Regulation 3

SCHEDULE 1E+W+S MISCELLANEOUS AMENDMENTS

The Personal Pension Schemes (Disclosure of Information) Regulations 1987E+W+S

1.—(1) The Personal Pension Schemes (Disclosure of Information) Regulations 1987 M1 shall have effect with the following amendments.

(2) In regulation 1(2) in the definition of “scheme year" for paragraph (b) substitute—

“(b)such other period (if any) exceeding 6 months but not exceeding 18 months as is selected by the trustees in connection with—

(i)the commencement or termination of the scheme, or

(ii)a variation of the date on which the year or period referred to in paragraph (a) is to commence;”.

(3) In regulation 5(9)—

(a)for the words “the Occupational Pensions Board have" substitute the words “ the Secretary of State has ”; and

(b)in sub-paragraph (a) for the words “it was communicated to the trustees by the Occupational Pensions Board" substitute the words “ the date on which the trustees receive notification of that determination ”.

(4) In paragraph 5 of Schedule 1 for the words “the Occupational Pensions Board" substitute the words “ the Secretary of State ”.

(5) In paragraph 10 of Schedule 2 for the words “the Occupational Pensions Board" substitute the words “ the Secretary of State ”.

The Personal Pension Schemes (Transfer Values) Regulations 1987E+W+S

2.—(1) In regulation 2(b) of the Personal Pension Schemes (Transfer Values) Regulations 1987 M2 for the words “regulations 2 and 3 of the Protected Rights (Transfer Payment) Regulations 1987" substitute the words “ regulation 2 of the Protected Rights (Transfer Payment) Regulations 1996. ”.

(2) Paragraph (1) shall not apply where the cash equivalent is used on or after 6th April 1997 in pursuance of an application made under section 95 of the Pension Schemes Act 1993 before that date.

The Occupational Pensions Schemes (Preservation of Benefit) Regulations 1991E+W+S

3.—(1) The Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 M3 shall have effect with the following amendments.

(2) In regulations 6(2)(b) and 9(4)(a) for the words “regulation 2 of the Occupational Pension Schemes (Discharge of Liability) Regulations 1985" substitute the words “ regulation 3 of the Occupational Pension Schemes (Discharge of Liability) Regulations 1997 ”.

(3) In regulation 12(3)—

(a)in sub-paragraph (a) after the word “favourable" insert the words “ and, if that scheme were wound up immediately after the transfer, would not be likely to be materially less secure than they would be if the transferring scheme were wound up immediately before the transfer ”; and

(b)after the sub-paragraph insert—

“(aa)no beneficiary or contingent beneficiary under the transferring scheme will receive materially inferior benefits in the receiving scheme; and”.

The Occupational Pension Schemes (Contracting-out) Regulations 1996E+W+S

4.—(1) The Occupational Pension Schemes (Contracting-out) Regulations 1996 M4 shall have effect with the following amendments.

(2) In regulation 1(2) for the definition of “section 9(2B) rights" substitute—

““section 9(2B) rights" are—

(a)rights to the payment of pensions and accrued rights to pensions (other than rights attributable to voluntary contributions) under a scheme contracted-out by virtue of section 9(2B) of the 1993 Act, so far as attributable to an earner’s service in contracted-out employment on or after the principal appointed day; and

(b)where a transfer payment has been made to such a scheme, any rights arising under the scheme as a consequence of that payment which are derived directly or indirectly from—

(i)such rights as are referred to in sub-paragraph (a) under another scheme contracted-out by virtue of section 9(2B) of that Act; or

(ii)protected rights under another occupational pension scheme or under a personal pension scheme attributable to payments or contributions in respect of contracted-out employment on or after the principal appointed day;”.

(3) In regulation 2 for paragraph (2) (grounds for discrimination in elections) substitute—

“(2) In making or abstaining from making an election as to the inclusion of an employment in a contracting-out certificate, an employer may discriminate between different earners (otherwise than on the ground of the nature of their employment) in any case where such discrimination would be lawful apart from section 11(3) of the 1993 Act.”.

(4) In regulation 3 (notices by employers of intended elections), for paragraphs (4) and (5) substitute—

“(4) Unless paragraph (5) applies, a notice under this regulation must specify a date of expiry which is not earlier than the date three months after the date on which the notice is given.

(5) Where—

(a)there is no independent trade union recognised in relation to the earners concerned, or

(b)before the notice has been given every such trade union has consented in writing to the notice specifying an earlier date than that which is required under paragraph (4),

the notice may specify an earlier date (but not earlier than the date one month after that on which the notice is given).”.

(5) In regulation 6 in paragraph (2)(f), omit paragraph (i).

(6) At the end of regulation 7 (amendment of an election with a view to the issue of a contracting-out certificate) add the words “ or the date from which it is intended that the certificate is to have effect ”.

(7) At the end of regulation 9(8) (amendment of an election for the variation or surrender of a contracting-out certificate) add the words “ or the date from which it is intended that the variation or surrender is to have effect ”.

(8) In regulation 42 (alteration of rules of contracted-out schemes) for paragraphs (1) and (2) substitute—

“(1) For the purposes of section 37(1) of the 1993 Act (prohibition on alteration of rules of contracted-out scheme unless the alteration is of a prescribed description), the alterations which are prescribed are any alterations which are not prohibited by paragraph (2), (2A) or (2B).

(2) The rules of a salary-related contracted-out scheme cannot be altered in relation to any section 9(2B) rights under the scheme unless—

(a)the trustees of the scheme have informed the actuary in writing of the proposed alteration,

(b)the actuary has considered the proposed alteration and has confirmed to the trustees in writing that he is satisfied that the scheme would continue to satisfy the statutory standard in accordance with section 12A of the 1993 Act if the alteration were made, and

(c)the alteration does not otherwise prevent the scheme from satisfying the conditions of section 9(2B) of that Act.

(2A) The rules of a scheme contracted-out under section 9(3) of that Act (a money purchase contracted-out scheme) cannot be altered in relation to protected rights if the alteration would—

(a)affect any of the matters dealt with in Part III of that Act or any regulations made under that Part which relate to protected rights in a manner which would or might adversely affect any entitlement or accrued rights of any member of the scheme acquired before the alteration takes effect, or

(b)otherwise prevent the scheme from satisfying the conditions of that section.

(2B) The rules of a contracted-out scheme cannot be altered in relation to any guaranteed minimum pensions under the scheme if the alteration would—

(a)affect any of the matters dealt with in Part III of that Act or any regulations made under that Part which relate to guaranteed minimum pensions in a manner which would or might adversely affect any entitlement or accrued rights of any member of the scheme acquired before the alteration takes effect,

(b)affect any of the matters dealt with in sections 87 to 92 (protection of increases in guaranteed minimum pensions) and 109 and 110 of that Act (annual increases of guaranteed minimum pensions) or in any regulations made under those provisions which relate to guaranteed minimum pensions, or

(c)otherwise prevent the scheme from satisfying—

(i)in the case of a salary-related contracted-out scheme, section 9(2) of that Act, or

(ii)in the case of a scheme contracted-out under section 9(3) of that Act, that section.”.

(9) In regulation 48 (special provision for overseas schemes)—

(a)for paragraph (5)(c) substitute—

“(c)except in cases to which regulation 73 applies, for the purposes of section 9(2B)(c)(i) of the 1993 Act, the requirement as to the amount of the resources of the scheme is that, if the scheme were to be wound up at any time, those resources would be sufficient to meet in full the liabilities mentioned in paragraphs (a) to (e) of section 73(3) of the 1995 Act, calculating, determining and valuing those liabilities and resources in a manner approved by the Secretary of State;

(ca)the scheme must provide that, if it is wound up, the assets of the scheme must be applied first towards satisfying the amounts of liabilities mentioned in those paragraphs and, if they are insufficient to satisfy those amounts in full, then—

(i)they must be applied first towards satisfying the amounts of the liabilities mentioned in earlier paragraphs before those mentioned in later paragraphs, and

(ii)where the amounts of the liabilities mentioned in one of those paragraphs cannot be satisfied in full, those amounts must be satisfied in the same proportions; and”;

(b)in paragraph (5)(d) for the words “paragraph (b)" substitute the words “ paragraph (c) ”; and

(c)after paragraph (5) insert—

“(5A) For the purposes of paragraph (5)(c) and (ca), the reference to section 73(3) of the 1995 Act is to that section as modified by paragraphs (3) to (5) of regulation 3 of the Occupational Pension Schemes (Winding Up) Regulations 1996 M5 (whether or not the transitional period mentioned in paragraph (2) of that regulation has expired).”.

(10) In regulation 52 (payment of a contributions equivalent premium) after paragraph (1) insert—

“(1A) On an application made to him for that purpose, the Secretary of State may, in any particular case or class of case, extend the period within which a premium must be paid under paragraph (1)—

(a)if he is satisfied that the circumstances are such that payment of the premium could not reasonably be required to be made within that period, by a period not exceeding six months; and

(b)if he is satisfied that to require earlier payment would be prejudicial to the interests of the earner in respect of whom the premium is payable or of the generality of the members of the scheme, by such further period as he considers reasonable.”.

(11) In regulation 55 (scheme rules about guaranteed minimum pensions) for the words from “earners’s employment" to “1993 Act" substitute the words “ the employment of any earner who has a guaranteed minimum under section 14 of the 1993 Act in relation to a pension provided by the scheme it must include a rule to the effect that ”.

(12) In regulation 60 (trivial commutation of guaranteed minimum pensions)—

(a)in paragraph (3) for the words “paragraph (1)(c)" substitute the words “ paragraph (1)(b) ”; and

(b)in paragraph (4) for the words “paragraph (1)(b)" and “paragraph (1)(c)" substitute respectively the words “ paragraph (1)(a) ” and “ paragraph (1)(b) ”.

(13) In regulation 72 (transitional requirements as to sufficiency of resources of salary-related schemes)—

(a)for paragraph (2) substitute—

“(2) The liabilities referred to in paragraph (1) are the liabilities mentioned in paragraphs (a) to (e) of section 73(3) of the 1995 Act (as modified by paragraphs (3) to (5) of regulation 3 of the Occupational Pension Schemes (Winding Up) Regulations 1996).”;

(b)in paragraph (3) omit the words “Subject to paragraphs (4) and (5)"; and

(c)omit paragraph (4) and (5).

(14) In regulation 76A (transitional arrangements for schemes contracted-out under section 9(2) of the 1993 Act to become contracted-out under section 9(3) of that Act)—

(a)at the end of paragraph (3) add the words “ immediately before the principal appointed day ”;

(b)for paragraph (4) substitute—

“(4) Where a contracting-out certificate for a scheme to which this regulation applies (“the second certificate") is issued after the principal appointed day but not later than 31st January 1998 (or such later date as the Secretary of State may in his discretion permit in any particular case), then the contracting-out certificate in force immediately before the principal appointed day (“the first certificate") shall be deemed to continue in effect during the period beginning with the principal appointed day and ending with the time when the second certificate is issued or 31st January 1998, if it is earlier.

(5) Paragraph (4) does not apply if the first certificate was cancelled or surrendered before the end of that period.

(6) Paragraph (4) is without prejudice to the powers in regulations 8(2)(d) and 47(2) (retrospective effect of issue and cancellation of certificates).”.

(15) After that regulation insert—

“ Former requirements for consent for alterations of rules

76B.  Where any provision of a scheme provides that any alteration of the rules of the scheme, to which section 37(1) of the 1993 Act applied immediately before the principal appointed day, requires, or is void if made without, the consent of the Occupational Pensions Board, to the extent that it so provides it shall cease to have effect.”.

The Occupational Pension Schemes (Member-nominated Trustees and Directors) Regulations 1996E+W+S

F15.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Protected Rights (Transfer Payment) Regulations 1996E+W+S

6.—(1) The Protected Rights (Transfer Payment) Regulations 1996 M6 shall have effect with the following amendments.

(2) In regulation 1(2)—

(a)at the end of the definition of “overseas scheme" add the words “ by virtue of section 52(1) of that Act ”; and

(b)for the definition of “section 9(2B) rights" substitute—

““section 9(2B) rights" are—

(a)rights to the payment of pensions and accrued rights to pensions (other than rights attributable to voluntary contributions) under a scheme contracted-out by virtue of section 9(2B) of the 1993 Act, so far as attributable to an earner’s service in contracted-out employment on or after the principal appointed day; and

(b)where a transfer payment has been made to such a scheme, any rights arising under the scheme as a consequence of that payment which are derived directly or indirectly from—

(i)such rights as are referred to in sub-paragraph (a) under another scheme contracted-out by virtue of section 9(2B) of that Act; or

(ii)protected rights under another occupational pension scheme or under a personal pension scheme attributable to payments or contributions in respect of contracted-out employment on or after the principal appointed day;”.

(3) At the end of regulation 4(e) add the words “ on or after the principal appointed day ”.

The Contracting-out (Transfer and Transfer Payment) Regulations 1996E+W+S

7.—(1) The Contracting-out (Transfer and Transfer Payment) Regulations 1996 M7 shall have effect with the following amendments.

(2) In regulation 1(2)—

(a)in the definition of “overseas scheme"—

(i)for the words “one which is contracted-out within the meaning of section 7(3) of the 1993 Act" substitute the words “ a salary-related contracted-out scheme ”, and

(ii)at the end add the words “ by virtue of section 52(1) of that Act ”; and

(b)for the definition of “section 9(2B) rights" substitute—

““section 9(2B) rights" are—

(a)rights to the payment of pensions and accrued rights to pensions (other than rights attributable to voluntary contributions) under a scheme contracted-out by virtue of section 9(2B) of the 1993 Act, so far as attributable to an earner’s service in contracted-out employment on or after the principal appointed day; and

(b)where a transfer payment has been made to such a scheme, any rights arising under the scheme as a consequence of that payment which are derived directly or indirectly from—

(i)such rights as are referred to in sub-paragraph (a) under another scheme contracted-out by virtue of section 9(2B) of that Act; or

(ii)protected rights under another occupational pension scheme or under a personal pension scheme attributable to payments or contributions in respect of contracted-out employment on or after the principal appointed day;”.

(3) In regulation 6(b) and (e) after the words “have taken reasonable steps to satisfy themselves" insert the words “ (or, if the transfer payment is from an appropriate policy, the transferring insurance company has taken reasonable steps to satisfy itself) ”.

(4) In regulation 7(1)(a) omit the words “or from an appropriate policy".

(5) At the end of regulation 8(c) add the words “ on or after the principal appointed day ”.

(6) In regulation 13(b) for the words “paragraphs 6, 8 and 9" substitute the words “ paragraphs 5, 6 and 8 ”.

(7) After regulation 13 insert—

“ Modification of section 12C of the 1993 Act where transfer payments are made to salary-related contracted-out schemes

13A.  In section 12C of the 1993 Act any reference to the liability for, or rights to, pensions so far as attributable to service on or after the principal appointed day shall include any liability or rights arising under the scheme as a consequence of a transfer payment which are derived directly or indirectly from—

(a)an earner’s service in contracted-out employment on or after the principal appointed day under another scheme contracted-out by virtue of section 9(2B) of the 1993 Act; or

(b)protected rights under another occupational pension scheme or under a personal pension scheme attributable to payments or contributions in respect of employment on or after the principal appointed day.”.

(8) In Schedule 2—

(a)for paragraph 1 substitute—

“1.  Section 8(2) shall have effect as if for the definition of “guaranteed minimum pension" there were substituted—

(b)in paragraph 4 for the words “ “or with those requirements as modified by" and “by paragraph 5" substitute respectively the words “ “ or in compliance with the condition set out in ” and “ in paragraph 5 ”;

(c)for paragraph 6 substitute—

“6.  Section 8(2) shall have effect as if for the definition of “guaranteed minimum pension" there were substituted—

(d)omit paragraph 9.

The Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations 1996E+W+S

F28.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Personal and Occupational Pension Schemes (Protected Rights) Regulations 1996E+W+S

9.—(1) The Personal and Occupational Pension Schemes (Protected Rights) Regulations 1996 M8 shall have effect with the following amendments.

(2) In regulation 1(2) for the definition of “section 9(2B) rights" substitute—

““section 9(2B) rights" are—

(a)rights to the payment of pensions and accrued rights to pensions (other than rights attributable to voluntary contributions) under a scheme contracted-out by virtue of section 9(2B) of the 1993 Act, so far as attributable to an earner’s service in contracted-out employment on or after the principal appointed day; and

(b)where a transfer payment has been made to such a scheme, any rights arising under the scheme as a consequence of that payment which are derived directly or indirectly from—

(i)such rights as are referred to in sub-paragraph (a) under another scheme contracted-out by virtue of section 9(2B) of that Act; or

(ii)protected rights under another occupational pension scheme or under a personal pension scheme attributable to payments or contributions in respect of contracted-out employment on or after the principal appointed day;”.

(3) In regulation 3—

(a)in paragraph (b) for the words “by virtue of section 19 of the 1993 Act" substitute the words “ by a transaction to which Part III of the Occupational Pension Schemes (Discharge of Liability) Regulations 1997 applies ”; and

(b)in paragraph (e) for the words “regulation 14(3) of the Personal Pension Schemes (Appropriate Schemes) Regulations 1988" substitute the words “ regulation 12(5) of the Personal Pension Schemes (Appropriate Schemes) Regulations 1997 ”.

The Occupational Pension Schemes (Disclosure of Information) Regulations 1996E+W+S

10.—(1) The Occupational Pension Schemes (Disclosure of Information) Regulations 1996 M9 shall have effect with the following amendments.

(2) In regulation 1(2)—

(a)after the definition of “member" insert—

““mixed benefit contracted-out scheme" has the meaning given in regulation 1(2) of the Occupational Pension Schemes (Mixed Benefit Contracted-out Schemes) Regulations 1996;”;

(b)after the definition of “money purchase benefits" insert—

““money purchase contracted-out scheme" has the meaning given in section 181(1) of the 1993 Act;”;

(c)in the definition of “money purchase scheme", after the word “provided" insert the words “ other than death benefits ”; and

(d)omit the definition of “multi-employer scheme".

(3) In regulation 2(2) (exemptions from the regulations) for sub-paragraph (b) substitute—

“(b)the only benefits provided by which are death benefits; or”.

(4) In regulation 5 (information to be made available to individuals)—

(a)after paragraph (5) insert—

“(5A) Where—

(a)an occupational pension scheme is contracted-out by virtue of regulations made under section 149 of the 1995 Act (hybrid schemes); and

(b)under the rules of the scheme an earner’s service in contracted-out employment will cease to qualify him for benefits under one part of the scheme but begin to qualify him for benefits under another part of the scheme,

the information mentioned in paragraph 6A of Schedule 2 shall be furnished to him before or within two months after the date on which his service begins to qualify him for the benefits under the other part of the scheme.”;

(b)omit paragraph (11);

(c)after paragraph (12) insert—

“(12A) Where by virtue of paragraph 1 of Schedule 5 to the Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations 1996 (sectionalised multi-employer schemes) section 56 of the 1995 Act applies as if a section of a scheme were a separate scheme (or, in a case where section 56 does not apply to the scheme, if it did apply it would apply in that way), paragraphs (10) and (12) apply in a case where such a section is being wound up as they apply where the scheme as a whole is being wound up, but taking the references in those paragraphs to the scheme and its members and beneficiaries as referring only to the section and its members and beneficiaries.”; and

(d)after paragraph (13) insert—

“(14) Where the trustees have commenced winding up the scheme before 6th April 1997—

(a)paragraph (10) does not apply, but

(b)the trustees shall furnish all members and beneficiaries (except excluded persons) with the information mentioned in paragraph 15 of Schedule 2 at least once in every successive 12 month period beginning with that date and ending with the completion of the winding up.

(15) For the purposes of this regulation, the time when a scheme begins to be wound up shall be determined in accordance with regulation 2 of the Occupational Pension Schemes (Winding Up) Regulations 1996.”.

(5) In regulation 6 (availability and content of annual report) for paragraph (1)(c) substitute—

“(c)where section 56 of the 1995 Act applies to the scheme, a copy of the latest certificate by the actuary under that Act as to the adequacy of the contributions payable towards the scheme; and”.

(6) In regulation 11 (penalties)—

(a)in paragraph (1) for the words “5(2) to (11)" substitute the words “ 5(2) to (12) ”;

(b)in paragraph (2) for the words “5(12)" and “6(6)" substitute respectively the words “ 5(13) ” and “ 6(7) ”.

(7) After paragraph 12 of Schedule 1 insert—

“12A.—(1) Without prejudice to paragraph 12, where—

(a)the scheme is—

(i)a money purchase contracted-out scheme, or

(ii)a mixed benefit contracted-out scheme,

but is not an insured scheme (as defined in the Occupational Pension Schemes (Contracting-out) Regulations 1996);

(b)the amount of assets allocated for the provision of benefits to or in respect of a member which are payable by virtue of his protected rights under the scheme or, in the case of such a scheme as is mentioned in sub-paragraph (a)(ii), under the money purchase part of the scheme, is periodically increased by an amount which is not calculated directly by reference to the investment gain actually derived from the investment of those assets by the trustees of the scheme (whether over the period to which the increase relates or a longer period); and

(c)if the increase is calculated by reference to the investment gain from investments in which those assets could be invested, they are not actually so invested or are only so invested to an extent which would not materially affect the actual investment gain from the assets as a whole,

the information mentioned in sub-paragraph (2).

(2) That information is—

(a)that the assets mentioned in sub-paragraph (1)(b) are increased in the way there mentioned;

(b)the method used to calculate that increase; and

(c)the reason why that method is used.

(3) For the purposes of sub-paragraph (1)(b), a mixed benefit contracted-out scheme is to be treated as if the pensions falling within section 149(1)(b) of the 1995 Act were provided by a separate part of the scheme (“the money purchase part").

(4) In paragraphs (1)(b) and (c) references to the investment gain from investments are to both the income and capital gain derived from investing in those investments.”.

(8) In Schedule 2 (information to be made available to individuals) after paragraph 6 insert—

“6A.  The date on which the earner’s service begins to qualify him for benefits under the other part of the scheme and whether his rights in respect of his service on or after that date will be rights under the part of the scheme providing such pensions as are referred to in paragraph (a) or paragraph (b) of section 149(1) of the 1995 Act.”.

(9) In Schedule 3 (information to be included in annual report) for paragraph 16 substitute—

“16.  Where the scheme has employer-related investments (within the meaning of section 40(2) of the 1995 Act), a statement—

(a)as to the percentage of the scheme’s resources invested in such investments at the end of the scheme year;

(b)if that percentage exceeds 5 per cent., as to the percentage of the scheme’s resources which are investments to which regulation 6 of the Occupational Pension Schemes (Investment) Regulations 1996 (investments not subject to restrictions) applies; and

(c)if any resources of the scheme are then invested in contravention of subsection (1) of section 40 of the 1995 Act—

(i)as to the steps the trustees or managers have taken or propose to take to secure that the scheme complies with that section, and

(ii)as to the time when any proposed steps will be taken.”.

The Occupational Pension Schemes (Scheme Administration) Regulations 1996E+W+S

11.—(1) The Occupational Pension Schemes (Scheme Administration) Regulations 1996 M10 shall have effect with the following amendments.

(2) In regulation 1(2)—

(a)for the definition of “money purchase scheme" substitute—

““money purchase benefits" has the same meaning as in section 181(1) of the Pension Schemes Act 1993;

“money purchase scheme" means a pension scheme under which all the benefits that may be provided other than death benefits are money purchase benefits;”; and

(b)after the definition of “relevant benefits" insert—

““relevant ear-marked scheme" means an occupational pension scheme—

(a)which is a money purchase scheme;

(b)under which all the benefits are secured by one or more contracts of insurance or annuity contracts specifically allocated to the provision of benefits to or in respect of individual members;

(c)all the members of which are trustees; and

(d)under the provisions of which decisions to be made by the trustees must be unanimous or unanimous if any trustees who are not members are disregarded;”.

(3) In regulation 3 (exemptions from the professional advisers requirements)—

(a)in sub-paragraph (h) of paragraph (1) for the words “occupational money purchase small self-administered schemes" substitute the words “ money purchase schemes which are small self-administered schemes and ”; and

(b)after that sub-paragraph insert—

“(hh)relevant ear-marked schemes”.

(4) In regulation 16 (prescribed time in which employer must pay trustees or managers an amount deducted from earnings) for the words “is 14 days" substitute the words—

“(a)in the case of minimum payments which are to be made in accordance with regulation 32(1) of the Occupational Pension Schemes (Contracting-out) Regulations 1996, is the period mentioned in that regulation, and

(b)otherwise, is 19 days”.

(5) In regulation 17 (exemption from requirement to secure a payment schedule) for the word “(h)" substitute the word “ (i) ”.

The Occupational Pension Schemes (Transfer Values) Regulations 1996E+W+S

12.—(1) The Occupational Pension Schemes (Transfer Values) Regulations 1996 M11 shall have effect with the following amendments.

(2) In regulation 1(2) for the definition of “salary related scheme" substitute—

““salary related scheme" has the meaning given in regulation 1A;”.

(3) After regulation 1 insert—

“ Salary related schemes

1A.  For the purposes of Chapter IV of Part IV of the 1993 Act and these regulations an occupational pension scheme is salary related if it is not a money purchase scheme and it is not a scheme—

(a)the only benefits provided by which (other than money purchase benefits) are death benefits; and

(b)under the provisions of which no member has accrued rights (other than rights to money purchase benefits).”.

(4) In regulation 7(3)(b)—

(a)omit the words “as being";

(b)in paragraphs (i), (ii) and (iii) insert the words “ as being ” before the word “consistent";

(c)in paragraph (iv)—

(i)after the word “applies," insert the words “ as providing as a minimum an amount ”; and

(ii)for the words “subject only" onwards substitute the words “ subject, in any case where the cash equivalent calculation is made on an individual and not a collective basis, to any adjustments which are appropriate to take account of that fact. ”.

(5) In regulation 12(2)(a) for the words “and 4 of the Occupational Pension Schemes (Discharge of Liability) Regulations 1985" substitute the words “ , 4 and 5 or, in the case of a pension or accrued benefit under a relevant scheme, regulation 11 of the Occupational Pension Schemes (Discharge of Liability) Regulations 1997 ”.

The Occupational Pension Schemes (Requirement to obtain Audited Accounts and a Statement from the Auditor) Regulations 1996E+W+S

13.—(1) The Occupational Pension Schemes (Requirement to obtain Audited Accounts and a Statement from the Auditor) Regulations 1996 M12 shall have effect with the following amendments.

(2) In regulation 1(2)—

(a)in the definition of “ear-marked scheme" for the words “which is a money purchase scheme under which all the benefits" substitute the words “ under which all the benefits other than death benefits are money purchase benefits and all the benefits ”; and

(b)for the definition of “money purchase scheme" substitute—

““money purchase benefits" has the same meaning as in section 181(1) of the Pension Schemes Act 1993;”.

(3) The existing provision in regulation 4 shall become paragraph (1) of that regulation and at the end there shall be inserted—

“(2) Where there is no schedule of contributions or payment schedule in relation to the whole or part of the scheme year, the auditor’s statement about contributions shall contain—

(a)a statement as to whether or not in his opinion contributions payable to the scheme during that year or that part have been paid in accordance with the scheme rules or contracts under which they were payable, and (where appropriate) with the recommendation of the actuary; and

(b)if the statement under paragraph (a) is negative or qualified, a statement of the reasons.”.

(4) In paragraph 2 of the Schedule—

(a)in sub-paragraph (1)(b) for the word “schemes" substitute the word “ scheme ”; and

(b)after sub-paragraph (2) insert—

“(3) Where the assets—

(a)are invested only for the purposes of securing additional money purchase benefits derived from voluntary contributions to which section 111 of the Pension Schemes Act 1993 applies; and

(b)are specifically allocated to the provision of additional benefits for particular members or other persons in respect of particular members (or both),

a note that paragraphs (a) and (b) apply must be included in the statement, but that entry need not include the market value or an estimate of value of those assets.”.

(5) In paragraph 6 of the Schedule after the word “trustees" insert the words “ or managers ”.

The Occupational Pension Schemes (Payments to Employers) Regulations 1996E+W+S

F314.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Personal and Occupational Pension Schemes (Pensions Ombudsman) Regulations 1996E+W+S

15.—(1) The Personal and Occupational Pension Schemes (Pensions Ombudsman) Regulations 1996 M13 shall have effect with the following amendments.

(2) In regulation 1(2) for the definition of “administrator" substitute—

““administrator"—

(a)in relation to an occupational pension scheme, means any person concerned with the administration of the scheme, other than a person responsible for the management of the scheme (as defined in section 146(3) of the 1993 Act for the purposes of Part X of that Act), and

(b)in relation to a personal pension scheme, means any person concerned with the administration of the scheme, other than—

(i)a person responsible for the management of the scheme (as defined in section 146(3A) of that Act for the purposes of that Part), or

(ii)a person who is or has been the employer of any member who is or has been an employed earner;”.

(3) In regulation 7(2) for the word “Miscellaneous" substitute the word “ Consequential ”.

The Occupational Pension Schemes (Modification of Schemes) Regulations 1996E+W+S

F416.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Occupational Pension Schemes (Winding Up) Regulations 1996E+W+S

17.  In regulation 12 of the Occupational Pension Schemes (Winding Up) Regulations 1996 M14 for paragraphs (1) and (2) substitute—

“(1)  Where section 56 applies to a scheme as if different parts of the scheme were separate schemes and a part of such a scheme is being wound up (whether or not any other parts are being wound up), sections 73 and 74 shall also so apply—

(a)taking references in those sections to the assets of the scheme as references only to those assets treated for the purposes of section 56 as assets of that part; and

(b)taking references in those sections to the liabilities of the scheme or any particular description of liabilities as references only to such liabilities of the scheme or, as the case may be, of that description, as are treated for the purposes of section 56 as liabilities of that part.”.

The Occupational Pension Schemes (Investment) Regulations 1996E+W+S

F518.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Occupational Pension Schemes (Deficiency on Winding Up etc.) Regulations 1996E+W+S

19.—(1) The Occupational Pension Schemes (Deficiency on Winding Up etc.) Regulations 1996 M15 shall have effect with the following amendments.

(2) In regulation 2(2) for the definition of “money purchase scheme" substitute—

““money purchase scheme" means an occupational pension scheme under which all the benefits that may be provided other than death benefits are money purchase benefits”.

(3) In regulation 4(2), after the provision inserted by that regulation into section 75 of the Pensions Act 1995 as subsection (1C) of that section, insert—

“(1D) For the purposes of subsections (1B) and (1C), there shall be disregarded any provisions of the scheme by virtue of which contributions or transfers of assets may be made to make provision for death benefits; and where subsection (1B) or (1C) applies and contributions or transfers are so made to a section (“the death benefits section") the assets of which may only be applied for the provision of death benefits, the death benefits section shall also be treated as if it were a separate scheme for the purposes of this section.

(1E) For the purposes of subsections (1B), (1C) and (1D), there shall be disregarded any provisions of the scheme by virtue of which on the winding up of the scheme assets attributable to one section may be used for the purposes of another section.".”.

(4) In Schedule 2, omit paragraph 4.