Commentary on Sections Schedule 1: The Pensions Regulator
28.Paragraphs 1-3 set out the terms of appointment and tenure for members of the Regulator. These paragraphs set out that a person will cease to be a member of the Regulator if:
	in the case of the chairman of the Regulator, he ceases to hold this position or if he becomes a member of staff of the Regulator;
	in the case of any other non-executive member, he becomes a member of staff of the Regulator;
	in the case of an executive member appointed as one of the five other members of the Regulator appointed by the Secretary of State after consulting the chairman (under section 2(c)), he ceases to be a member of staff of the Regulator;
	in the case of the Chief Executive, he ceases to be employed as such.
29.Paragraph 3 sets out that someone will not be prevented from being a member of the Regulator if they have previously been such a member.
30.Paragraphs 4-6 set out provisions on remuneration which allow for the Secretary of State to determine the remuneration of the non-executive members of the Regulator, and allow for the Regulator to pay (as determined by the Secretary of State) allowances, gratuities or pensions to those who are or have been non-executive members of the Regulator. These paragraphs also provide for the payment of compensation (where it appears to the Secretary of State that such compensation is correct in the circumstances) to a non-executive member of the Regulator who ceases to hold such a position other than at the end of his term of office.
31.Paragraphs 7 –10 provide that the staff of the Regulator consists of the Chief Executive as appointed under paragraph 8; the other employees of the Regulator as appointed under paragraph 9; and any additional staff made available by the Secretary of State under paragraph 10.
32.Paragraph 11 sets out that in order to appoint a chairman of the Determinations Panel, the chairman of the Regulator must establish an appointments committee (consisting of a chairman (which is to be one of the non-executive members of the Regulator) and one or more people appointed by the chairman of the Regulator). The appointments committee will nominate a suitable person for the office of chairman of the Determinations Panel.
33.Paragraph 12 provides that the Regulator is to determine the terms and conditions of appointment of members of the Determinations Panel, subject to the approval of the Secretary of State. A person is automatically removed from the Panel if, in the case of the Chairman of the Panel, he ceases to hold that office, or for any other member, he becomes a member of the Regulator or a member of staff of the Regulator. In conjunction with section 9(5), this ensures that members of the Determinations Panel cannot simultaneously be members of either the Regulator or its staff. However, former members of the Panel, the Regulator, or the staff of the Regulator are eligible to sit on the Determinations Panel.
34.Paragraphs 14-16 allow the Regulator to remunerate members of the Determinations Panel at a level determined by the Secretary of State. They also enable the Regulator to pay (at levels determined by the Secretary of State) allowances, gratuities or pensions to those who are or have been members of the Panel. These paragraphs also provide for the payment of compensation (where it appears to the Secretary of State that such compensation is correct in the circumstances) to a member of the Panel who ceases to hold such a position other than at the end of his term of office.
35.Paragraph 17 enables the Regulator to establish committees for any purpose. Such committees may establish sub-committees. Provision is made as to the membership of such committees. “Committees of the Regulator” is also defined for the purposes of the Schedule.
36.Paragraphs 18 and 19 enable the Regulator to determine its own procedures. Determination Panel procedures may be determined only by the Panel. The Secretary of State has the power to make regulations prescribing the Regulator’s procedures, which would include the Determination Panel’s proceedings.
37.Paragraph 20 allows the Regulator to authorise any executive member; any other member of staff; or, any of its committees (other than the appointments committee, the Determinations Panel and any of the Panel’s subcommittees) to exercise on behalf of the Regulator, functions which the Regulator determines. However, this does not apply with regard to:
	the non-executive functions of the Regulator listed in section 8(4)(non-executive functions), which must be carried out by the committee established under section 8;
	the duty of the Regulator to appoint the chairman and other members of the Determinations Panel and to determine the terms and conditions of their appointments;
	the functions of the Regulator which are only exercisable by the Determinations Panel by virtue of section 10(1) (the power in certain circumstances to determine whether to exercise the functions listed in Schedule 2 and to exercise them) or section 99(10) (compulsory review) or any corresponding provision in force in Northern Ireland.
38.The Regulator may authorise the Determinations Panel to exercise on the Regulator’s behalf the power to determine whether to exercise, and to exercise, one or more of the regulatory functions listed in sub-paragraph (5). There is also power to delegate further functions to the Panel under sub-paragraph (6)
39.Paragraph 21 allows the Secretary of State to make regulations limiting the functions delegated by the committee established under section 8 to any of its members or any of its sub-committees; limiting the functions delegated by the Determinations Panel to any of its members or any of its sub-committees; limiting the extent to which the functions of the Regulator may be delegated under paragraph 20, and permitting the Regulator in prescribed circumstances to delegate to prescribed persons any prescribed functions of the Regulator.
40.Paragraphs 22 and 23 cover the application of the seal of the Regulator and its authentication by an approved person.
41.Paragraphs 24 to 28 are concerned with matters relating to the funding and accounts of the Regulator, including the payment of the levy and the appointment of the Comptroller and Auditor General as auditor.
42.Paragraphs 29 to 35 cover the status and liability etc of the Regulator as a corporate body and provide for exemption from liability in damages.