Policy background UK Asset Resolution (UKAR)
The Bradford and Bingley Staff (BBS) Pension Scheme and NRAM Pension Scheme are two public sector pension schemes which respectively pay the pension payments and other benefits of former employees (and their beneficiaries) of Bradford & Bingley Ltd (B&B) and Northern Rock, two banks which were taken into public ownership as a result of the 2007-2008 financial crisis.
	The schemes previously resided under B&B and NRAM Limited (NRAM), two companies holding the mortgage and loan assets of B&B and Northern Rock that the Government acquired during the financial crisis. The Government has gradually been returning these assets to the private sector and announced the completion of the final sale of B&B and NRAM and their remaining assets in October 2021. 9 As part of the sale, the liability for the payment of the pensions was novated from B&B and NRAM to the Government-owned holding company UKAR. 10
	The Treasury has a statutory obligation to guarantee that the assets in the BBS Pension Scheme are sufficient to meet the pension liabilities. 11 It has also extended this guarantee in relation to the NRAM Pension Scheme through a credit support deed in May 2019.
	The Government is now seeking to relieve UKAR of its remaining liabilities (including the BBS and NRAM pension schemes) such that UKAR may be wound down.
	In the 2020 Budget, the Treasury announced its intention to "create a new central Government pension scheme for the members of the BBS and NRAM schemes [and to] sell assets held by the NRAM and BBS schemes over 2023-24 and 2024-25, subject to the necessary legislation being brought forward, supportive market conditions and achieving value for money." 12
	This Act confers the necessary powers upon the Treasury to implement this policy. It confers powers on the Treasury to create one or more public pension schemes to provide for pensions and benefits to and in respect of the members of BBS and NRAM pension schemes. It also confers powers on the Treasury to transfer the assets and liabilities of the BBS and NRAM schemes to the Government.
	The Act contains a number of related provisions, including provisions to ensure that affected individuals’ pension benefits are at least as good following the transfer; and provisions to require the surrender of personal data necessary to make the transfer. The Act also confers powers for the transfer to the Treasury of additional pension payments, which are currently paid directly by UKAR to a small number of beneficiaries outside the BBS and NRAM schemes.