SCHEDULE 7Collective money purchase benefits: amendments to secondary legislation

Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015I14

1

Regulation 2 (interpretation)69 is amended as follows.

2

In paragraph (1)—

a

in the appropriate places insert—

  • “the 2021 Act” means the Pension Schemes Act 202170;

  • “collective contribution percentage charge” has the meaning given in regulation 5A(3);

  • “collective flat fee charge” has the meaning given in regulation 5A(3);

  • “collective existing rights charge” has the meaning given in regulation 5A(3);

  • “collective money purchase benefit” has the meaning given in section 1(1) of the 2021 Act;

  • “collective money purchase scheme” has the meaning given in section 1(2) of the 2021 Act;

  • “collective single charge structure” has the meaning given in regulation 5A(2);

  • “qualifying collective money purchase scheme” has the meaning given in regulation 3A;

  • “qualifying section employer” means an employer in relation to whom a section of a pension scheme, which is a collective money purchase scheme for the purposes of section 1(2)(b) of the 2021 Act, is being used by a qualifying scheme in relation to at least one of its jobholders;

  • “specified section” means a relevant scheme that is a collective money purchase scheme for the purposes of section 1(2)(b) of the 2021 Act in which at least one qualifying section employer participates;

b

in the definition of “contributing member”—

i

after “relevant scheme” insert “, that is not a collective money purchase scheme,”; and

ii

after “money purchase benefits” insert “(other than collective money purchase benefits)”;

c

in the definition of “performance fee”71—

i

at the beginning of sub-paragraph (b) insert “in the case of a relevant scheme that is not a collective money purchase scheme,”;

ii

at the end of sub-paragraph (b) insert “or”; and

iii

after sub-paragraph (b) insert—

c

in the case of a relevant scheme that is a collective money purchase scheme, is not calculated by reference to the value of members’ rights under the scheme;

d

in the definition of “specified scheme” after “relevant scheme” insert “, that is not a collective money purchase scheme for the purposes of section 1(2)(b) of the 2021 Act,”.

3

In paragraph (2)—

a

in sub-paragraph (a), after “money purchase benefits” insert “other than collective money purchase benefits”;

b

omit “or” at the end of sub-paragraph (a);

c

in sub-paragraph (b), after “money purchase benefits,” insert “other than collective money purchase benefits,”;

d

at the end of sub-paragraph (b), omit the comma and insert “; or”; and

e

after sub-paragraph (b) insert—

c

a collective money purchase scheme,

4

After paragraph (2), insert—

2A

Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the 2021 Act (see section 1(2)(b)) is to be treated for the purposes of these Regulations as a separate scheme.

5

After paragraph (3), insert—

3A

Where, in these Regulations, a collective flat fee charge is to be calculated and these Regulations have applied to a member of a qualifying collective money purchase scheme for a period of less than a charges year, the charge associated with that member for the purposes of calculating the collective flat fee charge (see regulation 6A(4)(a)) must be calculated on a pro rata basis.

6

At the end of paragraph (4), omit the full-stop and insert—

;

d

a charge under a collective single charge structure;

e

a collective existing rights charge.

7

In paragraph (5)72 for “When a charge under a single charge structure is” substitute “When the charges in paragraph (5A) are”.

8

After paragraph (5), insert—

5A

For the purposes of paragraph (5), the charges are—

a

a charge under a single charge structure;

b

a charge under a collective single charge structure.