The Personal and Occupational Pension Schemes (Miscellaneous Amendments) (No. 2) Regulations 1997

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend a number of sets of regulations related to the Pensions Act 1995.

Regulation 1 relates to citation and commencement.

Regulations 2 to 13 contain miscellaneous amendments of the following sets of regulations—

• the Occupational Pension Schemes (Contracting-out) Regulations 1996

• the Occupational Pension Schemes (Member-nominated Trustees and Directors) Regulations 1996

• the Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations 1996

• the Occupational Pension Schemes (Deficiency on Winding Up etc.) Regulations 1996

• the Occupational Pension Schemes (Disclosure of Information) Regulations 1996

• the Occupational Pension Schemes (Scheme Administration) Regulations 1996

• the Occupational Pension Schemes (Requirement to obtain Audited Accounts and a Statement from the Auditor) Regulations 1996

• the Personal and Occupational Pension Schemes (Pensions Ombudsman) Regulations 1996

• the Occupational Pension Schemes (Independent Trustee) Regulations 1997

• the Register of Occupational and Personal Pension Schemes Regulations 1997

• the Personal Pension Schemes (Appropriate Schemes) Regulations 1997

• the Occupational Pension Schemes (Age-related Payments) Regulations 1997.

The amendments include provisions which—

• make clear the intention that a contracted-out salary-related scheme which becomes a contracted-out money purchase scheme is to remain certified whilst the administrative formalities in relation to obtaining a new contracting-out certificate are completed (regulation 2);

• provide for a further exemption from the minimum funding requirement (“the MFR rules”) (regulation 4(2));

• provide that where a debt on the employer has already arisen under the deficiency provisions before 6th April 1997, the employer will not be liable a second time for that same deficiency under the MFR rules (regulation 4(3) and (4));

• provide, in relation to schemes which are not required to appoint an actuary, as to who may give the certifications and valuations required for the purposes of the MFR rules and provisions relating to deficiency on winding up (regulation 4(5) and (6) and regulation 5);

• require trustees to provide basic scheme information to persons who were deferred members of the scheme on 5th April 1997 on their becoming pensioner members of the scheme (regulation 6);

• oblige fund managers who are subject to rules made under section 48 of the Financial Services Act 1986 to undertake to report conflicts of interest to trustees in accordance with those rules (regulation 7);

• provide for audited accounts to show how much of the scheme’s assets are invested in employer-related investments and, where such investments exceed 5 per cent. of those assets, the percentage which is invested in employer-related investments to which restrictions do not apply (regulation 8);

• clarify the extent of the jurisdiction of the Pensions Ombudsman (regulation 9);

• remove the requirement to take account of a past interest in the assets of the scheme or of the employer in determining a person’s independence for the purposes of appointment as independent trustee (regulation 10);

• require trustees to provide the Registrar of Occupational and Personal Pension Schemes with the name and address of an insurer of scheme benefits where that insurer provides administration services to the scheme (regulation 11);

• enable age-related payments to be paid in respect of earners who have access to salary-related pension provision with their employer only when they reach a specified age (regulation 13);

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, The Adelphi, 1–11 John Adam Street, London WC2N 6HT.