Personal Pension Schemes (Appropriate Schemes) Regulations 1987

JurisdictionUK Non-devolved
CitationSI 1987/1109

1987 No. 1109

PENSIONS

The Personal Pension Schemes (Appropriate Schemes) Regulations 1987

Made 25th June 1987

Laid before Parliament 6th July 1987

The Secretary of State for Social Services, in exercise of the powers conferred upon him by sections 1(1), (2), (4), (5), (9), (10) and (11), 2(1), (2) and (5), 3(1)(b) and (5), 84(1) and 89(1) of, and paragraphs 2 and 6 of Schedule 1 to, the Social Security Act 19861, and of all other powers enabling him in that behalf, by this instrument, which is made before the end of a period of 12 months from the commencement of the enactments under which it is made, makes the following Regulations:—

S-1 Citation, commencement and interpretation

Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Personal Pension Schemes (Appropriate Schemes) Regulations 1987; this regulation and regulations 2 to 11, 19 and 20 shall come into force on 27th July 1987, and regulations 12 to 18 shall come into force on 4th January 1988.

(2) In these Regulations, unless the context otherwise requires—

“the Act” means the Social Security Act 1986;

“administrators”, in relation to a personal pension scheme, means the trustees or, if there are no trustees, the managers (except any trustee or manager who is resident outside the United Kingdom, or which, being a company, does not have its registered office in the United Kingdom), and any person who is resident in the United Kingdom, or which, being a company, has its registered office in the United Kingdom, who or which is authorised to act on behalf of the trustees, or, if there are no trustees, on behalf of the managers;

“the Board” means the Occupational Pensions Board;

“contracted-out”, “contracted-out scheme” and “money purchase contracted-out scheme” shall be construed in accordance with the Social Security Pensions Act 19752;

“Friendly Society” means a Friendly Society registered under section 7(1)(a) of the Friendly Societies Act 19743, or, as the case may be, under section 1(1)(a) of the Friendly Societies Act (Northern Ireland) 19704;

“investment business” has the meaning assigned to that expression by the Financial Services Act 19865;

“pensionable age” means, in the case of a man, 65, and in the case of a woman, 60;

“scheme”(except in the expressions “contracted-out scheme”, “money purchase contracted-out scheme”, “occupational pension scheme” and “unit trust scheme”) means personal pension scheme;

“tax week” has the same meaning as in the Social Security Act 19756;

and other expressions have the same meaning as in the Act.

(3) In these Regulations, unless the context otherwise requires, any reference—

(a)

(a) to a numbered regulation is to the regulation in these regulations bearing that number;

(b)

(b) in a regulation to a numbered paragraph is to the paragraph of that regulation bearing that number;

(c)

(c) in a paragraph to a lettered sub-paragraph is to the sub-paragraph of that paragraph bearing that letter.

S-2 Forms of schemes which may be appropriate schemes

Forms of schemes which may be appropriate schemes

2. Without prejudice to any other requirements imposed by the Act or regulations made thereunder, a personal pension scheme can be an appropriate scheme only if it takes the form specified in any one (but not more than one) of paragraphs (a) to (c), namely—

(a) an arrangement for the issue of insurance policies or annuity contracts;

(b) a unit trust scheme which has been authorised under section 78(1) of, or by virtue of paragraph 9 of Schedule 15 to, the Financial Services Act 1986;

(c) an arrangement for the investment of contributions in an interest—bearing account.

S-3 Persons who and bodies which may establish schemes

Persons who and bodies which may establish schemes

3.—(1) Without prejudice to any other requirements of the Act or regulations made thereunder—

(a)

(a) an arrangement such as is described in regulation 2(a) which is established by a Friendly Society can be an appropriate scheme only if paragraph (2) applies to that Friendly Society; and

(b)

(b) an arrangement such as is described in regulation 2(c) can be an appropriate scheme only if it is established by a person to whom or a body to which paragraph (3) applies.

(2) This paragraph applies to a Friendly Society which—

(a)

(a) is authorised by virtue of Chapter III of Part I of the Financial Services Act 1986; and

(b)

(b) has disclosed in its audited accounts a contributions income of not less than £300,000 in the year 1986 and £400,000 in the year 1987.

(3) This paragraph applies to—

(a)

(a) a building society as defined in the Building Societies Act 19867;

(b)

(b) a bank recognised under the Banking Act 19798;

(c)

(c) a deposit taker licensed under the Banking Act 1979.

S-4 Information to be included in an application for an appropriate scheme certificate

Information to be included in an application for an appropriate scheme certificate

4.—(1) Every application for an appropriate scheme certificate shall be made in writing to the Board and shall include the following particulars—

(a)

(a) the name of the scheme and the address where it is administered;

(b)

(b) the names and addresses of the trustees (if any) and administrators of the scheme;

(c)

(c) the name, address and standing (in relation to the scheme) of the person applying for the certificate, if he is not the trustees or administrators, or one or some of them;

(d)

(d) the name and address of the person who or body which has established the scheme (the address in the case of a company being that of its registered office);

(e)

(e) such evidence as the Board may reasonably require that the scheme satisfies such of the requirements of regulation 3 as apply to it;

(f)

(f) which of the forms specified in paragraphs (a) to (c) of regulation 2 the scheme takes;

(g)

(g) the name and address of a bank or building society which accepts payments made by automated direct credit transfer and the name and number of the account at that bank or building society, into which it is desired that minimum contributions should be paid; and

(h)

(h) the date (being a date consistent with the provisions of regulation 5(2)(b)) from which it is desired that the certificate shall have effect.

(2) Every application shall be accompanied by a copy of—

(a)

(a) the documents constituting the scheme; and

(b)

(b) the rules of the scheme, if they are not set out in those documents or any of them,

except where the Board in their discretion dispense wholly or partly with this requirement.

(3) Every person who has made an application shall supply such other documents and information as the Board may reasonably require.

S-5 Issue of appropriate scheme certificates

Issue of appropriate scheme certificates

5.—(1) When the Board have determined that a scheme should be treated as an appropriate scheme, they shall issue an appropriate scheme certificate to the person who applied for it.

(2) The appropriate scheme certificate shall specify—

(a)

(a) the name of the scheme and the address where it is administered; and

(b)

(b) the date from which the certificate is to have effect, which shall be 6th April in 1987 or any later year and which may be earlier than the date on which the certificate is issued where the person who applied for the certificate has so requested, but, if the Board receive the application after 5th April 1989, not earlier than 6th April in the tax year in which the Board receive the application.

S-6 Further information and change of circumstances

Further information and change of circumstances

6. The administrators of the scheme shall—

(a) in such manner and at such times as the Board may reasonably require, furnish to the Board such reports, accounts and other documents and information relating to the scheme to which the certificate relates as the Board may reasonably require; and

(b) notify the Board in writing of—

(i) any change in the identity, names or addresses of the trustees (if any) and administrators of the scheme,

(ii) any change in the name or address of the person who or body which has established the scheme,

(iii) any change affecting the information given under regulation 4(1)(e) and (f), and

(iv) any such change of circumstances affecting the scheme as the Board may have required them to notify,

as soon as practicable after its occurrence; and the document by which the notification is given may be served by post.

S-7 Applications for the variation of, and to surrender, appropriate scheme certificates

Applications for the variation of, and to surrender, appropriate scheme certificates

7.—(1) Every application for the variation of, or to surrender, an appropriate scheme certificate—

(a)

(a) shall be made in writing to the Board by the administrators of the scheme;

(b)

(b) shall be made only after notices of intention to make that application have been given by the administrators in accordance with paragraph (2) except where (in the case of an application for the variation of an appropriate scheme certificate) the board dispense with this requirement; and

(c)

(c) shall include a statement that all notices required by paragraph (2) to be given in relation to that application have been duly given.

(2) Notices of intention to make an application such as is mentioned in paragraph (1) shall be given in writing to—

(a)

(a) any member of the scheme who has protected rights under it; and

(b)

(b) any earner who, jointly with the trustees or managers of the scheme, has given in relation to the scheme a notice under section 1(9) of the Act which has not been cancelled,

by sending it to his last known address; and the document comprising the notice may be served by post.

(3) Notices given under this regulation shall specify—

(a)

(a) the name of the scheme and the address where it is administered;

(b)

(b) the date (being a date consistent with the provisions of regulation 9(5)) from which it is desired that the variation or surrender shall have effect; and

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