(This note is not part of the Regulations)
These Regulations bring into force section 125 (exercise of right to cash equivalent) of the Pension Schemes Act 2021 (c. 1) (“the Act”) for all remaining purposes on 30th November 2021.
Section 125 of the Act primarily amends sections 95 (ways of taking right to cash equivalent) and 101F (power to give transfer notice) of the Pension Schemes Act 1993 (c. 48) (“the 1993 Act”), which provide for a member of a pension scheme to have a statutory right, respectively, either to transfer of accrued pension rights, or to transfer pension credit benefit, in that scheme to another pension scheme. New subsection (6ZA) of section 95, and new subsection (5A) of section 101F, require the Secretary of State to prescribe conditions which must be met before a member will be able to exercise those statutory rights. New subsections (6ZB) and (5B), of sections 95 and 101F respectively, set out the nature of the conditions that may be set; new subsections (6ZC) and (5C) provide a power to require the trustees or managers of the member’s scheme to notify the member of the prescribed conditions where the member is seeking to exercise those rights. Section 125 of the Act also makes amendments to sections 98 (loss of right to cash equivalent), 99 (trustees’ duties after exercise of option) and 101J (time for compliance with transfer notice) of the 1993 Act supplementary to the amendments of sections 95 and 101F of that Act.
An impact assessment has been produced in relation to the provisions of the Pension Schemes Act 2021 and a copy is available at www.legislation.gov.uk. A hard copy of this impact assessment can be obtained from the Department for Work and Pensions, First Floor, Caxton House, Tothill Street, London SW1H 9NA.