The Occupational Pension Schemes (Pensions Compensation Provisions) Regulations 1997

Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Occupational Pension Schemes (Pensions Compensation Provisions) Regulations 1997 and shall come into force on 6th April 1997.

(2) In these Regulations, unless the context otherwise requires—

“the audited accounts” means the accounts prepared by the auditor;

“the 1988 Act” means the Income and Corporation Taxes Act 1988(1);

“the 1993 Act” means the Pension Schemes Act 1993(2);

“approved scheme” means a scheme which is approved or was formerly approved under section 590 or 591 of the 1988 Act, or in respect of which an application for such approval has been duly made which has not been determined;

“the auditor” means an individual or a firm appointed by the trustees as auditor of the scheme;

“base rate” means the rate for the time being quoted by the reference banks as applicable to sterling deposits or, where there is for the time being more than one such base rate, the rate which, when the base rate quoted by each bank is ranked in a descending sequence of four, is first in the sequence;

“beneficiary” means a person, other than a member of the scheme, who is entitled to the payment of benefits under the scheme;

“Board” means the Pensions Compensation Board(3);

“compensation provisions” has the meaning given by section 81(3);

“ear-marked scheme” means an occupational pension scheme which is a money purchase scheme under which all the benefits are secured by one or more policies of insurance or annuity contracts and such policies or contracts are specifically allocated to the provision of benefits for individual members or any other person who has a right to benefits under the scheme;

“guaranteed minimum pension” has the meaning given in section 8(2) of the 1993 Act;

“the loss” means the reduction falling within section 81(1)(c);

“money purchase benefits” has the meaning given in section 181(1) of the 1993 Act;

“money purchase scheme” means an occupational pension scheme under which all the benefits that may be provided other than death benefits are money purchase benefits;

“normal pension age” has the meaning given by section 180 of the 1993 Act;

“reference banks” means the four largest institutions for the time being which—

(a)

are authorised by the Bank of England under the Banking Act 1987(4),

(b)

are incorporated in and carrying on within the United Kingdom a deposit-taking business (as defined in section 6, but subject to any order under section 7, of that Act), and

(c)

quote a base rate applicable to sterling deposits;

“relevant insurer” means, in relation to an annuity contract or policy of insurance under which scheme benefits are or were secured, the person with whom the contract is made;

“scheme” means an occupational pension scheme which is a trust scheme;

“unallocated assets” means any assets of a money purchase scheme which have not been specifically allocated for the provision of benefits to or in respect of members (whether generally or individually).

(3) Unless the context otherwise requires, any reference in these Regulations to a numbered section is to the section of the Pensions Act 1995 bearing that number.

(1)

1988 c. 1.

(2)

1993 c. 48.

(3)

The Pensions Compensation Board is established under section 78(1) of the Pensions Act 1995.

(4)

1987 c. 22.