The Proceeds of Crime Act 2002 (Recovery from Pension Schemes) Regulations 2003

Explanatory Note

(This note is not part of the Regulations)

These Regulations make provision as to the exercise by trustees or managers of pension schemes of their powers when a civil recovery order made under section 273(2) of the Proceeds of Crime Act 2002 (c. 29) (“the Act”) requires them to make a payment to the trustee for civil recovery in respect of the rights of a member of that scheme.

Regulation 1 provides for citation, commencement and interpretation.

Regulation 2 provides for the calculation and verification of the cash equivalent of the value of pension rights which are recoverable property under a recovery order made under the Act. This is by reference to the method applying for the purposes of the provision of information in respect of pensions on divorce, separation and nullity under the Pensions on Divorce etc. (Provision of Information) Regulations 2000 (S.I. 2000/1048) and the equivalent regulations applying in Scotland and Northern Ireland.

Regulation 3 makes similar provision to regulation 2 where the pension rights are derived directly or indirectly from a pension sharing transaction.

Regulation 4 makes provision for the circumstances where the person with the pension rights which are recoverable property is a trustee or manager of the scheme in question. In these circumstances, an actuary must approve the method of calculation and verification of the cash equivalent value. The actuary must be a member of the Faculty or Institute of Actuaries.

Regulation 5 prescribes the period for paying the amount of those pension rights to the trustee for civil recovery.

These Regulations have only a negligible cost for business: a regulatory impact assessment is therefore not necessary.