SCHEDULE 7E+W+SCollective money purchase benefits: amendments to secondary legislation

Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015E+W+S

4.—(1) Regulation 2 (interpretation)(1) is amended as follows.

(2) In paragraph (1)—

(a)in the appropriate places insert—

““the 2021 Act” means the Pension Schemes Act 2021(2);”;

““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”(3)—

(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)(4) 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.”.