Substitution of regulation 35

5.  For regulation 35 substitute—

“Further conditions applicable to automatic enrolment schemes

35.— (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 2004(1).

(2) For the purposes of this regulation—

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

(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 institutions(2);

(b)

paragraph 22 of Article 4 of Directive 2004/39/EC of the European Parliament and of the Council on markets in financial instruments(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 securities(4); or

(d)

paragraph (n) of Article 1 of Directive 2002/83/EC of the European Parliament and of the Council concerning life assurance(5);

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

“relevant benefits” means—

(a)

any money purchase benefits applicable to the jobholder; and

(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”.

(1)

2004 c.12.

(2)

OJL 177, 30.6.2006, p1.

(3)

OJS 145, 30.4.2004, p1

(4)

OJL 302, 17.11.2009 p1.

(5)

OJL 345, 19.12.2002, p1.