The Occupational Pension Schemes (Regulatory Own Funds) Regulations 2005

Modification of Part 3 of the 2004 Act and the Scheme Funding Regulations

5.—(1) Part 3 of the 2004 Act (scheme funding) shall be modified in its application to an occupational pension scheme that is subject to the regulatory own funds requirement so that it applies as if—

(a)in section 221 of the 2004 Act (pension schemes to which Part 3 of the 2004 Act applies)—

(i)for “occupational pension scheme other than—” in subsection (1) there is substituted “occupational pension scheme except a scheme of a kind specified in regulation 15 of the Occupational Pension Schemes (Regulatory Own Funds) Regulations 2005”,

(ii)paragraphs (a) and (b) of that subsection are omitted, and

(iii)subsection (2) is omitted;

(b)in section 224 of the 2004 Act—

(i)the words after “one year” in subsection (1)(a) are omitted,

(ii)for “scheme’s assets and calculating its technical provisions” in subsection (2)(a) there is substituted “scheme’s assets, and calculating its technical provisions and the amount of the regulatory own funds requirement”,

(iii)paragraphs (c) and (d) of subsection (2) are omitted,

(iv)the word “and” at the end of paragraph (a) of subsection (3) and paragraph (b) of that subsection are omitted, and

(v)the words “or report” in subsections (4), (6) and (7) and the words “or reports” in subsection (5) are omitted;

(c)in section 226 of the 2004 Act (recovery plan)—

(i)for “they must, within the prescribed time—” in subsection (1) there is substituted “they must take such steps as are necessary to ensure that the statutory funding objective is met within two years after that date.”,

(ii)paragraphs (a) and (b) of that subsection are omitted, and

(iii)subsections (2) to (6) are omitted;

(d)in section 227(6)(b)(i) of the 2004 Act, for “by the end of the period specified in the recovery plan” there is substituted “within two years after that date”; and

(e)in section 231 of the 2004 Act (powers of the Regulator), the words after “section 226” in subsection (1)(d) are omitted.

(2) The Scheme Funding Regulations shall be modified in their application to an occupational pension scheme that is subject to the regulatory own funds requirement so that they apply as if—

(a)in regulations 6(2) and (3)(a) (statement of funding principles), 7(2)(a) (actuarial valuations and reports), 9(1) and (2)(a) (schedule of contributions) and 13 (period for obtaining employer’s agreement), for “15 months” there is substituted “12 months”;

(b)regulations 7(5) and 8 (recovery plan) are omitted;

(c)in regulation 10 (content and certification of schedules of contributions)—

(i)in paragraph (2), for “five years after the date on which the schedule is certified, or in a case where—” there is substituted “two years after the date on which the schedule is certified”, and the words “that longer period” are omitted,

(ii)sub-paragraphs (a) and (b) of that paragraph are omitted, and

(iii)in paragraph (4), for the words “give effect to a recovery plan”, there is substituted “comply with section 226 or any regulatory own funds requirement”; and

(d)regulations 17 (general exemptions) and 18 (exemption connected with winding up) are omitted.