Public Employees
(Pension Scheme) (Administration) (Jersey) Regulations 2015
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;
“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the 1967 Scheme under repealed Regulation 9 of the General Regulations;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;
“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;
“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;
“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;
“Income Tax Law” means the Income Tax (Jersey)
Law 1961;
“investment manager” means a person appointed in
accordance with Regulation 12;
“Law” means the Public Employees (Pensions)
(Jersey) Law 2014;
“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;
“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;
“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 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;
“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.
(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 36 of the Public Finances (Jersey)
Law 2019, 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.[1]
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 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), 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) Up to and including
31st December 2018, 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.[2]
(4) From 1st January 2019,
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
1967 Scheme or the Scheme, as the case may be, as well
as the rights of any person contingently entitled to any benefit payable
upon that person’s death.[3]
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
These Regulations may be cited as the Public Employees (Pension
Scheme) (Administration) (Jersey) Regulations 2015.