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

Cessation of approval of appropriate rules and alternative arrangements E+W+S

20.—(1) The approval of appropriate rules or alternative arrangements under the statutory consultation procedure ceases to have effect (but without prejudice to the validity or term of the appointment of any person selected in accordance with them)—

[F1 (a) at the expiry of—

(i) except where paragraph (ii) applies, the period of ten years beginning with the date on which the rules or arrangements were treated as approved under paragraph 8 or, as the case may be, paragraph 9 of Schedule 1; or

(ii) where, in the case of an approval of arrangements under section 17 or 19, the employer gives notice in accordance with regulation 9(1)(a) or 15(1)(a) on or after 6th October 2002, the period of four years beginning with the date on which the arrangements were treated as approved under paragraph 8 or, as the case may be, paragraph 9 of Schedule 1;]

[F2 (b) on the date on which fresh rules or arrangements are treated as approved under paragraph 8 or, as the case may be, paragraph 9 of Schedule 1;]

(c) in the case of the approval of rules applying to a scheme to which section 16 ceases to apply, on its ceasing;

[F3 (d) in the case of an approval of arrangements under section17—

(i) on the date on which the employer gives notice under regulation 9(1)(b)(ii) in respect of the approval of new arrangements or the fresh approval of the existing arrangements; or

(ii) on the date on which the employer gives notice to the trustees of the scheme that he wishes to withdraw the approved arrangements;]

(e) in the case of the approval of rules applying to a company to which section 18 ceases to apply, on its ceasing;

[F4 (f) in the case of an approval of arrangements under section 19—

(i) on the date on which the employer gives notice under regulation 15(1)(b)(ii) in respect of the approval of new arrangements or the fresh approval of the existing arrangements; or

(ii) on the date on which the employer gives notice to the company that he wishes to withdraw the approved arrangements;]

(g) in the case of rules applying to a scheme to which section 16 applies or arrangements under section 17, if—

(i) a relevant event has occurred in relation to the scheme to which the rules or arrangements apply; and

(ii) the trustees of the scheme have given notice to the employer under paragraph (3) that this paragraph is to apply,

at the expiry of the period of six months beginning with the date on which that notice is given or, if paragraph (4) applies, with the opt-out failure date; or

(h) in the case of rules applying to a company to which section 18 applies or arrangements under section 19, if—

(i) a relevant event has occurred in relation to a scheme which is a relevant scheme in relation to the company to which the rules or arrangements apply; and

(ii) the trustees of the scheme have given notice to the employer under paragraph (3) that this paragraph is to apply,

at the expiry of the period of six months beginning with the date on which that notice is given or, if paragraph (5) applies, with the opt-out failure date, whichever occurs first.

(2) For the purposes of paragraph (1)(g) and (h), a relevant event occurs in relation to a scheme if, as a result of the event—

(a) the accrued rights of a group of members have been or are to be transferred to or from the scheme in such circumstances as are mentioned in regulation 12(2) of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 M1 (transfers without consent);

(b) any person becomes or ceases to be the employer in relation to the scheme; or

(c) a company which is the employer in relation to the scheme becomes a wholly-owned subsidiary (within the meaning of section 736 of the Companies Act 1985 M2 ) of another company which is not the employer of persons in the description or category of employment to which the scheme relates.

(3) Where—

(a) a relevant event has occurred in relation to a scheme; and

(b) the trustees consider that as a result of that event it would be detrimental to the interests of the members of the scheme for the approval of the appropriate rules or, as the case may be, the alternative arrangements to continue to have effect,

they may give notice in writing to the employer and, in the case of rules, to the eligible members that paragraph (1)(g) or, as the case may be, paragraph (1)(h) applies.

(4) This paragraph applies where the employer duly gives notice under regulation 9(1)(a) during the period of one month beginning with the date on which the notice under paragraph (3) is given that he intends to propose alternative arrangements, but—

(a) the employer gives the trustees notice in writing within the approval period that he is not proceeding with the proposals; or

(b) the conditions imposed by regulation 9(1)(b) for the application of section 17(1) are not satisfied within the approval period.

(5) This paragraph applies where the employer duly gives notice under regulation 15(1)(a) during the period of one month beginning with the date on which the notice under paragraph (3) is given that he intends to propose alternative arrangements, but—

(a) the employer gives the company notice in writing within the approval period that he is not proceeding with the proposals; or

(b) the conditions imposed by regulation 15(1)(b) for the application of section 19(1) are not satisfied within the approval period.

Textual Amendments

F1 Reg. 20(1)(a) substituted (6.10.2002) by The Occupational Pension Schemes (Member-nominated Trustees and Directors) Amendment Regulations 2002 (S.I. 2002/2327), regs. 1(1), 5(a)

F2 Reg. 20(1)(b) substituted (6.10.2002) by The Occupational Pension Schemes (Member-nominated Trustees and Directors) Amendment Regulations 2002 (S.I. 2002/2327), regs. 1(1), 5(b)

F3 Reg. 20(1)(d) substituted (6.4.1997) by The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 1997 (S.I. 1997/786), reg. 1, Sch. 1 para. 5(10)(a) (with Sch. 1 para. 5(15))

F4 Reg. 20(1)(f) substituted (6.4.1997) by The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 1997 (S.I. 1997/786), reg. 1, Sch. 1 para. 5(10)(b) (with Sch. 1 para. 5(15))

Marginal Citations

M1 S.I. 1991/167. Regulation 12(2) was substituted by regulation 35 of the Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations (S.I. 1992/1531).

M2 1985 c.6.