The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 1997

The Occupational Pension Schemes (Disclosure of Information) Regulations 1996 E+W+S

10.—(1) The Occupational Pension Schemes (Disclosure of Information) Regulations 1996 M1 shall have effect with the following amendments.

(2) In regulation 1(2)—

(a) after the definition of “member" insert—

““mixed benefit contracted-out scheme" has the meaning given in regulation 1(2) of the Occupational Pension Schemes (Mixed Benefit Contracted-out Schemes) Regulations 1996;”;

(b) after the definition of “money purchase benefits" insert—

““money purchase contracted-out scheme" has the meaning given in section 181(1) of the 1993 Act;”;

(c) in the definition of “money purchase scheme", after the word “provided" insert the words “ other than death benefits ”; and

(d) omit the definition of “multi-employer scheme".

(3) In regulation 2(2) (exemptions from the regulations) for sub-paragraph (b) substitute—

“(b) the only benefits provided by which are death benefits; or”.

(4) In regulation 5 (information to be made available to individuals)—

(a) after paragraph (5) insert—

“(5A) Where—

(a) an occupational pension scheme is contracted-out by virtue of regulations made under section 149 of the 1995 Act (hybrid schemes); and

(b) under the rules of the scheme an earner’s service in contracted-out employment will cease to qualify him for benefits under one part of the scheme but begin to qualify him for benefits under another part of the scheme,

the information mentioned in paragraph 6A of Schedule 2 shall be furnished to him before or within two months after the date on which his service begins to qualify him for the benefits under the other part of the scheme.”;

(b) omit paragraph (11);

(c) after paragraph (12) insert—

“(12A) Where by virtue of paragraph 1 of Schedule 5 to the Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations 1996 (sectionalised multi-employer schemes) section 56 of the 1995 Act applies as if a section of a scheme were a separate scheme (or, in a case where section 56 does not apply to the scheme, if it did apply it would apply in that way), paragraphs (10) and (12) apply in a case where such a section is being wound up as they apply where the scheme as a whole is being wound up, but taking the references in those paragraphs to the scheme and its members and beneficiaries as referring only to the section and its members and beneficiaries.”; and

(d) after paragraph (13) insert—

“(14) Where the trustees have commenced winding up the scheme before 6th April 1997—

(a) paragraph (10) does not apply, but

(b) the trustees shall furnish all members and beneficiaries (except excluded persons) with the information mentioned in paragraph 15 of Schedule 2 at least once in every successive 12 month period beginning with that date and ending with the completion of the winding up.

(15) For the purposes of this regulation, the time when a scheme begins to be wound up shall be determined in accordance with regulation 2 of the Occupational Pension Schemes (Winding Up) Regulations 1996.”.

(5) In regulation 6 (availability and content of annual report) for paragraph (1)(c) substitute—

“(c) where section 56 of the 1995 Act applies to the scheme, a copy of the latest certificate by the actuary under that Act as to the adequacy of the contributions payable towards the scheme; and”.

(6) In regulation 11 (penalties)—

(a) in paragraph (1) for the words “5(2) to (11)" substitute the words “ 5(2) to (12) ”;

(b) in paragraph (2) for the words “5(12)" and “6(6)" substitute respectively the words “ 5(13) ” and “ 6(7) ”.

(7) After paragraph 12 of Schedule 1 insert—

“12A.— (1) Without prejudice to paragraph 12, where—

(a) the scheme is—

(i) a money purchase contracted-out scheme, or

(ii) a mixed benefit contracted-out scheme,

but is not an insured scheme (as defined in the Occupational Pension Schemes (Contracting-out) Regulations 1996);

(b) the amount of assets allocated for the provision of benefits to or in respect of a member which are payable by virtue of his protected rights under the scheme or, in the case of such a scheme as is mentioned in sub-paragraph (a)(ii), under the money purchase part of the scheme, is periodically increased by an amount which is not calculated directly by reference to the investment gain actually derived from the investment of those assets by the trustees of the scheme (whether over the period to which the increase relates or a longer period); and

(c) if the increase is calculated by reference to the investment gain from investments in which those assets could be invested, they are not actually so invested or are only so invested to an extent which would not materially affect the actual investment gain from the assets as a whole,

the information mentioned in sub-paragraph (2).

(2) That information is—

(a) that the assets mentioned in sub-paragraph (1)(b) are increased in the way there mentioned;

(b) the method used to calculate that increase; and

(c) the reason why that method is used.

(3) For the purposes of sub-paragraph (1)(b), a mixed benefit contracted-out scheme is to be treated as if the pensions falling within section 149(1)(b) of the 1995 Act were provided by a separate part of the scheme (“the money purchase part").

(4) In paragraphs (1)(b) and (c) references to the investment gain from investments are to both the income and capital gain derived from investing in those investments.”.

(8) In Schedule 2 (information to be made available to individuals) after paragraph 6 insert—

“6A.   The date on which the earner’s service begins to qualify him for benefits under the other part of the scheme and whether his rights in respect of his service on or after that date will be rights under the part of the scheme providing such pensions as are referred to in paragraph (a) or paragraph (b) of section 149(1) of the 1995 Act.”.

(9) In Schedule 3 (information to be included in annual report) for paragraph 16 substitute—

“16.   Where the scheme has employer-related investments (within the meaning of section 40(2) of the 1995 Act), a statement—

(a) as to the percentage of the scheme’s resources invested in such investments at the end of the scheme year;

(b) if that percentage exceeds 5 per cent., as to the percentage of the scheme’s resources which are investments to which regulation 6 of the Occupational Pension Schemes (Investment) Regulations 1996 (investments not subject to restrictions) applies; and

(c) if any resources of the scheme are then invested in contravention of subsection (1) of section 40 of the 1995 Act—

(i) as to the steps the trustees or managers have taken or propose to take to secure that the scheme complies with that section, and

(ii) as to the time when any proposed steps will be taken.”.

Marginal Citations

M1 S.I. 1996/1655.