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.
Adopted
by the States 21st May 2014
Sanctioned by
Order of Her Majesty in Council 16th July 2014
Registered by the Royal Court 25th July 2014
THE STATES, subject to the sanction of Her Most Excellent Majesty in Council, have
adopted the following Law –
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[1];
“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[2];
(b) the Public Employees
(Contributory Retirement Scheme) (Existing Members) (Jersey) Regulations 1989[3];
(c) the Public Employees
(Contributory Retirement Scheme) (New Members) (Jersey) Regulations 1989[4];
(d) the Public Employees
(Contributory Retirement Scheme) (General) (Jersey) Regulations 1989[5]; and
(e) the Public Employees
(Contributory Retirement Scheme) (Former Hospital Scheme) (Jersey) Regulations 1992[6];
“2005 Law” means the Employment
of States of Jersey Employees (Jersey) Law 2005[7];
“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[8];
“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[9];
(b) the holder of
the office of Data Protection Commissioner (within the meaning of Article 6
of the Data Protection (Jersey) Law 2005[10]);
(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[11]);
(d) the Magistrate (and Assistant Magistrate)
(within the meaning of Article 1(1) of Magistrate’s Court (Miscellaneous
Provisions) (Jersey) Law 1949[12]);
(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[13] (a probation officer).
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 Schedule 1;
(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 6(1)(b) of the Public Finances (Jersey) Law 2005[14] applies.
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[15].
(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[16], 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 Amendment of enactments
The enactments specified in Schedule 2 are amended in the
manner specified in that Schedule.
13 Citation and commencement
This Law shall be cited as the Public Employees (Pensions) (Jersey)
Law 2014 and shall come into force on such day or days as the States may
by Act appoint, and different days may be appointed for different provisions
and for different purposes.
m.n. de la haye
Greffier of the States
SCHEDULE 1
(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).
SCHEDULE 2
(Article 12)
amendment of enactments
1 Public
Employees (Retirement) (Jersey) Law 1967
(1) In this paragraph, “Law”
means the Public Employees (Retirement) (Jersey) Law 1967[17].
(2) In Article 1(1) of
the Law, before the definition “Committee of Management” there shall be
inserted the following definition –
“ ‘appointed day’ means
such day or days as the States may by Act appoint for the coming into force of
the Public Employees (Pensions) (Jersey) Law 2014[18], or a provision of it; and”.
(3) In Article 2 of
the Law –
(a) in paragraph (2) –
(i) in sub-paragraph (b), the words “to
be” shall be deleted, and
(ii) sub-paragraphs (g) and (i) shall be
deleted; and
(b) paragraphs (3) to
(6) shall be deleted.
(4) For Article 3 of
the Law, there shall be substituted the following Article –
“3 Management
of fund and scheme
(1) The fund and the scheme established by the Public Employees
(Contributory Retirement Scheme) (Jersey) Regulations 1967[19] pursuant to the powers
conferred under Article 2, shall on the appointed day, be managed in
accordance with Regulations made under Article 2 of the Public Employees
(Pensions) (Jersey) Law 2014[20].
(2) Nothing in this Article shall be taken to affect anything done
by the Committee of Management or the Minister under Regulations made under Article 2,
in respect of the management of the fund and the scheme immediately before the
appointed day.”.
(5) In Article 4 of
the Law –
(a) in paragraph (2),
for sub-paragraph (b) there shall be substituted the following sub-paragraph –
“(b) impose additional obligations on any person as may be specified,
or specify any other manner in which such additional obligations shall be
imposed on any such person.”; and
(b) paragraph (4)
shall be deleted.
2 Public
Employees (Investment of Fund) (Jersey) Act 1972
The Public Employees (Investment of Fund) (Jersey) Act 1972[21] shall be repealed.
3 Telecommunications
(Jersey) Law 2002
In Article 46(1), (2), (3), (4)(a) and (6) of the
Telecommunications (Jersey) Law 2002[22], after the words “Public
Employees (Retirement) (Jersey) Law 1967[23]”, there shall be inserted
the words “or the Public Employees (Pensions) (Jersey) Law 2014[24]”.
4 Employment
of States of Jersey Employees (Jersey) Law 2005
In Article 36(3) of the Employment of States of Jersey
Employees (Jersey) Law 2005[25], after the words “Public
Employees (Retirement) (Jersey) Law 1967[26]” there shall be inserted the
words “, the Public Employees (Pensions) (Jersey) Law 2014[27]”.
5 Goods
and Services Tax (Jersey) Regulations 2007
In Regulation 6(3) of the Goods and Services Tax (Jersey) Regulations 2007[28], for sub-paragraph (a)
there shall be substituted the following sub-paragraph –
“(a) the Committee of Management established under the Public
Employees (Retirement) (Jersey) Law 1967[29] for the purposes of managing
the scheme established under that Law and the scheme established under the
Public Employees (Pensions) (Jersey) Law 2014[30];”.