Public
Employees (Pension Scheme) (Administration) (Jersey) Regulations 2015
Made 17th November 2015
Coming into force 1st January 2016
THE STATES, in pursuance of Articles 2, 4, and 5 of, and Schedule 1 to
the Public Employees (Pensions) (Jersey) Law 2014[1] and Article 3 of the Public
Employees (Retirement) (Jersey) Law 1967[2], have made the following
Regulations –
PART 1
INTERPRETATION
1 Interpretation
(1) In these Regulations,
unless the context indicates otherwise –
“1967 Regulations” means the
Public Employees (Contributory Retirement Scheme) (Jersey) Regulations 1967[3];
“1967 Scheme employer” means an employer –
(a) who, before the
commencement of these Regulations, was admitted to the 1967 Scheme under
repealed Regulation 9 of the General Regulations;
(b) who, before the
commencement of these Regulations, was treated as if admitted to the 1967 Scheme
under any enactment which provided for that employer to become an employer for
the purposes of that scheme in respect of members of that scheme whose
employment with the States Employment Board was transferred to that employer;
or
(c) who is treated as if
admitted to the 1967 Scheme under Regulation 7 of, and
paragraph 2(5) of Schedule 1 to, the Membership and Benefits
Regulations;
“1967 Scheme Regulations”
has the meaning given in Article 1(1) of the Law;
“1967 Scheme survivor benefits” has the meaning given in
Regulation 10 of the Transitional Regulations;
“1992 Regulations” means
the Public Employees (Contributory Retirement Scheme) (Former Hospital Scheme)
(Jersey) Regulations 1992[4];
“active member” has the meaning given in Regulation 1 of the
Membership and Benefits Regulations and “active membership” shall be construed
accordingly;
“active member pension record” shall be construed in accordance with
Regulation 21 of the Membership and Benefits Regulations;
“Actuary” means a person appointed in accordance with Regulation 10
to give actuarial advice in respect of the fund;
“Administrator” shall be construed in accordance with Regulation 19;
“admitted employer” means an employer other than the States
Employment Board –
(a) admitted to the Scheme under –
(i) Regulation 7 of, and paragraph 2(1)
of Schedule 1 to, the Membership and Benefits Regulations,
(ii) Regulation 16(1) of the Transitional
Regulations, or
(iii) Article 10(5) of the Law;
(b) treated as if admitted
to the Scheme under any enactment which provides for that employer to become an
employer for the purposes of the Scheme in respect of members of the Scheme
whose employment with the States Employment Board is transferred to that
employer; or
(c) who is a 1967 Scheme
Employer;
“admitted employer representative” means a person appointed to the Committee
on behalf of an admitted employer;
“approved drawdown contract” means a contract approved under Article 131D
of the Income Tax Law;
“approved Jersey scheme” has the meaning given in Article 130
of the Income Tax Law;
“assets” means anything tangible or intangible that is owned or
controlled and which may or may not produce an economic value (such as
investments, debts or cash);
“budget” shall be construed in accordance with Regulation 9;
“civil partnership” shall be construed in
accordance with Article 2 of the Civil Partnership (Jersey) Law 2012[5];
“Committee” and “Committee of Management” shall be construed in
accordance with Article 4 of the Law and Regulation 2;
“conflict of interest” has the meaning given in Article 4(5) of
the Law;
“continuing member of the 1967 Scheme”
shall be construed in accordance with Regulation 3(2)(b) of the
Transitional Regulations;
“contributing member of the 1967 Scheme”
means a –
(a) “contributory member” within the meaning of
Regulation 4 of the 1967 Regulations;
(b) “category A member” and “category B member” within the meaning of
Regulation 1 of the Existing Members Regulations and Regulation 1 of
the New Members Regulations;
(c) “category C” member within the meaning of
Regulation 1 of the New Members Regulations;
(d) “member” within the meaning of Regulation 1
of the Existing Members Regulations and Regulation 1 of the New Members
Regulations, who is not a category A, category B or category C
member (within the meaning of those Regulations); and
(e) “member” within the meaning of Regulation 1
of the 1992 Regulations;
“deferred member” has the meaning given in Regulation 11 of the
Membership and Benefits Regulations;
“eligible child” has the meaning given in Regulation 2 of the Membership
and Benefits Regulations;
“employer” means an admitted employer or the States Employment
Board;
“employer representatives” means persons appointed to the Committee
on behalf of the States Employment Board;
“Existing Members Regulations” means the Public Employees
(Contributory Retirement Scheme) (Existing Members) (Jersey)
Regulations 1989[6];
“equivalent scheme established outside Jersey” shall be construed in
accordance with Article 131CG of the Income Tax Law;
“financial year” means a period of 12 months beginning on 1st January
and ending on 31st December;
“functions” has the meaning given in Article 1(1) of the Law;
“fund” shall be construed in accordance with Article 5 of the
Law;
“Funding and Valuation Regulations” means the
Public Employees (Pension Scheme) (Funding and Valuation) (Jersey)
Regulations 2015[7];
“Income Tax Law” means the Income Tax (Jersey) Law 1961[8];
“investment manager” means a person appointed in accordance with Regulation 12;
“Law” means the Public Employees (Pensions) (Jersey) Law 2014[9];
“member of the 1967 Scheme” means a continuing member of the
1967 Scheme or a contributing member of the 1967 Scheme;
“Membership and Benefits Regulations” means the Public
Employees (Pension Scheme) (Membership and Benefits) (Jersey) Regulations 2015[10];
“member representatives” has the meaning given in Article 4(5)
of the Law”;
“Minister” means the Chief Minister;
New Members Regulations means the Public Employees (Contributory
Retirement Scheme) (New Members) (Jersey) Regulations 1989[11];
“pensioner representatives” means persons appointed to the Committee
on behalf of pensioner members of the Scheme (within the meaning of
Regulation 12 of the Membership and Benefits Regulations) and pensioners
(within the meaning of the 1967 Scheme Regulations);
“proper advice” means advice received from an investment adviser
appointed under Regulation 15;
“repealed Regulation 9 of the
General Regulations” means Regulation 9 of the Public Employees
(Contributory Retirement Scheme) (General) (Jersey) Regulations 1989[12] as it was in force
immediately prior to its repeal by the Transitional Regulations;
“retirement benefits” means any annual pension, lump sum or other
benefit due to, or in respect of a person which has accrued under the Scheme,
the 1967 Scheme, another approved Jersey scheme, an approved drawdown
contract, a personal pension scheme or an equivalent scheme established outside
Jersey;
“relevant actuarial transfer factors” means factors based on
actuarial assumptions which have been set according to the principles set out
in the funding strategy statement prepared under Regulation 2 of the Funding
and Valuation Regulations, for the purposes of
calculating transfer payments under Regulations 22 or 23 and which are
approved by the Committee;
“relevant transferee” and “relevant transferor” means the managers
or trustees of an approved Jersey scheme, an approved drawdown contract, a
personal pension scheme or an equivalent scheme established outside Jersey;
“respective schemes” has the meaning given in Article 1(1) of
the Law, and “schemes” shall be construed accordingly;
“Scheme” means the Public Employees Pension Scheme referred to in Article 2(1)
of the Law;
“Scheme employment” means employment by virtue of which a person is
eligible to be an active member of the Scheme;
“statement of investment principles” shall be construed in
accordance with Regulation 17;
“Transitional Regulations” means the Public Employees (Pension
Scheme) (Transitional Provisions, Savings and Consequential Amendments)
(Jersey) Regulations 2015[13];
“Treasurer” means the Treasurer of the States;
“United Kingdom transferring arrangement” means a registered pension
scheme within the meaning of section 150(2) of the Finance Act 2004
(c.12) of the United Kingdom;
“valuation of the fund”
means an actuarial valuation of the fund by reference to the assets and
liabilities of the respective schemes.
(2) In these Regulations, unless the context indicates otherwise, where
a word or expression is used in relation to the 1967 Scheme Regulations,
that word or expression is to be construed in accordance with the meaning given
to it in those Regulations.
part 2
Management of fund
Committee of Management
2 Committee of Management
(1) The
Committee shall have and exercise all the functions that are vested in it by
the Law, under Scheme Regulations or under the 1967 Scheme Regulations,
and must secure compliance with that legislation.
(2) The Committee must be
comprised of –
(a) a Chairman; and
(b) subject to paragraph (6),
12 members of the Committee (excluding the Chairman) divided into each of
the following categories –
(i) 5 employer representatives,
(ii) 4 member representatives,
(iii) 2 pensioner representatives, and
(iv) 1 admitted employer representative.
(3) Unless indicated
otherwise, a reference in these Regulations to “employer representatives” is
taken to include the admitted employer representative, and a reference to “member
representatives” is taken to include the pensioner representatives.
(4) Except in the
circumstances described in paragraphs (5) and (9), the number of employer
representatives must always be equal to the number of member representatives.
(5) If a vacancy arises on
either the employer representative side, or on the member representative side,
the equal representation requirement in paragraph (4) shall not apply
until such time as the vacancy is filled by a member of the same category as
that of the member who is no longer on the Committee.
(6) This paragraph applies
where a vacancy occurs under any category described in paragraph (2)(b)(i)
to (iii), and the Minister, with the agreement of the Chairman and a
majority of the employer representatives and a majority of the member
representatives, determines that in the light of that
vacancy, the Committee may thereafter be comprised of fewer than 12 members.
(7) Where paragraph (6)
applies, and for the purposes of securing that the number of employer
representatives must always be equal to the number of member representatives, subject
to paragraph (9), the table in paragraph (8), applies as
follows –
(a) columns 1 and 2 of
the table set out the ratio of members within each of the employer and member representative
sides that must be maintained; and
(b) column 3 sets out
the total number of Committee members that must be maintained.
(8) For the purpose of the
table –
(a) “ER” means employer
representatives;
(b) “AER” means admitted
employer representative;
(c) “MR” means member
representatives;
(d) “PR” means pensioner
representatives.
|
1
Employer representatives
|
2
Member representatives
|
3
Total number of Committee members
|
|
4 ER : 1 AER = 5
3 ER : 1 AER = 4
|
3 MR : 2 PR = 5
2 MR : 2 PR = 4
|
10
8
|
(9) Where paragraph (6)
applies, the equal representation requirement in paragraph (4) shall not
apply until such time as the appropriate ratios set out in columns 1 or 2
of the table in paragraph (8) are attained.
3 Appointment
of Chairman and members of the Committee
(1) Subject
to the provisions of this Regulation, the recruitment of the Chairman and
members of the Committee must be overseen by the Jersey Appointments Commission,
and conducted in accordance
with the guidelines produced by the Commission under Article 24 of the Employment of States of Jersey Employees (Jersey) Law 2005[14].
(2) The
Chairman and members of the Committee must be appointed by the Minister on the
recommendation of the Minister for Treasury and Resources, and in the case of
the Chairman, his or her recommendation for appointment must be agreed by a
majority of the employer representatives and a majority of the member
representatives.
(3) A
person may not –
(a) be
recommended for appointment under paragraph (2) to be the Chairman of the
Committee, if he or she is a member of the Committee or has at any time served
as a member of the Committee;
(b) having
already served the maximum term of office permitted under Regulation 4(2),
be nominated to apply for appointment as a member of the Committee under paragraph (4)
or (5), or apply for appointment as an employer or a pensioner representative.
(4) In the case of a
proposed appointment in respect of an admitted employer representative, the
Minister for Treasury and Resources may only recommend a person for appointment
where that person has been nominated by an admitted employer, to apply for
appointment as a member of the Committee.
(5) In
the case of proposed appointments in respect of member representatives, the
Minister for Treasury and Resources may only recommend a person for appointment
where that person has been nominated by a representative association of members
of the respective schemes, to apply for appointment as a member of the
Committee.
(6) In paragraph (5), the reference to “member representatives”
does not include pensioner representatives.
(7) Before
appointing a person as the Chairman or a member of the Committee,
the Minister must be satisfied that the person to be appointed does not have a
conflict of interest.
(8) For the purposes of
paragraph (7), the person must produce promptly such information as the
Minister reasonably requires for the purpose of satisfying himself or herself
that the person has no conflict of interest.
4 Term of office of
Chairman and members
(1) The Chairman and
members of the Committee must be appointed for such period not exceeding
5 years as the Minister specifies at the time of making the appointment.
(2) In
the case of a member of the Committee, the Minister may extend the member’s
initial term of office by re-appointing the member for a second but final term of
office not exceeding 5 years.
(3) In
the case of the Chairman, the Minister may extend the Chairman’s –
(a) initial
term of office by re-appointing the Chairman for a second term of office not
exceeding 5 years;
(b) second
and any subsequent term of office thereafter, by re-appointing the Chairman for
a further term of office not exceeding 5 years.
(4) Regulation 3
shall not apply in respect of a re-appointment under paragraph (2) or (3) but,
nothing in those paragraphs prevents a re-appointment from being made in
accordance with that Regulation.
(5) The
Minister must from time to time satisfy himself or herself
that none of the members of the Committee, including
the Chairman, has a conflict of interest, by requiring any member or the
Chairman (as the case may be) to produce promptly, such information as the
Minister reasonably requires for the purpose of satisfying himself or herself
that the member or the Chairman has no conflict of interest.
5 Chairman – terms
of appointment and termination of office
(1) The Chairman must on
appointment (or re-appointment, as the case may be), enter into a contract for
services with the States Employment Board which must specify such fee and
reasonable expenses to be paid to the Chairman out of the fund, as is
determined by the Minister for Treasury and Resources in consultation with the
Committee.
(2) The
Chairman must cease to hold office on resigning, by giving such period of written
notice as is specified in his or her contract for services, to the Minister.
(3) Subject to paragraph (4),
the Chairman must cease to hold office (other than by resignation) upon the
determination of the Minister.
(4) The Minister may only
determine the Chairman’s termination of office under paragraph (3) where
the Minister has secured the agreement to that termination by a majority of the
employer representatives and a majority of the member representatives.
6 Termination
of office of members
(1) A
member of the Committee must cease to hold office on resigning by giving a
period of 3 months written notice to the Chairman.
(2) With
the agreement of the Minister, a member of the Committee must cease to hold
office where the Committee has passed a vote of no confidence in that member supported
by a majority of the employer representatives and a
majority of the member representatives.
(3) Termination
of office under paragraph (2) must take effect as soon as the Chairman
receives the Minister’s written agreement.
7 Meetings
of the Committee
(1) The
Committee may meet for the conduct of business, adjourn and otherwise regulate
its meetings as it thinks fit, but subject to the following provisions –
(a) if the Chairman is not present at any
meeting, those present must elect a chairman from their number for that
meeting;
(b) a quorum must be formed by not less than half
of the employer representatives and half of the member representatives;
(c) save as provided in Regulation 2(6), 3(2),
5(4), 6(2), 10(1)(b), 12(1)(b), 15(1)(b) and 31(2), all business brought before
a meeting must be decided by a majority of the members present;
(d) a Chairman appointed
under Regulation 3 or re-appointed under Regulation 4 must not have a
vote other than a casting vote;
(e) a
chairman elected under sub-paragraph (a) may exercise a casting vote, or exercise
the right to vote that he or she has as a member of the Committee, but must not
exercise both votes in relation to the same matter;
(f) invite
the attendance of any person at any meeting of the Committee, as the Committee
determines.
(2) If the Committee so
agrees, the Treasurer is permitted to attend any meeting of the Committee.
(3) The
Chairman and each member of the Committee must be indemnified by the States
against all personal liabilities incurred by them in the exercise of their
functions under the Law, Scheme Regulations and the 1967 Scheme
Regulations (other than those incurred by the Chairman’s or the member’s own
wilful default).
8 Delegation of
Committee’s functions
(1) Subject
to paragraph (2), the Committee may delegate its functions to such persons
as the Committee considers appropriate, on such terms as to remuneration or
otherwise as the Committee must agree within the budget approved under
Regulation 9.
(2) The
Committee may delegate such of its administrative functions to the
Administrator as it considers appropriate.
(3) Any
decision of the Committee which under these Regulations requires the support of a majority of the employer representatives and a majority of the
member representatives, must not be delegated.
(4) The Committee may
revoke any delegation made under this Regulation.
9 Budget
(1) The Committee must, in
every financial year –
(a) determine a draft
budget in respect of the costs of discharging the Committee’s functions in
relation to the fund, for the following financial year; and
(b) submit the draft budget
determined under sub-paragraph (a) for approval by the Minister for
Treasury and Resources.
(2) The costs referred to
in paragraph (1)(a) may include the costs of legal advice or such other
advice as is required to facilitate, or is conducive or incidental to the
discharge of the Committee’s functions.
(3) Where the costs of any
advice exceeds the amount approved in the Committee’s budget under paragraph (4),
the Committee must, before the expiry of 3 months from the date those costs
are incurred, submit a report to the Minister for Treasury and Resources with
an explanation for the level of, and reasons for, such expenditure.
(4) The Minister for
Treasury and Resources must approve the draft budget under paragraph (1)(a)
by no later than the end of the financial year preceding the financial year to
which the draft budget relates.
Actuary
10 Appointment
of Actuary
(1) Subject
to the approval of the Minister, the Committee –
(a) must,
having consulted the Treasurer, appoint a person to give actuarial advice in
respect of the fund (the “Actuary”), such person being a fellow of the
Institute and Faculty of Actuaries (the “Institute”), or if that person is a
firm, any actuary employed by that firm to advise in respect of the fund who is
a fellow of the Institute;
(b) may terminate an appointment under paragraph (1)(a), provided
that the Committee has first
consulted with the Treasurer, and has the support of a majority of the employer representatives
and a majority of the member representatives.
(2) The Actuary must on appointment enter into a contract for services
with the Committee which must specify –
(a) the Actuary’s terms of
remuneration; and
(b) such other terms and
conditions of the Actuary’s appointment,
as the Committee determines.
11 Duties
of Actuary
The Actuary must discharge such functions
as are vested in that person under Scheme Regulations or under the 1967 Scheme
Regulations, such functions to include –
(a) a duty to give such advice
in relation to the funding of the respective schemes as the Committee requires;
and
(b) a duty to provide such
information and advice in relation to the administration of the respective schemes
as the Administrator requires.
Investment managers
12 Appointment
of investment managers
(1) Subject to the
provisions of this Regulation and with the approval of the Minister for
Treasury and Resources, the Committee –
(a) must appoint one or
more investment managers;
(b) may terminate without
notice an appointment under paragraph (1)(a), provided that
the Committee has the support of a majority of the employer representatives
and a majority of member representatives.
(2) Notwithstanding paragraph (1)(b), the Minister for Treasury and
Resources may require the Committee to terminate without notice an appointment
under paragraph (1)(a).
(3) The Committee must not
appoint an investment manager unless it has considered the value of the assets
of the fund which are to be managed by the investment manager, or as the case
may be, by each of the investment managers to be appointed, and it is satisfied
that the value of those assets is not excessive, having regard to –
(a) proper advice;
(b) the desirability of
securing diversification of the assets of the fund; and
(c) the total value of the
assets of the fund.
(4) The Committee must not
appoint a person to be an investment manager unless the Committee reasonably
believes the person to be suitably qualified by ability in, and practical
experience of, financial matters, to make investment decisions on the
Committee’s behalf.
(5) The investment manager must on appointment enter into a contract for
services with the Committee which must specify –
(a) the investment
manager’s terms of remuneration; and
(b) such other terms and
conditions of the investment manager’s appointment,
as are determined by the Committee and the Minister for Treasury and
Resources.
13 Functions of investment
managers
(1) Each
investment manager must provide to the Committee and the Treasurer, quarterly
reports on the assets under the investment manager’s control.
(2) An investment manager must
exercise the powers of investment in relation to the assets of the fund that
the Committee authorizes the manager to perform.
(3) The Committee may
authorize an investment manager to delegate to such other person, as the
investment manager thinks fit, the powers of investment that the Committee has
authorized the manager to perform.
14 Duties of Committee in
relation to investment managers
The Committee must –
(a) ensure that each
investment manager –
(i) complies with such
instructions as the Committee, subject to the statement of investment
principles, may give, and
(ii) has regard to the suitability of
investments of any description which the investment manager proposes to make,
and of any investment proposed as an investment of that description;
(b) agree with each
investment manager, an investment mandate for the fund which is a document
which –
(i) specifies the proposed
class of investments, geographic area of investments and restrictions on
investments in relation to the assets of the fund,
(ii) may include such
other matters as the Committee requires,
(iii) meets the requirements
of the statement of investment principles under Regulation 17, and
(iv) is approved by the
Minister for Treasury and Resources;
(c) after it has appointed
an investment manager, review quarterly the investments made by that investment
manager; and
(d) from time to time
consider the desirability of continuing or revoking the appointment of an
investment manager.
Investment advisers and custodians
15 Appointment and duties of
investment advisers
(1) Subject to the
provisions of this Regulation and with the approval of the Minister for
Treasury and Resources, the Committee –
(a) must appoint one or
more investment advisers; and
(b) may terminate without
notice an appointment under paragraph (1)(a), provided that
the Committee has the support of a majority of the employer representatives
and a majority of the member representatives.
(2) The Committee must not
appoint a person to be an investment adviser unless the Committee reasonably
believes the person to be suitably qualified by ability in, and practical
experience of, financial matters, to offer advice in respect of the investment
strategy for the fund and the statement of investment principles, and to advise
on investments generally.
(3) The investment adviser must on appointment enter into a contract for
services with the Committee which must specify –
(a) the investment
adviser’s terms of remuneration; and
(b) such other terms and
conditions of the investment adviser’s appointment,
as are determined by the Committee and the Minister for Treasury and
Resources.
(4) Each investment adviser
must –
(a) comply with such
instructions as the Committee may give; and
(b) having regard to the
need for diversification of investment of the assets of the fund, advise the Committee on the investment strategy for the fund,
including –
(i) the suitability of investments to meet the
fund’s investment objectives,
(ii) the suitability of proposed investment
managers to manage and invest the assets of the fund, and
(iii) the decisions made by, or proposed
decisions of the fund’s investment managers on behalf of the Committee.
16 Appointment and duties of
custodians
(1) One
or more custodians for the fund must be appointed by the Minister for Treasury
and Resources in consultation with the Committee and the Treasurer.
(2) A custodian must on appointment enter into a contract for services with
the Minister for Treasury and Resources which must specify –
(a) the custodian’s terms
of remuneration; and
(b) such other terms and
conditions of the custodian’s appointment,
as are determined by the Minister for Treasury and Resources after
consultation with the Committee and the Treasurer.
(3) A
custodian must hold and safeguard such assets of the fund as may from time to
time be determined by the Treasurer, in consultation with the Committee.
Management of assets of the fund
17 Statement of investment
principles
(1) The Committee must
prepare a written statement setting out the policies and principles governing
the Committee’s decisions in relation to the investment of the assets of the
fund (the “statement of investment principles”), which may contain any of the
matters set out in paragraph (2).
(2) The matters are –
(a) the descriptions of
investments to be held;
(b) the balance between
different descriptions of investments;
(c) risk, including the
ways in which risks are to be measured and managed;
(d) the expected return on
investments;
(e) the realization of
investments;
(f) the approach taken and
the extent (if at all) to which social, environment or ethical considerations
are taken into account in the selection, retention and realization of
investments;
(g) the approach taken on
the exercising of any rights (including voting rights) attaching to
investments, if the Committee has any such policy; and
(h) the approach taken on
stock lending.
(3) The Committee
must –
(a) keep the statement of
investment principles under annual review; and
(b) make such revisions as
are appropriate following a material change to its policies and principles in
relation to any of the matters contained in the statement.
(4) In preparing or
reviewing and making revisions to the statement of investment principles, the
Committee must consult with the Treasurer.
(5) The Committee must,
subject to the approval of the Minister for Treasury and Resources,
publish –
(a) the statement of
investment principles; and
(b) where revisions are
made to it, the statement of investment principles as revised, before the
expiry of 3 months from the date of those revisions.
18 Assets of the fund and
investments
(1) The
following must be paid into the fund –
(a) contributions paid under the respective schemes by members and employers;
(b) any dividends or interest or other returns
arising out of the investment of the assets of the fund or any part thereof,
and any capital sums resulting from the realization of any such investments;
(c) any other sums which may be paid into the fund
under Scheme Regulations or otherwise.
(2) If an employer delays paying into the fund all or any part of a
contribution mentioned in paragraph (1)(a) the employer must pay interest
on the amount of the delayed payment in accordance with Regulation 25.
(3) Except
as provided in Regulation 13(1) and 16(3), the assets of the fund must be
held by the Treasurer on behalf of the Committee, in accordance with the provisions
of these Regulations.
(4) The
Treasurer must receive amounts paid into the fund under paragraph (1) and
from the assets of the fund must pay pensions and other benefits under the respective
schemes, pay refunds under the schemes, meet any reasonable expenses of
administering the fund (including
those of the Treasurer) and pay any remuneration which becomes due under these
Regulations.
(5) Any
assets which are not for the time being required for the purpose of paragraph (4), or are not otherwise being invested in
accordance with Regulation 13(2) or (3), must be invested by the Treasurer
on the direction of the Committee in accordance with paragraph (6), provided
that the Minister for Treasury and Resources so approves.
(6) The
Committee has the same full and unrestricted powers of investing, transposing
and varying of investments, contracts, policies or deposits in all respects as
if the Committee were absolutely and beneficially entitled to such investments,
contracts, policies or deposits, and accordingly the assets of the fund may be
invested or applied in whole or in part –
(a) in
the purchase of or at interest upon, the security of such funds, securities,
bonds, debentures, stocks, shares or property (including any interest in land)
or other investments of any kind, that the Committee thinks fit, wherever the
investments are situated and whether or not they –
(i) involve
liability,
(ii) are
income producing, or
(iii) are
held in possession or reversion,
and the funds, securities, bonds, debentures,
stocks, shares and other investments may be underwritten or sub-underwritten
and their subscription guaranteed;
(b) in
or towards effecting and maintaining with any insurance company or insurance
office of good repute any annuity contracts, or annuity policies or life
assurance policies;
(c) by
placing part or all of the assets of the fund on deposit at interest with any
company or mutual institution or other society or body of good repute,
incorporated or carrying on business within the United Kingdom or the Channel
Islands which carries on the business of banking or insurance or bill
discounting;
(d) by
entering into any contract for the purpose of stock lending or dealing in
financial futures and traded options;
(e) without
prejudice to the generality of sub-paragraphs (a) to (d), in or towards
subscribing for –
(i) units
in a unit trust, mutual fund or policy linked unit trust scheme, and
(ii) units
or other interest offered by an insurance company of good repute in a managed
fund,
and the Committee is expressly authorized
to commingle the assets of the fund or any part of the assets of the fund with
other funds upon the terms as to sharing, division, valuation, apportionment
and administration and otherwise that may be contained from time to time in the
trust deed, declaration of trust policy or contract governing investment in
such commingled assets.
(7) The
Committee in the exercise of its functions in relation to the investment of the
assets of the fund under paragraph (6) must have regard to –
(a) the need for diversification of investments
of the assets of the fund;
(b) the suitability of the investment it proposes
to make; and
(c) proper advice obtained at reasonable
intervals.
part 3
Administration of schemes
Functions of Administrator and Committee
19 Administration of Scheme
and 1967 Scheme
(1) The administration of
the respective schemes must be carried out by –
(a) the Treasurer; or
(b) an appointed administrator being a person appointed
pursuant to the adoption by the States of a proposition referred to in
paragraph (2),
and any reference to “Administrator” in the Scheme Regulations or
the 1967 Regulations, unless indicated otherwise, means the Treasurer or
the appointed administrator, as the case may be.
(2) The Chief Minister may,
with the agreement of the Committee, lodge a proposition before the States
setting out proposals as to the appointment by tender of a person (including
the Treasurer) to carry out the administration of the respective schemes.
(3) The Treasurer must be
the Administrator –
(a) pending the appointment of an appointed
administrator; or
(b) on the termination of an appointed
administrator’s appointment where no further such appointment is pending.
(4) Subject to
paragraph (5), the Administrator may, subject to the agreement of the
Committee, delegate such administrative functions as may be conferred under the
Scheme Regulations or the 1967 Scheme Regulations, or delegated under
Regulation 8, to such persons as the Administrator considers appropriate.
(5) If the Treasurer is the
Administrator, the agreement of the Committee under paragraph (4) is not
required where under Article 31(1) of the Public Finances (Jersey)
Law 2005[15], the Treasurer authorizes
people employed in the Treasury to carry out any of the Treasurer’s
administrative functions conferred under the Scheme Regulations or the
1967 Scheme Regulations.
20 Pension
administration strategy
(1) The Committee must, in
consultation with the Administrator, prepare a pension administration strategy
which must be comprised of a written statement of –
(a) policies and procedures
governing the administration of the respective schemes, which may contain the
matters set out in paragraph (3); and
(b) obligations which may
be required of 1967 Scheme employers –
(i) admitted to the Scheme under Regulation 16(1)
of the Transitional Regulations in respect of whom there is no requirement to
enter into an admission agreement under Regulation 16(3) of those
Regulations; and
(ii) in respect of whom Regulations 9A and
9B of the Public Employees (Contributory Retirement Scheme) (General) (Jersey)
Regulations 1989[16] applied immediately before
those Regulations were repealed by the Transitional Regulations.
(2) The Administrator and
employers must, when carrying out their functions under the Scheme Regulations
or the 1967 Scheme Regulations, discharge those functions in accordance
with the policies, procedures and obligations set out in the pension
administration strategy.
(3) The matters referred to
in paragraph (1) are –
(a) procedures for liaison
and communication between the Administrator and employers, including
communication about their functions under the respective schemes;
(b) the establishment of
levels of performance which the Administrator and employers are expected to achieve
in carrying out their functions under the respective schemes by –
(i) the setting of performance targets,
(ii) the making of agreements about levels of
performance and associated matters, or
(iii) such other matters the Committee considers
appropriate;
(c) procedures which aim to
secure that the Administrator and employers comply with their functions under
the respective schemes, and with any agreement about levels of performance;
(d) the circumstances in
which the Committee may require the Administrator or any employer who in the
opinion of the Committee has caused additional costs to the fund on account of the
Administrator’s or that employer’s unsatisfactory performance in the discharge
of their functions under the respective schemes when measured against levels of
performance established under sub-paragraph (b), to refund the costs so
incurred;
(e) the publication by the Committee
of annual reports dealing with –
(i) the extent to which the Administrator and employers
have achieved the levels of performance established under sub-paragraph (b),
and
(ii) such other matters arising from its
pension administration strategy as it considers appropriate; and
(f) such other matters as
appear to the Committee after consulting the employers and such other persons
as the Committee considers appropriate, to be suitable for inclusion in that
strategy.
(4) The Committee
must –
(a) keep the pension
administration strategy under annual review; and
(b) make such revisions as
are appropriate following a material change to its policies in relation to any
of the matters contained in the strategy.
(5) In preparing or reviewing
and making revisions to the pension administration strategy, the Committee must
consult with the Administrator, employers and such other persons as the Committee
considers appropriate.
(6) The Committee must
publish in such manner as it thinks fit –
(a) the pension
administration strategy; and
(b) where revisions are
made to it, the strategy as revised, and
send a copy of it to every employer and the Administrator.
21 Annual
report and accounts etc.
(1) The Committee
must –
(a) before
the end of the 3rd month following the end of every financial year, prepare an
annual report in respect of the fund (the “annual report”); and
(b) before
the end of the 5th month following the end of every financial year, publish the
annual report.
(2) The
annual report must contain –
(a) a
statement of the Committee about the management and financial performance of
the fund during the year;
(b) a
statement of the Committee explaining the investment policy in respect of the
fund and reviewing investment performance during the year;
(c) a
statement of the Actuary of the assets and liabilities of the fund and the
level of valuation disclosed at the last valuation of the fund performed in
accordance with Regulation 3 of the Funding and Valuation Regulations;
(d) a
report dealing with the extent to which the Administrator and employers have
met administration performance standards set out in the published pension administration
strategy referred to in Regulation 20;
(e) the
fund accounts; and
(f) any
other material concerning the respective schemes and the fund, as the Committee
considers appropriate.
(3) The
Treasurer, or such other person as may be appointed by the Minister for
Treasury and Resources after consultation with the Committee must –
(a) prepare
the fund accounts; and
(b) keep
all the records necessary for the proper working of the fund and the respective
schemes.
(4) The
Comptroller and Auditor General (within the meaning of Article 1(1) of the
Comptroller and Auditor General (Jersey) Law 2014[17]), must
appoint auditors to audit the fund accounts.
(5) The
fund accounts must contain –
(a) the
balance sheet and profit and loss account with supporting notes and disclosures
prepared in accordance with generally accepted accounting practices; and
(b) a
report of the auditors in relation to the fund accounts.
Transfers
22 Transfers out of fund
(1) Where a person ceases
active membership of the Scheme or ceases to be a member of the 1967 Scheme
and –
(a) subscribes to a
personal pension scheme;
(b) becomes a member of another
approved Jersey scheme;
(c) on ceasing to be
resident in Jersey, becomes a member of an equivalent scheme established
outside Jersey; or
(d) enters into an approved
drawdown contract,
provided that person’s retirement benefits under the respective
schemes have not come into payment, he or she may, at any time, apply to the Administrator
for a transfer payment out of the fund of his or her accrued retirement
benefits.
(2) Subject to
Regulation 15(1) of the Transitional Regulations, the transfer payment
under paragraph (1) must –
(a) be of such amount as is
calculated by the Administrator using the relevant actuarial transfer factors;
and
(b) be payable to the
relevant transferees.
(3) Where a transfer
payment is paid out of the fund under this Regulation, that payment extinguishes
the person’s rights to any other benefits under the respective schemes, as well
as the rights of any person contingently entitled to any benefit payable upon
that person’s death.
23 Transfers in to fund
(1) Subject to
paragraph (2), an active member of the Scheme may at any time request the
Administrator to accept a transfer payment from the relevant transferors, in
respect of some or all of that person’s retirement benefits accrued under any
scheme or contract referred to in Regulation 22(1).
(2) For the purposes of
paragraph (1), retirement benefits accrued under an approved Jersey scheme
must not include any retirement benefits accrued under the 1967 Scheme.
(3) A member of the 1967 Scheme
may at any time request the Administrator to accept a transfer payment from the
relevant transferors, in respect of some or all of that member’s retirement
benefits accrued under any scheme or contract referred to in Regulation 22(1).
(4) Where a request is made
under paragraph (1) or (3) and the Administrator agrees to accept the
transfer payment –
(a) that payment must be
credited to the fund; and
(b) the value of the retirement
benefits accrued –
(i) by an active member of the Scheme in
respect of that transfer payment, must be –
(A) calculated by the Administrator
using the relevant actuarial transfer factors, and
(B) credited to that
member’s active member pension record as required under Regulation 20(4)(a)
of the Membership and Benefits Regulations, or
(ii) by a member of the 1967 Scheme in
respect of that transfer payment, must be awarded in accordance with
paragraph (5).
(5) In the case of a member
of the 1967 Scheme in respect of whom paragraph (4)(b)(ii) and –
(a) the 1967 Regulations
apply, the Committee may, on the advice of the Actuary, declare the member to
have become a contributory member of the 1967 Scheme on such date as the Committee
determines;
(b) the Existing Members Regulations
or New Members Regulations apply, such a member is entitled to such added years
as the Committee, on the advice of the Actuary, determines;
(c) the 1992 Regulations
apply, such a member is entitled to such notional period of pensionable service
as the Committee, on the advice of the Actuary, determines,
having regard to the amount credited to the fund in respect of the
value of the transfer payment attributable to the member concerned.
24 Transfers - supplementary
(1) In this Regulation “UK
tax-relieved scheme funds” has the meaning given in regulation 2(5) of the
Pension Schemes (Categories of Country and Requirements for Overseas Pension
Schemes and Recognised Overseas Pension Schemes) Regulations 2006
(S.I. 2006/206) of the United Kingdom.
(2) The Minister may, after
consulting the Actuary, undertake to the trustees or managers of a United Kingdom
transferring arrangement, that the benefits to be provided in respect of a transfer
payment under Regulation 23 must not be less than those specified in
relation to guaranteed minimum pensions for the purposes of the Pensions Schemes
Act 1993 (c.48) of the United Kingdom.
(3) If the Minister gives
an undertaking in accordance with paragraph (2) in relation to a person
(“transferred person”), the benefits shall, if necessary so as to comply with
the undertaking –
(a) be augmented by the Committee
on the advice of the Actuary, and added to the Scheme member’s active member pension
record as required under Regulation 20(4)(a) of the Membership and
Benefits Regulations; or
(b) in respect of a member
of the 1967 Scheme, be awarded in accordance with Regulation 23(5).
(4) In relation to a United
Kingdom transferring arrangement –
(a) at least 70% of a transferred person’s UK
tax-relieved scheme funds must be designated by the Administrator for the
purposes of providing that person with an income for life;
(b) no payment of a pension (including any lump
sum) in respect of the funds designated under sub-paragraph (a), must be
made before the day on which a transferred person reaches the age of 55,
unless, immediately before he or she becomes entitled to a pension under
Regulation 29 of the Membership and Benefits Regulations or under equivalent
provisions of the 1967 Scheme Regulations, that person ceases employment
by reason of –
(i) ill-health retirement under Regulation 36
of the Membership and Benefits Regulations, or
(ii) ill-health retirement under the equivalent
ill-health retirement provisions of the 1967 Scheme Regulations;
(c) the Minister must ascertain whether, under
that transferring arrangement, a restriction applies to the refund of the
transferred person’s contributions, and if so, a similar restriction must apply
under the respective schemes in relation to that person in respect of those contributions;
(d) the Minister must ensure that an
undertaking to maintain any restriction on the refund of a transferred person’s
contributions, is given by the trustees or managers of any arrangement to which
a subsequent transfer is made under Regulation 22.
(5) The Minister may give
such undertakings to the taxation authorities of the United Kingdom or
elsewhere, as he or she considers appropriate, in connection with transfer payments
received under Regulation 23 or the maintenance of any restrictions in
relation to the refund of a transferred person’s contributions.
(6) The Minister may make
reciprocal arrangements with other pension schemes for transfers of members to
and from the respective schemes, and the benefits to be provided in respect of
a transfer payment received and a transfer payment paid shall, if necessary to
comply with such arrangements, be adjusted by the Committee on the advice of
the Actuary.
General
25 Interest on
late payments by employers
(1) The Committee may
require an employer or former employer from which any payment under –
(a) Regulation 6(5)(b)(i),
30(4), 41(4) of, or paragraph 7 of Schedule 1 to the Membership and
Benefits Regulations; or
(b) Regulation 11(7)
and (8) of, or Schedule 5 to the Funding and Valuation Regulations,
is overdue, to pay interest on that amount.
(2) The date on which any
amount due under the Regulations referred to in paragraph (1) is overdue,
is one month after the date of payment specified in those Regulations.
(3) Interest payable under
paragraph (1) must be paid at such rate as is determined by the Committee,
on the advice of the Actuary.
26 Production of information for the purposes
of the respective schemes
(1) Subject to paragraph (2),
before the expiry of 3 months beginning with the date on which a person enters
Scheme employment, the Committee must ask the person in writing for evidence
relating to the age, marriage, civil partnership, health or such other evidence
as the Committee may reasonably require for the purposes of the Scheme.
(2) The Committee may
dispense with making a request under paragraph (1) where the Committee is
satisfied that it already has all material information.
(3) A request under
paragraph (1) must contain a conspicuous statement that it is important
that the person gives full and accurate information for ascertaining the
person’s rights under the Scheme.
(4) The Committee may
make –
(a) membership of the
Scheme;
(b) the payment of retirement
benefits under Part 5 or the payment of survivor benefits under Part 6
of the Membership and Benefits Regulations;
(c) the payment of retirement
benefits accrued under the 1967 Scheme; or
(d) the payment of
1967 Scheme survivor benefits,
conditional upon the production of such evidence as the Committee
may reasonably require.
27 Annual benefit statements
(1) The Administrator must
issue an annual benefit statement to every member of the respective schemes who
is not in receipt of retirement benefits.
(2) A statement under this
Regulation must include –
(a) a description of the retirement
benefits accrued by a member in respect of his or her pensionable service;
(b) such other information
as the Administrator may specify.
(3) The first annual
benefit statements to be issued after the commencement of these Regulations
must be issued before 31st May 2017 and thereafter such statements
must be issued no later than 6 months after the end of the scheme year to
which they relate.
(4) Subject to
paragraph (5), where a person referred to paragraph (1) makes a
written request to the Administrator for an additional annual benefit
statement, one must be issued showing such up to date information as set out in
paragraph (2), as the Administrator has available.
(5) The Administrator is
not required to issue a statement under paragraph (4) if the relevant data
is not available.
28 Payments
due in respect of deceased persons
(1) Paragraph (2)
applies if, when a person dies, the total amount due to that person’s executor
or administrator under either of the respective schemes (including anything due
at that person’s death) does not exceed £5,000 (or such higher amount as the
Minister for Treasury and Resources may by instrument in writing direct).
(2) The Committee
may pay the whole or part of the amount due from the fund to –
(a) the
person’s executor or administrator; or
(b) any
person or person appearing to the Committee to be beneficially entitled to the
estate, without the production of probate or letters of administration of the
person’s estate.
(3) A
payment under paragraph (2) discharges the Committee from accounting for
the amount paid.
(4) A
receipt given by a person to whom a payment is made under paragraph (2)(b)
shall be a valid discharge as though it had been given by an executor or
administrator.
29 Payments in respect of persons incapable
of managing their affairs
(1) If it appears to the
Committee that a person other than a child (within the meaning of the 1967 Scheme
Regulations) or an eligible child is entitled to the payment of benefits under
either of the respective schemes, but is by reason of physical or mental
impairment incapable of managing his or her affairs or of giving proper receipt
of a benefit –
(a) the
Committee may pay the benefits or any part of them to a person having the care
of the person entitled, or such other person as the Committee may determine, to
be applied for the benefit of the person so entitled; and
(b) in
so far as the Committee does not pay the benefits in the manner described in sub-paragraph (a),
the Committee may apply them in such manner as the Committee may determine, for
the benefit of the person entitled, or any beneficiaries of the person
entitled.
(2) If a person receives
payment of benefits under paragraph (1)(a), the Committee is discharged
from accounting for the benefits paid and is under no liability to see to the
application of the benefits in respect of the person so entitled.
30 Tax
deductions
The Administrator must deduct from any
payment of any pension or other benefit under the respective schemes, any tax
for which the Administrator or the respective schemes may be liable in respect
of that payment.
31 Amendment
of Regulations
(1) The
Committee may, from time to time, propose to the Minister such amendments as
may be required to the Scheme Regulations or the 1967 Scheme Regulations.
(2) Any
proposal under paragraph (1) must be supported by
a majority of the employer representatives and a majority of the member
representatives.
part 4
closing
32 Citation and commencement
These Regulations may be cited as the Public Employees (Pension Scheme)
(Administration) (Jersey) Regulations 2015 and shall come into force on 1st January 2016.
m.n. de la haye
Greffier of the States