The Pension Schemes (Categories) Regulations 2005

Explanatory Note

(This note is not part of the Regulations)

These Regulations provide for certain pension schemes to fall within the definition of “occupational pension scheme” in section 1(1) of the Pension Schemes Act 1993 (c. 48), as amended by section 239 of the Pensions Act 2004 (c. 35). They also provide that certain stakeholder pension schemes which are occupational pension schemes are to be treated as personal pension schemes.

Regulation 1 provides for the Regulations to come into force—

(a) on 22nd September 2005, in the case of pension schemes which have their main administration in the United Kingdom and pension schemes specified in regulation 2(4), and

(b) on 6th April 2006 in all other cases.

Regulation 2 prescribes three descriptions of pension scheme as occupational pension schemes. These are—

(a) schemes established by a person other than an employer of persons benefiting from the scheme, but in respect of whom such employers contribute to the scheme;

(b) pension schemes established pursuant to the North/South Co-operation (Implementation Bodies) (Northern Ireland) Order 1999 (S.I. 1999/859) (which might not otherwise be occupational pension schemes because they do not have their main administration in the United Kingdom); and

(c) schemes fulfilling the criteria set out in the definition of “public service pension scheme” in section 1(1) of the Pension Schemes Act 1993 (except the requirement to be an occupational pension scheme).

Regulation 3 provides that a stakeholder pension scheme established under a trust, where the provisions of the scheme do not require the employer of any member of the scheme to make contributions to it, is to be treated as a personal pension scheme.

These Regulations are consequential upon section 239 of the Pensions Act 2004 and are made before the end of the period of six months beginning with the coming into force of that section of that Act. They are accordingly exempt from the requirement in section 185(1) of the Pension Schemes Act 1993 for the Secretary of State to consult such persons as he may consider appropriate before making these Regulations. However a consultation exercise was undertaken, except in respect of the provisions of regulation 2(5), in any event.

A Regulatory Impact Assessment has not been prepared for this instrument as it has no impact on business, charities or voluntary bodies.