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Child Support, Pensions and Social Security Act 2000 (c. 19)

(The document as of February, 2008)

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In paragraph 5 of Schedule 3 to the [1992 c. 4.] Social Security Contributions and Benefits Act 1992 (contribution conditions for entitlement to Category A and B retirement pension, widowed mother's allowance and widow's pension), after sub-paragraph (7) (reduction of number of years for which contribution conditions must be satisfied) there shall be inserted--

" (7A) Regulations may provide that a person is not to be taken for the purposes of sub-paragraph (7)(b) above as precluded from regular employment by responsibilities at home unless he meets the prescribed requirements as to the provision of information to the Secretary of State. "

41 Sharing of state scheme rights

(1) In section 49 of the [1999 c. 30.] Welfare Reform and Pensions Act 1999 (creation of state scheme pension debits and credits), for subsection (4) there shall be substituted--

" (4) The Secretary of State may by regulations make provision about the calculation and verification of cash equivalents for the purposes of this section.

(4A) The power conferred by subsection (4) above includes power to provide--

(a) for calculation or verification in such manner as may be approved by or on behalf of the Government Actuary, and

(b) for things done under the regulations to be required to be done in accordance with guidance from time to time prepared by a person prescribed by the regulations. "

(2) In section 45B of the [1992 c. 4.] Social Security Contributions and Benefits Act 1992 (pension sharing resulting in reduction of additional Category A retirement pension), for subsection (7) there shall be substituted--

" (7) The Secretary of State may by regulations make provision about the calculation and verification of cash equivalents for the purposes of this section.

(7A) The power conferred by subsection (7) above includes power to provide--

(a) for calculation or verification in such manner as may be approved by or on behalf of the Government Actuary, and

(b) for things done under the regulations to be required to be done in accordance with guidance from time to time prepared by a person prescribed by the regulations. "

(3) In section 55A of that Act (shared additional pension), for subsection (6) there shall be substituted--

" (6) The Secretary of State may by regulations make provision about the calculation and verification of cash equivalents for the purposes of this section.

(6A) The power conferred by subsection (6) above includes power to provide--

(a) for calculation or verification in such manner as may be approved by or on behalf of the Government Actuary, and

(b) for things done under the regulations to be required to be done in accordance with guidance from time to time prepared by a person prescribed by the regulations. "

(4) In section 55B of that Act (pension sharing resulting in reduction of shared additional pension), for subsection (7) there shall be substituted--

" (7) The Secretary of State may by regulations make provision about the calculation and verification of cash equivalents for the purposes of this section.

(7A) The power conferred by subsection (7) above includes power to provide--

(a) for calculation or verification in such manner as may be approved by or on behalf of the Government Actuary, and

(b) for things done under the regulations to be required to be done in accordance with guidance from time to time prepared by a person prescribed by the regulations. "

42 Disclosure of state pension information

(1) This section applies to any state pension information which is held in relation to any individual--

(a) by the Secretary of State; or

(b) in connection with the provision of any services provided to the Secretary of State for purposes connected with his functions relating to social security, by the person providing those services.

(2) Regulations may confer a power on the Secretary of State to disclose, or to authorise the disclosure of, any information to which this section applies in any case in which--

(a) the person to whom the disclosure is made is a person falling within subsection (3) who has, in the prescribed manner, applied to the Secretary of State for the disclosure of the information; and

(b) it appears to the Secretary of State that the prescribed conditions for the making of a disclosure of the information in question to that person have been satisfied.

(3) A person falls within this subsection if--

(a) he is the trustee or manager of an occupational pension scheme of which the individual to whom the information relates is a member;

(b) he is the trustee or manager of a personal pension scheme of which that individual is a member;

(c) he is the employer in relation to an occupational pension scheme of which that individual is a member;

(d) he is the employer in relation to any employed earner's employment of that individual which is not contracted-out employment; or

(e) he is proposing to provide services to that individual in circumstances in which the provision of the services, or the proposal to do so, may involve the giving of advice or forecasts to which the information to which this section applies may be relevant.

(4) The Secretary of State shall secure that his powers under this section are exercised so that at least the following is prescribed for the purposes of subsection (2)(b), namely--

(a) in the case of an application for information made by a person falling within paragraph (e) of subsection (3), a condition that the individual to whom the information relates has consented to the making of the application and to the disclosure; and

(b) in any other case, either that condition or the alternative condition set out in subsection (5).

(5) The alternative condition is--

(a) that such steps as may be prescribed have been taken for the purpose of ascertaining whether the individual to whom the information relates objects to the making of the application for the disclosure of information relating to him; and

(b) that the prescribed time has elapsed without any objection by that individual.

(6) A person applying to the Secretary of State, in accordance with regulations under this section, for the disclosure of any information relating to an individual shall be entitled, for the purpose of making the application, to make such disclosures of information relating to that individual as may be authorised by the regulations.

(7) In this section the reference, in relation to an individual, to state pension information is a reference to the following information about that individual--

(a) his date of birth, and the age at which and date on which he attains pensionable age--

(i) for the purposes of the [1993 c. 48.] Pension Schemes Act 1993, in relation to any guaranteed minimum pension to which he is entitled; and

(ii) in accordance with the rules in paragraph 1 of Schedule 4 to the [1995 c. 26.] Pensions Act 1995;

(b) the amount of any basic retirement pension a present or future entitlement to which has already accrued to that individual, and the amount of any additional retirement pension such an entitlement to which has already accrued to that individual;

(c) a projection of the amount of the basic retirement pension to which that individual is likely to become entitled, or might become entitled in particular circumstances; and

(d) a projection of the amount of the additional retirement pension to which that individual is likely to become entitled, or might become entitled in particular circumstances.

(8) Regulations under this section shall be made by statutory instrument, which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(9) Subsections (4) to (6) of section 189 of the [1992 c. 5.] Social Security Administration Act 1992 (supplemental and incidental powers etc.) shall apply in relation to any power to make regulations under this section as they apply in relation to the powers to make regulations that are conferred by that Act.

(10) For the purposes of section 121E of the [1992 c. 5.] Social Security Administration Act 1992 (supply of information by the Inland Revenue to the Secretary of State for the purposes of the Secretary of State's functions relating to social security), the Secretary of State's functions relating to social security shall be taken to include any power conferred on him by regulations under this section.

(11) In this section--

  • "basic retirement pension" and "additional retirement pension" mean any basic or, as the case may be, additional pension under the [1992 c. 4.] Social Security Contributions and Benefits Act 1992;

  • "contracted-out employment" has the same meaning as in the [1993 c. 48.] Pension Schemes Act 1993;

  • "employed earner" has the same meaning as it has in Parts I to V of the [1992 c. 4.] Social Security Contributions and Benefits Act 1992 (by virtue of section 2(1) of that Act);

  • "employer"--

    (a)

    in relation to any occupational pension scheme, has the same meaning as in Part I of the [1995 c. 26.] Pensions Act 1995; and

    (b)

    in relation to employed earner's employment, has the same meaning as in the [1993 c. 48.] Pension Schemes Act 1993;

  • "member", in relation to an occupational pension scheme, has the same meaning as in Part I of the [1995 c. 26.] Pensions Act 1995;

  • "occupational pension scheme" and "personal pension scheme" have the same meanings as in the [1993 c. 48.] Pension Schemes Act 1993;

  • "prescribed" means prescribed by or determined in accordance with regulations;

  • "regulations" means regulations made by the Secretary of State;

  • "trustee" and "manager", in relation to an occupational pension scheme, have the same meanings as in Part I of the [1995 c. 26.] Pensions Act 1995.



Chapter II Occupational and Personal Pension Schemes

Selection of trustees and of directors of corporate trustees

43 Member-nominated trustees

(1) Section 16 of the [1995 c. 26.] Pensions Act 1995 (requirements for trustees to be nominated and selected by members of the scheme) shall be amended in accordance with subsections (2) to (8) of this section.

(2) In subsection (1) (duty of trustees to make arrangements for selection of member-nominated trustees)--

(a) the words "(subject to section 17)" and in paragraph (b), the words ", and the appropriate rules," shall be omitted; and

(b) in paragraph (a), for "persons selected" there shall be substituted "the selection of persons nominated".

(3) In subsection (3)(a) (selected persons to be trustees), for "in accordance with the appropriate rules" there shall be substituted "as a member-nominated trustee".

(4) In subsection (4) (procedure for filling vacancies unfilled because of insufficient nominations), for "the appropriate rules" there shall be substituted "regulations".

(5) In subsection (5) (period of service as a member-nominated trustee), after "six years" there shall be inserted "but for a member-nominated trustee to be eligible for selection again at the end of any period of service as such a trustee."

(6) After subsection (6) there shall be inserted--

" (6A) The arrangements must provide that, where the employer so requires, a person who is not a qualifying member of the scheme must have the employer's approval to qualify for selection as a member-nominated trustee. "

(7) In subsection (8) (persons ceasing to be member-nominated trustees on ceasing to be qualifying members of the scheme)--

(a) for "The arrangements must" there shall be substituted " The arrangements--

(a) must " ; and

(b) at the end there shall be inserted " ; and

(b) may provide for a member-nominated trustee who--

(i) is a qualifying member of one of the following descriptions, that is to say, an active, deferred or pensioner member, and

(ii) ceases (without ceasing to be a qualifying member) to be a qualifying member of that description,

to cease, by virtue of that fact, to be a trustee. "

(8) After subsection (8) there shall be inserted--

" (9) Regulations may make provision in relation to arrangements under this section--

(a) supplementing the requirements of this section as to the matters to be contained in the arrangements; and

(b) providing for the manner in which, and the time within which, persons are, for the purposes of the arrangements, to be nominated and selected as member-nominated trustees.

(10) This section does not apply in the case of a trust scheme if--

(a) every member of the scheme is a trustee of the scheme and no other person is such a trustee;

(b) every trustee of the scheme is a company; or

(c) the scheme is of a prescribed description. "

(9) Section 17 of that Act (exceptions to section 16 where the employer's alternative proposals are approved) shall cease to have effect.

44 Corporate trustees

(1) Section 18 of the [1995 c. 26.] Pensions Act 1995 (requirements for member-nominated directors of trustee company) shall be amended in accordance with subsections (2) to (9) of this section.

(2) In subsection (1) (duty of corporate trustee to make arrangements for selection of member-nominated directors)--

(a) for the words from "and the employer" to "satisfied" there shall be substituted "and there is no trustee of the scheme who is not a company";

(b) the words ", subject to section 19," and in paragraph (b), the words ", and the appropriate rules," shall be omitted; and

(c) in paragraph (a), for "persons selected" there shall be substituted "the selection of persons nominated".

(3) In subsection (3)(a) (selected persons to be directors), for "in accordance with the appropriate rules" there shall be substituted "as a member-nominated director".

(4) In subsection (4) (procedure for filling vacancies unfilled because of insufficient nominations), for "the appropriate rules" there shall be substituted "regulations".

(5) In subsection (5) (period of service as a member-nominated director), after "six years" there shall be inserted "but for a member-nominated director to be eligible for selection again at the end of any period of service as such a director."

(6) After subsection (6) there shall be inserted--

" (6A) The arrangements must provide that, where the employer so requires, a person who is not a qualifying member of the scheme must have the employer's approval to qualify for selection as a member-nominated director. "

(7) In subsection (7) (persons ceasing to be member-nominated directors on ceasing to be qualifying members of the scheme)--

(a) for "The arrangements must" there shall be substituted " The arrangements--

(a) must " ; and

(b) at the end there shall be inserted " ; and

(b) may provide for a member-nominated director who--

(i) is a qualifying member of one of the following descriptions, that is to say, an active, deferred or pensioner member, and

(ii) ceases (without ceasing to be a qualifying member) to be a qualifying member of that description,

to cease, by virtue of that fact, to be a director. "

(8) For subsection (8) (companies that are trustees of two or more different trust schemes) there shall be substituted--

" (8) Where--

(a) the same company is a trustee of two or more schemes by reference to each of which this section applies to the company, and

(b) the company does not, in the prescribed manner, elect that this subsection should not apply,

the preceding provisions of this section and section 21(8) shall have effect as if those schemes were a single scheme and the members of each of the schemes were members of that single scheme. "

(9) After subsection (8) there shall be inserted--

" (9) Regulations may make provision in relation to arrangements under this section--

(a) supplementing the requirements of this section as to the matters to be contained in the arrangements; and

(b) providing for the manner in which, and the time within which, persons are, for the purposes of the arrangements, to be nominated and selected as member-nominated directors.

(10) This section does not apply in the case of a trust scheme if the scheme is of a prescribed description. "

(10) Sections 19 and 20 of that Act (exceptions to section 18 where the employer's alternative proposals are approved and meaning of "appropriate rules") shall cease to have effect.

45 Employer's proposals for selection of trustees or directors

(1) After section 18 of the [1995 c. 26.] Pensions Act 1995 there shall be inserted--



" Further provisions about the selection of trustees and directors
18A Employer's proposals for selection of trustees or directors

(1) Where, in the case of any trust scheme--

(a) the employer makes proposals for the adoption of arrangements for the nomination and selection of the trustees of the scheme,

(b) the proposed arrangements comply with all the requirements of section 16 and do not contain anything inconsistent with those requirements,

(c) the proposed arrangements comply with such other requirements as may be prescribed,

(d) the proposed arrangements are approved under such procedure for obtaining the views of members of the scheme as may be prescribed, and

(e) such other conditions are satisfied as may be prescribed,

the trustees of the scheme shall secure that the proposed arrangements are made and implemented.

(2) Where, in the case of any company which is trustee of a trust scheme of which there is no trustee who is not a company--

(a) the employer makes proposals for the adoption of arrangements for the nomination and selection of the directors of the company,

(b) the proposed arrangements comply with all the requirements of section 18 and do not contain anything inconsistent with those requirements,

(c) the proposed arrangements comply with such other requirements as may be prescribed,

(d) the proposed arrangements are approved under such procedure for obtaining the views of members of the scheme as may be prescribed, and

(e) such other conditions are satisfied as may be prescribed,

the company shall secure that the proposed arrangements are made and implemented.

(3) Arrangements made and implemented under this section may include provision that is different from that for which provision is made by regulations under section 16(9) or 18(9).

(4) Regulations may make provision--

(a) as to the manner in which, and the time within which, arrangements proposed and approved for the purposes of this section are to be implemented by the trustees of a trust scheme or by a company which is a trustee of a trust scheme; and

(b) as to what is to happen where an approval for the purposes of this section of any arrangements ceases, in accordance with regulations, to have effect.

(5) Regulations about the manner in which anything is approved for the purposes of this section may provide--

(a) for it to be treated as approved in accordance with the prescribed procedure where the Authority determine that prescribed conditions have been satisfied in relation to any departures from that procedure that have occurred; and

(b) for persons who do not object to it to be treated as having approved it.

(6) Regulations may provide that, for the purposes of this section and any arrangements under this section, arrangements are to be taken as complying with the requirements of section 16 or 18, and as being consistent with those requirements, notwithstanding that nominations made for the purposes of the arrangements by a person or organisation which--

(a) represents for any particular purposes the interests of persons who are comprised in the membership of the scheme in question, and

(b) is of such a description as is specified in the regulations,

are to be treated under the arrangements as nominations, or as the only nominations, made by qualifying members of the scheme.

(7) Provision made by or under the preceding provisions of this section with respect to member-nominated trustees does not apply in the case of a trust scheme if--

(a) every member of the scheme is a trustee of the scheme and no other person is such a trustee; or

(b) every trustee of the scheme is a company.

(8) Provision made by or under the preceding provisions of this section does not apply if the scheme is of a prescribed description. "

(2) In section 68(2)(b) of that Act (power of trustee to modify scheme), for "17(2)" there shall be substituted "18A(1)".

(3) In section 117(2)(c) of that Act (overriding requirements), for "17(2)" there shall be substituted "18A(1)".

46 Non-compliance in relation to arrangements or proposals

(1) In section 21 of the [1995 c. 26.] Pensions Act 1995 (consequences for trustees of failure to implement arrangements)--

(a) in subsections (1) and (2), the words ", or the appropriate rules," shall be omitted;

(b) in subsections (1) and (3), for "17(2)", in each place, there shall be substituted "18A(1)";

(c) in subsection (2), for "19(2)", in each place, there shall be substituted "18A(2)";

(d) in subsection (3), the words "or rules" shall be omitted;

(e) in subsection (4), for "17(2), 18(1) or 19(2)" there shall be substituted "18(1) or 18A(1) or (2)" and the words "(or further arrangements)" in paragraph (a), paragraph (b) and the word "and" immediately preceding it shall be omitted;

(f) subsection (5) shall cease to have effect;

(g) in subsection (6), for "20" there shall be substituted "18A";

(h) in subsection (7), for "16 to 20" there shall be substituted "16 and 18" and the words "and this section", paragraph (b) and the word "and" immediately preceding paragraph (b) shall be omitted;

(i) in subsection (8)(a), for the words from "of the appropriate" to "given" there shall be substituted "for the purposes of section 18A of proposed arrangements must be given, in accordance with regulations under that section,"; and

(j) paragraph (b) of subsection (8) and the word "and" immediately preceding it shall be omitted.

(2) In subsection (1) of that section, after paragraph (b) there shall be inserted " or

(c) regulations under section 16(9)(b) have not been complied with, " .

(3) In subsection (2) of that section, after paragraph (b) there shall be inserted " or

(c) regulations under section 18(9)(b) have not been complied with, " .

(4) After subsection (2) of that section there shall be inserted--

" (2A) Section 10 applies to an employer who has made a proposal for the purposes of section 18A but who contravenes any requirements of any regulations under section 18A relating to the submission of that proposal for approval. "

(5) After subsection (6) there shall be inserted--

" (6A) In sections 16 to 18A "company" means a company within the meaning given by section 735(1) of the [1985 c. 6.] Companies Act 1985 or a company which may be wound up under Part V of the [1986 c. 45.] Insolvency Act 1986 (unregistered companies). "



Winding-up of schemes

47 Information to be given to the Authority

(1) In section 22(1) and (3) of the [1995 c. 26.] Pensions Act 1995 (circumstances in which provisions apply to a trust scheme the employer in relation to which has been subjected to an insolvency procedure), for "26", in each case, there shall be substituted "26A".

(2) After section 26 of that Act there shall be inserted--

" 26A Information to be given to the Authority in a s. 22 case

(1) If at any time while section 22 applies in relation to a scheme--

(a) the trustees of the scheme do not include at least one person who the practitioner or official receiver has informed them is a person about whose independent status he is satisfied, and

(b) the trustees have no other reasonable grounds for believing that their number includes at least one person about whose independent status the practitioner or official receiver is satisfied,

it shall be the duty of the trustees, as soon as reasonably practicable after it first appears to any one or more of them as mentioned in paragraphs (a) and (b), to give notice to the Authority that the scheme appears not to have an independent trustee.

(2) If a trust scheme is without trustees at any time while section 22 applies to it, it shall be the duty of every person involved in the administration of the scheme, as soon as reasonably practicable after it first appears to him that the scheme is without trustees, to give notice to the Authority that the scheme has no trustees.

(3) No person shall be required to give a notice under subsection (1) or (2) at any time when it appears to him on reasonable grounds--

(a) that it is the intention of the practitioner or official receiver, for the purpose of complying with his duty under section 23(1)(b), to make or secure the appointment of any person as a trustee of the scheme; and

(b) that the appointment will be made within the period specified by or under section 23(2) for the performance of that duty.

(4) No person shall be required to give a notice under subsection (2) at any time when it appears to him, on reasonable grounds, that the Authority are already aware that the scheme has no trustees.

(5) Where the practitioner or official receiver at any time informs the trustees of a trust scheme that he is not, or is no longer, satisfied about a person's independent status, no account shall be taken for the purposes of subsection (1)(a) of any information that he was so satisfied which was given by the practitioner or official receiver to the trustees before that time.

(6) References in this section to the practitioner or official receiver being satisfied about a person's independent status are references to his being satisfied for the purposes of section 23 that that person is an independent person.

(7) If subsection (1) is not complied with, section 10 applies to any trustee who has failed to take all such steps as are reasonable to secure compliance.

(8) Section 10 applies to any person who fails to comply with a duty imposed on him by subsection (2).

26B Information to be given in cases where s. 22 disapplied

(1) Where, at any time--

(a) section 22 would apply in relation to a trust scheme but for regulations under section 118,

(b) the employer in relation to the scheme is the sole trustee of the scheme,

(c) there are persons involved in the administration of the scheme, and

(d) none of those persons has received an employer's assurance relating to the scheme,

it shall be the duty of every person who is involved in the administration of the scheme, as soon as reasonably practicable after it first appears to him as mentioned in paragraphs (a) and (b), to give notice to the Authority that the case is one falling within paragraphs (a) to (d).

(2) For the purposes of this section a person has received an employer's assurance relating to a scheme if during the period while section 22 would have applied in relation to the scheme but for regulations under section 118--

(a) he has been informed by the person who is the employer in relation to the scheme that there is no reason why the employer should not continue to act as a trustee of the scheme;

(b) he has not subsequently been informed by the person who is the employer in relation to the scheme that that has ceased to be the case; and

(c) the trustees of the scheme have not changed since he was informed as mentioned in paragraph (a).

(3) No person shall be required to give a notice under subsection (1)--

(a) at any time when it appears to him, on reasonable grounds, that the Authority are already aware that the case is one falling within paragraphs (a) to (d) of that subsection;

(b) if a period is prescribed for the purposes of this paragraph, at any time in the prescribed period after the event by virtue of which the scheme became a scheme in relation to which section 22 would apply but for regulations under section 118; or

(c) at any other time that is prescribed for the purposes of this subsection.

(4) Section 10 applies to any person who fails to comply with any duty imposed on him by subsection (1).

26C Construction of ss. 26A and 26B

(1) In sections 26A and 26B references, in relation to a scheme, to a person involved in the administration of the scheme are (subject to subsection (2)) references to any person who is so involved otherwise than as--

(a) the employer in relation to that scheme;

(b) a trustee of the scheme;

(c) the auditor of the scheme or its actuary;

(d) a legal adviser of the trustees of the scheme;

(e) a fund manager for the scheme;

(f) a person acting on behalf of a person who is involved in the administration of the scheme;

(g) a person providing services to a person so involved;

(h) a person acting in his capacity as an employee of a person so involved;

(i) a person who would fall within any of paragraphs (f) to (h) if persons acting in relation to the scheme in any capacity mentioned in the preceding paragraphs were treated as involved in the administration of a scheme.

(2) In this section references, in relation to a scheme, to a person involved in the administration of the scheme do not include references to persons of a particular description if regulations provide for persons of that description to be excluded from those references.

(3) If regulations so provide in relation to any provision of section 26A or 26B, so much of that provision as requires any notice to be given as soon as reasonably practicable after a particular time shall have effect as a requirement to give that notice within such period after that time as may be prescribed. "

(3) In subsection (2) of section 118 of that Act (powers to provide for sections 22 to 26 not to apply in the case of certain schemes), for "sections 22 to 26" there shall be substituted "some or all of the provisions of sections 22 to 26C".

(4) After that subsection there shall be inserted--

" (3) Regulations may modify sections 26A and 26B for the purpose of requiring prescribed persons, in addition to or instead of the persons who (apart from the regulations) would be required to provide information to the Authority under those sections, to be subject to the duties imposed by those sections. "

(5) In section 178(b) of the [1993 c. 48.] Pension Schemes Act 1993 (regulations providing for who is to be treated as a trustee of a scheme), at the end there shall be inserted "or sections 22 to 26C of the Pensions Act 1995".

48 Modification of scheme to secure winding-up

After section 71 of the [1995 c. 26.] Pensions Act 1995 (effect of modification orders under section 69) there shall be inserted--

" 71A Modification by Authority to secure winding-up

(1) The Authority may at any time while--

(a) an occupational pension scheme is being wound up, and

(b) the employer in relation to the scheme is subject to an insolvency procedure,

make an order modifying that scheme with a view to ensuring that it is properly wound up.

(2) The Authority shall not make such an order except on an application made to them, at a time such as is mentioned in subsection (1), by the trustees or managers of the scheme.

(3) Except in so far as regulations otherwise provide, an application for the purposes of this section must be made in writing.

(4) Regulations may make provision--

(a) for the form and manner in which an application for the purposes of this section is to be made to the Authority;

(b) for the matters which are to be contained in such an application;

(c) for the documents which must be attached to an application for the purposes of this section or which must otherwise be delivered to the Authority with or in connection with any such application;

(d) for persons to be required, before such time as may be prescribed, to give such notifications of the making of an application for the purposes of this section as may be prescribed;

(e) for the matters which are to be contained in a notification of such an application;

(f) for persons to have the opportunity, for a prescribed period, to make representations to the Authority about the matters to which such an application relates;

(g) for the manner in which the Authority are to deal with any such application.

(5) The power of the Authority to make an order under this section--

(a) shall be limited to what they consider to be the minimum modification necessary to enable the scheme to be properly wound up; and

(b) shall not include power to make any modification that would have a significant adverse effect on--

(i) the accrued rights of any member of the scheme; or

(ii) any person's entitlement under the scheme to receive any benefit.

(6) A modification of an occupational pension scheme by an order of the Authority under this section shall be as effective in law as if--

(a) it had been made under powers conferred by or under the scheme;

(b) the modification made by the order were capable of being made in exercise of such powers notwithstanding any enactment, rule of law or rule of the scheme that would have prevented their exercise for the making of that modification; and

(c) the exercise of such powers for the making of that modification would not have been subject to any enactment, rule of law or rule of the scheme requiring the implementation of any procedure or the obtaining of any consent in connection with the making of a modification.

(7) Regulations may provide that, in prescribed circumstances, this section--

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