The Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2006
| Jurisdiction | UK Non-devolved |
| Citation | SI 2006/778 |
| Year | 2006 |
2006 No. 778
PENSIONS
TERMS AND CONDITIONS OF EMPLOYMENT
The Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2006
Made 14th March 2006
Laid before Parliament 16th March 2006
Coming into force in accordance with regulation 1(1)
The Secretary of State for Work and Pensions makes the following Regulations in exercise of the powers conferred by sections 55(2B), 101C(2), 113(1)(d), 181(1) and 182(2) and (3) of the Pension Schemes Act 19931, section 51(2B) and (2ZA) of the Pension Schemes (Northern Ireland) Act 19932, sections 35(3) and (4), 40(2), 41(1), 47(5) and (6), 49(1), (2), (4) and (9)(b), 87(1), 88(1), 91(5), 124(1) and 174(2) and (3) of the Pensions Act 19953, and sections 259(1), 260(1), 315(2) and 318(1) of the Pensions Act 20044.
In respect of regulations 1, 2, 3, 4, 6 and 7, in accordance with section 185 of the Pension Schemes Act 1993 and section 120 of the Pensions Act 1995, the Secretary of State for Work and Pensions has consulted such persons as he considers appropriate5.
Regulations 5 and 9 are made before the end of the period of six months beginning with the coming into force of section 244 of the Pensions Act 20046.
Regulation 8 is made before the end of the period of six months beginning with the coming into force of section 268 of the Pensions Act 20047.
In respect of regulation 10, it appears to the Secretary of State for Work and Pensions that by reason of urgency consultation is inexpedient8.
Citation, commencement and interpretation
1.—(1) These Regulations may be cited as the Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2006 and shall come into force—
(a)
(a) for the purposes of regulation 4, on 6th April 2006 immediately after the coming into force of the Occupational Pension Schemes (Administration and Audited Accounts) (Amendment) Regulations 20059; and
(b)
(b) for all other purposes on 6th April 2006.
(2) In these Regulations—
“the Assignment Regulations” means the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations 199710;
“the Audited Accounts Regulations” means the Occupational Pension Schemes (Requirement to obtain Audited Accounts and a Statement from the Auditor) Regulations 199611;
“the Consultation by Employers Regulations” means the Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 200612;
“the Contracting-out Regulations” means the Occupational Pension Schemes (Contracting-out) Regulations 199613;
“the Investment Regulations” means the Occupational Pension Schemes (Investment) Regulations 200514;
“the Northern Ireland Contracting-out Regulations” means the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 199615;
“the Payments by Employers Regulations” means the Personal Pension Schemes (Payments by Employers) Regulations 200016;
“the Pension Credit Benefit Regulations” means the Pension Sharing (Pension Credit Benefit) Regulations 200017; and
“the Scheme Administration Regulations” means the Occupational Pension Schemes (Scheme Administration) Regulations 199618.
Amendment of the Northern Ireland Contracting-out Regulations
2.—(1) The Northern Ireland Contracting-out Regulations are amended in accordance with this regulation.
(2) In regulation 5119(contributions equivalent premiums)—
(a)
(a) in paragraph (1A) for “paragraph (1B) or (1C)”, substitute “paragraph (1B), (1C) or (1D)”; and
(b)
(b) after paragraph (1C), add—
“1D This paragraph applies where, on the termination of his pensionable service, the earner elects to acquire a right to a cash transfer sum in accordance with section 97AB(1)(a) of the Act20(right to cash transfer sum and contribution refund).”.
Amendment of the Contracting-out Regulations
3.—(1) The Contracting-out Regulations are amended in accordance with this regulation.
(2) In regulation 5121(contributions equivalent premiums)—
(a)
(a) in paragraph (1A), for “paragraph (1B) or (1C)”, substitute “paragraph (1B), (1C) or (1D)”; and
(b)
(b) after paragraph (1C), add—
“1D This paragraph applies where, on the termination of his pensionable service, the earner elects to acquire a right to a cash transfer sum in accordance with section 101AB(1)(a) of the 1993 Act22(right to cash transfer sum and contribution refund).”.
Amendment of the Scheme Administration Regulations
4.—(1) The Scheme Administration Regulations are amended in accordance with this regulation.
(2) In regulation 1(2) (interpretation)—
(a)
(a) after the definition of “business days”, insert—
““insurance policy” means a contract of a kind referred to in Article 2 of the Life Directive, but excluding a contract of a kind referred to in Article 2(2)(c) or (d) of that Directive;
“the Life Directive” means Directive 2002/83/ECof the European Parliament and of the Council of 5th November 2002 concerning life assurance23;”;
(b)
(b) after the definition of “public service pension scheme”, insert—
““qualifying insurance policy” means an insurance policy issued by an insurer which is—
(a) a person who has permission under Part 4 of the Financial Services and Markets Act 200024(permission to carry on regulated activities) to effect or carry out contracts of long term insurance; or
(b) an undertaking established in an EEA State (as defined in paragraph 8 of Schedule 3 to the Financial Services and Markets Act 2000) other than the United Kingdom, which is authorised by the competent authorities of that State to carry on the business of direct insurance for the class of assurance as listed in Annex I to the Life Directive in which the insurance policy falls;”;
(c)
(c) after the definition “scheme year”, insert—
““specified qualifying insurance policy” means a qualifying insurance policy which is a contract falling within paragraph I or III of Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 200125(contracts of insurance);”;
(d)
(d) for the definition of “wholly insured scheme”, substitute—
““wholly insured scheme” means a trust scheme, other than a stakeholder pension scheme within the meaning of section 1 of the Welfare Reform and Pensions Act 199926(meaning of “stakeholder pension scheme”), which has no investments other than specified qualifying insurance policies.”; and
(e)
(e) after paragraph (2), insert—
“2A For the purposes of the definition of “wholly insured scheme”, “investments” shall not include—
(a) cash held on deposit by the trustees or managers pending payment to the insurer or to members of the scheme;
(b) cash held on deposit by the trustees or managers to meet accrued liabilities or administrative expenses; or
(c) any investments arising from voluntary contributions.”.
(3) In regulation 3, (exemptions from the professional advisers requirements), in paragraph (2)(b)(i), for “(d) to” substitute “(e) to”.
(4) In regulation 21 (circumstances where notice of non-payment of any amount payable to a scheme need not be given), for paragraph (4), substitute—
“4 Where, under section 49(9)(b) of the 1995 Act27(other responsibilities of trustees, employers, etc), there is a requirement on the trustees or managers to give notice within a reasonable time of a failure to pay within a prescribed time an amount corresponding to any contribution payable on behalf of an active member which has been deducted from the member’s earnings, the trustees or managers shall not be required to give notice of a failure to pay such amount by the due date for the purposes of subsection (1) of section 88 of that Act, in a case to which that subsection would otherwise apply.”.
Amendment of the Audited Accounts Regulations
5.—(1) The Audited Accounts Regulations are amended in accordance with this regulation.
(2) In paragraph 5(b) of the Schedule (contents of accounts audited by the auditor of the scheme), for “regulation 6 of the Occupational Pension Schemes (Investment) Regulations 1996 (investments to which restrictions on employer-related investments do not apply)”, substitute “regulation 13 of the Occupational Pension Schemes (Investment) Regulations 2005 (investments to which restrictions do not apply)”.
Amendment of the Assignment Regulations
6.—(1) The Assignment Regulations are amended in accordance with this regulation.
(2) In regulation 2 (commutation of a pension under an occupational pension scheme)—
(a)
(a) for paragraph (1A), substitute—
“1A There are also prescribed for the purposes of section 91(5)(c)(iii) of the 1995 Act the circumstances where—
(a) the rights of the member consist only of rights derived from equivalent pension benefits under Part III of the National Insurance Act 196528; and
(b) either—
(i) the member has consented to the commutation; or
(ii) he has not consented but the conditions in paragraph (4) are satisfied.”; and
(b)
(b) after paragraph (3), add—
“4 For the purposes of paragraph (1A)(b)(ii), the conditions are that—
(a) the trustees or managers of the scheme have sent to the member’s last known address written notice of their intention to commute his rights derived from equivalent pension benefits under Part III of the National Insurance Act 1965; and
(b) no response has been received from the member before the end of the period of two months beginning with the date on which the notice was sent.”.
Amendment of the Pension Credit Benefit Regulations
7.—(1) The Pension Credit Benefit Regulations are amended in accordance with this regulation.
(2) In regulation 4 (commutation of part of pension credit benefit), in paragraph (1)(a)(i),...
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