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Part IU.K. Occupational pensions

Modifications etc. (not altering text)

C3Pt. I: Pensions Act 2004 (c.35), Pt. 3 construed as one with Pt. I of this Act (4.12.2005 for specified purposes, 30.12.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 233, 322(1) (with s. 313); S.I. 2005/3331, art. 2(1)(a)(b), Sch. Pt. 1

Money purchase schemesE+W+S

87 Schedules of payments to money purchase schemes.E+W+S

(1)This section applies to an occupational pension scheme which is a money purchase scheme, other than one falling within a prescribed class or description.

[F1(1A)Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this section and section 88 as an occupational pension scheme which is a money purchase scheme.]

(2)The trustees or managers of every occupational pension scheme to which this section applies must secure that there is prepared, maintained and from time to time revised a schedule (referred to in this section and section 88 as a “payment schedule”) showing—

(a)the rates of contributions payable towards the scheme by or on behalf of the employer and the active members of the scheme,

(b)such other amounts payable towards the scheme as may be prescribed, and

(c)the dates on or before which payments of such contributions or other amounts are to be made (referred to in those sections as “due dates”).

(3)The payment schedule for a scheme must satisfy prescribed requirements.

(4)The matters shown in the payment schedule for a scheme—

(a)to the extent that the scheme makes provision for their determination, must be so determined, and

(b)otherwise,

(i)must be matters previously agreed between the employer and the trustees or managers of the scheme, or

(ii)if no such agreement has been made as to all matters shown in the schedule (other than those for whose determination the scheme makes provision), must be matters determined by the trustees or managers of the scheme.

(5)Where in the case of a scheme this section is not complied with—

F2(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)section 10 applies to any trustee or manager who has failed to take all such steps.

Textual Amendments

F1S. 87(1A) inserted (11.2.2021 for specified purposes, 1.8.2022 in so far as not already in force) by Pension Schemes Act 2021 (c. 1), s. 131(1)(3)(a), Sch. 3 para. 9; S.I. 2022/721, regs. 1(2), 3(a)

Modifications etc. (not altering text)

Commencement Information

I1S. 87 in force at 6.4.1996 for specified purposes by S.I. 1996/778, art. 2(5)(a), Sch. Pt. V

I2S. 87 in force at 6.4.1997 in so far as not already in force by S.I. 1997/664, art. 2(3), Sch. Pt. 3 (with art. 12)

I3S. 87(1) in force at 6.3.1997 for specified purposes by S.I. 1997/664, art. 2(1)

88 Schedules of payments to money purchase schemes: supplementary.E+W+S

[F3(1)Where, in the case of an occupational pension scheme to which section 87 applies—

(a)there is a failure to pay on or before the due date any amounts payable in accordance with the payment schedule, and

(b)the trustees or managers have reasonable cause to believe that the failure is likely to be of material significance in the exercise by the Authority of any of their functions,

they must, except in prescribed circumstances, give notice of the failure to the Authority and to the members of the scheme within a reasonable period after the due date.]

(2)Any such amounts which for the time being remain unpaid after that date (whether payable by the employer or not) shall, if not a debt due from the employer to the trustees or managers apart from this subsection, be treated as such a debt.

(3)Where any amounts payable in accordance with the payment schedule by or on behalf of the employer [F4on the employer’s own account] have not been paid on or before the due date, section 10 applies to the employer.

(4)If, in the case of an occupational pension scheme to which section 87 applies, subsection (1) is not complied with—

F5(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)section 10 applies to any trustee or manager who has failed to take all such steps.

Textual Amendments

F3S. 88(1) substituted (1.7.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 269(2), 322(1) (with s. 313); S.I. 2005/1720, art. 2(15)(a)(b), Sch. Pt. 2

F4Words in s. 88(3) inserted (11.11.1999 for specified purposes, 3.4.2000 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), ss. 10(2), 89(5)(a); S.I. 2000/629, art. 2

Modifications etc. (not altering text)

Commencement Information

I4S. 88 in force at 6.4.1996 for specified purposes by S.I. 1996/778, art. 2(5)(a), Sch. Pt. V

I5S. 88 in force at 6.4.1997 in so far as not already in force by S.I. 1997/664, art. 2(3), Sch. Pt. 3

89 Application of further provisions to money purchase schemes.E+W+S

(1)In the case of money purchase schemes falling within a prescribed class or description, regulations may—

(a)provide for any of the provisions of [F6Part 3 of the Pensions Act 2004] to apply, or apply with prescribed modifications (in spite of anything in [F7that Part]), and

(b)provide for any of the provisions of sections 87 and 88 to apply with prescribed modifications or not to apply,

to such extent as may be prescribed.

(2)Regulations may provide for any of the provisions of section 75 to apply, or apply with prescribed modifications, to money purchase schemes to such extent as may be prescribed (in spite of anything in that section), and the power conferred by this subsection includes power to apply section 75 in circumstances other than those in which the scheme is being wound up or a relevant F8... event occurs (within the meaning of that section).

[F9(3)Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this section as a separate money purchase scheme.]

Textual Amendments

F9S. 89(3) inserted (11.2.2021 for specified purposes, 1.8.2022 in so far as not already in force) by Pension Schemes Act 2021 (c. 1), s. 131(1)(3)(a), Sch. 3 para. 10; S.I. 2022/721, regs. 1(2), 3(a)

Modifications etc. (not altering text)

Commencement Information

I6S. 89 in force at 6.4.1996 for specified purposes by S.I. 1996/778, art. 2(5)(a), Sch. Pt. V

I7S. 89 in force at 6.4.1997 in so far as not already in force by S.I. 1997/664, art. 2(3), Sch. Pt. 3

90 Unpaid contributions in cases of insolvency.E+W+S

In section 124 of the M1Pension Schemes Act 1993 (duty of Secretary of State to pay unpaid contributions to schemes), after subsection (3) there is inserted—

“(3A)Where the scheme in question is a money purchase scheme, the sum payable under this section by virtue of subsection (3) shall be the lesser of the amounts mentioned in paragraphs (a) and (c) of that subsection”, and, accordingly, at the beginning of subsection (3) there is inserted “Subject to subsection (3A),”.

Marginal Citations