The Occupational Pension Schemes (Investment) Regulations 1996

Explanatory Note

(This note is not part of the Regulations)

These Regulations impose restrictions on the amount of the resources of an occupational pension scheme which may be invested in employer-related investments. They also exempt certain schemes from the requirement imposed on trustees of trust schemes by section 35 of the Pensions Act 1995 to obtain a statement of the principles governing decisions about investments for the purposes of the scheme.

The Regulations replace the Occupational Pension Schemes (Investment of Scheme’s Resources) Regulations 1992 which are now revoked.

Part I of the Regulations contains general provisions relating to citation, commencement and interpretation.

Part II of the Regulations prescribes certain investments as employer-related investments in addition to those specified in section 40(2) of the Pensions Act 1995 and sets out the restrictions on employer-related investments. This Part also prescribes investments to which the restrictions do not apply. Special provision is made as regards the application of the restrictions to schemes in relation to which there is more than one employer.

Part III of the Regulations exempts certain schemes from the requirements of section 35 of the Pensions Act 1995 and modifies its application to multi-employer schemes.

Part IV of the Regulations amends the Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations 1996.

Part V of the Regulations contains revocations.

An assessment of the compliance cost for employers of the measures arising from the Pensions Act 1995, including these Regulations, has been placed in the libraries of both Houses of Parliament. Copies can be obtained by post from the Department of Social Security, Occupational Pensions Security, 11th floor, The Adelphi, 1-11 John Adam Street, London WC2N 6HT.