The Occupational Pension Schemes (Climate Change Governance and Reporting) (Miscellaneous Provisions and Amendments) Regulations (Northern Ireland) 2021

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations prescribe matters about which trustees of certain occupational pension schemes are required to have knowledge and understanding and make amendments to the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 2014 (“the 2014 Regulations”) in consequence of paragraph 12 of Schedule 11 to the Pension Schemes Act 2021 (c. 1) and the climate change governance and reporting requirements introduced by the Occupational Pension Schemes (Climate Change Governance and Reporting) Regulations (Northern Ireland) 2021 (“the 2021 Regulations”). They also make consequential amendments to the Register of Occupational and Personal Pension Schemes Regulations (Northern Ireland) 2005 (“the 2005 Regulations”) to prescribe additional “registrable information” for the purposes of Articles 55 to 60 of the Pensions (Northern Ireland) Order 2005 (“the 2005 Order”).

Regulation 2 prescribes the identification, assessment and management of risks arising to occupational pension schemes from the effects of climate change and of opportunities relating to climate change, as matters about which certain trustees must have knowledge and understanding for the purposes of Article 224(4)(c) of the 2005 Order. It makes equivalent provision for the purposes of Article 225(5)(c) of the 2005 Order. Regulation 2 applies only to trustees who are subject to requirements specified in Part 1 of the Schedule to the 2021 Regulations. Individual trustees must have knowledge and understanding of the prescribed matters in so far as they are relevant to meeting requirements specified in that Part. Corporate trustees must ensure that individuals exercising trustee functions have such knowledge and understanding.

Regulation 3 amends regulation 3(1) of the 2005 Regulations to add to the registrable information prescribed for the purposes of Articles 55 to 60 of the 2005 Order. Such registrable information must, in particular, be specified in a scheme return notice issued by the Pensions Regulator in accordance with Articles 58 and 60 of the 2005 Order and must be included in the scheme return which the trustees are required to provide in accordance with Article 59 of the 2005 Order.

Regulation 3(1)(k) of the 2005 Regulations provides that in the case of an occupational pension scheme in respect of which the trustees are required to publish a report on a website in accordance with regulation 6(1)(b) of the 2021 Regulations (which requires that the trustees publish the report on a publicly available website, accessible free of charge), the website address where the most recent report has been published is registrable information. Where no report has been published, whether the period for publishing the report as provided for in regulation 6(1) of the 2021 Regulations has ended, is registrable information. To maintain a consistent approach with regard to registrable information, regulation 3(1)(l) of the 2005 Regulations makes similar provision to sub-paragraph (k) of that regulation, where trustees are required to make information publicly available free of charge on a website in accordance with the 2014 Regulations. Sub-paragraph (l) of that regulation provides that in the case of an occupational pension scheme in respect of which the trustees are required to publish the information specified in regulation 29A(2), (2A) or (2B) of the 2014 Regulations, the website address where the information has been published is registrable information.

Regulation 4 amends Part 5 of Schedule 3, Schedule 4, Part 2 of Schedule 5 and Part 1 of Schedule 6 to the 2014 Regulations to require information about the report which trustees of certain schemes are required to publish in accordance with the 2021 Regulations to be included in the scheme’s annual report, summary funding statements (where relevant) and annual benefit statements issued to members.

As these Regulations, in so far as they are made under the 2005 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 to consult under Article 289(1) of the 2005 Order does not apply by virtue of paragraph (2)(e) of that Article.

An assessment of the cost to business of these Regulations is detailed in a Regulatory Impact Assessment, a copy of which has been laid in the Business Office and the Library of the Northern Ireland Assembly. Copies of the Assessment are available from the Department for Communities, Social Security Policy, Legislation and Decision Making Services, Level 6, Causeway Exchange, 1-7 Bedford Street, Belfast BT2 7EG or from the website: https://www.communities-ni.gov.uk/articles/pension-information. A copy of the Assessment is also annexed to the Explanatory Memorandum which is available alongside this Statutory Rule on the website: http://www.legislation.gov.uk/nisr.