2.—(1) The Occupational Pension Schemes (Scheme Administration) Regulations 1996(1) shall have effect with the following amendments.
(2) In regulation 16 (prescribed time in which an employer must make payments to trustees or managers), for “section 49(8)(b)” substitute “section 49(8)”.
(3) After regulation 16 (prescribed time in which an employer must make payments to trustees or managers) insert–
16A.—(1) Subject to paragraph (2), where an amount corresponding to any contribution payable on behalf of an active member of an occupational pension scheme is deducted from that member’s earnings in respect of any employment and is not paid to the trustees or managers of the scheme within the period of 19 days commencing from the end of the month in which the deduction is made, the trustees or managers of the scheme shall give notice of such default–
(a)to the Authority before the end of the period of 30 days commencing with the day following the 19th day of that period, unless payment has been made before the end of the period of 10 days commencing with the day following that 19th day and the default is only the first or second default by that employer under section 49(8) of the 1995 Act in the period of 12 months ending with that 19th day; and
(b)to the member before the end of the period of 90 days commencing with the day following that 19th day, unless payment has been made before the end of the period of 60 days commencing with the day following that 19th day.
(2) No notice need be given under paragraph (1)–
(a)where the scheme is exempt from the requirement to secure the preparation, maintenance and revision of a payment schedule for the purposes of section 87(1) of the 1995 Act by virtue of regulation 17;
(b)where the scheme is exempt from the requirement to secure the preparation, maintenance and revision of a schedule of contributions for the purposes of section 58(1) of the 1995 Act–
(i)by virtue of any of sub-paragraphs (a) to (e) or (g) to (i) of regulation 28(1) of the Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations 1996(2), or
(ii)by virtue of being a scheme the only benefits provided by which are death benefits, and under the provisions of which no member has accrued rights; or
(c)in respect of a failure to make a payment of any voluntary contribution to the trustees or managers of the scheme.”.
(4) After regulation 21(3) (circumstances where notice of non-payment of any amount payable to a scheme need not be given) insert–
“(4) Where, under section 49(9)(b) of the 1995 Act, there is a requirement on the trustees or managers to give notice of a failure to pay within a prescribed time an amount corresponding to any contribution payable on behalf of an active member which has been deducted from the member’s earnings, the trustees or managers shall not be required to give notice of a failure to pay such amount by the due date for the purposes of subsection (1) of section 88 of that Act, in a case to which that subsection would otherwise apply.”.