Public Employees (Pensions)
(Jersey) Law 2014
A LAW to make new provision in relation to pensions and other benefits
payable to or in respect of, certain employees and for connected purposes.
Commencement [see endnotes]
Introduction
1 Interpretation
(1) In this Law, unless the
context indicates otherwise –
“1967 Scheme” means the pension Scheme established by
the Public Employees
(Contributory Retirement Scheme) (Jersey) Regulations 1967;
“1967 Scheme benefits” means a person’s pension
rights accrued under the 1967 Scheme;
“1967 Scheme Regulations” means any of the following
Regulations –
(a) the Public Employees
(Contributory Retirement Scheme) (Jersey) Regulations 1967;
(b) the Public Employees
(Contributory Retirement Scheme) (Existing Members) (Jersey) Regulations 1989;
(c) the Public Employees
(Contributory Retirement Scheme) (New Members) (Jersey) Regulations 1989;
(d) the Public Employees
(Contributory Retirement Scheme) (General) (Jersey) Regulations 1989; and
(e) the Public Employees
(Contributory Retirement Scheme) (Former Hospital Scheme) (Jersey)
Regulations 1992;
“2005 Law” means the Employment of States of
Jersey Employees (Jersey) Law 2005;
“appointed day” means such day or days as the States may
by Act appoint for the coming into force of this Law or a provision of it;
“Committee of Management” shall be construed in
accordance with Article 4;
“employer” means –
(a) the
States Employment Board;
(b) any
employer who is admitted to the Scheme pursuant to Scheme Regulations under Article 2;
or
(c) any
employer who is admitted to the 1967 Scheme pursuant to Regulations under Article 4
of the Public Employees (Retirement)
(Jersey) Law 1967;
“functions” includes any powers or duties;
“fund” shall be construed in accordance with Article 5;
“Jersey Appointments Commission” means the Commission
established by Article 17 of the 2005 Law;
“Minister” means the Chief Minister;
“normal pension age” has the meaning given in Article 9;
“pensionable earnings” means a person’s earnings
by reference to which a pension or other benefits under the Scheme are
calculated;
“pension rights accrued” shall be construed in
accordance with Article 10(6);
“pensionable service” in relation to the Scheme, means
service which qualifies a person to accrue a pension or other benefits under
the Scheme;
“prescribed” means prescribed by Scheme Regulations
under Article 2;
“respective schemes” means the 1967 Scheme and
the Scheme;
“Scheme” means the Public Employees Pension Scheme
established by Scheme Regulations under Article 2;
“Scheme Regulations” has the meaning given in Article 2(2);
“States Employment Board” means the States Employment
Board established under Article 4 of the 2005 Law.
(2) For the purposes of
this Law the following are to be taken to be employed by the States Employment
Board, namely –
(a) officers
referred to in Article 1(1)(a) to (d) of the Departments of the Judiciary and the Legislature (Jersey)
Law 1965;
(b) the
holder of the office of Information Commissioner (within the meaning of Article 5
of the Data Protection Authority
(Jersey) Law 2018);
(c) the
Greffier of the States and Deputy Greffier of the States (within the meaning of
Article 41 of the States of Jersey Law 2005);
(d) the
Magistrate (and Assistant Magistrate);
(e) the
Master of the Royal Court;
(f) police
officers in the States of Jersey Police Force;
(g) a
“délégué” as defined by Article 1(2) of
the Loi (1937) sur l’atténuation des peines et sur la
mise en liberté surveillée (a probation officer);
(h) the
holder of the office of the Commissioner for Children and Young People (and
acting Commissioner) (within the meaning of the Commissioner for Children and
Young People (Jersey) Law 2019).[1]
Provision of pensions
2 Pension
Scheme
(1) The States shall by
Regulations establish a pension scheme which shall be known as the Public
Employees Pension Scheme, for the payment of pensions and other benefits to or
in respect of –
(a) persons
or classes of persons who are employed by the States Employment Board;
(b) other
persons, or classes of persons, for whom the States consider it appropriate to
provide pensions or other benefits.
(2) In this Law,
Regulations under this Article are called “Scheme Regulations”.
(3) Without prejudice to the
generality of paragraph (1), Scheme Regulations may, subject to this Law,
make such provision as the States consider expedient including in particular –
(a) provision
as to any of the matters specified in the Schedule;
(b) consequential,
supplementary, incidental, transitional or saving provision in relation
to –
(i) the Scheme,
(ii) the 1967 Scheme,
or
(iii) any
provision of this Law;
(c) different
provision for different purposes or cases (including different provision for
different descriptions or classes of persons);
(d) retrospective
provision, subject to Article 8;
(e) confer
on such persons as may be specified, such functions as the States consider
necessary or expedient for the purposes of the Regulations.
(4) The consequential
provision referred to in paragraph (3)(b) includes consequential provision
amending any enactment –
(a) for
the general purposes, or any particular purpose of this Law;
(b) in
consequence of any provision made by or under this Law;
(c) for
giving full effect to this Law or any provision of it.
3 Power
to extend application of Scheme
(1) The States may make
Scheme Regulations under Article 2 that make provision for the admission
of certain employers to participate in the Scheme and for their employees to
become members of the Scheme.
(2) Without prejudice to
the generality of paragraph (1), the Regulations may include
provision –
(a) specifying
a description, class or category of employer that the Minister considers is appropriate
to admit to the Scheme;
(b) specifying
the arrangements for admission to the Scheme;
(c) specifying
the terms and conditions on which an employer and the employees respectively
may participate in the Scheme, or specifying which terms and conditions must be
contained in any contract or agreement relating to admission to the Scheme
under this Article;
(d) so as
to secure appropriate protection against additional costs or risks to the
Scheme that might result from –
(i) the admission to
the Scheme of an employer or his or her employees, or
(ii) the
winding up or liquidation of the employer;
(e) imposing
certain obligations on any person as may be prescribed.
(3) A term and condition
referred to in paragraph (2)(c) includes a provision specifying which of
an employer’s employees of a particular description, class or category
are or are not eligible (as the case may be) to become members of the Scheme.
Governance and administration
4 Management of Scheme
(1) Subject to paragraph (2),
a Committee of Management shall manage the Scheme.
(2) The Committee of
Management established for the purposes of managing the 1967 Scheme,
shall, on the appointed day continue as the Committee of Management (the
“Committee”) for the purposes of managing the respective schemes.
(3) Scheme Regulations
under Article 2 –
(a) shall
make provision concerning the discharge of the Committee’s functions in
relation to the management of the respective schemes; and
(b) may
amend the 1967 Scheme Regulations for the purposes of the discharge
of the Committee’s functions in relation to the management of the 1967 Scheme.
(4) Subject to Article 10,
Scheme Regulations under Article 2 shall –
(a) provide
for the recruitment of the Chairman of the Committee and members of the
Committee;
(b) provide
for the Minister to appoint the Chairman of the Committee and members of the
Committee on such terms and conditions as may be prescribed;
(c) make
provision to ensure –
(i) that a person to
be appointed as the Chairman or as a member of the Committee does not have a
conflict of interest,
(ii) from
time to time that none of the persons serving on the Committee has a conflict
of interest;
(d) provide
for the Committee’s membership to include employer representatives and
member representatives in equal numbers.
(5) In this Law –
“conflict of interest” in relation to a person, means a
financial or other interest which is likely to prejudice the person’s
exercise of functions as a member of the Committee (but does not include a
financial or other interest arising merely by virtue of membership of
the 1967 Scheme, or the Scheme);
“employer representatives” means persons appointed to
the Committee on behalf of employers for the respective schemes;
“member representatives” means persons appointed to the
Committee on behalf of members of the respective schemes.
5 Pension
fund
(1) There shall be a
pension fund for the Scheme which for the purposes of the Scheme, shall be the
pension fund (“fund”) established for the purposes of the 1967 Scheme.
(2) The fund shall, on the
appointed day, operate as the fund for the purposes of the respective schemes.
(3) Scheme Regulations
under Article 2 –
(a) shall
make provision concerning the management of the fund for the purposes of the
respective schemes; and
(b) may
amend the 1967 Scheme Regulations for the purposes of the management
of the fund in so far as it operates for the purposes of the 1967 Scheme.
(4) Scheme Regulations
under Article 2 shall make provision –
(a) about
what money must be paid into the fund;
(b) about
how (including in what amounts) money in the fund is to be applied –
(i) in payment of
pensions and other benefits under the respective schemes,
(ii) for
meeting the expenses of administering the respective schemes, and
(iii) for
other purposes relevant to the respective schemes;
(c) about
how money in the fund that is not for the time being required for the purposes
mentioned in sub-paragraph (b) may, with the approval of the Minister for
Treasury and Resources, be invested by the Committee of Management;
(d) for
the appointment of –
(i) an actuary for
the fund,
(ii) one
or more investment managers, for the purposes of managing and investing money
in the fund, and
(iii) one
or more custodians, for the purposes of storing and safeguarding the assets of
the fund.
(5) Scheme Regulations may
further provide that any one or more of the matters referred to in paragraph (4)(b)
shall be subject to the prior approval of the Minister for Treasury and
Resources.
(6) Without prejudice to
the generality of paragraph (4)(c), where Scheme Regulations provide that
money in the fund referred to in that paragraph, is paid over to the Treasurer
of the States for the purposes of investment, that money shall be taken to be
money to which Article 25 of the Public Finances (Jersey)
Law 2019 applies.[2]
Cost control
6 Valuations
(1) Scheme Regulations
under Article 2 shall provide for regular actuarial valuations of the fund.
(2) The Regulations may in
particular make provision about –
(a) how
and when a valuation is to be carried out;
(b) the
time in relation to which a valuation is to be carried out;
(c) the determination
of data, methodology and assumptions which may be applied in respect of the
valuation; and
(d) the
matters to be covered by a valuation.
7 Contributions
cost cap
(1) Scheme Regulations
under Article 2 shall provide for –
(a) the
setting of an employer contribution cost cap which shall operate as a cap on
the cost of funding the pensions and other benefits granted under the
respective schemes, attributable to the employer; and
(b) the
setting of a member contribution cost cap which shall operate as a cap on the
cost of funding the pensions and other benefits granted under the respective
schemes, attributable to the contributing members of the respective schemes.
(2) The caps referred to in
paragraph (1) shall be rates expressed as a percentage of pensionable
earnings of contributing members of the respective schemes, provided that in
the case of the employer contribution cost cap, the rate that is set shall not
exceed 16.5% of pensionable earnings.
(3) The Regulations may
make further provision about the action to be taken, or the procedures to be
followed to keep the cost of funding the respective schemes within the
prescribed caps.
(4) The expression
“contributing members” means members who are making payments
towards the receipt of future pensions or other benefits and includes members
of the Scheme who are entitled to receive 1967 Scheme benefits.
Supplementary
8 Procedure
for retrospective provision
(1) Where Scheme
Regulations under Article 2 propose making retrospective provision which
appears to the Minister –
(a) to
have significant adverse effects in relation to –
(i) the pension
payable to or in respect of members of the Scheme or other persons in receipt
of benefits under the Scheme, or
(ii) the
entitlement to a pension in respect of members of the Scheme or other persons
entitled to benefits under the Scheme,
the Minister shall first obtain the consent of the persons specified
in paragraph (2); or
(b) not
to have significant adverse effects as specified in sub-paragraph (a), but
to have effects which may be otherwise unfavourable, the Minister shall first
consult with the persons specified in paragraph (2) with a view to
reaching agreement with them.
(2) The persons referred to
in paragraph (1) are the persons (or representatives of the persons) in
receipt of, or entitled to benefits under the Scheme who appear to the Minister
to be likely to be affected if the provision were made.
9 Normal
pension age – link to pensionable age
(1) Subject to paragraph (4),
the normal pension age of a person entitled to a pension or other benefits
under the Scheme must be the same as the person’s pensionable age.
(2) Where a person’s
pensionable age changes, the consequential change to the person’s normal
pension age must, under the Scheme, apply in relation to all the benefits
(including benefits already accrued under the Scheme) which may be paid to or
in respect of the person under the Scheme and to which the normal pension age
is relevant.
(3) In this Law –
(a) “normal
pension age” in relation to a person, means the age at which the person
is entitled to receive a pension under the Scheme (without actuarial adjustment
and disregarding any special provision as to early payment of pension or other
benefits on the grounds of ill-health or otherwise);
(b) “pensionable
age” in relation to a person, means the pensionable age of the person as specified
from time to time in the Social Security (Jersey)
Law 1974.
(4) Scheme Regulations
under Article 2 may provide that paragraph (1) does not apply in
relation to prescribed classes or description of person and shall specify the
normal pension age that is to apply in relation to such a person.
Closing and transitional provisions
10 Closure of the 1967
Scheme and transitional provisions
(1) On the appointed day,
no person is eligible to become a member of the 1967 Scheme and that scheme
shall be declared closed.
(2) Notwithstanding Article 4(4),
the persons who, immediately before the appointed day, constitute the Committee
of Management established for the purposes of managing the 1967 Scheme,
shall –
(a) constitute
the Committee (within the meaning of this Law); and
(b) continue
to serve their appointed term of office until –
(i) that period
expires in accordance with Regulation 3(3) of the Public Employees
(Contributory Retirement Scheme) (General) (Jersey) Regulations 1989, or
(ii) they
resign, are removed from office or die (if earlier).
(3) The persons to whom paragraph (2)
applies, shall –
(a) resign
or be removed from office; or
(b) be
eligible (or not, as the case may be) for re-appointment,
in accordance with Scheme Regulation under Article 2.
(4) Scheme Regulations
under Article 2 may, in particular, provide –
(a) for the
transfer of a person’s membership of the 1967 Scheme to membership
of the Scheme on an automatic or optional basis; and
(b) in
the case of a person whose membership is transferred under Scheme Regulations,
for the protection of his or her –
(i) membership
accrued in respect of service, and
(ii) pension
rights accrued,
under the 1967 Scheme
up to and including the day before that scheme is declared closed under paragraph (1).
(5) Any
employer admitted to the 1967 Scheme who on the appointed day employs a
person whose membership of the 1967 Scheme is transferred under Scheme
Regulations under Article 2, shall be taken to be an employer admitted to
the Scheme as if that employer had been admitted to the Scheme under Scheme
Regulations.
(6) The
expression “pension rights accrued” includes any right to any
pension, lump sum or other benefit due to or in respect of a person described
in paragraph (4)(b), but excludes any special provision under the 1967 Scheme
as to the early payment of benefits on the grounds of ill-health or otherwise.
(7) Scheme
Regulations under Article 2 may (without prejudice to paragraph (6))
make further provision in respect of the meaning of “pension rights
accrued”.
(8) Nothing
in this Law shall be taken to affect the continued operation of the
1967 Scheme in respect of any person whose membership of that scheme is
not transferred under Scheme Regulations under Article 2.
11 1967
Scheme – protection of link to final earnings
(1) This Article applies to
a person who immediately before the appointed day is a member of the 1967 Scheme
and who, on the appointed day, transfers to the Scheme.
(2) A
person’s 1967 Scheme benefits accrued immediately before the
appointed day, shall be calculated by reference to the person’s –
(a) service
accrued in respect of membership of the 1967 Scheme; and
(b) final
pensionable earnings received at the point the person –
(i) reaches the
normal retiring age at which he or she is entitled to receive his or her 1967 Scheme
benefits, notwithstanding that he or she remains in Scheme employment but chooses
to receive those benefits at that point,
(ii) leaves
Scheme employment at any time after reaching the age referred to in paragraph (2)(b)(i),
or leaves the Scheme on reaching normal pension age (if later), where he or she
has decided to defer receiving his or her 1967 Scheme benefits until that
point, or
(iii) leaves
Scheme employment at any other time, regardless of whether or not he or she is
entitled to receive his or her 1967 Scheme benefits (with or without the
application of an actuarial reduction) at that point.
(3) Scheme
Regulations under Article 2 may make further provision about linking a
person’s final pensionable earnings to past service in respect of the 1967 Scheme.
(4) The
expression –
(a) “final
pensionable earnings” means the highest or average pensionable earnings
in a prescribed period, ending at any of the points described in paragraph (2)(b);
(b) “normal
retiring age” has the meaning given in whichever of the 1967 Scheme
Regulations applies in relation to a member, or a particular category of
member;
(c) “Scheme
employment” means an employment by virtue of which a person is entitled
to be a member of the Scheme.
12 Citation
This Law shall be cited as the Public Employees (Pensions) (Jersey)
Law 2014.
SCHEDULE
(Article 2(3)(a))
SCOPE OF SCHEME REGULATIONS:
SUPPLEMENTARY MATTERS
Scheme Regulations under Article 2
may make provision for –
1 the
eligibility and admission to membership of the Scheme, which includes –
(a) specifying who, of the persons in relation
to whom the Scheme Regulations may be made, is eligible for membership;
(b) conditions
of eligibility;
2 the
benefits which must or may be paid under the Scheme, which may include –
(a) pensions
and other benefits on leaving service to which the Scheme relates (whether
before, at or after normal pension age);
(b) pensions
and other benefits payable on death (in service or otherwise);
(c) discretionary
payments and concessions;
3 the
persons to whom pensions or other benefits under the Scheme may be payable;
4 the
conditions subject to which pensions or other benefits are payable;
5 the
assignment of pensions or benefits, including restrictions on assignment;
6 where
a lump sum becomes payable on the death of a member, to determine –
(a) the
recipients (whether individuals or persons);
(b) whether
the lump sum is to be paid wholly to one recipient or in parts to more than one
recipient;
(c) whether
the lump sum is to be paid in full, partially or not at all;
7 specified
matters to be determined by the Committee of Management, the actuary for the
fund or any investment managers;
8 the
forfeiture or suspension of pensions or benefits, whether accrued or in payment;
9 the
recovery of overpaid pensions or benefits;
10 contributions,
including –
(a) the
making of contributions by employers and members of the Scheme towards the cost
of funding the pensions and other benefits granted under the respective schemes;
(b) contribution
rates;
(c) interest
on late payment of contributions;
(d) the
return of contributions (with or without interest);
11 the
determination of the amounts of pension accrued each year by reference to the
member’s pensionable earnings in that year of service, and the revaluation
each year of the amounts thus accrued until the member leaves pensionable
service;
12 the
payment or receipt of transfer values or other lump sum payments for the
purpose of creating or restoring rights to pensions or other benefits (under
the Scheme or otherwise);
13 the
administration, management and winding-up of the fund;
14 the
administration and management of the respective schemes, including –
(a) the
giving of advice or the issuing of guidance by the Minister, the Minister for
Treasury and Resources or the Treasurer of the States to the Committee of
Management or to the States Employment Board;
(b) the
giving of advice by the Treasurer of the States to the Minister, or the
Minister for Treasury and Resources;
(c) the
appointment of professional advisers;
(d) the
provision of individual pension or other benefit information to members of the respective
schemes or other persons in receipt of a pension or other benefits under the respective
schemes;
(e) the
publication of information about the respective schemes, including –
(i) accounts,
(ii) funding,
assets and liabilities,
(iii) membership,
(iv) employer
and member contributions,
(v) administration and
governance;
15 the
delegation of functions, including –
(a) delegation
of functions by the Committee of Management, the Minister, the Minister for
Treasury and Resources and the Treasurer of the States;
(b) further
delegation of functions by any delegatee;
16 the
payment by an employer of –
(a) any
costs relating to the administration of the Scheme;
(b) any
costs incurred because of a failure by the employer to comply with the
employer’s obligations under the Scheme;
(c) interest
relating to payments to be made by virtue of this paragraph;
17 pension
increases which may be payable out of the fund, including the criteria upon
which such increases are calculated, and the arrangements for defraying the
costs of such increases;
18 the
entering into reciprocal arrangements with other employers;
19 the
resolution of disputes and appeals (including the referral to the Royal Court
of questions of law).