HL Deb 01 November 1999 vol 606 cc699-703

1.—(1) In this Schedule—

(2) Subject to sub-paragraph (1) above, expressions used in this Schedule and in section 402 of this Act have the same meaning in this Schedule as they have in that section.

Amendment of LRT pension schemes

2.—(1) In the case of any LRT pension scheme, the provision that may be made by order under section 402(1) of this Act includes provision for or in connection with—

  1. (a) the allocation of assets, rights, liabilities or obligations between different sections of the scheme;
  2. (b) securing that the scheme continues to be approved for the purposes of the relevant enactments, notwithstanding any transfers made by or under this Act.

(2) In sub-paragraph (1) above "the relevant enactments" means—

  1. (a) Chapter I of Part XIV of the Income and Corporation Taxes Act 1988 (retirement benefit schemes); and
  2. (b) Part III of the Pension Schemes Act 1993, so far as relating to occupational pension schemes.

Protection of pension arrangements of transferred employees

3.—(1) For the purposes of this paragraph. a "protected person" is a person—

  1. (a) who, as a result of any prescribed relevant transaction. becomes, or since 20th March 1998 has become, an employee of a private sector company; and
  2. (b) who, immediately before becoming such an employee, was an employee of London Regional Transport or a subsidiary of London Regional Transport.

(2) The Secretary of State may by order make provision for the purpose of securing that no protected person (and, accordingly, no person who is or may become entitled to a pension in respect of a protected person) ceases to be overall in materially at least as good a position, as respects pension arrangements, as a result of—

  1. (a) the relevant transaction by reason of which the protected person is such a person; or
  2. (b) any pensions order made in connection with that relevant transaction.

(3) The provision that may be made by virtue of sub-paragraph (2) above is provision for the purpose of securing that a protected person has the right—

  1. (a) for so long as the appropriate conditions are satisfied, to continue to participate as a contributing member in any prescribed LRT pension scheme in which he was participating as such a member immediately before the relevant transaction, and
  2. (b) for so long as his period of continuous employment is not broken, to participate as a contributing member in a pension scheme under which the benefits to be provided to or in respect of him are overall materially at least as 701 good as those provided under any prescribed LRT scheme in which he was participating as a contributing member immediately before the relevant transaction,
subject to any provision made by virtue of sub-paragraph (6) below.

(4) For the purposes of sub-paragraph (3)(a) above, "the appropriate conditions" are—

  1. (a) that the protected person continues to be a person employed in the London underground railway industry (whether or not with the same employer); and
  2. (b) that any prescribed conditions with respect to continuity of employment are satisfied in his case.

(5) The provision that may be made by virtue of sub-paragraph (2) above includes provision for or in connection with the level of funding which is to be maintained in the case of any pension scheme of a prescribed description so far as relating to protected persons.

(6) An order made by virtue of sub-paragraph (2) above may make provision for such orders to cease to have effect in the case of any protected person if—

  1. (a) he voluntarily withdraws from an occupational pension scheme, or
  2. (b) he requests that his pension rights be transferred from an occupational pension scheme,
except in such circumstances or to such extent as may be prescribed.

(7) Circumstances may be prescribed in which—

  1. (a) a break in the continuity of a person's period of employment,
  2. (b) a person's ceasing to be a person employed in the London underground railway industry, or
  3. (c) a person's voluntary withdrawal from an occupational pension scheme,
shall be disregarded for prescribed purposes of this paragraph.

(8) Chapter I of Part XIV of the Employment Rights Act 1996 (continuous employment) shall apply for the purposes of this paragraph as it applies for the purposes of that Act.

(9) For the purposes of this paragraph—

  1. (a) the persons who are to be regarded as "employed in the London underground railway industry" are those who are employed to carry on activities of a class or description specified for the purposes of this subparagraph in an order made by the Secretary of State; and
  2. (b) the Secretary of State may so specify any class or description of activity which, in his opinion, falls within, or is related to or connected with, the London underground railway industry.

(10) In this paragraph—

Power to dispense with consent of trustees

4. If the Secretary of State makes provision under this Act for or in connection with—

  1. (a) enabling employees of Transport for London, or of a subsidiary of Transport for London, to participate in an LRT pension scheme, or
  2. (b) enabling Transport for London or a subsidiary of Transport for London to participate as an employer in such a scheme,
he may by order make provision requiring the trustees of the scheme or any other person whose approval or consent is necessary in connection with the doing of anything required to be done by virtue of the order to give that approval or consent.

LRT welfare schemes

5.—(1) The provision that may be made by order under section 402(1) of this Act includes provision with respect to the provision, under an LRT welfare scheme, of benefits for or in respect of persons who are or have been employees of—

  1. (a) London Regional Transport or any subsidiary of London Regional Transport; or
  2. (b) Transport for London or any subsidiary of Transport for London.

(2) For the purposes of sub-paragraph (1) above, the provisions of section 402 of this Act, and of the other paragraphs of this Schedule, shall apply in relation to an LRT welfare scheme as they apply in relation to a pension scheme, but taking references in those provisions to pensions as references to benefits and construing references to pension rights accordingly.

(3) The Secretary of State may by order amend the memorandum and articles of any company which is the trustee of an LRT welfare scheme for or in connection with permitting directors or shareholders of the company to be persons who are officers or servants of Transport for London or a subsidiary of Transport for London.

In this sub-paragraph "company", "memorandum" and "articles" have the same meaning as in the Companies Act 1985.

(4) Any powers—

  1. (a) which were vested in the London Transport Board in relation to an LRT welfare scheme, and
  2. (b) which have not become vested in London Regional Transport by virtue of a transfer under section 16(1) of the Transport (London) Act 1969 or otherwise,
shall be deemed to be vested in London Regional Transport by virtue of such a transfer.

(5) Anything done at any time by or in relation to London Regional Transport—

  1. (a) before the coming into force of sub-paragraph (4) above, and
  2. (b) in reliance on any power deemed by that sub-paragraph to be vested in London Regional Transport,
shall be as valid and effective as if the power had at that time been vested in London Regional Transport.").

On Question, amendment agreed to.

Schedule 31 [Taxation provisions]:

Lord Whitty moved Amendment No. 181: Page 429, line 20, after ("body,") insert ("or

  1. (b) to such other body or person as a relevant body may specify in accordance with the PPP agreement,").

On Question, amendment agreed to.

Schedule 32 [Enactments repealed]:

Lord Whitty moved Amendment No. 182: Page 431, line 16, at end insert—

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