The Occupational Pension Schemes (Member-nominated Trustees and Directors) Regulations (Northern Ireland) 1996

Proposals by employers for alternative arrangements

Proposals by the employer for alternative arrangements under Article 17

9.—(1) Article 17(1) (by virtue of which the requirements in Article 16 as to member-nominated trustees do not apply to a trust scheme in certain circumstances) only applies if—

(a) the employer gives notice in writing to the trustees of the scheme at a permitted notice time that he intends to propose alternative arrangements, and

(b) before the expiry of the approval period—

(i) alternative arrangements are approved, and

(ii) the employer gives notice in writing to the trustees of the scheme of their approval, stating in the notice what those arrangements are and specifying all such matters relating to them as are required to be specified in a notice under paragraph 5(3) of Schedule 1.

(2) In paragraph (1)(a) “permitted notice time” means, subject to paragraph (4)—

(a) in the case of the first notice to be given in relation to a scheme under paragraph (1)(a)—

(i) any time during the period of one month beginning with the commencement date or, if Article 16 does not apply to the scheme on that date, before or during the period of one month beginning with the date it first applies to it;

(ii) if the approval of appropriate rules under Article 16 for the scheme is ceasing to have effect by virtue of regulation 20(1)(g), any time during the period of one month beginning with the date on which notice is given to the employer under regulation 20(3), or

(iii) any time not less than 6 years after the date applicable under head (i) or, if such a notice as is mentioned in head (ii) has been given, after the date mentioned in that head;

(b) in the case of a second or subsequent notice under paragraph (1)(a) which is given in respect of a scheme to which, by virtue of Article 17(1), Article 16 does not apply—

(i) if the approval of alternative arrangements for the scheme is ceasing to have effect by virtue of regulation 20(1)(g), any time during the period of one month beginning with the date on which notice is given to the employer under regulation 20(3), and

(ii) otherwise, any time not more than 12 nor less than 6 months before the date on which the approval of the alternative arrangements under Article 17(1) ceases to have effect;

(c) in the case of a second or subsequent notice under paragraph (1)(a) which is given in respect of a scheme to which Article 16 applies, any time after the expiry of the period of 6 years beginning with—

(i) the date on which the last such notice was given to the trustees of the scheme, or

(ii) the last permitted notice time falling within sub-paragraph (b),

whichever is the later.

(3) In paragraph (1) the “approval period”, in relation to arrangements, means, subject to paragraph (4), the period of 6 months beginning—

(a) in a case where notice is given under paragraph (1)(a) within the period mentioned in paragraph (2)(a)(i), with the commencement date or, as the case may be, the date on which Article 16 first applies to the scheme;

(b) in a case where such notice is given within the period mentioned in paragraph (2)(a)(ii) or (b)(i), with the date on which notice under regulation 20(3) is given to the employer, and

(c) otherwise, with the date on which notice is given under paragraph (1)(a).

(4) In the case of a scheme to which Article 16 has ceased to apply and then reapplies (otherwise than by virtue of Article 17(1) ceasing to apply to it or its ceasing to be a relevant scheme) paragraphs (2) and (3) apply as if—

(a) Article 16 first applied to the scheme at the time when that Article reapplies to it, and

(b) no notices had been given in relation to the scheme under paragraph (1)(a) before that time.

(5) The statutory consultation procedure in respect of proposals under Article 17(1) for the continuation of existing or adoption of new alternative arrangements is set out in Schedule 1 (which also sets out the conditions which must be satisfied for the approval of such arrangements).

(6) In Schedule 1 “the proposer”, in relation to such arrangements, means the employer.

Time limits for making alternative arrangements under Article 17

10.—(1) Where, by virtue of Article 17(1) (alternative arrangements for selecting trustees), Article 16 does not apply to a trust scheme, the trustees must secure that the alternative arrangements are made no later than is necessary to secure that trustees can be selected immediately in pursuance of the arrangements to fill any vacancy arising after the appropriate time.

(2) In paragraph (1), “the appropriate time” means—

(a) in a case where, immediately before the approval of the alternative arrangements, Article 16 applied to the scheme, the expiry of the period of 6 months beginning with the date on which the alternative arrangements are approved;

(b) in a case where, immediately before the approval of the alternative arrangements, Article 16 did not apply to the scheme—

(i) if the approval is for the continuation of existing alternative arrangements, the date on which the employer gives notice to the trustees under regulation 9(1)(b)(ii) in respect of the approval of the arrangements, and

(ii) otherwise, the expiry of the period of 6 months beginning with that date.