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Change 1
As published
249A Requirement for an effective system of governance
(1) The trustees or managers of an occupational pension scheme must establish and operate an effective system of governance including internal controls.
(1A) The system of governance must be proportionate to the size, nature, scale and complexity of the activities of the occupational pension scheme.
(2) Nothing in this section affects any other obligation of the trustees or managers of an occupational pension scheme to establish or operate an effective system of governance including internal controls, whether imposed by or by virtue of any enactment, the scheme rules or otherwise.
(3) This section does not apply in relation to—
(za) a public service pension scheme;
(a) any other scheme which—
(i) is established by or under an enactment (including a local Act), and
(ii) is guaranteed by a public authority;
(b) a pay-as-you-go scheme;
(c) a scheme which is made under paragraph 8, 12 or 16 of Schedule 6 to the Constitutional Reform and Governance Act 2010 (power to provide for pensions for Members of the House of Commons etc.);
(d) the Scottish Parliamentary Pension Scheme as defined in section 4 of the Scottish Parliamentary Pensions Act 2009 (asp1);
(e) an authorised Master Trust scheme within the meaning of Part 1 of the Pension Schemes Act 2017;
(f) an authorised collective money purchase scheme within the meaning of Part 1 of the Pension Schemes Act 2021.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) In this section—
“enactment” includes an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament;
“internal controls” means—
arrangements and procedures to be followed in the administration and management of the scheme,
systems and arrangements for monitoring that administration and management, and
arrangements and procedures to be followed for the safe custody and security of the assets of the scheme;
“local authority” means—
in relation to England, a county council, a district council, a London borough council, the Greater London Authority, the Common Council of the City of London in its capacity as a local authority or the Council of the Isles of Scilly,
in relation to Wales, a county council or county borough council,
in relation to Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39) (constitution of councils),
an administering authority as defined in Schedule 1 to the Local Government Pension Scheme Regulations 1997 (S.I.1997/1612) (interpretation);
“pay-as-you-go scheme” means an occupational pension scheme under which there is no requirement for assets to be set aside in advance for the purpose of providing benefits under the scheme (disregarding any requirements relating to additional voluntary contributions);
“public authority” means—
a Minister of the Crown (within the meaning of the Ministers of the Crown Act 1975 (c. 26)),
a government department (including any body or authority exercising statutory functions on behalf of the Crown),
the Scottish Ministers,
the National Assembly for Wales, or
a local authority.
Your change, as a redline
249A Requirement for an effective system of governance
(1) The trustees or managers of an occupational pension scheme must establish and operate an effective system of governance including internal controls.
(1A) The system of governance must be proportionate to the size, nature, scale and complexity of the activities of the occupational pension scheme.
(2) Nothing in this section affects any other obligation of the trustees or managers of an occupational pension scheme to establish or operate an effective system of governance including internal controls, whether imposed by or by virtue of any enactment, the scheme rules or otherwise.
(3) This section does not apply in relation to—
(za) a public service pension scheme;
(a) any other scheme which—
(i) is established by or under an enactment (including a local Act), and
(ii) is guaranteed by a public authority;
(b) a pay-as-you-go scheme;
(c) a scheme which is made under paragraph 8, 12 or 16 of Schedule 6 to the Constitutional Reform and Governance Act 2010 (power to provide for pensions for Members of the House of Commons etc.);
(d) the Scottish Parliamentary Pension Scheme as defined in section 4 of the Scottish Parliamentary Pensions Act 2009 (asp1);
(e) an authorised Master Trust scheme within the meaning of Part 1 of the Pension Schemes Act 2017;
(f) an authorised collective money purchase scheme within the meaning of Part 1 of the Pension Schemes Act 2021.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) In this section—
“enactment” includes an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament;
“internal controls” means—
arrangements and procedures to be followed in the administration and management of the scheme,
systems and arrangements for monitoring that administration and management, and
arrangements and procedures to be followed for the safe custody and security of the assets of the scheme;
“local authority” means—
in relation to England, a county council, a district council, a London borough council, the Greater London Authority, the Common Council of the City of London in its capacity as a local authority or the Council of the Isles of Scilly,
in relation to Wales, a county council or county borough council,
in relation to Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39) (constitution of councils),
an administering authority as defined in Schedule 1 to the Local Government Pension Scheme Regulations 1997 (S.I.1997/1612) (interpretation);
“pay-as-you-go scheme” means an occupational pension scheme under which there is no requirement for assets to be set aside in advance for the purpose of providing benefits under the scheme (disregarding any requirements relating to additional voluntary contributions);
“public authority” means—
a Minister of the Crown (within the meaning of the Ministers of the Crown Act 1975 (c. 26)),
a government department (including any body or authority exercising statutory functions on behalf of the Crown),
the Scottish Ministers,
the National Assembly for Wales, or
a local authority.
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