Energy Act 2023

Chapter 3 Relevant nuclear pension schemes

311 Civil nuclear industry: amendment of relevant nuclear pension schemes

(1) The Secretary of State may by regulations make provision requiring a designated person to amend the provisions of a relevant nuclear pension scheme in respect of which the person is designated—

(a) for the purpose of making scheme-specific changes;

(b) for the purpose of making changes that relate to any scheme-specific changes;

(c) for the purpose of making contribution rate adjustments.

(2) “Scheme-specific changes”, in relation to a relevant nuclear pension scheme, are changes that—

(a) relate to defined benefits for members of the scheme, and

(b) are in connection with one or more of the matters mentioned in subsection (3).

(3) Those matters are—

(a) securing that the structure under which the defined benefits in question accrue is a career average revalued earnings structure (in particular where it would otherwise be a final salary structure);

(b) providing for other changes to the amounts of such of those defined benefits as are payable in respect of members of the scheme;

(c) providing for revaluations of pensionable earnings, or of benefits in deferment or pensions in payment, to be by reference to the consumer prices index (and not the retail prices index) but not involving imposing a cap on any revaluation or revaluation rate;

(d) setting percentage rates, for contributions to the scheme by members of the scheme, that are higher than they would otherwise be;

(e) setting periods for which contributions to the scheme by members of the scheme are required to be made that are longer than they would otherwise be.

(4) Amendments made by virtue of subsection (1)(b) may include amendments relating to benefits provided under the scheme other than defined benefits.

(5) “Contribution rate adjustments” means such adjustments—

(a) to the rates of contributions to the scheme by its members in respect of defined benefits, or

(b) to the salary bands to which such contribution rates apply,

as are considered appropriate by the designated person (acting on actuarial advice) to ensure that the average contribution rate for members of the scheme in respect of defined benefits is as close as reasonably practicable to 8.2%.

(6) Where a person is required by regulations under this section to amend the provisions of a relevant nuclear pension scheme, the amendments may be made—

(a) free from any consent requirements set out in the scheme, and

(b) notwithstanding provision made by or under any other Act of Parliament, or any rule of law, that would otherwise prevent or limit, or impose conditions on, the making of the amendments.

(7) Amendments made by virtue of subsection (1)(a)—

(a) must not relate to service prior to the date on which the amendments are made;

(b) may be made in the case of a particular scheme on one occasion only.

(8) Nothing in this section limits any power that a designated person has to amend a relevant nuclear pension scheme.

(9) A person may not be designated in relation to a relevant nuclear pension scheme unless it appears to the Secretary of State that the person has the power to amend the scheme.

(10) In this section, “designated” means designated by regulations under this section.

312 Meaning of “relevant nuclear pension scheme”

(1) In this Chapter, “relevant nuclear pension scheme” means—

(a) a pension scheme maintained by or on behalf of the NDA under or by virtue of section 8(1)(a) or (b) of the Energy Act 2004, or

(b) subject to subsections (2) and (3), a scheme that provides for the payment of pensions or other benefits to or in respect of persons who are, or have been, employed to perform duties relating to matters that correspond or are similar to matters in respect of which the NDA has functions.

(2) A scheme of a kind mentioned in subsection (1)(b) is a relevant nuclear pension scheme only to the extent that the pensions or other benefits are provided in connection with employment by a person with public functions.

(3) Subsection (1)(b) does not apply to—

(a) a UKAEA pension scheme (within the meaning given by paragraph 1(1) of Schedule 8 to the Energy Act 2004);

(b) a scheme that provides for the payment of pensions or other benefits to or in respect of persons specified in section 1(2) of the Public Service Pensions Act 2013 (schemes for persons in public service).

(4) In this section, “the NDA” means the Nuclear Decommissioning Authority.

313 Information

(1) This section applies where a person (“P”) is required by regulations under section 311 to amend a relevant nuclear pension scheme.

(2) P may require a person who holds relevant information to provide it to P.

(3) “Relevant information” means any information or data that P reasonably requires in connection with deciding whether, or how, to amend the scheme.

(4) Except as provided by subsection (5), the disclosure of information under this section does not breach—

(a) any obligation of confidence owed by the person making the disclosure, or

(b) any other restriction on the disclosure of information (however imposed).

(5) This section does not require a disclosure of information if the disclosure would contravene the data protection legislation (but in determining whether a disclosure would do so, a requirement imposed under subsection (2) is to be taken into account).

314 Further definitions

(1) This section applies for the purposes of this Chapter.

(2) References to the amendment of a relevant nuclear pension scheme include references to the amendment of any one or more of the following—

(a) the trust deed of the scheme, if there is one;

(b) rules of the scheme;

(c) any other instrument relating to the constitution, management or operation of the scheme.

(3) References to a relevant nuclear pension scheme include references to any section into which the scheme is divided.

(4) A “career average revalued earnings structure” is a structure where—

(a) the pension payable to or in respect of a person, so far as it is based on the person’s pensionable service, is determined by reference to the person’s pensionable earnings in each year of pensionable service, and

(b) those earnings, or a proportion of those earnings accrued as a pension, are under the structure revalued each year until the person leaves pensionable service.

(5) “Consumer prices index” means—

(a) the general index of consumer prices (for all items) published by the Statistics Board, or

(b) where that index is not published for a month, any substituted index or figures published by the Board.

(6) “Defined benefits” are benefits—

(a) that are not money purchase benefits (within the meaning of the Pension Schemes Act 1993), and

(b) that are not provided under an injury or compensation scheme (within the meaning of the Public Service Pensions Act 2013).

(7) A “final salary structure” is a structure where entitlement to the pension payable to or in respect of a person which is based on the pensionable service of that person is or may be determined to any extent by reference to the person’s final salary; and “final salary” here means the person’s pensionable earnings, or highest, average or representative pensionable earnings, in a specified period ending at, or defined by reference to, the time when the person’s pensionable service in relation to the structure terminates.

(8) “Retail prices index” means—

(a) the general index of retail prices (for all items) published by the Statistics Board, or

(b) where that index is not published for a month, any substituted index or figures published by the Board.

315 Application of relevant pensions legislation

(1) The Secretary of State may by regulations make—

(a) such provision about the application of relevant pensions legislation in relation to persons of a specified description, or

(b) such amendments of relevant pensions legislation,

as the Secretary of State considers appropriate for the purposes of or in connection with the amendment of a relevant nuclear pension scheme in pursuance of regulations under section 311.

(2) In this section—

• “relevant pensions legislation” means—

  (a)

  Schedule 8 to the Energy Act 2004 (pensions), or

  (b)

  regulations made under Schedule 14 or 15 to the Electricity Act 1989 (the Electricity Supply Pension Scheme etc);

• “specified” means specified in regulations under subsection (1).

316 Procedure for regulations under Chapter 3

(1) Regulations under this Chapter are subject to the affirmative procedure.

(2) If, apart from this subsection, a draft of an instrument containing regulations under this Chapter would be treated for the purposes of the standing orders of either House of Parliament as a hybrid instrument, it is to proceed in that House as if it were not such an instrument.