OpenLegislation

Section 93 Forfeiture by reference to obligation to employer.I1I2C1

England, Wales and Scotland

(1)

Subject to subsection (2), section 92(1) does not prevent forfeiture of a person’s entitlement F1to a pension under an occupational pension scheme or right to a future pension under such a scheme by reference to the person having incurred some monetary obligation due to the employer and arising out of a criminal, negligent or fraudulent act or omission by the person.

(2)

A person’s entitlement or F2right may be forfeited by reason of subsection (1) to the extent only that it does not exceed the amount of the monetary obligation in question, or (if less) the value (determined in the prescribed manner) of the person’s entitlement or F3right.

(3)

Such forfeiture as is mentioned in subsection (1) must not take effect where F4a dispute has arisen as to the amount of the monetary obligation in question, unless F5—

(a)

the dispute has been resolved by the parties to it,

(b)

the Pensions Ombudsman has made a determination under Part 10 of the Pension Schemes Act 1993 or Part 10 of the Pension Schemes (Northern Ireland) Act 1993 (investigations) as to the amount of the monetary obligation in question, or

(c)

the monetary obligation in question has become enforceable—

(i)

under an order of a competent court, or

(ii)

in consequence of an award of an arbitrator or, in Scotland, an arbiter to be appointed (failing agreement between the parties) by the sheriff.

(4)

Where a person’s entitlement or F6right is forfeited by reason of subsection (1), the person must be given a certificate showing the amount forfeited and the effect of the forfeiture on his benefits under the scheme.

(5)

Where such forfeiture as is mentioned in subsection (1) occurs, an amount not exceeding the amount forfeited may, if the trustees or managers of the scheme so determine, be paid to the employer.

Annotations

Textual amendments

F1

Words in s. 93(1) substituted (1.12.2000) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 12 para. 59(2); S.I. 2000/1047, art. 2(2)(d) Sch. Pt. 4

F2

Word in s. 93(2) substituted (1.12.2000) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 12 para. 59(3)(a); S.I. 2000/1047, art. 2(2)(d) Sch. Pt. 4

F3

Word in s. 93(2) substituted (1.12.2000) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 12 para. 59(3)(b); S.I. 2000/1047, art. 2(2)(d) Sch. Pt. 4

F4

Words in s. 93(3) substituted (29.6.2026) by Pension Schemes Act 2026 (c. 22), ss. 121(3)(a), 133(11)(a)

F5

S. 93(3)(a)-(c) substituted for words (29.6.2026) by Pension Schemes Act 2026 (c. 22), ss. 121(3)(b), 133(11)(a)

F6

Word in s. 93(4) substituted (1.12.2000) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 12 para. 59(4); S.I. 2000/1047, art. 2(2)(d) Sch. Pt. 4

Modifications

C1

Ss. 91-94 modified (30.12.2005) by The Occupational Pension Schemes (Cross-border Activities) Regulations 2005 (S.I. 2005/3381), regs. 1, 14, Sch. 2 para. 3

Commencement

I1

S. 93 in force at 6.4.1996 for specified purposes by S.I. 1996/778, art. 2(5)(a), Sch. Pt. V

I2

S. 93 in force at 6.4.1997 in so far as not already in force by S.I. 1997/664, art. 2(3), Sch. Pt. 3