rights on a member's bankruptcy. In relation to a scheme that is not an approved pension arrangement, but subject to the effect of regulations made under clause 11, a bankrupt member's pension rights will thus vest in the trustee in bankruptcy.

Clause 13: Compensating occupational pension schemes

The compensation provisions were introduced in the Pensions Act 1995, and are administered by the Pensions Compensation Board (PCB). The PCB pays compensation to an occupational pension scheme if it has suffered a reduction in its assets through dishonest action, the remaining assets are below a set level and the sponsoring employer is insolvent. The level to which a scheme's assets must fall before a claim can be made, and the amount of compensation that the PCB can pay, is set out in the Pensions Act 1995 and the Occupational Pension Schemes (Pensions Compensation Provisions) Regulations 1997.

Currently, the value of a scheme's assets must fall below 90% of the amount of its total liabilities before a claim may be made. The maximum amount of compensation payable is that needed to restore the scheme to the 90% threshold, or 90% of the loss-whichever is less. (In salary-related schemes the funding level is measured using the valuation method for the Minimum Funding Requirement (MFR), which sets a benchmark funding level that schemes are required by law to attain.)

• Subsections (1) and (2) reduce this limitation on occupational pension schemes applying for compensation, by amending the rule in the 1995 Act.

Instead of having to fall below 90% of its total liabilities, a scheme will be eligible for compensation if its assets fall below a new "protection level". This is the combined value of 100% of its most urgent liabilities and 90% of its other liabilities. The most urgent liabilities include those to its members already receiving a pension, and those to its members within 10 years of retirement (who will be defined in regulations). This latter group already has to be identified separately for the statutory MFR valuation. Taking a power to prescribe it allows flexibility for compensation calculations to be adjusted in line with any future changes to the MFR basis.

• Subsections (3) to (6) correspondingly increase the maximum amount of compensation that may be paid, in line with the new threshold.

These changes are intended to ensure that more members of schemes receive a greater proportion of their benefits than under the current compensation provisions, should funds be lost because of theft or fraud.

Clause 14 Miscellaneous amendments

This clause brings into force Schedule 2 (see below), which makes various minor amendments to the Pension Schemes Act 1993, the Pensions Act 1995 and the Employment Rights Act 1996.

Schedule 2: Miscellaneous amendments

The current definition of a personal pension in section 1 of the Pension Schemes Act 1993 is couched in terms of a scheme capable of providing benefits on death or retirement in respect of employed earners. This definition could exclude a scheme (including a stakeholder pension scheme - see clauses 1-7) set up exclusively for a group of self-employed earners. That would leave some self-employed earners with less statutory protection than that enjoyed by employed earners. This amendment removes that anomaly.

As a result of the amendment, parts of sections 73, 96 and 181 of the Pensions Schemes Act 1993, and part of section 126 of the Scotland Act 1998, are repealed by Part I of Schedule 10 (introduced by clause 72).

Paragraph 2 : Revaluation of earnings factors: meaning of "relevant year"

In order to protect the pension position of individuals who leave their pension schemes before state pension age, the Pension Schemes Act 1993 requires schemes to revalue Guaranteed Minimum Pension (GMP) rights in line with certain prescribed percentages to keep pace with inflation. The provisions governing one particular method of revaluation, known as fixed rate revaluation, are defective because they do not allow a GMP to be revalued after April 1997. This is not in line with the policy intention.

This paragraph corrects that technical defect. It provides for a Guaranteed Minimum Pension to be revalued by the prescribed percentage for each year in the period between the earner's leaving the scheme and reaching state pension age (currently 65 for men and 60 for women).

Paragraph 3 : Mandatory payment of contribution equivalent premium

When a person leaves an occupational salary-related scheme with less than two years' service (or dies having less than two years' service) the scheme may refund their contributions rather than providing him or her (or his or her widow or widower) with a pension. Where this happens the employer pays a "contributions equivalent premium" (CEP) which restores the leaver's (or widow's or widower's) rights in the state earnings-related scheme (SERPS) for that short period of service. The policy is that payment of a CEP should be mandatory where there are state scheme rights to be restored.

The Pensions Act 1995 introduced new rules for contracted-out schemes, and also amended the legislation dealing with CEPs to take account of those new rules. Section 55 of the Pension Schemes Act 1993, as amended by the 1995 Act, now deals with the payment of CEPs. However, that section does not provide for the mandatory payment of CEPs in certain circumstances.

This paragraph amends section 55 of the 1993 Act to correct that defect.

Paragraph 4: Occupational pension schemes: institutions who may hold money deposited by trustees etc.

To ensure that pension schemes do not keep money in an employer's bank account, section 49(1) of the Pensions Act 1995 requires trustees to keep pension fund money in a separate account at an institution authorised under the Banking Act 1987. Similarly, where an employer acts as paying agent for the trustees, section 49(5) requires the employer to keep such money in a separate account at an authorised institution.

It was intended that trustees and employers should be able to keep money in an account with a bank, building society or other authorised deposit taker. However, reference to the Banking Act 1987 has the effect of preventing money from being kept in building societies because they are exempt from the requirement to apply for authorisation under the Banking Act 1987.

This paragraph amends sections 49(1) and 49(5) of the Pensions Act 1995 to include building societies as institutions in which pension fund money may be held.

Paragraph 5: Occupational pension schemes: certificates etc. relating to minimum funding requirement

Paragraph 5(1)

The Minimum Funding Requirement (MFR) sets a benchmark funding level that salary related schemes are required by law to attain. These schemes are required to have regular MFR valuations. Following each valuation, the rates of contributions payable over the next five years are set out in a schedule of contributions. The rates must be certified by the scheme's actuary as adequate to ensure that funding will meet the MFR provisions. At present this has to be done by reference to the funding level on the date the actuary certifies the schedule. This requires some complicated calculations because the rates have to be agreed before the actuary can certify them. This paragraph will simplify the procedures by enabling the actuary to certify the contributions by reference to the funding level at an earlier date. The effective date of the preceding valuation is envisaged, but taking a power to prescribe the appropriate date will enable it to be adjusted, if necessary, if operational difficulties occur.

Paragraph 5(2)

Where there has been a deterioration in the funding level of a salary related scheme and it is below the MFR, the trustees must prepare a report setting out the reasons for the deterioration. This paragraph will introduce powers for regulations to set out the time limit within which the trustees must prepare that report. This is consistent with many other provisions in the Pensions Act 1995 relating to time limits for compliance, and will enable the period to be adjusted in the light of practical experience. It is envisaged that regulations will specify a three month period. The Government intends to consult with the pensions industry on what the period should be.

Paragraph 6: Pensions Compensation Board

The Pensions Compensation Board (PCB) is the body that administers the occupational pensions compensation provisions. It is required to produce an annual report and annual accounts. Currently these two documents do not cover the same annual period. The annual report covers a 12 month cycle which started from 1 August, the date the PCB was formed. The accounts cover the financial year cycle, ending on 31 March.

This paragraph amends section 79(1) of the Pensions Act 1995 to bring the annual report into the same cycle as the accounts, and allows for the first annual report after the change to cover a shorter period, to allow the two cycles to coincide.

Paragraph 7: Occupational pension schemes: rights of an employee who is director of a corporate trustee

This paragraph amends sections 46, 58 and 102 of the Employment Rights Act 1996 (which provides for paid time off for performance of trustee duties and for training, and for the rights not to suffer detriment in employment or be unfairly dismissed), to ensure that they apply to employees who are directors of a trust company in the same way as they do to employees who are individual trustees.