The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014

PART 18 Cross-border Schemes

Cross-border schemes treated as money purchase schemes

77.—(1) Where the conditions specified in paragraph (2) are met—

(a) the trustees or managers of an occupational pension scheme which, before the appointed day, was receiving contributions from a European employer, are not required to make a further or revised application for authorisation or approval in relation to any period before the appointed day under—

(i) section 288(1) of the 2004 Act (general authorisation to accept contributions from European employers); or

(ii) section 289(1) of that Act (approval in relation to a particular European employer)(1);

(b) the Regulator’s authorisation of the scheme under section 288(2)(a) of that Act or approval of the trustees or managers of the scheme under section 289(2)(a) (as the case may be) is valid in respect of any period before the appointed day;

(c) that authorisation of the scheme or approval of the trustees or managers of the scheme (as the case may be) remains valid on or after the appointed day until the application required under paragraph (3) is granted or refused by the Regulator; and

(d) section 287(5) of the 2004 Act (occupational pension scheme receiving contributions from European employer) (civil penalties) does not apply in relation to a failure to apply for authorisation under section 288(1) of that Act or approval under section 289(1) of that Act in the form prescribed for a scheme which is not a money purchase scheme during any period before the application required under paragraph (3) is granted or refused by the Regulator.

(2) The conditions specified in this paragraph are that before the appointed day—

(a) an occupational pension scheme included cash balance benefits or pensions derived from cash balance benefits or money purchase benefits;

(b) the scheme included no benefits other than those falling within sub-paragraph (a), money purchase benefits or death benefits;

(c) the trustees or managers of the scheme treated the scheme as a money purchase scheme;

(d) an application made by the trustees or managers of a scheme for authorisation under section 288(1) of the 2004 Act or for approval under section 289(1) of that Act was made in the form prescribed for a money purchase scheme in accordance with any of the following provisions of the Occupational Pension Schemes (Cross-border Activities) Regulations 2005(2) (“the Cross-border Regulations”)—

(i) regulation 4(2)(a) (applications for general authorisation to accept contributions from European employers: established schemes which are not carrying on cross-border activity);

(ii) regulation (5)(2)(a) (applications for general authorisation to accept contributions from European employers: established schemes which are carrying on cross-border activity)(3);

(iii) regulation 5(3)(b)(ii)(aa)(4);

(iv) regulation 5(4)(a)(5);

(v) regulation 6(2)(a) (applications for general authorisation to accept contributions from European employers: new schemes);

(vi) regulation 9(2)(a) (applications for approval in relation to particular European employer: established schemes which are not carrying on cross-border activity);

(vii) regulation 10(2)(a) (applications for approval in relation to particular European employer: established schemes which are carrying on cross-border activity)(6); and

(e) the Regulator has granted or approved that application in accordance with section 288(2)(a) or 289(2)(a) of the 2004 Act.

(3) Where the trustees or managers of an occupational pension scheme which meets the conditions specified in paragraph (2) intend to accept contributions from European employers on or after the appointed day, they must make a further application for authorisation under section 288(1) or approval under section 289(1)—

(a) within the period of one year beginning with the appointed day; and

(b) in the form prescribed for a scheme which is not a money purchase scheme in accordance with paragraph (2)(b) of regulation 4 to 6, 9 or 10 (as the case may be) of the Cross-border Regulations.

(4) In this regulation “European employer” has the meaning given by regulation 3(1) (meaning of “European employer” and “host member State” in Part 7 of the Act) of the Cross-border Regulations(7).

(5) Where, by virtue of regulation 2(3) of the Cross-border Regulations, a section of a segregated multi-employer scheme is required to be treated as a separate scheme for the purposes of those Regulations (or would have been so required, but for this regulation) this regulation applies in relation to that section of the scheme as if it were a separate scheme.

(6) In this regulation “segregated multi-employer scheme” has the meaning given by regulation 2(1) of the Cross-border Regulations(8).

(1)

Section 289 was amended by S.I. 2007/3014.

(2)

S.I. 2005/3381.

(3)

Paragraph (2) was amended by S.I. 2007/814.

(4)

Paragraph (3) was inserted by S.I. 2006/467 and was amended by S.I. 2006/925.

(5)

Paragraph (4) of regulation 5 was inserted by S.I. 2007/814.

(6)

Regulation 10 was amended by S.I.s 2006/467, 2006/925 and 2007/814.

(7)

Regulation 3(1) was substituted by S.I. 2007/814 and amended by 2007/3014.

(8)

Regulation 2(1) was amended by S.I.s 2006/467, 2006/925, 2007/3014 and 2007/3014.