C1C4C13Part I Occupational pensions
Pt. I applied (with modifications) (6.4.1997) by The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 1997 (S.I. 1997/786), reg. 2
Pt. I: Pensions Act 2004 (c.35), Pt. 3 construed as one with Pt. I of this Act (4.12.2005 for specified purposes, 30.12.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 233, 322(1) (with s. 313); S.I. 2005/3331, art. 2(1)(a)(b), Sch. Pt. 1
Assignment, forfeiture, bankruptcy etc.
91I1C12C21C8C9C5C10C11C14C16C18C19C20 Inalienability of occupational pension.
I61
Subject to subsection (5), where a person is entitled F2to a pension under an occupational pension scheme or has a right to a future pension under such a scheme—
a
the entitlement or right cannot be assigned, commuted or surrendered,
b
the entitlement or right cannot be charged or a lien exercised in respect of it, and
c
no set-off can be exercised in respect of it,
and an agreement to effect any of those things is unenforceable.
I62
Where by virtue of this section a person’s entitlement F3to a pension under an occupational pension scheme, or right to a future pension under such a scheme, cannot, apart from subsection (5), be assigned, no order can be made by any court the effect of which would be that he would be restrained from receiving that pension.
F143
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I54
Subsection (2) does not prevent the making of—
a
an attachment of earnings order under the M1Attachment of Earnings Act 1971, or
b
an income payments order under the M2Insolvency Act 1986.
I55
In the case of a person (“the person in question”) who is entitled F4to a pension under an occupational pension scheme, or has a right to a future pension under such a scheme, subsection (1) does not apply to any of the following, or any agreement to effect any of the following—
C15a
an assignment in favour of the person in question’s widow, widowerF20, surviving civil partner or dependant,
C15b
a surrender, at the option of the person in question, for the purpose of—
i
providing benefits for that person’s widow, widowerF20, surviving civil partner or dependant, or
ii
acquiring for the person in question entitlement to further benefits under the scheme,
C15c
a commutation—
i
of the person in question’s benefit on or after retirement or in exceptional circumstances of serious ill health,
ii
in prescribed circumstances, of any benefit for that person’s widow, widowerF20, surviving civil partner or dependant, or
iii
in other prescribed circumstances,
C2d
subject to subsection (6), a charge or lien on, or set-off against, the person in question’s entitlement, or F5right, (except to the extent that it includes transfer credits other than prescribed transfer credits) for the purpose of enabling the employer to obtain the discharge by him of some monetary obligation due to the employer and arising out of a criminal, negligent or fraudulent act or omission by him,
e
subject to subsection (6), except in prescribed circumstances a charge or lien on, or set-off against, the person in question’s entitlement, or F6right, for the purpose of discharging some monetary obligation due from the person in question to the scheme and—
i
arising out of a criminal, negligent or fraudulent act or omission by him, or
ii
in the case of a trust scheme of which the person in question is a trustee, arising out of a breach of trust by him,
F18f
subject to subsection (6), a charge or lien on, or set-off against, the person in question’s entitlement, or right, for the purpose of discharging some monetary obligation due from the person in question to the scheme arising out of a payment made in error in respect of the pension.
I56
Where a charge, lien or set-off is exercisable by virtue of subsection (5)(d) F19, (e) or (f) —
a
its amount must not exceed the amount of the monetary obligation in question, or (if less) the value (determined in the prescribed manner) of the person in question’s entitlement or accrued right, and
b
the person in question must be given a certificate showing the amount of the charge, lien or set-off and its effect on his benefits under the scheme,
and where there is a dispute as to its amount, the charge, lien or set-off must not be exercised unless the obligation in question has become enforceable under an order of a competent court or in consequence of an award of an arbitrator or, in Scotland, an arbiter to be appointed (failing agreement between the parties) by the sheriff.
I57
I2I7C12C692 Forfeiture, etc.
C171
Subject to the provisions of this section and section 93, an entitlement F7to a pension under an occupational pension scheme or a right to a future pension under such a scheme cannot be forfeited.
2
Subsection (1) does not prevent forfeiture by reference to—
a
a transaction or purported transaction which under section 91 is of no effect, F13...
F13b
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whether or not that event occurred before or after the pension became payable.
3
Where such forfeiture as is mentioned in subsection (2) occurs, any pension which was, or would but for the forfeiture have become, payable may, if the trustees or managers of the scheme so determine, be paid to all or any of the following—
a
the member of the scheme to or in respect of whom the pension was, or would have become, payable,
F21b
the spouse, civil partner, widow, widower or surviving civil partner of the member,
c
any dependant of the member, and
d
any other person falling within a prescribed class.
4
Subsection (1) does not prevent forfeiture by reference to the F8pensioner, or prospective pensioner, having been convicted of one or more offences—
C3a
which are committed before the pension becomes payable, and
b
which are—
i
offences of treason,
ii
offences under the Official Secrets Acts 1911 to 1989 for which the person has been sentenced on the same occasion to a term of imprisonment of, or to two or more consecutive terms amounting in the aggregate to, at least 10 years, F24...
F25iia
offences under section 18 of, or listed in section 33(3)(a) of, the National Security Act 2023 for which the person has been sentenced on the same occasion to a term of imprisonment of, or to two or more consecutive terms amounting in the aggregate to, at least 10 years, or
iii
prescribed offences.
5
Subsection (1) does not prevent forfeiture by reference to a failure by any person to make a claim for pension—
a
where the forfeiture is in reliance on any enactment relating to the limitation of actions, or
b
where the claim is not made within six years of the date on which the pension becomes due.
6
Subsection (1) does not prevent forfeiture in prescribed circumstances.
7
In this section and section 93, references to forfeiture include any manner of deprivation or suspension.
I3I8C1293 Forfeiture by reference to obligation to employer.
1
Subject to subsection (2), section 92(1) does not prevent forfeiture of a person’s entitlement F9to a pension under an occupational pension scheme or right to a future pension under such a scheme by reference to the person having incurred some monetary obligation due to the employer and arising out of a criminal, negligent or fraudulent act or omission by the person.
2
3
Such forfeiture as is mentioned in subsection (1) must not take effect where there is a dispute as to the amount of the monetary obligation in question, unless the obligation has become enforceable under an order of a competent court or in consequence of an award of an arbitrator or, in Scotland, an arbiter to be appointed (failing agreement between the parties) by the sheriff.
4
Where a person’s entitlement or F12right is forfeited by reason of subsection (1), the person must be given a certificate showing the amount forfeited and the effect of the forfeiture on his benefits under the scheme.
5
Where such forfeiture as is mentioned in subsection (1) occurs, an amount not exceeding the amount forfeited may, if the trustees or managers of the scheme so determine, be paid to the employer.
I4I9C7C1294 Sections 91 to 93: supplementary.
1
Regulations may—
a
modify sections 91 to 93 in their application to public service pension schemes or to other schemes falling within a prescribed class or description, or
b
provide that those sections do not apply in relation to schemes falling within a prescribed class or description.
2
In those sections, “pension” in relation to an occupational pension scheme, includes any benefit under the scheme and any part of a pension and any payment by way of pension.
3
In the application of sections 91 and 92 to Scotland—
a
references to a charge are to be read as references to a right in security or a diligence and “charged” is to be interpreted accordingly,
b
references to assignment are to be read as references to assignation and “assign” is to be interpreted accordingly,
F15c
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d
F16e
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1f
after subsection 91(4) there is inserted—
Subject to section 73(3)(d) of the Debtors (Scotland) Act 1987, nothing in this section prevents any diligence mentioned in section 46 of that Act being done against a pension under an occupational pension scheme.
F1795 Pension rights of individuals adjudged bankrupt etc.
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Pt. I modified (6.4.1997) by The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 1997 (S.I. 1997/786), regs. 1, 2