The Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations (Northern Ireland) 2023

Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations

4.—(1) Regulation 2 (interpretation) is amended in accordance with sub-paragraphs (2) to (8).

(2) In paragraph (1)—

(a) before the definition of “the Administration Regulations” insert—

““the 2021 Act” means the Pension Schemes Act 2021;”;

(b) after the definition of “charges year” insert—

““collective contribution percentage charge” has the meaning given in regulation 5A(3);

“collective flat fee charge” has the meaning given in regulation 5A(3);

“collective existing rights charge” has the meaning given in regulation 5A(3);

“collective money purchase benefit” has the meaning given in section 52(1) of the 2021 Act;

“collective money purchase scheme” has the meaning given in section 52(2) of the 2021 Act;

“collective single charge structure” has the meaning given in regulation 5A(2);”;

(c) in the definition of “contributing member”—

(i) after “relevant scheme” insert “, that is not a collective money purchase scheme,”;

(ii) after “money purchase benefits” insert “(other than collective money purchase benefits)”;

(d) in the definition of “performance fee”(1)—

(i) in paragraph (b)—

(aa) at the beginning insert “in the case of a relevant scheme that is not a collective money purchase scheme,”;

(bb) for “scheme;” substitute “scheme, or”;

(ii) after paragraph (b) add—

“(c) in the case of a relevant scheme that is a collective money purchase scheme, is not calculated by reference to the value of members’ rights under the scheme;”;

(e) after the definition of “physical asset”(2) insert—

““qualifying collective money purchase scheme” has the meaning given in regulation 3A;”;

(f) after the definition of “qualifying scheme employer”(3) insert—

““qualifying section employer” means an employer in relation to whom a section of a pension scheme, which is a collective money purchase scheme for the purposes of section 1(2)(b) of the 2021 Act, is being used by a qualifying scheme in relation to at least one of its jobholders;”;

(g) in the definition of “specified scheme”(4) after “relevant scheme” insert “, that is not a collective money purchase scheme for the purposes of section 52(2)(b) of the 2021 Act,”;

(h) after the definition of “specified scheme” insert—

““specified section” means a relevant scheme that is a collective money purchase scheme for the purposes of section 52(2)(b) of the 2021 Act in which at least one qualifying section employer participates;”.

(3) In paragraph (2)—

(a) in sub-paragraph (a) for “money purchase benefits, or” substitute “money purchase benefits other than collective money purchase benefits;”

(b) in sub-paragraph (b)—

(i) after “money purchase benefits,” insert “other than collective money purchase benefits,”;

(ii) at the end insert “or”;

(c) after sub-paragraph (b) insert—

“(c) a collective money purchase scheme,”.

(4) After paragraph (2) insert—

“(2A) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 2 of the 2021 Act (see section 52(2)(b)) is to be treated for the purposes of these Regulations as a separate scheme.”.

(5) After paragraph (3) insert—

“(3A) Where, in these Regulations, a collective flat fee charge is to be calculated and these Regulations have applied to a member of a qualifying collective money purchase scheme for a period of less than a charges year, the charge associated with that member for the purposes of calculating the collective flat fee charge (see regulation 6A(4)(a)) must be calculated on a pro rata basis.”.

(6) In paragraph (4)—

(a) in sub-paragraph (c) for “charge.” substitute “charge;”;

(b) after sub-paragraph (c) add—

“(d) a charge under a collective single charge structure;

(e) a collective existing rights charge.”.

(7) In paragraph (4A)(5) for “When a charge under a single charge structure is” substitute “When the charges in paragraph (4AA) are”.

(8) After paragraph (4A) insert—

“(4AA) For the purposes of paragraph (4A), the charges are—

(a) a charge under a single charge structure;

(b) a charge under a collective single charge structure.”.

(1)

The definition of “performance fee” was inserted by regulation 6(2)(a)(iii) of S.R. 2021 No. 272

(2)

The definition of “physical asset” was inserted by regulation 6(2)(a)(iii) of S.R. 2021 No. 272

(3)

The definition of “qualifying section employer” was inserted by regulation 3(b) of S.R. 2016 No. 171

(4)

The definition of “specified scheme” was inserted by regulation 3(d) of S.R. 2016 No. 171

(5)

Paragraph (4A) was inserted by regulation 6(2)(c) of S.R. 2021 No. 272