Further conditions applicable to automatic enrolment schemes35

1

The conditions prescribed for the purposes of section 17(1)(c) (automatic enrolment schemes) of the Act are—

a

that the scheme must be—

i

an occupational pension scheme within section 18(a) or (b) (occupational pension schemes) of the Act; or

ii

a personal pension scheme where the operation of the scheme—

aa

is regulated by a competent authority; and

bb

is carried on by a person who is in relation to that activity authorised by a competent authority; and

b

where the scheme is an occupational pension scheme within the meaning of section 18(b) (occupational pension schemes) of the Act or a personal pension scheme where the operation of the scheme is carried on in accordance with sub-paragraph (a)(ii) by a person authorised by a competent authority other than that of the United Kingdom, the regulatory requirements applicable must provide that—

i

at least 70% of the relevant benefits will be designated for the purpose of providing the jobholder with an income for life; and

ii

the benefits payable to the jobholder under the scheme are payable no earlier than they would be under pension rule 1 in section 165(1) of the Finance Act 200416.

2

For the purposes of this regulation—

• “competent authority” has, as the case may be, the meaning given in—

  1. a

     paragraph 4 of Article 4 of Directive 2006/48/EC of the European Parliament and of the Council relating to the taking up and pursuit of the business of credit institutions17;

  2. b

     paragraph 22 of Article 4 of Directive 2004/39/EC of the European Parliament and of the Council on markets in financial instruments18;

  3. c

     paragraph 1(h) of Article 2 of Directive 2009/65/EC of the European Parliament and of the Council on the co-ordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities19; or

  4. d

     paragraph (n) of Article 1 of Directive 2002/83/EC of the European Parliament and of the Council concerning life assurance20;

• “regulatory requirements” includes provisions of legislation that concern tax;

• “relevant benefits” means—

  1. a

     any money purchase benefits applicable to the jobholder; and

  2. b

     in relation to a defined benefits scheme, or the defined benefits element of a hybrid scheme, that provides for a sum of money to be made available for the provision of benefits to a member, that sum