The Occupational Pension Schemes (Age-related Payments) Regulations 1997

Explanatory Note

(This note is not part of the Regulations)

These Regulations specify further circumstances in which age-related payments are not to be paid (in addition to those contained in regulation 37 of the Occupational Pension Schemes (Contracting-out) Regulations 1996 (S.I. 1996/1172)) and require the trustees or managers of an occupational pension scheme to provide affected members with certain relevant information.

Regulation 1 deals with citation, commencement and interpretation.

Regulation 2 provides that the age-related payment shall not be paid after an age-related move to a money purchase scheme before 6th April 1997.

Regulation 3 provides that the age-related payment shall not be paid in respect of an entrant to a money purchase scheme before 6th April 1997, if the employer has more than one scheme and the rules of the scheme require an age-related move to a money purchase scheme.

Regulation 4 provides that the age-related payment shall not be paid in respect of an entrant to a scheme before 6th April 1997 if he is allowed because of his age only to join a money purchase scheme.

Regulation 5 provides that the age-related payment shall not be paid after an age-related move to a money purchase scheme or money purchase part of a hybrid scheme (as defined in section 149 of the Pensions Act 1995) on or after 6th April 1997.

Regulation 6 provides that the age-related payment shall not be paid in respect of any new entrant to a hybrid scheme on or after 6th April 1997 if the rules of the scheme require an age-related move to the money purchase part. Nor is the age-related payment to be paid in respect of any new entrant to a money purchase scheme on or after 6th April 1997 if the employer has more than one scheme and the rules of the schemes require an age-related move to a money purchase scheme.

Regulation 7 provides that the age-related payment shall not be paid in respect of a new entrant to a scheme on or after 6th April 1997 if he is allowed because of his age only to join a money purchase scheme or the money-purchase part of a hybrid scheme.

If, under regulations 2 or 5 a move would result in the age-related payment not being paid, regulation 8 requires trustees or managers to notify an earner who is to be moved of the consequences of that move.

If, under regulation 3, 4, 6 or 7 joining a scheme would result in the age-related payment not being paid, regulation 9 requires the trustees or managers to notify prospective members of that fact and of its consequences.

Regulation 10 provides for the imposition of penalties by the Occupational Pensions Regulatory Authority if certain of the disclosure requirements imposed by regulations 8 and 9 are not complied with.

These regulations do not impose any new costs on business.