The Occupational Pension Schemes (Administration and Audited Accounts) (Amendment) Regulations (Northern Ireland) 2005

Explanatory Note

(This note is not part of the Regulations.)

These Regulations amend the Occupational Pension Schemes (Requirement to obtain Audited Accounts and a Statement from the Auditor) Regulations (Northern Ireland) 1997 (“the Audited Accounts Regulations”) and the Occupational Pension Schemes (Scheme Administration) Regulations (Northern Ireland) 1997 (“the Scheme Administration Regulations”) in order to implement the European Directive on the activities and supervision of Institutions for Occupational Retirement Provision (Directive 2003/41/EC) (“the Directive”) and are consequential on the coming into operation of the Finance Act 2004 and the Pensions (Northern Ireland) Order 2005 (“the Order”).

Regulation 2 amends the Audited Accounts Regulations. In particular, it amends the exemptions contained in those Regulations from the requirement to maintain audited accounts and introduces a “materiality” requirement in relation to the occasions where the auditor of a scheme is required to qualify a scheme’s accounts. It also omits an obsolete reference.

Regulation 3 amends the Scheme Administration Regulations. In particular, it adds a number of new definitions, amends the exemptions of schemes that are not required to appoint an auditor, and makes consequential amendments.

Regulation 4 further amends the Scheme Administration Regulations. In particular, it makes amendments to the list of schemes which are exempt from the requirement to appoint professional advisors, omits an obsolete regulation and makes further amendments to the requirements to notify the Authority of the late payment of a contribution.

Regulation 5 makes consequential and other revocations.

These Regulations transpose the Directive. Article 10 of the Directive requires that every relevant institution in a member state must provide annual accounts and annual reports in respect of every pension scheme it operates giving a true and fair view of the institution’s assets, liabilities and financial position. It also provides that the accounts shall be approved by an authorised person. Article 5 of the Directive permits an exemption from these requirements in relation to small pension schemes (those which have fewer than 100 members) and in relation to certain statutory schemes. Regulations 2(1) to (4) and 3 of these Regulations amend the Audited Accounts Regulations and Scheme Administration Regulations to omit exemptions which are not within the scope of Article 5 of the Directive.

The transposition of Article 10 of the Directive is detailed in the Transposition Note, a copy of which has been laid in the Business Office and the Library of the Northern Ireland Assembly. Copies of the Note are available from the Department for Social Development, Social Security Policy and Legislation Division, Level 1 James House, 2-4 Cromac Avenue, Gasworks Business Park, Ormeau Road, Belfast BT7 2JA.

As these Regulations make in relation to Northern Ireland only provision corresponding to provision contained in regulations made by the Secretary of State for Work and Pensions in relation to Great Britain, the requirement for consultation under Article 117(1) of the Order does not apply by virtue of paragraph (2)(e) of that Article.

Article 246 of the Order, which amends some of the enabling provisions under which these Regulations are made, was brought into operation for the purpose of making regulations on 1st July 2005 and for all other purposes on 6th April 2006 by the Pensions (2005 Order) (Commencement No. 5 and Appointed Day) Order (Northern Ireland) 2005 (S.R. 2005 No. 321 (C. 24)).