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79 provisions
40 Modification of the Occupational Pension Schemes (Scheme Administration) Regulations 1996
(1) This regulation applies where during any period before the appointed day—
(a) benefits under an occupational pension scheme included benefits which are not money purchase benefits;
(b) the trustees or managers of the scheme treated the scheme as if it were a money purchase scheme; and
(c) for that reason, the trustees or managers of the scheme treated the scheme as if it were exempted by regulation 3(2)(a) of the Occupational Pension Schemes (Scheme Administration) Regulations 1996 (exemption from the professional advisers requirements for money purchase schemes) (“the Scheme Administration Regulations”) from the requirement to appoint an actuary in relation to the scheme in accordance with section 47(1)(b) of the 1995 Act (professional advisers).
(2) Where this regulation applies—
(a) regulation 3(2)(a) of the Scheme Administration Regulations applies in relation to any period before the date specified in sub-paragraph (b) during which there was no actuary appointed in relation to the scheme as if the scheme were a money purchase scheme; and
(b) subject to paragraph (3), the trustees or managers of the scheme must, on or before 6th October 2014, appoint an actuary in accordance with section 47(1)(b) of the 1995 Act.
(3) The requirement in paragraph (2)(b) to appoint an actuary in accordance with section 47(1)(b) of that Act does not apply where, in relation to any period, the scheme is exempted from that requirement by regulation 3 of the Scheme Administration Regulations.
(1) This regulation applies where, before the appointed day—
(a) benefits under an occupational pension scheme included benefits which are not money purchase benefits; and
(b) the trustees or managers of the scheme treated those benefits as if they were money purchase benefits.
(2) Where this regulation applies, no provision of Part 4 of the Act or of these Regulations affects the validity of scheme accounts prepared in relation to any period before the appointed day.
(1) In this Part—
“administration levy” is a levy imposed in accordance with section 117(1) of the 2004 Act (administration levy);
“admissible rules” has the meaning given by paragraph 35(2) of Schedule 7 to the 2004 Act (scheme rules, admissible rules etc);
“assessment date” has the meaning given by section 142(1) of the 2004 Act (sections 140 and 141: interpretation);
“employer” has the meaning given by section 318(1) of the 2004 Act (general interpretation), including the extensions to that meaning made by—
regulation 1(4) of the Entry Rules Regulations (citation, commencement and interpretation); and
in relation to a non-segregated scheme or a multi-employer section of a segregated scheme, regulation 1(5) of those Regulations;
“the Entry Rules Regulations” means the Pension Protection Fund (Entry Rules) Regulations 2005;
“fraud compensation levy” has the same meaning as in section 189(1) of the 2004 Act;
“the Fraud Compensation Levy Regulations” means the Occupational Pension Schemes (Fraud Compensation Levy) Regulations 2006;
“initial levy” has the same meaning as in section 174(1) of the 2004 Act;
“non-segregated scheme” has the meaning given by regulation 1(3) of the Entry Rules Regulations;
“the PPF Miscellaneous Regulations” means the Pension Protection Fund (General and Miscellaneous Amendments) Regulations 2006;
“pension protection levy” has the meaning given by section 175(1) of the 2004 Act (pension protection levies);
“the relevant Pension Protection Fund provisions” means—
Part 2 of the 2004 Act (the Board of the Pension Protection Fund) (except section 172(6) of that Act (relationship with fraud compensation regime)) and any instrument made under that Part;
Part 3 of Schedule 5 (proceedings and delegation etc) and Schedule 7 (pension compensation provisions) to the 2004 Act and any instrument made under those provisions;
Chapter 1 of Part 3 (pension compensation on divorce etc) of and Schedule 5 (pension compensation payable on discharge of pension compensation credit) to the Pensions Act 2008 and any instrument made under those provisions; and
any provision corresponding to the provisions mentioned in sub-paragraph (a), (b) or (c) in force in Northern Ireland;
“relevant time” means the date in relation to which the value of the assets and liabilities of the eligible scheme is calculated;
“segregated scheme” has the meaning given by regulation 1(2) of the Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations 2005 (citation, commencement and interpretation);
(2) Where, by virtue of any provision of regulations made under section 307(1) of the 2004 Act, the relevant Pension Protection Fund provisions apply or applied to a scheme as if a section or segregated part of an occupational pension scheme were a separate scheme—
(a) this Part also so applies; and
(b) “admissible rules”, “employer”, “member” and “trustees or managers of the scheme” must be read accordingly.
43 Eligibility: schemes treated as money purchase schemes
(1) Subject to paragraph (3), where the Board considers that the conditions specified in paragraph (2) are met in relation to an occupational pension scheme—
(a) an occupational pension scheme which would otherwise be an eligible scheme is not an eligible scheme in relation to any period before 1st April 2015;
(b) the scheme becomes an eligible scheme on 1st April 2015; and
(c) the relevant Pension Protection Fund provisions apply in relation to the scheme with effect from that date.
(2) The conditions specified in this paragraph are that immediately before the appointed day—
(a) the scheme included benefits which are not money purchase benefits; and
(b) the trustees or managers of the scheme treated the scheme as if it were a money purchase scheme and, for that reason, was not an eligible scheme.
(3) Paragraph (1)(b) and (c) does not apply where—
(a) the scheme falls within the description of schemes which are not eligible schemes specified in regulation 2 of the Entry Rules Regulations (schemes which are not eligible schemes);
(b) an insolvency event has occurred in relation to the employer in relation to the scheme before 1st April 2015; or
(c) the trustees or managers of the scheme have during the period beginning with the appointed day and ending immediately before 1st April 2015, entered into a legally enforceable agreement, the effect of which is to reduce the amount of any debt due to the scheme under section 75 of the 1995 Act (deficiencies in the assets) which may be recovered by, or on behalf of, the trustees or managers of the scheme.
(4) Paragraph (3)(b) applies in relation to a multi-employer scheme that is a non-segregated scheme as if the reference to “the employer in relation to the scheme” were a reference to the employer who is the only remaining employer in relation to that scheme.
(5) Paragraph (3)(c) does not apply where the conditions specified in regulation 2(3)(a) or (b) of the Entry Rules Regulations would be met if the scheme had been an eligible scheme in the period beginning with the appointed day and ending immediately before 1st April 2015.
(6) In this regulation, “insolvency event” has the meaning given by section 121 of the 2004 Act (insolvency event, insolvency date and insolvency practitioner).
44 Validity of valuations etc, determinations, transfer notices and discharge of benefits before the appointed day
(1) Where the conditions specified in paragraph (2) are met, no provision of Part 4 of the Act or of these Regulations affects the validity, in relation to any period before the appointed day, of—
(a) a valuation obtained by the Board in accordance with section 143(2)(b) (Board’s obligation to obtain valuation of assets and protected liabilities), section 152(9) or (10A) (duty to assume responsibility following reconsideration) or section 158(3)(b) (duty to assume responsibility for closed schemes) of the 2004 Act;
(b) a determination made by the Board under section 143(2)(a), section 152(3) or section 158(3)(a) of that Act;
(c) a protected benefits quotation accompanying an application made in accordance with section 151(1) of that Act (application for reconsideration);
(d) the Board’s approval of a valuation made with respect to a scheme in accordance with section 144(2)(a) of that Act (approval of valuation);
(e) a valuation provided by the trustees or managers of an occupational pension scheme to the Board in accordance with section 156 of that Act (valuations of closed schemes) or regulations made under that section;
(f) audited scheme accounts prepared or provided for any of the purposes of Part 2 of the 2004 Act or of regulations made under that Part;
(g) a direction given by the Board under section 134 of that Act (directions);
(h) a transfer notice (within the meaning of section 160(2) of that Act (transfer notice)) given (at any time) by the Board to the trustees or managers of the scheme; or
(i) the discharge of benefits specified in paragraph (3) which were treated by the trustees or managers of the scheme as if they were money purchase benefits.
(2) The conditions specified in this paragraph are that—
(a) an assessment period or further assessment period in relation to the scheme began before the appointed day; and
(b) the Board is satisfied that immediately before the beginning of that assessment period or further assessment period—
(i) the scheme included any of the benefits specified in paragraph (3); and
(ii) the trustees or managers of the scheme treated benefits specified in paragraph (3) as if they were money purchase benefits.
(3) The benefits specified in this paragraph are—
(a) cash balance benefits;
(b) a defined benefit minimum (in relation to money purchase underpin benefits or cash balance underpin benefits);
(c) top-up benefits; and
(d) pensions derived from any of the benefits specified in sub-paragraphs (a) to (c) or from money purchase benefits.
45 Schemes which become eligible schemes: provision of valuations to determine scheme underfunding
(1) Where the conditions specified in regulation 43(2) (eligibility: schemes treated as money purchase schemes) are met in relation to an occupational pension scheme, the trustees or managers of the scheme must obtain and provide an actuarial valuation of the scheme (“the first valuation”) for the purposes of section 179 of the 2004 Act (valuations to determine scheme underfunding) to the Board, or to the Regulator on the Board’s behalf, on or before 31st March 2015.
(2) The relevant time of the first valuation must be within the period beginning with the appointed day and ending with 31st March 2015.
(3) For the purposes of that valuation, the assets and the protected liabilities of the scheme must be calculated as if the scheme were an eligible scheme, in accordance with regulations 5 (valuation of assets), 6 (valuation of protected liabilities) and 7 (alternative valuation of assets and protected liabilities in specific cases) of the Pension Protection Fund (Valuation) Regulations 2005.
(4) The relevant time of any subsequent actuarial valuation for the purposes of section 179 of the 2004 Act must be no more than 3 years after the relevant time of the first valuation provided to the Board or to the Regulator on the Board’s behalf.
(5) The trustees or managers of the scheme must provide any subsequent valuation for the purposes of section 179 of that Act to the Board, or to the Regulator on the Board’s behalf, within a period of 15 months beginning immediately after the relevant time of the valuation.
(6) In this regulation “protected liabilities” means the cost of securing benefits for and in respect of members of the scheme which correspond to the compensation which would be payable, in relation to the scheme, in accordance with the pension compensation provisions (see section 162 of the 2004 Act (the pension compensation provisions)) if the scheme were an eligible scheme for which the Board were to assume responsibility.
46 Provision of information: schemes and benefits treated as money purchase
(1) This regulation applies—
(a) in the case of a scheme which is an eligible scheme on the appointed day, where the trustees or managers of the scheme have, before the appointed day, excluded liabilities relating to benefits which are not money purchase benefits from a valuation under section 179 of the 2004 Act because those liabilities were treated as if they related to money purchase benefits; or
(b) where the trustees or managers of a scheme which includes liabilities relating to benefits which are not money purchase benefits have not, before the appointed day, carried out valuations under section 179 of that Act because they treated the scheme as if it were a money purchase scheme.
(2) Where this regulation applies, the trustees or managers of the scheme must, on or before 31st March 2015, inform the Regulator that the scheme includes benefits which are not money purchase benefits but have been treated as money purchase benefits.
(3) Where—
(a) paragraph (1)(a) of this regulation applies; and
(b) the scheme is an eligible scheme on the appointed day,
the Board, or the Regulator on the Board’s behalf, may direct the trustees or managers of the scheme to provide any information or documents relevant to the calculation of the levies in relation to the scheme.
(4) Information or documents relevant to the calculation of the levies includes, in particular—
(a) accounts in relation to the scheme;
(b) actuarial reports in relation to the scheme; and
(c) actuarial valuations in relation to the scheme.
(5) The Board or the Regulator on the Board’s behalf may revoke or vary any direction given under paragraph (3).
(6) Where a direction under paragraph (3) given to the trustees or managers of a scheme is not complied with, section 10 of the 1995 Act (civil penalties) applies to any trustee or manager who has failed to take all reasonable steps to secure compliance with the direction.
47 Eligible schemes including benefits treated as money purchase benefits: initial levy and pension protection levies
(1) For the purposes of the initial levy and the pension protection levies, where the conditions specified in paragraph (2) are met, and subject to paragraph (4), no provision of Part 4 of the Act or of these Regulations—
(a) affects the validity of an actuarial valuation, the relevant time of which is before the appointed day, and which is provided to the Board, or the Regulator on the Board’s behalf (whether before, on or after the appointed day), in accordance with section 179 of the 2004 Act;
(b) requires the trustees or managers of an eligible scheme to obtain or provide a further or revised actuarial valuation in respect of a financial year before 1st April 2015;
(c) affects the validity of any calculation or determination by the Board in relation to the amount of a pension protection levy or initial levy imposed on a scheme in respect of a financial year before 1st April 2015;
(d) permits the Board, or the Regulator on the Board’s behalf, to increase the amount of a pension protection levy payment which has been notified to the trustees or managers of a scheme in respect of a financial year before 1st April 2015;
(e) prevents recovery by the Board, or by the Regulator on the Board’s behalf, of a debt due in respect of a pension protection levy or initial levy which—
(i) has arisen in accordance with sections 181(6) (calculation, collection and recovery of levies) or 181A(3) (pension protection levy: interest for late payment) of the 2004 Act; and
(ii) relates to an amount payable in respect of a financial year before 1st April 2015.
(2) The conditions specified in this paragraph are that the Board is satisfied that at the relevant time of the valuation provided to the Board, or to the Regulator on the Board’s behalf, in accordance with section 179 of that Act—
(a) the scheme included any of the benefits specified in paragraph (3);
(b) the trustees or managers of the scheme treated benefits specified in paragraph (3) as if they were money purchase benefits; and
(c) the amount of a pension protection levy or initial levy due in respect of the scheme has been calculated on the basis that benefits specified in paragraph (3) which were treated by the trustees or managers of the scheme as if they were money purchase benefits were money purchase benefits.
(3) The benefits specified in this paragraph are—
(a) cash balance benefits;
(b) a defined benefit minimum (in relation to money purchase underpin benefits or cash balance underpin benefits);
(c) top-up benefits; and
(d) pensions derived from any of the benefits specified in sub-paragraphs (a) to (c) or from money purchase benefits.
(4) Paragraph (1) is subject to the power of the Board, or the Regulator on the Board’s behalf, to direct the trustees or managers of an eligible scheme to obtain and provide an out-of-cycle valuation under regulation 49(1) (eligible schemes including benefits which become non-money purchase: power to direct out-of-cycle valuations).
48 Schemes which become eligible schemes: administration levy and pension protection levies: periods after the appointed day
(1) The trustees or managers of an occupational pension scheme which becomes an eligible scheme on 1st April 2015 in accordance with regulation 43(1)(b) are liable to pay the administration levy and the pension protection levy in respect of the scheme with effect from that date.
(2) The trustees or managers of the scheme must pay the amount of the administration levy and the pension protection levy notified by the Board, or by the Regulator on the Board’s behalf, within the period of 28 days beginning with the date on which the Board or the Regulator gives notification of the amounts to the trustees or managers.
(3) In the case of the late payment of the pension protection levy under this regulation, interest is to be charged in accordance with regulation 19A of the PPF Miscellaneous Regulations (interest for late payment of the pension protection levy), unless the Board has granted a waiver under those Regulations.
49 Eligible schemes including benefits which become non-money purchase: power to direct out-of-cycle valuations
(1) Where the conditions specified in regulation 47(2) apply to an occupational pension scheme, the Board, or the Regulator on the Board’s behalf, may direct the trustees or managers of the scheme to obtain and provide to the Board an out-of-cycle valuation in relation to the scheme for any financial year beginning on 1st April 2015, 2016 or 2017.
(2) Where the Board, or the Regulator on the Board’s behalf, exercises the power to direct the trustees or managers of an occupational pension scheme to obtain and provide an out-of-cycle valuation, the Board may, having regard to that valuation, calculate or recalculate a pension protection levy payment in relation to that scheme in respect of any financial year beginning on any date specified in paragraph (1).
(3) The trustees or managers of the scheme must pay the amount of the pension protection levy notified by the Board, or by the Regulator on the Board’s behalf, within the period of 28 days beginning with the date on which the Board or the Regulator gives notification of the amount of the levy to the trustees or managers.
(4) In the case of the late payment of the pension protection levy notified to the trustees or managers by the Board, or by the Regulator, under paragraph (3), interest is to be charged in accordance with regulation 19A of the PPF Miscellaneous Regulations, unless the Board has granted a waiver under those Regulations.
(5) Where the amount of the pension protection levy notified by the Board or the Regulator to the trustees or managers of the scheme is less than an amount previously notified to, and paid by, the trustees or managers in respect of the same financial year, the Board must repay the difference between the two amounts to the trustees or managers.
(6) Where the Board, or the Regulator on the Board’s behalf, directs the trustees or managers of the scheme to obtain and provide an out-of-cycle valuation, the relevant time of any subsequent actuarial valuation for the purposes of section 179 of the 2004 Act must be within the period of three years beginning immediately after the relevant time of the out-of-cycle valuation.
(7) The Board, or the Regulator on the Board’s behalf, may revoke or vary any direction given under paragraph (1).
(8) Where a direction under paragraph (1) given to the trustees or managers of a scheme is not complied with, section 10 of the 1995 Act (civil penalties) applies to any trustee or manager who has failed to take all reasonable steps to secure compliance with the direction.
(9) In this regulation, an “out-of-cycle valuation” means a valuation which has a relevant time which is—
(a) after the appointed day; and
(b) within the period of three years beginning immediately after the relevant time of the last actuarial valuation for the purposes of section 179 of the 2004 Act (whether the relevant time of that valuation was before, on or after the appointed day).
50 Waiver of Fraud Compensation Levy: periods before the appointed day
(1) Where the conditions specified in paragraph (2) are met, a waiver by the Board of payment of an amount due in relation to any fraud compensation levy imposed under section 189 of the 2004 Act (fraud compensation levy), in accordance with regulation 7 of the Fraud Compensation Levy Regulations (waiver), applies as if the scheme had been a money purchase scheme at the time of the waiver.
(2) The conditions specified in this paragraph are that—
(a) the fraud compensation levy payment was due in respect of a period before the appointed day;
(b) the trustees or managers of the scheme confirmed in writing to the Board that the conditions specified in regulation 7(1) of the Fraud Compensation Levy Regulations were met during that period; and
(c) the Board is satisfied that during that period—
(i) the scheme included cash balance benefits or pensions derived from money purchase or cash balance benefits;
(ii) the scheme included no benefits other than benefits falling within paragraph (i), money purchase benefits or death benefits; and
(d) the trustees or managers of the scheme treated the scheme as if it were a money purchase scheme.
51 Discharge of cash equivalent of benefits treated as money purchase
Where—
(a) before the appointed day, the conditions specified in regulation 30(3) (cash equivalent of cash balance benefits etc treated as money purchase benefits: transitional arrangements) are met in relation to a member of an occupational pension scheme; and
(b) an assessment period begins in relation to the scheme,
the Board may secure the discharge of the cash equivalent of the member’s accrued rights to benefits specified in regulation 30(1)(a) which were treated by the trustees or managers of the scheme as money purchase benefits as if those benefits were money purchase benefits.
52 Schemes continuing as closed schemes after an assessment period
(1) This regulation applies where—
(a) an assessment period in relation to an occupational pension scheme began before the appointed day; and
(b) the scheme is authorised (whether before, on or after the appointed day) to continue as a closed scheme under section 153(5) of the 2004 Act (closed schemes).
(2) Subject to paragraph (5), where the conditions specified in paragraph (3) are met, the trustees or managers of the scheme may determine that benefits specified in paragraph (4) which were treated by the trustees or managers of the scheme as if they were money purchase benefits should continue to be treated as money purchase benefits.
(3) The conditions specified in this paragraph are that—
(a) the scheme provides any of the benefits specified in paragraph (4); and
(b) the trustees or managers of the scheme, immediately before the assessment period began, treated those benefits as if they were money purchase benefits.
(4) The benefits specified in this paragraph are—
(a) cash balance benefits;
(b) a defined benefit minimum (in relation to money purchase underpin benefits or cash balance underpin benefits);
(c) top-up benefits; and
(d) pensions derived from any of the benefits specified in sub-paragraphs (a) to (c) or from money purchase benefits.
(5) Where the Board has made a determination or a direction under any of the relevant Pension Protection Fund provisions or these Regulations that benefits specified in paragraph (4) should or should not be treated as money purchase benefits—
(a) paragraph (2) does not apply; and
(b) the trustees or managers of the scheme must treat those benefits in accordance with the direction or determination of the Board.
53 Discharge as money purchase liabilities: periods before the appointed day
(1) Where the Board or the trustees or managers of an occupational pension scheme have, before the appointed day, secured the discharge of liabilities in respect of any of the benefits specified in regulation 44(3) (validity of valuations etc, determinations, transfer notices and discharge of benefits before the appointed day) that discharge is to be regarded as having been made—
(a) where the Board has secured the discharge of those liabilities, in accordance with section 170 of the 2004 Act (discharge of liabilities in respect of money purchase benefits); or
(b) where the trustees or managers of the scheme have secured the discharge of those liabilities, in accordance with regulation 2 of the Pension Protection Fund (Hybrid Schemes) (Modification) Regulations 2005 (discharge of liabilities in respect of money purchase benefits during the assessment period).
(2) Where paragraph (1)(a) or (b) applies, the relevant Pension Protection Fund provisions apply in relation to the liabilities discharged and the assets applied towards their discharge as if they were liabilities for, and assets applied towards, money purchase benefits.
54 Discharge as money purchase liabilities: periods after the appointed day
(1) Where—
(a) an assessment period or further assessment period in relation to an eligible scheme has begun before the appointed day; and
(b) the Board is satisfied that benefits which have accrued in accordance with the admissible rules of the scheme include any of the benefits specified in regulation 44(3);
the Board may determine, in the circumstances specified in paragraph (2), that benefits specified in regulation 44(3) treated by the trustees and managers of the scheme as if they were money purchase benefits are to be treated as money purchase benefits for the purposes of the relevant Pension Protection Fund provisions.
(2) The circumstances specified in this paragraph are that the Board is satisfied—
(a) that, immediately before that assessment period or further assessment period began, the trustees or managers of the scheme treated those benefits as money purchase benefits; and
(b) that it is reasonable in the circumstances to treat those benefits as money purchase benefits for the purposes of the relevant Pension Protection Fund provisions.
55 Closed schemes: Board’s assumption of responsibility after the appointed day
(1) This regulation applies where—
(a) an assessment period in relation to an occupational pension scheme began before the appointed day;
(b) the scheme is authorised (whether before, on or after the appointed day) to continue as a closed scheme under section 153(5) of the 2004 Act (closed schemes);
(c) there is a further assessment period in relation to the scheme; and
(d) the Board assumes responsibility for the scheme in accordance with section 158(1) of the 2004 Act.
(2) Where the conditions specified in paragraph (3) are met, the Board may determine that the liabilities in relation to benefits specified in regulation 52(4) (schemes continuing as closed schemes after an assessment period) which were treated as money purchase benefits are to be treated as money purchase benefits for the purposes of the relevant Pension Protection Fund provisions.
(3) The conditions specified in this paragraph are that—
(a) the scheme included any of the benefits specified in regulation 52(4); and
(b) either—
(i) the trustees or managers of the scheme have determined in accordance with regulation 52(2) (schemes continuing as closed schemes after an assessment period) that benefits specified in regulation 52(4) should continue to be treated as money purchase benefits; or
(ii) the trustees or managers of the scheme have, in accordance with regulation 52(5)(b), treated those benefits as money purchase benefits in accordance with a determination or a direction made by the Board.
56 Discharge as money purchase benefits: scheme right to transfer payment or contribution refund
(1) Where the Board is satisfied that—
(a) the pensionable service of a member of an eligible scheme has terminated on the commencement of an assessment period;
(b) as a result, on the appointed day the member has rights under the admissible rules to—
(i) a transfer payment calculated by reference to the value of the benefits which have accrued to the member under the scheme; or
(ii) a cash payment calculated by reference to the amount of contributions made by the member or on the member’s behalf to the scheme;
(c) Chapter 5 of Part 4 of the 1993 Act (early leavers: cash transfer sums and contribution refunds) does not apply to the member;
(d) the member does not have relevant accrued rights to benefit under the scheme (within the meaning of section 101AA(4) of that Act (scope of Chapter 5);
(e) the rights specified in sub-paragraph (b) relate to any of the benefits specified in sub-paragraphs (a) to (d) of regulation 44(3) (whether or not they also relate to other benefits); and
(f) immediately before an assessment period or further assessment period in relation to the eligible scheme began, the trustees or managers of the scheme treated benefits specified in sub-paragraphs (a) to (d) of regulation 44(3) as if they were money purchase benefits,
the Board may determine that those benefits are to be treated, for the purposes of the relevant Pension Protection Fund provisions, as money purchase benefits.
(2) In this regulation “transfer payment” means a payment to another occupational pension scheme or a personal pension scheme in respect of the member’s rights under the scheme.
57 Discharge of pensions in payment derived from additional voluntary contributions treated as money purchase benefits: periods after the appointed day
(1) Where the conditions specified in paragraph (2) are met in relation to a member’s pension in payment under an occupational pension scheme, the Board may give the trustees or managers of an eligible scheme a direction regarding the exercise of the trustees or managers’ power to determine that the member’s pension or part of a pension should be discharged as if it were money purchase benefits (see regulation 17 (discharge of pensions in payment derived from additional voluntary contributions treated as money purchase benefits: scheme commencing winding up on or after the appointed day)).
(2) The conditions specified in this paragraph are that—
(a) the assessment date or further assessment date in relation to an eligible scheme is on or after the appointed day;
(b) the pension or part of a pension is derived from additional voluntary contributions;
(c) the pension or part of a pension is derived from any of the benefits specified in sub-paragraphs (a) to (c) of regulation 44(3) or from money purchase benefits;
(d) the pension or part of a pension comes into payment on or before 1st April 2015;
(e) pensions in payment which satisfied the conditions specified in sub-paragraphs (b) and (c) were, before the appointed day, treated by the trustees or managers of the scheme as money purchase benefits; and
(f) the Board is satisfied that it is reasonable in the circumstances to treat the pension or part of a pension as money purchase benefits.
(3) Where the Board directs the trustees or managers of an eligible scheme, in accordance with paragraph (1), that a pension or part of a pension should be discharged as if it were money purchase benefits, the relevant Pension Protection Fund provisions apply as if the pension or part of a pension discharged were a money purchase benefit.
58 Modification of the Pension Protection Fund (Entry Rules) Regulations 2005
(1) The Entry Rules Regulations are amended as follows.
(2) In regulation 1(3) (citation, commencement and interpretation)—
(a) after the definition of “the 1995 Act” insert—
“the appointed day” is the day appointed for the coming into force of section 29 of the Pensions Act 2011 (definition of money purchase benefits);
;
(b) after the definition of “the Authority”, insert—
“cash balance benefits” has the meaning given by regulation 2 of the Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014;
.
(3) After regulation 2(2) (schemes which are not eligible schemes) insert—
(2A) Except as otherwise provided in paragraphs (3) and (4) of this regulation, an occupational pension scheme which becomes an eligible scheme in accordance with regulation 43(1)(b) of the Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (eligibility: schemes treated as money purchase schemes) is not an eligible scheme if—
(a) the trustees or managers of the scheme during the period beginning with the appointed day and ending immediately before 1st April 2015 have entered into a legally enforceable agreement; and
(b) the effect of that agreement (at any time) is to reduce the amount of any debt due to the scheme under section 75 of the 1995 Act (deficiencies in the assets) which may be recovered by, or on behalf of, the trustees or managers of the scheme.
.
(4) In regulation 2(3) and (4), for “paragraph (2)” substitute “paragraphs (2) and (2A)”.
(5) In regulation 21 (refusal to assume responsibility – schemes which become eligible schemes)—
(a) in paragraph (1)(a) omit “and”; and
(b) at the end of paragraph (1)(b) insert—
and
(c) in the case of a scheme which becomes an eligible scheme on 1st April 2015 in accordance with regulation 43(1)(b) of the Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014—
(i) where the date on which an assessment period began is less than three years after 1st April 2015, be the period beginning on 1st April 2015 and ending with the assessment date; or
(ii) where the date on which an assessment period began is at least three years after 1st April 2015, be the period of three years preceding the date on which that assessment period began.
.
59 Modification of the Pension Protection Fund (Compensation) Regulations 2005 where there is no provision for a survivor’s pension
In a case where—
(a) immediately before the assessment date—
(i) under the admissible rules of an eligible scheme a member is entitled to present payment of a pension under an occupational pension scheme; and
(ii) that pension does not include the provision of a survivor’s pension in the event of the member’s death;
(b) the member is entitled, from the assessment date, to compensation under paragraph 3 or 5 (pension benefits postponed at assessment date) of Schedule 7 to the 2004 Act; and
(c) the member dies on or after the assessment date,
regulation 3 of the Pension Protection Fund (Compensation) Regulations 2005 (circumstances where a widow or widower is not entitled to payment of periodic compensation) has effect as if for paragraph (b) there were substituted—
(b) no provision to pay a survivor’s pension—
(i) under the admissible rules of the scheme; or
(ii) because the member has chosen a pension under the scheme which does not include the provision of a survivor’s pension.
.
60 Amendment of the Pension Protection Fund (Compensation) Regulations 2005
(1) The Pension Protection Fund (Compensation) Regulations 2005 are amended as follows.
(2) After regulation 13 (manner of determining the revaluation percentage in the case of active members who have not attained normal pension age at assessment date) insert—
Active members below normal pension age: cases where it is unclear whether pensionable service is attributable to periods on or after 6th April 2009
13A. (1) This regulation applies for the purposes of paragraph 12(3A)(b) of Schedule 7 to the Act (cases where it is unclear whether pensionable service is attributable to periods before 6th April 2009) in the case of active members who have not attained normal pension age at the assessment date.
(2) Where this regulation applies, in any case where it is unclear whetherany particular pensionable service (either actual or notional) falls, or is to be treated for the purposes of the scheme as falling, on or after 6th April 2009, the Board may determine as best as it is able, having regard to the admissible rules and all the circumstances of the case, how much of the service or notional service concerned should be treated for the purposes of paragraph 12(3)(b) of Schedule 7 to the Act as having occurred on or after 6th April 2009.
.
(3) After regulation 15 (manner of determining the higher revaluation percentage in the case of deferred members who have not attained normal pension age at assessment date) insert—
Deferred members below normal pension age: cases where it is unclear whether pensionable service is attributable to periods on or after 6th April 2009
15ZA. (1) This regulation applies where it is unclear whether—
(a) pensionable service is attributable to periods before, or on or after 6th April 2009, in the case of deferred members and pension credit members who have not attained normal pension age or normal benefit age at the assessment date;
(b) any particular pensionable service (whether actual or notional) falls, or is to be treated as falling, for the purposes of the scheme, on or after 6th April 2009; or
(c) pension credit rights are to be treated for the purposes of the scheme as derived from rights attributable to pensionable service of the transferor (whether actual or notional) falling or to be treated as falling on or after 6th April 2009.
(2) Where this regulation applies, the Board may determine as best as it is able, having regard to the admissible rules and all the circumstances of the case, how much of the service or notional service concerned should be treated for the purposes of paragraph 17(3)(b) of Schedule 7 to the Act as having occurred on or after 6th April 2009.
.
(4) In regulation 15B (determination of the revaluation percentage in respect of certain periods)—
(a) after paragraph (3) insert—
(3A) Where this regulation applies and it is unclear whether any particular—
(a) pensionable service (whether actual or notional) is to be treated for the purposes of the scheme as service falling before 31st March 2011 (to be revalued in accordance with paragraph (2)), or service falling on or after that date (to be revalued in accordance with paragraph (3)); or
(b) pension credit rights are derived from rights attributable to pensionable service of the transferor (whether actual or notional) falling before 31st March 2011, or from rights attributable to pensionable service falling on or after that date,
revaluation shall be determined in accordance with regulations 13 and 15 as modified by paragraphs (4) to (6).
;
(b) after paragraph (5) insert—
(6) For the purposes of paragraph (3A) regulations 13 and 15 are modified as follows—
(a) each regulation becomes paragraph (1) of that regulation; and
(b) after paragraph (1) of each regulation, insert—
(2) In any case where it is unclear whether—
(a) any particular pensionable service (whether actual or notional) is to be treated for the purposes of the scheme as service falling before 31st March 2011, or service falling on or after that date; or
(b) pension credit rights are derived from rights attributable to pensionable service of the transferor (whether actual or notional) falling before 31st March 2011, or from rights attributable to pensionable service falling on or after that date,
the Board may determine as best as it is able, having regard to the admissible rules and all the circumstances of the case, how much of the service or notional service concerned should be treated for the purposes of this regulation as having occurred before 31st March 2011 and how much on or after that date.
.
.
(5) In regulation 25 (cash balance schemes: modification of paragraphs 5, 15 and 19 of Schedule 7 to the Act)—
(a) in the heading, for “paragraphs 5, 15 and 19” substitute “paragraphs 3, 5, 8, 10, 11, 14, 15, 19, 22 and 37”;
(b) in paragraph (1) omit the words after “cash balance scheme” to the end of the paragraph;
(c) for paragraph (2) substitute—
(2) In their application to cash balance benefits or to a pension derived from cash balance benefits, the provisions of Schedule 7 to the Act have effect with the following modifications—
(a) paragraph 3 (pensions in payment at assessment date) has effect as if—
(i) in sub-paragraph (3), after “The annual rate of the periodic compensation is” there were inserted “subject to sub-paragraph (3A)”; and
(ii) after sub-paragraph (3) there were inserted—
(3A) In a case where—
(a) the pension is derived from money purchase benefits or cash balance benefits;
(b) there is no requirement or discretion under the admissible rules to increase the pension; and
(c) the pension is not required to be increased in accordance with section 51 of the Pensions Act 1995,
the annual rate of the periodic compensation is the protected pension rate.
;
(iii) in sub-paragraph (5), for “sub-paragraph (3)” there were substituted “sub-paragraphs (3) and (3A)”.
(b) paragraph 5 (pension benefits postponed at assessment date) has effect as if—
(i) in sub-paragraph (3), after “The annual rate of the periodic compensation is” there were inserted “subject to sub-paragraphs (3A) and (3B)”;
(ii) after sub-paragraph (3) there were inserted—
(3A) In a case where—
(a) the postponed pension is derived from money purchase benefits or cash balance benefits;
(b) there is no requirement or discretion under the admissible rules to increase the pension; and
(c) the pension is not required to be increased in accordance with section 51 of the Pensions Act 1995,
the annual rate of the periodic compensation is to be determined in accordance with sub-paragraph (3B).
(3B) In a case falling within sub-paragraph (3A) the annual rate of the periodic compensation is—
(a) where the commencement of periodic compensation under this paragraph has not been postponed for any period by virtue of paragraph 25A, 100% of the protected pension rate; or
(b) where the commencement of periodic compensation has been so postponed, 100% of the aggregate of the protected pension rate and the amount of the actuarial increase under paragraph 25A.
;
(iii) in sub-paragraph (4) for “In sub-paragraph (3)” there were substituted “In sub-paragraphs (3) and (3B)”;
(iv) after sub-paragraph (4) there were inserted—
(4A) In any case where the Board is satisfied that it is not possible to determine on the basis referred to in sub-paragraph (4) what would have been the annual rate of the pension, the “protected pension rate” shall mean what the Board may, having regard to the admissible rules, determine would have been the annual rate of pension if the postponement of pension had ceased immediately before the assessment date.
; and
(v) in sub-paragraph (5) after “(4)” there were inserted “or (4A)”;
(c) paragraph 8 (active members over normal pension age at assessment date) has effect as if—
(i) for sub-paragraph (5) there were substituted—
(5) Subject to sub-paragraph (5A), the accrued amount means an amount equal to such initial annual rate of pension to which the member would have been entitled under the admissible rules when the pensionable service relating to the pension ended.
(5A) In any case where the Board is satisfied that it is not possible to identify the initial annual rate of pension on the basis referred to in sub-paragraph (5), the Board may, having regard to the admissible rules, determine the accrued amount in accordance with actuarial factors published by the Board.
; and
(ii) sub-paragraphs (6) and (7) were omitted;
(d) paragraph 10 has effect as if—
(i) for sub-paragraph (4) there were substituted—
(4) Subject to sub-paragraph (4A), the accrued amount means an amount equal to such amount of scheme lump sum to which the member would have been entitled under the admissible rules had the member attained normal pension age when the pensionable service relating to the scheme lump sum ended.
(4A) In any case where the Board is satisfied that it is not possible to identify the amount of the scheme lump sum on the basis referred to in sub-paragraph (4), the Board may, having regard to the admissible rules, determine the accrued amount in accordance with actuarial factors published by the Board.
;
(ii) sub-paragraphs (5), (6) and (7) were omitted;
(e) paragraph 11 (active members who have not attained normal pension age at assessment date) has effect as if—
(i) for sub-paragraph (5) there were substituted—
(5) Subject to sub-paragraph (5A), the accrued amount means an amount equal to such initial annual rate of pension to which the member would have been entitled under the admissible rules had the member attained normal pension age when the pensionable service relating to the pension ended.
(5A) In any case where the Board is satisfied that it is not possible to identify the initial annual rate of pension on the basis referred to in sub-paragraph (5), the Board may, having regard to the admissible rules, determine the accrued amount in accordance with actuarial factors published by the Board.
; and
(ii) sub-paragraphs (6) and (7) were omitted;
(f) paragraph 14 has effect as if —
(i) for sub-paragraph (5) there were substituted—
(5) Subject to sub-paragraph (5A), the accrued amount means an amount equal to such scheme lump sum to which the member would have been entitled under the admissible rules had the member attained normal pension age when the pensionable service relating to the scheme lump sum ended.
(5A) In any case where the Board is satisfied that it is not possible to identify the amount of the scheme lump sum on the basis referred to in sub-paragraph (5), the Board may, having regard to the admissible rules, determine the accrued amount in accordance with actuarial factors published by the Board.
;
(ii) sub-paragraphs (6) and (7) were omitted;
(g) paragraph 15 (deferred members who have not attained normal pension age at assessment date) has effect as if—
(i) at the beginning of sub-paragraph (5) there were inserted “Subject to sub-paragraph (5A)”; and
(ii) after sub-paragraph (5) there were inserted—
(5A) In any case where the Board is satisfied that it is not possible to determine on the basis referred to in sub-paragraph (5) what would have been the initial annual rate of the pension, the accrued amount shall mean an amount equal to such initial annual rate as the Board may, having regard to the admissible rules and in accordance with actuarial factors published by the Board, determine the deferred member would have been entitled to had normal pension age been the actual age attained by the deferred member when the pensionable service relating to the lump sum ended.
;
(h) paragraph 19 has effect as if—
(i) at the beginning of sub-paragraph (5) there were inserted “Subject to sub-paragraph (5A)”; and
(ii) after sub-paragraph (5) there were inserted—
(5A) In any case where the Board is satisfied that it is not possible to determine on the basis referred to in sub-paragraph (5) what would have been the amount of the scheme lump sum, the accrued amount shall mean an amount equal to such scheme lump sum amount as the Board may, having regard to the admissible rules and in accordance with actuarial factors published by the Board, determine the deferred member would have been entitled to had normal pension age been the actual age attained by the deferred member when the pensionable service relating to the lump sum ended.
;
(i) paragraph 22 (survivors who do not meet conditions for scheme benefits at assessment date) has effect as if—
(i) at the beginning of sub-paragraph (3)(a) there were inserted “subject to sub-paragraph (3A)”; and
(ii) after sub-paragraph (3) there were inserted——
(3A) In any case where the Board is satisfied that it is not possible to identify the initial rate of pension mentioned in sub-paragraph (3)(a), the Board may, having regard to the admissible rules, determine the initial rate of the compensation in accordance with actuarial factors published by the Board.
;
(j) paragraph 37(1) has effect as if after “In this Schedule—” there were inserted—
“cash balance benefit” has the meaning given by regulation 2 of the Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014;
; and
(d) after paragraph (2), insert—
(3) In this regulation—
“cash balance benefit” has the meaning given by regulation 2 of the Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014; and
“cash balance scheme” means a scheme which provides cash balance benefits, whether or not the scheme also provides other benefits.
.
61 Amendment of the Pension Protection Fund (Review and Reconsideration of Reviewable Matters) Regulations 2005
In the Schedule to the Pension Protection Fund (Review and Reconsideration of Reviewable Matters) Regulations 2005 in the first column of paragraph 16C (paragraphs 16C, 16D, 16E and 16F) of the table—
(a) omit “and”; and
(b) at the end insert “, 16G, 16H and 16I”.
(1) In this Part—
“effective date”, in relation to an actuarial report or actuarial valuation, has the meaning given by section 224(2)(b) or (d) of the 2004 Act (actuarial valuations and reports), as the case may be;
“the Scheme Funding Regulations” means the Occupational Pension Schemes (Scheme Funding) Regulations 2005.
(2) Where, by virtue of regulation 2(2) (interpretation) of and paragraph 1, 4, 5 or 7 of Schedule 2 to the Scheme Funding Regulations (multi-employer sectionalised schemes, partly foreign schemes and schemes with a partial public authority guarantee), Part 3 of the 2004 Act (scheme funding) applied as if each section or part of a scheme were a separate scheme (or would have so applied but for this Part)—
(a) this Part also so applies; and
(b) “employer” and “member” must be read accordingly.
(3) Subject to paragraph (4), where—
(a) the conditions specified in regulation 63(2) (application of Part 3 of the 2004 Act to schemes treated as money purchase: periods before the appointed day) are met in relation to an occupational scheme; and
(b) the scheme has no active members,
references to “the employer” in Part 3 of the 2004 Act and in this Part have effect as if they were references to the person who was the employer immediately before the occurrence of the event after which the scheme ceased to have active members (“the freezing event”).
(4) A person ceases to be treated as an employer under paragraph (3) if, after the freezing event, that person ceases to be treated as a former employer by virtue of regulation 9 (frozen schemes and former employers) of the Occupational Pension Schemes (Employer Debt) Regulations 2005.
63 Application of Part 3 of the 2004 Act to schemes treated as money purchase: periods before the appointed day
(1) Part 3 of the 2004 Act does not apply to an occupational pension scheme in relation to any period before the appointed day during which it met both of the conditions specified in paragraph (2).
(2) The conditions specified in this paragraph are that—
(a) the scheme included benefits which are not money purchase benefits; and
(b) the trustees or managers of the scheme treated the scheme as if it were a money purchase scheme.
64 Application of Part 3 of the 2004 Act to schemes including benefits treated as money purchase benefits: periods before the appointed day
(1) Part 3 of the 2004 Act applies in relation to any period before the appointed day during which an occupational pension scheme met both of the conditions specified in paragraph (2), as if the benefits specified in paragraph (2)(b) treated by the trustees or managers of the scheme as money purchase benefits were money purchase benefits.
(2) The conditions specified in this paragraph are that—
(a) Part 3 of the 2004 Act applied to the scheme; and
(b) benefits under the scheme included benefits which are not money purchase benefits, but which the trustees or managers of the scheme treated as if they were money purchase benefits.
65 Actuarial valuations and reports for schemes treated as money purchase schemes: periods on and after the appointed day
Where, immediately before the appointed day, the conditions specified in regulation 63(2) (application of Part 3 of the 2004 Act to schemes treated as money purchase: periods before the appointed day) are met in relation to an occupational pension scheme, the scheme is to be treated for the purposes of section 224(3)(a) of the 2004 Act (actuarial valuations and reports) as having been established on the appointed day.
66 Modification of the Scheme Funding Regulations for schemes treated as money purchase schemes: periods on and after the appointed day
(1) Where, immediately before the appointed day, the conditions specified in regulation 63(2) are met in relation to an occupational pension scheme, the Scheme Funding Regulations are modified as follows.
(2) Regulation 6(2) (statement of funding principles) has effect in relation to the first statement of funding principles under section 223 of the 2004 Act (statement of funding principles) to be prepared after the appointed day, as if after “the first actuarial valuation” there were inserted “after the day appointed for the coming into force of section 29 of the Pensions Act 2011 (“the section 29 commencement day”)”.
(3) Regulation 8(1)(a) (recovery plan) applies in relation to the first recovery plan under section 226(1) of the 2004 Act (recovery plan) to be prepared after the appointed day, as if after “the first actuarial valuation” there were inserted “after the section 29 commencement day”.
(4) Regulation 9(1) (schedule of contributions) applies in relation to the first schedule of contributions under section 227 of the 2004 Act (schedule of contributions) to be prepared after the appointed day as if for “following the establishment of the scheme” there were substituted “after the section 29 commencement day”.
67 Provision of summary funding statement in relation to schemes treated as money purchase: periods on and after the appointed day
Where—
(a) immediately before the appointed day, the conditions specified in regulation 63(2) are met in relation to an occupational pension scheme; and
(b) the trustees or managers of the scheme would, if it were not for this regulation, be required to provide a summary funding statement to members and beneficiaries in accordance with regulation 15(1) of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013,
the trustees or managers of the scheme must provide the first summary funding statement to all members and beneficiaries of the scheme on, before or within a reasonable period after, the date by which they are required under section 224(3)(a) of the 2004 Act (as modified by regulation 65 of these Regulations (actuarial valuations and reports for schemes treated as money purchase schemes: periods on and after the appointed day)) to ensure that they receive the first actuarial valuation in relation to the scheme.
68 Schedule of payments in relation to schemes treated as money purchase: periods on and after the appointed day
Where, immediately before the appointed day, the conditions specified in regulation 63(2) are met in relation to an occupational pension scheme, until the first schedule of contributions has been certified by the actuary in relation to the scheme in accordance with section 227(5) of the 2004 Act—
(a) the most recent schedule of payments prepared before the appointed day under section 87 of the 1995 Act (schedules of payments to money purchase schemes) continues to have full effect with respect to the contributions payable towards the scheme by or on behalf of employers and active members of the scheme; and
(b) sections 87, 88 (schedules of payments to money purchase schemes: supplementary) and 89 (application of further provisions to money purchase schemes) of the 1995 Act and Part 4 of the Occupational Pension Schemes (Scheme Administration) Regulations 1996 (money purchase schemes) continue to apply to the scheme.
69 Application of Part 3 of the 2004 Act to schemes including benefits treated as money purchase: periods on or after the appointed day
(1) Where the conditions specified in regulation 64(2) (application of Part 3 of the 2004 Act to schemes including benefits treated as money purchase benefits: periods before the appointed day) are met in relation to an occupational pension scheme—
(a) the effective date of the scheme’s first actuarial valuation under section 224 of the 2004 Act on or after the appointed day must be not more than 3 years after the effective date of the scheme’s last actuarial valuation before the appointed day, and
(b) the effective date of the scheme’s first actuarial report under section 224 of the 2004 Act on or after the appointed day must be not more than one year after the effective date of the scheme’s last actuarial valuation or actuarial report before the appointed day, whichever is the most recent.
(2) Where the conditions specified in regulation 64(2) are met in relation to an occupational pension scheme, no provision of section 29 of the Act (definition of money purchase benefits) or of these Regulations affects the validity of—
(a) a statement of funding principles prepared, or revised, as the case may be, under section 223 of the 2004 Act before the appointed day;
(b) the latest actuarial valuation obtained under section 224 of that Act before the appointed day, which has been prepared and signed by the actuary in accordance with section 224(2)(a) of that Act;
(c) the latest actuarial report obtained under section 224 of that Act before the appointed day, which has been prepared and signed by the actuary in accordance with section 224(2)(c) of that Act;
(d) a certification of the scheme’s technical provisions by the actuary in accordance with section 225 of that Act;
(e) a recovery plan prepared in accordance with section 226 of that Act and in force before the appointed day;
(f) a schedule of contributions certified by the actuary in accordance with section 227(5) of that Act and in force before the appointed day.
(1) This Part applies for the purposes of the Financial Assistance Scheme established by regulations made under section 286 of the 2004 Act (financial assistance scheme for members of certain pension schemes).
(2) In this Part—
“the Financial Assistance Scheme Regulations” means the Financial Assistance Scheme Regulations 2005;
“notional pension” has the meaning given by regulation 27(1) of the Financial Assistance Scheme Regulations (scheme manager calculations after a valuation);
“qualifying pension scheme” has the meaning given by regulation 9(1) of those Regulations (qualifying pension schemes); and
“scheme manager” has the meaning given by regulation 5(2) of those Regulations (scheme manager).
(3) Where, by virtue of regulation 9(2) of the Financial Assistance Scheme Regulations, a section of a scheme is required to be treated as a separate scheme for the purposes of those Regulations (or would have been so required to be treated, but for this Part) this Part applies in relation to the section of the scheme as if that section were a separate scheme.
71 Schemes treated as money purchase schemes: non-qualifying schemes
(1) Where the scheme manager is satisfied that the condition specified in paragraph (2) is met, an occupational pension scheme which would otherwise be a qualifying pension scheme is not a qualifying pension scheme.
(2) The condition specified in this paragraph is that, immediately before the scheme began winding up, the trustees or managers of the scheme treated the scheme as if it were a money purchase scheme.
72 Qualifying schemes including benefits treated as money purchase benefits
(1) Where the conditions specified in paragraph (2) are met, no provision of Part 4 of the Act or of these Regulations—
(a) affects the validity of the discharge, before the appointed day, of benefits—
(i) specified in paragraph (2)(a); and
(ii) treated as money purchase benefits and discharged as such in reliance on section 135(4A)(f) of the 2004 Act (restrictions on winding up, discharge of liabilities etc) (as modified by paragraph 3B(d) of Schedule 1 to the Financial Assistance Scheme Regulations);
(b) affects the validity of a valuation—
(i) the calculation date (see regulation 2(1) of the Financial Assistance Scheme Regulations) of which is before the appointed day; and
(ii) which was obtained by the trustees or managers of a qualifying pension scheme in accordance with regulation 22 (scheme manager to obtain a valuation of assets and liabilities) of the Financial Assistance Scheme Regulations;
(c) requires the trustees or managers of a qualifying pension scheme to obtain or provide a further or revised valuation in relation to any period before the appointed day;
(d) affects the validity of any determination made before the appointed day by the scheme manager in accordance with regulation 27 or 28 (determination of certain asset shares, notional pensions and survivor notional pensions) of those Regulations in relation to—
(i) the entitlement of any person to a notional pension;
(ii) the amount, duration or cessation date of any notional pension; or
(iii) the asset share of any person;
(e) affects the validity of any decision made before the appointed day by the scheme manager that a determination in accordance with regulation 27(2) of the Financial Assistance Scheme Regulations should not be made;
(f) affects the validity of a transfer notice sent before the appointed day by the scheme manager to the trustees or managers of a qualifying pension scheme in accordance with regulation 29(1) (transfer notice) of the Financial Assistance Scheme Regulations; or
(g) affects the validity of arrangements made before the appointed day by the scheme manager to facilitate payments in relation to the value of rights in respect of money purchase benefits under the scheme in accordance with regulation 31 of those Regulations (payments where amounts relating to money purchase benefits are transferred to the Secretary of State).
(2) The conditions specified in this paragraph are that the scheme manager is satisfied that, immediately before the scheme began to wind up—
(a) the liabilities of a qualifying pension scheme included liabilities in relation to cash balance benefits, a defined benefit minimum (in relation to money purchase underpin benefits or cash balance underpin benefits), top-up benefits or pensions derived from money purchase benefits or cash balance benefits; and
(b) the trustees or managers of the scheme treated liabilities relating to those benefits as if they related to money purchase benefits.
(3) Where the conditions specified in paragraph (2) are met, section 286 of the 2004 Act and the Financial Assistance Scheme Regulations apply as if the liabilities relating to the benefits specified in paragraph (2)(a) treated by the trustees or managers of the scheme as money purchase benefits were liabilities relating to money purchase benefits.
73 Modification of the Occupational Pension Schemes (Equal Treatment) Regulations 1995
(1) Regulation 15 of the Occupational Pension Schemes (Equal Treatment) Regulations 1995 (exceptions to the equal treatment rule: use of actuarial factors which differ for men and women) has effect in relation to periods before 1st October 2010 as if for paragraph (2)(c) there were substituted—
(c) a pension derived from money purchase benefits within the meaning of section 181(1) of the Pension Schemes Act 1993;
.
(2) Where the conditions specified in paragraph (3) are satisfied, regulation 15 of those Regulations has effect as if after paragraph (2)(c) there were inserted—
(ca) a pension derived from cash balance benefits within the meaning of regulation 2 of the Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014;
.
(3) The conditions specified in this paragraph are that before 1st October 2010 the trustees or managers of the scheme—
(a) treated cash balance benefits as if they were money purchase benefits; and
(b) applied different actuarial factors for men and for women in determining the rate of a pension derived from those benefits.
74 Retrospective modification of the Equality Act 2010 (Sex Equality Rule) (Exceptions) Regulations 2010
(1) Regulation 4(2)(c) (exceptions to the sex equality rule: use of actuarial factors which differ for men and women) of the Equality Act 2010 (Sex Equality Rule) (Exceptions) Regulations 2010 (“the Sex Equality Exceptions Regulations”) has effect as if the amendments made by regulation 75(a) of these Regulations came into force on 1st October 2010.
(2) Where the conditions specified in paragraph (3) are satisfied, regulation 4 of the Sex Equality Exceptions Regulations has effect as if the amendments made by regulation 75(b) of these Regulations came into force on 1st October 2010.
(3) The conditions specified in this paragraph are that on or after 1st October 2010 and before the appointed day the trustees or managers of an occupational pension scheme —
(a) treated benefits specified in regulation 73(3)(a) as if they were money purchase benefits; and
(b) applied different actuarial factors for men and for women in determining the rate of a pension derived from those benefits.
75 Amendment of the Equality Act 2010 (Sex Equality Rule) (Exceptions) Regulations 2010
Regulation 4 of the Sex Equality Exceptions Regulations is amended as follows—
(a) in paragraph (2)(c), before “money purchase benefits” insert “a pension which is derived from”; and
(b) after paragraph (2)(c) insert—
(ca) a pension which is derived from cash balance benefits within the meaning of regulation 2 of the Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014;
.
76 Valuations for the purposes of pension sharing etc: transitional arrangements
(1) Where, before the appointed day, for the purposes of pension sharing or attachment on divorce or dissolution of a civil partnership, a person responsible for a pension arrangement has provided a valuation of the benefits accrued under a pension arrangement, no provision of Part 4 of the Act or of these Regulations—
(a) affects the validity of that valuation; or
(b) requires the person responsible for the pension arrangement to obtain or provide a further or revised valuation of the benefits.
(2) Where the conditions specified in paragraph (3) are met, a person responsible for a pension arrangement who has provided a valuation of a member’s accrued benefits made on the basis that those benefits were money purchase benefits, may make a subsequent valuation of the member’s benefits on the same basis.
(3) The conditions specified in this paragraph are that—
(a) the earlier valuation was provided before the appointed day in accordance with regulations made under section 23(1)(a) of the 1999 Act (supply of pension information in connection with divorce etc);
(b) the benefits valued in the earlier valuation included any of the benefits specified in paragraph (4); and
(c) a subsequent valuation of the same benefits is to be made for the purposes of Part 4 of the 1999 Act (pension sharing) or Part 4A of the 1993 Act (requirements relating to pension credit benefit) in the same or connected proceedings.
(4) The benefits specified in this paragraph are—
(a) cash balance benefits;
(b) a defined benefit minimum (in relation to money purchase underpin benefits or cash balance underpin benefits);
(c) top-up benefits; and
(d) pensions derived from any of the benefits specified in sub-paragraphs (a) to (c) or from money purchase benefits.
(5) In this regulation “connected proceedings” means proceedings in relation to pension sharing or attachment on divorce or dissolution of a civil partnership involving the same parties and the same benefits as earlier proceedings.
78 Benefits and schemes treated as money purchase before the appointed day
(1) Where the conditions specified in paragraph (2) are met—
(a) the trustees or managers of an occupational pension scheme are not, in relation to any period before the appointed day, required to supply information under the provisions specified in paragraph (2)(c); and
(b) neither—
(i) regulation 11 (civil penalties) of the Occupational Pension Schemes (Disclosure of Information) Regulations 1996 (“the 1996 Disclosure Regulations”); nor
(ii) regulation 5 (civil penalties relating to occupational pension schemes) of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013 (“the Disclosure Regulations”),
applies in relation to a failure to provide information required under the provisions specified in paragraph (2)(c) in relation to a period before the appointed day.
(2) The conditions specified in this paragraph are that, before the appointed day—
(a) members of an occupational pension scheme—
(i) had, under the scheme, accrued rights to cash balance benefits, a defined benefit minimum (in relation to money purchase underpin benefits) or top-up benefits; or
(ii) were entitled to a pension derived from cash balance benefits or money purchase benefits;
(b) the trustees or managers of the scheme treated benefits specified in sub-paragraph (a) as money purchase benefits or treated the scheme as a money purchase scheme; and
(c) the trustees or managers did not supply to members of the scheme information specified in the following provisions—
(i) in the 1996 Disclosure Regulations—
(aa) paragraph 4 of Schedule 2, in accordance with regulation 5(4) (information to be made available to individuals);
(bb) paragraph 16 of Schedule 2, in accordance with regulation 5(12)(a);
(cc) paragraphs 17 to 22 of Schedule 2, in accordance with regulation 5(12ZA) and subject to regulation 5(16);
(dd) regulation 6(1)(b) to (d) (availability and content of annual report);
(ee) regulation 7(1)(a) to (ca) and (e) (availability of other documents);
(ii) in the Disclosure Regulations—
(aa) Part 3 of Schedule 3 (information on funding principles and actuarial valuations etc), in accordance with regulation 13 (other information to be given on request);
(bb) Schedule 4, in accordance with regulation 15(1) (summary funding statements);
(cc) Schedule 5, in accordance with regulation 16 (statements of benefits: non money purchase benefits);
(dd) paragraph 16 of Schedule 8 (information on expected benefits), in accordance with regulation 25(2)(b)(ii) (occupational pension schemes after winding up for individual members).
79 Amendment of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013
(1) The Disclosure Regulations are amended as follows.
(2) In regulation 2 (interpretation), after the definition of “beneficiary” insert—
“cash balance benefit” has the meaning given by regulation 2 of the Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014;
.
(3) After regulation 16 (statements of benefits: non money purchase benefits) insert—
Statements of benefits: cash balance benefits
16A. (1) The information mentioned in paragraph (2) (in addition to the information required under regulation 16 (statements of benefits: non money purchase benefits)) must be given to any member in accordance with this regulation where—
(a) the member has rights to cash balance benefits;
(b) the member requests that information; and
(c) information has not been given to that member under this regulation in the 12 months before that request.
(2) The information is that listed in paragraphs 6A, 9 to 14, 16A and 17 of Schedule 6 (statements of benefits: money purchase benefits).
(3) The information must be given as soon as practicable but no more than two months after the date the request is made.
.
(4) In regulation 19(1) (first information on accessing benefits) after “money purchase benefits” insert “or cash balance benefits”.
(5) In regulation 25 (occupational pension schemes after winding up for individual members), for paragraph (2)(a) substitute—
(a) where the member or beneficiary of the scheme—
(i) has rights to benefits other than money purchase benefits, the information mentioned in Part 2 of Schedule 8; or
(ii) has rights to money purchase benefits, the information mentioned in paragraph 10 of Schedule 8; and
.
(6) In Schedule 2—
(a) after paragraph 16 insert—
16A. Where the member has rights to cash balance benefits, a statement that the value of the pension will depend on several factors including the amount of contributions paid, any guaranteed interest or bonuses applied and the cost of converting the benefits into an annuity.
;
(b) after paragraph 28, insert—
28A. Where the member has rights to cash balance benefits, a statement that the value of the pension will depend on several factors including the amount of contributions paid, any guaranteed interest or bonuses applied and the cost of converting the benefits into an annuity.
.
(7) In the heading to Schedule 6 (statements of benefits: money purchase benefits), after “money purchase benefits” insert “and cash balance benefits”.
(8) In Schedule 6—
(a) at the beginning of paragraph 6(1) insert “For money purchase benefits,”;
(b) after paragraph 6 insert—
6A. For cash balance benefits, an illustration of the amount of the pension calculated—
(a) in accordance with paragraph 7(1)(a)(ii) and (2);
(b) in accordance with the rules of the scheme; and
(c) where appropriate, in a manner consistent with the relevant guidance,
that is likely to be secured by the member at the member’s normal pension age in respect of the member’s rights to cash balance benefits that have arisen or may arise under the scheme.
; and
(c) after paragraph 16 insert—
16A. A statement that the amount of any pension payable under the scheme to or in respect of the member will depend on considerations (including the cost of buying an annuity at the time the pension becomes payable) which may be different from any assumptions made.
.