The Occupational Pension Schemes (Winding Up Notices and Reports, etc.) Regulations (Northern Ireland) 2002

Explanatory Note

(This note is not part of the Regulations.)

These Regulations will give effect to the winding up provisions of the Pensions (Northern Ireland) Order 1995 (“the 1995 Order”) as amended by sections 43 to 46 of the Child Support, Pensions and Social Security Act (Northern Ireland) 2000 (“the 2000 Act”). The Regulations introduce measures designed to speed up the winding up of occupational pension schemes.

Regulation 1 provides for citation, commencement and interpretation.

Regulation 2(1) prescribes the period within which an insolvency practitioner or the official receiver shall appoint an independent trustee of a trust scheme where the employer is insolvent.

Regulations 2(2) and (3) and 3 to 6 relate to the duty to give notices connected with insolvency of employers to the Occupational Pensions Regulatory Authority (“the Authority”) under Articles 26A to 26C of the 1995 Order. Regulations 2(2) and (3) and 3 make provision about the period for giving the notices. Regulation 4 prescribes investment management advisers and the underwriters of certain scheme policies and contracts as persons who are exempted from the duty to give notices. Regulation 5 prescribes the kinds of schemes which are excluded from the duty. Regulation 6 prescribes the maximum civil penalties for failure to give notices.

Regulation 7 prescribes matters connected with applications to the Authority under Article 71A of the 1995 Order to modify schemes to secure their winding up, including the content of the applications and the notices to be given in connection with them.

Regulations 8 to 10 relate to reports to the Authority under Article 72A of the 1995 Order where winding up has not been completed. Regulation 8 prescribes time limits for making the first reports. It provides that the obligation to make the reports applies to schemes which started winding up on or after 1st April 1973 and sets out a series of time limits within which schemes beginning to wind up shall make their first reports. Regulation 9 prescribes what the reports shall contain and regulation 10 exempts certain schemes from the requirement to make the reports.

Regulation 11 prescribes the purposes for which the general interpretation provisions in Article 121(4) to (7) of the 1995 Order about when schemes begin winding up do not apply.

Regulation 12 sets out what records about decisions concerning winding up shall contain and extends the obligations to keep records to persons other than trustees or managers where they make determinations about winding up. It also makes provision for the imposition of civil penalties on such persons if they contravene those obligations.

Regulation 13 relates to the directions the Authority may give to facilitate the winding up of schemes. It sets out the persons failure to give information to whom enables the Authority to give the directions, the circumstances in which directions may be given before the first report is due to be made to the Authority about the winding up, and the persons on whom requirements may be imposed and to whom information may be required to be given. It also prescribes the time limit for applying for an extension of the period within which steps required by directions shall be taken.

Regulation 14 amends regulation 5 of the Occupational Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1997 so as to require the trustees of a scheme which is being wound up to give members copies of reports given to the Authority about winding up if they request them.

As these Regulations, in so far as they are made under Part II of the 1995 Order, make in relation to Northern Ireland only provision corresponding to provision contained in regulations made by the Secretary of State for Work and Pensions in relation to Great Britain, the requirement for consultation under Article 117(1) of the 1995 Order does not apply by virtue of paragraph (2)(e) of that Article.

Articles 26B, 26C, 49A, 71A, 72A, 72B, 115(2) and 121(8) of the 1995 Order, some of the enabling provisions under which these Regulations are made, were inserted, amended or added by sections 43 to 46 of the 2000 Act. Article 2(1) of the Child Support, Pensions and Social Security (2000 Act) (Commencement No. 7) Order (Northern Ireland) 2002 (S.R. 2002 No. 68 (C. 5)) provides for the coming into operation of sections 43, 44, 45(1) in part, (2) and (3) and 46 of the 2000 Act, for the purpose only of authorising the making of regulations, on 1st March 2002 and, for all other purposes, on 1st April 2002.