PART 2RESTRICTIONS ON CHARGES

F1CHAPTER 1DEFAULT ARRANGEMENTS, F2qualifying collective money purchase schemes, NON-CONTRIBUTING MEMBERS AND PAYMENTS TO ADVISERS

Annotations:
Amendments (Textual)

Non-contributing members11

1

It is prohibited for the purposes of regulation 4(1)(b) to impose or permit to be imposed on a non-contributing member to whom this regulation applies a higher—

a

rate of charges where a scheme imposes a charge based on a percentage charge; or

b

amount of charges where a scheme imposes a charge which is not based on a percentage charge,

than that to which the member would have been subject if that member were a contributing member.

2

In paragraph (1), the comparison is to be made on the basis of—

a

the period for which the member had contributed to the scheme on the date of that member's last contribution;

b

the value of the member's rights under the scheme on the date when the charges are imposed; and

c

the value of the last contribution made in relation to the member.

3

This regulation applies to a non-contributing member of a relevant scheme provided that—

a

a contribution in relation to that member has been made to that scheme on or after the date on which this regulation comes into force; and

b

at least one contribution referred to in sub-paragraph (a) was made when the member was a worker of the employer in relation to whose jobholders the scheme is a qualifying scheme.

4

This regulation applies to a non-contributing member beginning with the date on which the first contribution satisfying paragraph (3)(a) and (b) is received by the trustees or managers.

5

In this regulation—

  • “non-contributing member” means a member who is not a contributing member; and

  • “relevant scheme” is a scheme satisfying the definition in F3regulation 2(2)(a) or (b) which is a qualifying scheme for at least one jobholder of the member's employer.