The Application of Pension Legislation to the National Employment Savings Trust Corporation Regulations 2011

These Regulations provide that certain legislation that applies in relation to a person as a trustee of an occupational pension scheme applies in relation to the National Employment Savings Trust Corporation (“the corporation”), with prescribed modifications. The corporation has the function of acting as trustee of the National Employment Savings Trust pension scheme established under section 67 of the Pensions Act 2008 (c.30), (“NEST pension scheme”).

Regulation 2(a) modifies the Occupational Pension Schemes (Disclosure of Information) Regulations 1996 (S.I. 1996/1655) such that paragraphs 6 and 7 of Schedule 1 (information about contributions) are treated as replaced by a new paragraph. The new paragraph 6 provides that the corporation must provide—

1. a

   in the case of a member who works for an employer that participates in the NEST pension scheme, a summary of the contributions that the employer and the member are required to pay under the Pensions Act 2008 and the scheme rules;

2. b

   in the case of a member who does not work for an employer that participates in the NEST pension scheme, a statement of the contributions currently payable by, or on behalf of or in respect of, the member; and

3. c

   where applicable, a statement of the maximum contributions that may be paid to the scheme by, or on behalf of or in respect of, a member of the scheme in any tax year.

Regulation 2(b) modifies the Occupational Pension Schemes (Disclosure of Information) Regulations 1996 such that a substituted paragraph 16 of Schedule 3 (information about employer-related investments) is treated as applying. The substituted paragraph 16 provides that the annual report must identify—

1. a

   the largest one hundred investments by value;

2. b

   the percentage of the resources of the scheme each such investment represents;

3. c

   which of the investments are employer-related investments (as defined in the substituted paragraph) in relation to employers that participate in the NEST pension scheme; and

4. d

   where such employer-related investments represent more that 5% of the resources of the scheme, and the investment contravenes section 40(1) of the Pensions Act 1995, what steps are proposed to be, or have been, taken to reduce the percentage to 5% or less.

Regulation 3 modifies the Occupational Pension Schemes (Requirement to obtain Audited Accounts and a Statement from the Auditor) Regulations 1996 (S.I.1996/1975) (information that is to be provided in the scheme's annual accounts) in a similar way to regulation 2.

Regulation 4 modifies the Occupational Pension Schemes (Investment) Regulations 2005 (S.I. 2005/3378) such that a substituted regulation 5(2) (borrowing by trustees) is treated as applying. The substituted paragraph provides that the corporation may borrow for the purposes of—

1. a

   providing liquidity for the NEST pension scheme and on a temporary basis; or

2. b

   meeting costs of establishing, administering or managing that scheme,

or for both of these purposes.

A full impact assessment has not been produced for these Regulations as they have no impact on the private or voluntary sector.