The Stakeholder Pension Schemes Regulations 2000

Disclosure of information to members

18.—(1) For the purposes of section 1(1)(b), it shall be a condition of a scheme being a stakeholder pension scheme that the trustees or manager of the scheme comply with the requirements set out in this regulation in addition to such requirements of regulations under section 113 of the 1993 Act (disclosure of information about schemes to members) as are applicable to the scheme.

(2) Where a person is a member for all or part of a statement year, there shall be provided to the person within 3 months of the end of the statement year to which it relates, a statement which contains the information mentioned in paragraph (5), in so far as the information relates to that statement year.

(3) For the purposes of this regulation “statement year” means the period of 12 months beginning on a date chosen by the trustees or manager which falls on or before the day that the scheme is registered under section 2 (such date to be chosen on or before the scheme is so registered) and, subject to paragraph (4), each subsequent period ending on the anniversary of the ending of the first statement year.

(4) For the purposes of paragraph (3) the trustees or manager may choose a new date for the ending of the statement year if—

(a) the date chosen—

(i) is specified in writing; and

(ii) falls before the end of the statement year during which the trustees or manager specify the new date; and

(b) no other date has been chosen by the trustees or manager under this paragraph during the previous period of 12 months;

and, if a new date is chosen under this paragraph, “statement year” shall mean the period of 12 months ending on the date chosen and each subsequent period ending on the anniversary of that date.

(5) The information to be provided under paragraph (2) is—

(a) the value of the member’s rights under the scheme on the day before the first day of the statement year, being an amount which is not less than the cash equivalent of those rights on that date, as calculated and verified in a manner consistent with regulations made under section 97 of the 1993 Act (calculation of cash equivalents)(1);

(b) the value of the member’s rights on the last day of the statement year, being an amount which is not less than the cash equivalent of those rights on that date, as calculated and verified in a manner consistent with regulations made under section 97 of the 1993 Act (calculation of cash equivalents);

(c) the amount of the value mentioned in sub-paragraph (b) that is attributable to investment gains or losses made or sustained by the scheme during that statement year;

(d) the amount of each contribution made by the member and the date on which it was received;

(e) the amount of each contribution made by any employer on behalf of the member and the date on which it was received;

(f) except where contributions referred to in sub-paragraphs (d) and (e) are increased by the trustees or manager in anticipation of a payment to the scheme by the Inland Revenue by way of tax relief in respect of the member, the amount of each such payment by the Inland Revenue and the date on which it was received;

(g) the amount of each payment to the scheme by way of minimum contributions in respect of the member and the date on which it was received;

(h) the amount of each payment made to the scheme by way of minimum payments in respect of the member and the date on which it was received;

(i) the amount of each payment made to the scheme under section 42A(3) of the 1993 Act (reduced rates of Class 1 contributions, and rebates) in respect of the member and the date on which it was received;

(j) the amount of any transfer payment made to the scheme in respect of the member, the name of the scheme or arrangement from which the payment was made and the date on which it was made;

(k) any amount credited to the member’s account in respect of a credit within the meaning of section 29 (pension sharing: creation of pension debits and credits);

(l) any reduction under section 31 (pension sharing: reduction of benefit), or any enactment in force in Northern Ireland corresponding to that section, in the benefits or future benefits to which the member is entitled under the scheme;

(m) any contributions refunded under the provisions of Chapter IV of Part XIV of the Income and Corporation Taxes Act (pension schemes, social security benefits, life annuities etc.);

(n) any amount paid to the member in accordance with section 634A of the Income and Corporation Taxes Act (income withdrawals by member) or section 636A of that Act (income withdrawal after death of member)(2);

(o) any other amount deducted from the member’s account, the nature of the deduction and the date on which it was made;

(p) the total amount of any part of any of the contributions and payments mentioned in sub-paragraphs (d) to (k) which has not been credited to the member’s account and the manner in which that amount has been used;

(q) the member’s date of birth used in determining the appropriate age-related percentage for the purposes of section 42A of the 1993 Act and the name and address of whom to contact should that date be incorrect; and

(r) where the whole or any part of the member’s rights under the scheme is represented by rights in a with-profits fund—

(i) the principles adopted in allocating rights under that fund, including the exent of any smoothing of investment returns and the levels of any guarantees; and

(ii) the principles which will be adopted in allocating such rights if the member’s rights under the scheme cease to be represented by rights in that fund.

(6) Each member must be provided with a statement setting out any change in the scheme’s rules or practice as regards the extent to which or the circumstances in which—

(a) any payment made to the scheme by or on behalf of a member,

(b) any amount credited to the member’s account in respect of a credit within the meaning of section 29 (pension sharing: creation of pension debits and credits),

(c) any income or capital gain arising from the investment of such a payment, or

(d) the value of any rights under the scheme,

may, in accordance with regulations 13 and 14, be used otherwise than to provide benefits for or in respect of that member.

(7) The statement mentioned in paragraph (6) must be provided within one month of the change.

(8) The statements mentioned in paragraphs (2) and (6) may be provided by sending them by post to the member at his last address known to the trustees or manager.

(9) For the purposes of this regulation “member” shall not include any member whose present address is not known to the trustees or manager and in respect of whom—

(a) correspondence sent by them to the member at his last address known to them has been returned undelivered; and

(b) no contribution has been made to the scheme by him or on his behalf during the 2 years preceding the most recent date on which they would, apart from this paragraph, be required to provide him with a statement under this regulation.

(10) For the purposes of this regulation “member” shall include a beneficiary making income withdrawals from the scheme in accordance with section 636A of the Income and Corporation Taxes Act 1988 (income withdrawals after death of member).

(1)

Section 97 was amended by paragraph 4(a) to 4(c) of Schedule 6 to the Pensions Act 1995.

(2)

Section 634A was inserted by paragraphs 1 and 4 of Schedule 11 to the Finance Act 1995 (c. 4) and section 636A was inserted by paragraphs 1 and 7 of that Schedule.