1990 No. 2075
The Occupational Pension Schemes (Independent Trustee) Regulations 1990
Made
Laid before Parliament
Coming into force
The Secretary of State for Social Security, in exercise of his powers under sections 166(1) to (3) and 168(1) of, and Schedule 20 to, the Social Security Act 19751, sections 57C(3)(c), 57D(9) and (10) and 66(2) of the Social Security Pensions Act 19752 and section 21(3) of the Social Security Act 19903, and of all other powers enabling him in that behalf, not being required to refer the proposals in respect of these Regulations to the Occupational Pensions Board because this instrument contains only regulations made consequential upon paragraph 1 of Schedule 4 to the Social Security Act 1990 and is made before the end of the period of 6 months beginning with the coming into force of that enactment4, hereby makes the following Regulations:
Citation and commencement1
1
These Regulations may be cited as the Occupational Pension Schemes (Independent Trustee) Regulations 1990.
2
These Regulations come into force on 12th November 1990.
Additional requirement for “independent trustee”2
1
For the purposes of section 57C(2), a person is “independent” only if he satisfies the requirements of paragraphs (2) and (3) of this regulation as well as the requirements of section 57C(3)(a) and (b).
2
This paragraph requires that the person has not provided services to the trustees or managers of the scheme, or the employer, in relation to the scheme. This requirement is, however, satisfied if the last occasion on which the person provided services was more than 3 years before section 57C started to apply in relation to the scheme.
3
This paragraph requires that the person is neither connected with, nor an associate of—
a
a person who has an interest in the assets of the employer or of the scheme, otherwise than as trustee of the scheme; or
b
a person to whom paragraph (2) of this regulation applies.
Centralised schemes3
1
Sections 57C and 57D are modified as described in this regulation in their application to any occupational pension scheme which applies to earners in employments under different employers (“centralised schemes”).
2
Section 57C applies in relation to a centralised scheme only if an insolvency practitioner, or the official receiver, starts to act in relation to any employer of persons in the description or category of employment to which the scheme relates and—
a
the employer concerned has power to appoint or remove any trustee of the scheme; or
b
the employer concerned is a trustee of the scheme.
3
Where section 57C applies in relation to a centralised scheme, references to “the employer” in that section and in section 57D are to be treated as references to the employer in relation to whom the practitioner or official receiver is acting.
4
Where section 57C applies in relation to a centralised scheme, it shall not cease to do so by virtue of section 57C(7)(a) unless the power to appoint or remove any trustee of the scheme is transferred to the person other than the employer concerned, or to any person who is “independent” for the purposes of section 57C(2).
Paid-up schemes4
1
Sections 57C and 57D are modified as described in this regulation in their application to any occupational pension scheme of which there are no members who are in pensionable service under the scheme, as defined in paragraph 3 of Schedule 16 to the Social Security Act 19735 (“paid-up schemes”).
2
Section 57C applies in relation to a paid-up scheme only if—
a
the employer has power to appoint or remove any trustee of the scheme; or
b
the employer is a trustee of the scheme.
Cases where a partnership is the employer5
1
Sections 57C and 57D are modified as described in this regulation in their application to any case where—
a
a partnership is the employer, or one of the employers, in relation to an occupational pension scheme;
b
the partnership is insolvent; and
c
the courts of England and Wales have jurisdiction to wind up the insolvent partnership6.
2
Section 57C(1) applies in relation to the scheme—
a
if a person commences to act as an insolvency practitioner in relation to the insolvent partnership; or
b
if the official receiver becomes the liquidator or provisional liquidator of the insolvent partnership.
3
Where section 57C applies in relation to the scheme, references to “a company” are to be treated as including any insolvent partnership that the courts in England and Wales have jurisdiction to wind up.
Schemes to which sections 57C and 57D do not apply6
1
Sections 57C and 57D shall not apply in relation to occupational pension schemes of a description prescribed by this regulation.
2
Sections 57C and 57D, do not apply to a scheme of which each member is a trustee. For this purpose, “member” means any employee or former employee of the employer who has rights under the scheme arising from that employment.
3
Sections 57C and 57D do not apply to schemes under which all the benefits that may be provided are—
a
money purchase benefits, or
b
benefits payable only on an earner’s death while employed in employment to which the scheme applies.
4
Sections 57C and 57D do not apply to any scheme under which all the benefits to be provided are secured by means of insurance policies that are specifically allocated to the provision of benefits for, or in respect of, particular members.
Transitional provision and saving7
1
This regulation is made in connection with the coming into force of paragraph 1 of Schedule 4 to the Social Security Act 1990 (which inserted sections 57C ad 57D into, the Social Security Pensions Act 1975)7.
2
Sections 57C and 57D of the Social Security Pensions Act 1975 do not apply where an insolvency practitioner or the official receiver started to act in relation to the employer before 12th November 1990.
Signed by authority of the Secretary of State for Social Security.
(This note is not part of the Regulations)