Part 1: Pensions Regulator Regulations
The Pensions Regulator (Freezing Orders and Consequential Amendments) Regulations 2005 SI 686
Effective 6 April 2005.
Extend the time limits for making a transfer payment following a request from a member and the date for calculating the cash equivalent, where a freezing order has been made which has prohibited transfer payments. Time limits are now extended to 3 months from the date that the prohibition on transfer payments ceases to have effect. If the Regulator has made a direction that the employer must pay a contribution to the scheme within a specified time, the trustees have to report a failure to pay within 7 days to the Regulator, and within 14 days to the members.
The Pensions Regulator Tribunal Rules 2005 SI 690
Effective 6 April 2005.
Put into place the practice and procedures to be followed in relation to proceedings before the Pensions Regulator Tribunal, which was introduced by the Pensions Act 2004.
The Pensions Regulator Tribunal (Legal Assistance Scheme) Regulations 2005 SI 781
Effective 15 April 2005.
Govern the provision of legal assistance in respect of matters that are referred to the Pensions Regulator Tribunal.
The Pensions Regulator Tribunal (Legal Assistance Scheme - Costs) Regulations 2005 SI 782
Effective 15 April 2005.
Make provision for the remuneration of work done under a legal assistance order in respect of cases which are brought before the Pensions Regulator Tribunal.
The Pensions Regulator (Notifiable Events) Regulations 2005 SI 900
Effective 6 April 2005.
Set out information that employers and trustees must disclose to the Regulator. Notification is only required in respect of those schemes that are eligible for PPF compensation. This regulation should be read in conjunction with the code of practice and directions issued by the Regulator. The directions contain examples of when information needs to be disclosed and the code of practice contains guidance as to how and when disclosure should be made.
The Pensions Regulator (Contribution Notices and Restoration Orders) Regulations 2005 SI 931
Effective 6 April 2005.
Provide further details in respect of the moral hazard provisions introduced by the Pensions Act 2004. Cover the Regulator’s power to issue contribution notices and restoration orders. Prescribe those schemes in respect of which contribution notices and restoration orders cannot be issued. Also prescribe, in relation to restoration orders, “appropriate persons” who may be involved in transactions involving scheme assets which are at an undervalue.
The Pensions Regulator (Financial Support Directions etc) Regulations 2005 SI 2188
Effective 1 September 2005.
Make further provision about the Regulator’s power to issue a financial support direction (“FSD”). The regulations prescribe which schemes cannot be the subject of a FSD and the events that must be notified to the Regulator. The regulations define being “insufficiently resourced” for the purposes of the Pensions Act 2004 as being unable to meet 50% of the section 75 deficit, and outline how a person’s or company’s “resources” are to be valued. They also define the “relevant time” for the purposes of assessing whether a person or company is insufficiently resourced.
Extend the definition of “employer” in relation to all anti-avoidance provisions (i.e. contribution notices, restoration orders and financial support directions) to include former employers in specified situations.
Part 2: Pension Protection Fund Regulations
The Pension Protection Fund (Partial Guaranteed Schemes) (Modification) Regulations 2005 SI 277
Effective 8 March 2005.
Provide that the Board of the PPF (“the Board”) can only take into account the assets and liabilities of the unsecured part of a partially guaranteed scheme and can only assume responsibility for that part.
The Pension Protection Fund (Limit on Borrowing) Order 2005 SI 339
Effective 9 March 2005.
Section 115(1) Pensions Act 2004 enables the Board to borrow amounts as required to exercise its functions. This sets the borrowing limit of the Board at £25 million.
Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations 2005 SI 441
Effective 6 April 2005 (for most purposes).
Set out how the PPF will apply to schemes with more than one employer, either where they are segregated or non-segregated schemes.
The Pension Protection Fund (Hybrid Schemes) Modification Regulations 2005 SI 449
Effective 6 April 2005.
Exempt hybrid schemes (i.e. schemes which have both money purchase and defined benefit elements) from the restrictions placed on a scheme in an assessment period in certain circumstances.
The Pension Protection Fund (Entry Rules) Regulations 2005 SI 590
Effective 6 April 2005 (for most purposes).
Set out the eligibility criteria for entry to the PPF.
Set out various insolvency events that must be notified to the Board by the insolvency practitioner.
Provide for the operation of a scheme during an assessment period.
The Pension Protection Fund (Eligible Schemes) Appointed Day Order 2005 SI 599
Effective 6 April 2005.
Appoints the day for the purposes of section 126(2) Pensions Act 2004 as 6 April 2005. A scheme is not an eligible scheme if it is being wound up immediately before 6 April 2005.
The Pension Protection Fund (Reviewable Matters) Regulations 2005 SI 600
Effective 6 April 2005.
Make various minor amendments to Schedule 9 Pensions Act 2004, which relates to “reviewable matters”.
The Pension Protection Fund (Appointment of Ordinary Members) Regulations 2005 SI 616
Effective 6 April 2005.
Set out the procedure to be followed by the Board when appointing ordinary members to it.
The Pension Protection Fund (Maladministration) Regulations 2005 SI 650
Effective 6 April 2005.
Set out the procedure for making complaints of maladministration in respect of the decisions of the Board relating to pension compensation or fraud compensation.
The Pension Protection Fund (Reviewable Ill Health Pensions) Regulations 2005 SI 652
Effective 6 April 2005.
Provide for the review by the Board of ill health pensions granted to members at the start of an assessment period.
The Pension Protection Fund (Review and Reconsideration of Reviewable Matters) Regulations 2005 SI 669
Effective 6 April 2005.
Provide for the review and reconsideration by the Board of its own decisions either at its own initiative or at the request of “interested persons” which can include the trustees, the insolvency practitioner, the employers and others affected by the determination including members.
The Pension Protection Fund (Compensation) Regulations 2005 SI 670
Effective 6 April 2005.
Contain provisions relating to the payment of compensation to members by the PPF in various circumstances pursuant to Schedule 7 Pensions Act 2004.
The Pension Protection Fund (Valuation) Regulations 2005 SI 672
Effective 6 April 2005.
Provide for the assessment of a scheme’s assets and liabilities for the purposes of determining whether or not it is eligible to enter the PPF and to calculate the risk based levy.
The Pension Protection Fund (Provision of Information) Regulations 2005 SI 674
Effective 6 April 2005.
Set out information which the Board, members, trustees and insolvency practitioners may be required to provide where compensation is or may be provided by the Board.
The Pension Protection Fund (Statement of Investment Principles) Regulations 2005 SI 675
Effective 6 April 2005.
Make provisions relating to a statement of investment principles which the Board is required to prepare, review and revise if necessary in accordance with the Pensions Act 2004.
The Occupational Pension Schemes (Modification of Pension Protection Provisions) Regulations 2005 SI 705
Effective 6 April 2005 .
Modify the provisions of the Act in relation to actuarial valuations and compensation where, exceptionally,
the Board has permitted the discharge of liabilities by transfer payments or other steps.
The Pension Protection Fund (PPF Ombudsman) Order 2005 SI 824
Effective 6 April 2005.
Makes provision in respect of the PPF Ombudsman and the Deputy PPF Ombudsman relating to remuneration, appointment of staff, delegation of functions and restrictions on the disclosure of information.
The Pension Protection Fund (Pension Compensation Cap) Order 2005 SI 825
Effective 6 April 2005.
Caps the compensation payable by the PPF at £25,000pa for people below normal retirement age on the assessment date and whose compensation does not derive from an ill health or survivor’s pension.
The Occupational Pension Schemes and Pension Protection Fund (Amendment) Regulations 2005 SI 993
Effective 1 April 2005.
Make minor amendments and correct certain cross-references relating to a number of PPF regulations.
The Pension Protection Fund (Pension Protection Levies Consultation) Regulations 2005 SI 1440
Effective 20 June 2005.
Set out how the Board is to consult on the methods it proposes to use in determining the pension protection levies (risk based and scheme based) and how details of its determinations are to be published.
The Pension Protection Fund (Payments to Meet Investment Costs) Regulations 2005 SI 1610
Effective 7 July 2005.
Make provision for the Board to make payments from the PPF to fund managers or custodians in relation to contractual liabilities relating to the investment of the PPF.
The Pension Protection Fund (Tax) (2005-06) Regulations 2005 SI 1907
Effective 3 August 2005.
Make provision for the application of income tax, corporation tax and CGT in relation to the Board, the PPF, and the Fraud Compensation Fund during the period 6 April 2005 to 5 April 2006, i.e. before the tax provisions made by the Finance Act 2004 take effect.
The Pension Protection Fund (PPF Ombudsman) Amendment Order 2005 SI 2023
Effective 21 July 2005.
Provides that while investigating a complaint of maladministration, the Ombudsman may disclose information to the Board, a complainant, the person who has been notified of the complaint, or an expert witness.
The Pension Protection Fund (Reference of Reviewable Matters to the PPF Ombudsman) Regulations 2005 SI 2024
Effective 21 July 2005.
Provide for the reference of reviewable matters to the PPF Ombudsman for investigation following a decision by the Board pursuant to the Pension Protection Fund (Review and Reconsideration of Reviewable Matters) Regulations 2005.
The Pension Protection Fund (Investigation by PPF Ombudsman of Complaints of Maladministration) Regulations 2005 SI 2025
Effective 9 November 2005.
Set out the procedures to be used by the PPF Ombudsman when investigating complaints of maladministration against the Board.
The Pension Protection Fund (Entry Rules) (Amendment) Regulations 2005 SI 2153
Effective 24 August 2005.
Provide for the notification and formalities for application to the PPF under section 129 Pensions Act 2004 for multi-employer schemes and sections without a partial wind-up rule and make changes to the provisions that render schemes ineligible for PPF entry where there has been a compromise.
Make changes to qualifying insolvency events for PPF entry for companies and partnerships and allow trade unions for which there is no formal insolvency process to apply to the PPF.
The Pension Protection Fund (Insolvent Partnerships) (Amendment of Insolvency Events) Order 2005 SI 2893
Effective 10 November 2005.
Amends section 121 Pensions Act 2004 to reflect that an insolvency event can occur where a partnership “enters into administration” as a consequence of the Insolvent Partnerships (Amendment) Order 2005.
Part 3: Other Regulations
The Registered Pension Schemes (Restriction of Employers’ Relief) Regulations 2005 SI 3458
Effective 6 April 2006.
Section 196A Finance Act 2004 provides that regulations can restrict the extent to which contributions paid by an employer under a registered pension scheme in respect of an individual are subject to tax relief in two circumstances: where payment of benefits to or in respect of that individual under the scheme are payable only if benefits are not so paid under an employer-financed retirement benefits scheme; and where, because benefits are or may be payable to or in respect of that individual under an employer-financed retirement benefits scheme, the value of a transfer out from a registered pension scheme will or may be reduced. These Regulations restrict employers’ tax relief in those two circumstances.
The Taxes Management Act 1970 (Modifications to Schedule 3 for Pension Scheme Appeals) Order 2005 SI 3457
Effective 6 April 2006.
Makes modifications to legislation in respect of appeals by scheme administrators.
The Registered Pension Schemes (Audited Accounts) (Specified Persons) Regulations 2005 SI 3456
Effective 6 April 2006.
Prescribe those who may audit the accounts of a registered pension scheme under section 250(6) Finance Act 2004.
The Registered Pension Schemes and Employer-Financed Retirement Benefits Schemes (Information) (Prescribed Descriptions of Persons) Regulations 2005 SI 3455
Effective 6 April 2006.
Prescribe who the Inland Revenue may give a notice to requiring the production of documents and the provision of information in connection with, among other things, pension schemes which are or have been registered under Part 4 Finance Act 2004, or which are the subject of an application for registration and annuities purchased with sums or assets held for the purposes of a registered pension scheme.
The Registered Pension Schemes (Accounting and Assessment) Regulations 2005 SI 3454
Effective 6 April 2006.
Make provisions in relation to assessments and related matters in connection with charges to tax under Part 4 Finance Act 2004 in respect of pension schemes which are or have been registered under that Part of the Act.
The Employer-Financed Retirement Benefits Schemes (Provision of Information) Regulations 2005 SI 3453
Effective 6 April 2006.
Set out prescribed information that must be supplied to HM Revenue and Customs relating to the coming into operation of a scheme and the provision of relevant benefits, by those persons responsible for administering such schemes.
The Registered Pension Schemes (Discharge of Liabilities under Sections 267 and 268 of the Finance Act 2004) Regulations 2005 SI 3452
Effective 6 April 2006.
Make provision supplementing sections 267 and 268 Finance Act 2004 in connection with applications by scheme administrators for relief from the lifetime allowance charges and the unauthorised payments surcharge, and the scheme sanction charge.
The Registered Pension Schemes (Prescribed Schemes and Occupations) Regulations 2005 SI 3451
Effective 6 April 2006.
Prescribe the pension schemes whose members may take their pensions before normal minimum pension age without a reduction in the lifetime allowance. Also prescribe the occupations where members may take their pension at protected pension age rather than normal minimum pension age.
The Registered Pension Schemes (Minimum Contributions) Regulations 2005 SI 3450
Effective 6 April 2006.
Provide for the application of provisions of the Taxes Management Act 1970 as if a sum representing basic rate tax payable on the amount of minimum contributions paid by Commissioners for HM Revenue & Customs were a repayment of tax to which the recipient was not entitled.
The Registered Pension Schemes (Prescribed Interest Rates for Authorised Employer Loans) Regulations 2005 SI 3449
Effective 6 April 2006.
Section 179 Finance Act 2004 prescribes conditions which must be met before a loan made by a registered pension scheme to a sponsoring employer is an authorised employer loan. One of the conditions is that the rate of interest payable on the loan is not less than the rate prescribed by regulations. These Regulations prescribe how that rate should be calculated.
The Registered Pension Schemes (Relief at Source) Regulations 2005 SI 3448
Effective 6 April 2006.
Make provision for relief from tax on payments made to scheme administrators of registered pension schemes under Part 4 Finance Act 2004.
The Occupational Pension Schemes (Cross-border Activities) Regulations 2005 SI 3381
Effective 30 December 2005.
Make provision relating to the carrying out of the Pensions Regulator’s functions in relation to cross-border activity within the European Union by occupational pension schemes and their trustees or managers, or by European pensions institutions.
The Occupational Pension Schemes (Regulatory Own Funds) Regulations 2005 SI 3380
Effective 30 December 2005.
Require that where an occupational pension scheme covers any liability for risks linked to death, disability or longevity, guarantees any investment performance, or guarantees to provide defined benefits, the scheme must have additional assets above its technical provisions. The additional assets must be free of foreseeable liabilities and must absorb discrepancies between anticipated and actual expenses and profits under the scheme.
Provide that the minimum additional assets required are 4% of the scheme’s technical provisions, plus 0.3% of the amount by which the total amount which the scheme would be obliged to pay on the immediate death of all members of the scheme exceeds the technical provisions.
Make various other provisions in relation to regulatory own funds.
The Occupational Pension Schemes (Internal Controls) Regulations 2005 SI 3379
Effective 30 December 2005.
Insert a new section 249A into the Pensions Act 2004 which imposes a duty on trustees to establish and operate internal controls.
Provide that the Pensions Regulator must issue a code of practice relating to the duty imposed by section 249A.
The Occupational Pension Schemes (Investment) Regulations 2005 SI 3378
Effective 30 December 2005.
Impose requirements on trustees in relation to the statement of investment principles and in relation to the choosing of investments.
Impose restrictions on borrowing and the giving of guarantees by trustees and in respect of employer-related investments.
The Occupational Pension Schemes (Scheme Funding) Regulations 2005 SI 3377
Effective 30 December 2005.
Contain detailed provisions in relation to the new scheme specific funding requirements and replace the Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations 1996.
Identify the assets and liabilities to be taken into account in determining whether the statutory funding objective is met.
Make provision in respect of the valuation of the assets, the determination of the amount of the liabilities and the matters to be taken into account in calculating a scheme’s technical provisions.
Set out issues to be covered in a statement of funding principles.
Contain provisions in relation to recovery plans and schedules of contributions and impose time limits in respect of the preparation and review of such schedules.
Set out exemptions from the scheme specific funding requirements
The Financial Assistance Scheme (Appeals) Regulations 2005 SI 3273
Effective 29 November 2005.
Make provision for the Ombudsman for the Board of the PPF, or a Deputy PPF Ombudsman to investigate and determine appeals against review decisions made by the scheme manager of the Financial Assistance Scheme.
The Financial Assistance Scheme (Modifications and Miscellaneous Amendments) Regulations 2005 SI 3256
Effective 24 November 2005.
Modify and apply certain provisions of Pensions Act 2004 in relation to the PPF to regulations governing appeals in relation to the Financial Assistance Scheme.
Amend the Financial Assistance Scheme Regulations 2005, the Financial Assistance Scheme (Internal Review) Regulations 2005 and the Financial Assistance Scheme (Provision of Information and Administration of Payments) Regulations 2005.
The Civil Partnership Act 2004 (Commencement No 2) Order 2005 SI 3175
Effective 5 December 2005.
Brings into force various provisions of the Civil Partnership Act 2004.
The Occupational and Personal Pension Schemes (Civil Partnership) (Miscellaneous Amendments) Regulations 2005 SI 3164
Effective 5 December 2006.
Make consequential amendments to ensure that surviving civil partners are treated in the same way as widows
and widowers.
The Occupational Pensions (Revaluation) Order 2005 SI 3156
Effective 1 January 2006.
Contains the revaluation percentages for the years 1986 to 2005
The Social Security (Inherited SERPS) (Amendments Relating to Civil Partnership) Regulations 2005 SI 3030
Effective 5 December 2005.
Extend the Social Security (Inherited SERPS) Regulations 2001 to surviving civil partners. In particular, a surviving civil partner whose civil partner dies on or after 5 December 2005 may receive an increase in the rate of additional earnings related pension under SERPS in the same way as a surviving spouse.
The Dissolution etc (Pensions) Regulations 2005 SI 2920
Effective 5 December 2005.
Establish that the existing rules for pension sharing on divorce shall apply to pension sharing orders and pension attachment orders for registered civil partnerships. In particular, they provide for the valuation of pension rights by the court, specify that notices of change of circumstances are to be provided by the scheme to the civil partner or vice versa, and provide for a 7 day stay period during which pension sharing orders cannot take effect.
The Protected Rights (Transfer Payment) (Amendment) Regulations 2005 SI 2906
Effective 28 November 2005
Amend the Protected Rights (Transfer Payment) Regulations 1996 to widen the category of schemes that can give effect to a member’s protected rights by way of a transfer payment.
The Civil Partnership (Pensions Social Security and Child Support) (Consequential, etc Provisions) Order 2005 SI 2877
Effective 5 December 2005.
Extends application of regulations relating to pension sharing on divorce, occupational and personal pension schemes and social security to include civil partners.
The Pensions Ombudsman Disclosure of Information Act (Amendment of Specified Person) Order 2005 SI 2743
Effective 1 November 2005.
Amend section 149(6) Pensions Schemes Act 1993 by adding the Financial Services Ombudsman as one of the potential people to whom the Pensions Ombudsman may disclose information obtained for the purpose of an investigation, provided the disclosure would enable or assist that person to carry out his functions.
The Social Security (Deferral of Retirement Pensions, Shared Additional Pension and Graduated Retirement Benefit) Miscellaneous Provisions Regulations 2005 SI 2677
Effective 6 April 2006.
Make provision for those who have deferred their entitlement to state pension for 12 months or more and therefore have chosen between receiving increments or a lump sum. They prescribe the timing and manner in which the election between a lump sum or increments must be made.
The Employment Equality (Sex Discrimination) Regulations 2005 SI 2467
Effective 1 October 2005.
Amend and update the Sex Discrimination Act (SDA) 1975 and Equal Pay Act (EPA) 1970 in accordance with European law. They extend the EPA to include office holders and set out the extent to which it is discriminatory to pay a woman on pregnancy or maternity leave less than she would otherwise have been paid. In relation to the SDA, they amend the definition of “indirect discrimination” and address discrimination on the grounds of pregnancy or maternity leave, harassment and the terms and conditions of employment during maternity leave.
The Occupational Pension Schemes (Administration and Audited Accounts) (Amendment) Regulations 2005 SI 2426
Effective 6 April 2006.
Amend the Occupational Pension Schemes (Scheme Administration) Regulations 1996 and the Occupational Pension Schemes (Requirement to obtain Audited Accounts and a Statement from the Auditor) 1996 to reflect requirements of the European Pensions Directive. They also make consequential amendments in relation to the Finance Act 2004 and the Pensions Act 2004.
Limit the exemption from providing audited accounts for Funded Unapproved Retirement Benefit Schemes to those with fewer than 100 members. They also impose additional accounting requirements on “earmarked schemes” and introduce a materiality test into the auditor’s report for when the auditor is required to qualify a scheme’s accounts.
The Pension Schemes (Categories) Regulations 2005 SI 2401
Effective 6 April 2006 but for pension schemes with their main administration in the UK or for those established pursuant to the North/South Co-operation (Implementation Bodies) (Northern Ireland) Order 1999, they are effective on 22 September 2005.
Specify which pension schemes will be categorised as ‘occupational pension schemes’ for the purposes of the Pension Schemes Act 1993 and set out the stakeholder pension schemes which will be treated as personal pension schemes.
The Occupational Pension Schemes (Trust and Retirement Benefits Exemption) Regulations SI 2360
Effective 22 September 2005.
Exempt certain occupational pension schemes from the requirement in section 252(2) Pensions Act 2004 that they must be established under irrevocable trusts and from the requirement that occupational pension schemes limit their activities to retirement benefits activities.
The Occupational Pension Schemes (Employer Debt etc) (Amendment) Regulations 2005 SI 2224
Effective 2 September 2005.
Change the basis on which a section 75 debt under the Pensions Act 1995 for a withdrawing employer is calculated. Previously calculated on the MFR basis, the debt is now calculated on a full buy-out basis. They also enable a withdrawing employer to continue to pay the debt on a MFR basis provided they enter an arrangement to cover the reminder of the debt: a ‘withdrawal arrangement’.
The Financial Assistance Scheme (Provision of Information and Administration of Payments) Regulations 2005 SI 2189
Effective 1 September 2005 except for civil partnerships for which the effective date is 5 December 2005.
Concern the information that must be provided by, or to, the scheme manager of the Financial Assistance Scheme. Such information is required to be provided both by trustees, managers and other persons acting in relation to occupational pension schemes whose members may qualify for assistance from the Financial Assistance Scheme. They also provide for the recovery of overpayments and the suspension of payments by the scheme manager.
The Occupational Pension Schemes (Fraud Compensation Payments and Miscellaneous Amendments) Regulations 2005 SI 2184
Effective 1 September 2005.
Prescribe how fraud compensation applications must be made, including the information that must be provided, and how payments are to be managed. They also provide which occupational schemes cannot apply for fraud compensation and who may make an application under section 182 Pensions Act 2004.
The Occupational Pension Schemes (Winding up) (Modification for Multi-employer Schemes and Miscellaneous Amendments) Regulations 2005 SI 2159
Effective 31 August 2005.
Modify the position under the Pensions Act 2004 for multi-employer occupational pensions schemes (with no partial wind up rule) being wound up at any time after 6 April 2005.
Provide that trustees may pay PPF benefits to members during the winding up rather than paying reduced benefits according to the statutory winding up priorities if they have determined in the previous 3 months that the scheme is likely to enter an assessment period in the next 12 months.
The Occupational Pension Schemes (Miscellaneous Amendments) Regulations 2005 SI 2113
Effective 19 August 2005.
Make minor amendments to existing regulations for the PPF and the Pensions Regulator.
The Civil Partnership (Contracted-out Occupational and Appropriate Personal Pensions Schemes) (Surviving Civil Partners) Order 2005 SI 2050
Effective 5 December 2005.
Amend the Pension Schemes Act 1993 by enabling surviving civil partners to receive pensions under contracted-out occupational and appropriate personal pension schemes in the same way as spouses.
The Financial Assistance Scheme (Internal Review) Regulations 2005 SI 1994
Effective 20 July 2005.
Provide for the internal review of reviewable determinations made by, or on behalf of the scheme manager under the Financial Assistance Scheme.
The Financial Assistance Scheme Regulations 2005 SI 1986
Effective 1 September 2005, except in relation to civil partnerships where the effective date is 5 December 2005.
Establish the Financial Assistance Scheme to allow payments in situations where the liabilities to certain members of occupational pension schemes are unlikely to be satisfied in full.
The Occupational Pension Schemes (Equal Treatment) (Amendment) Regulations SI 1923
Effective 10 August 2005.
Amend the time limit within which a person must commence proceedings before an employment tribunal to secure equal treatment under an occupational pension scheme. They also remove the 2-year limit on backdating successful claims and the obligation on the employer to contribute funds where rights to be admitted to the scheme are backdated.
The Social Security (Shared Additional Pension) (Miscellaneous Amendments) Regulations 2005 SI 1551
Effective 6 July 2005.
Amend existing regulations in relation to the claiming and paying of shared additional pension including the time and manner in which a claim is made and the various deferral arrangements introduced by the Pensions Act 2004. The provisions regularise the conditions for shared additional pension so they are consistent with the provisions in relation to State Pension.
The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 SI 1529
Effective 1 July 2005.
Revokes and re-enacts with amendments, the Financial Services and Markets Act (Financial Promotion) Order 2001. Changes include extending existing exemptions and introducing new exemptions from the restriction on financial promotions in the Act.
The Social (Contributions) (Amendment No 4) Regulations 2005 SI 1086
Effective 5 April 2005.
Amend the Social Security (Contributions) (Amendment No 3) Regulations 2005 to correct errors in those regulations. In particular, they clarify that the total amount that can be disregarded in computing earnings in respect of the period 6 April 2005 to 5 October 2005 is £1300.
The Occupational and Personal Pension Schemes (Pension Liberation) Regulations 2005 SI 992
Effective 27 April 2005.
Modify the Pension Schemes Act 1993 in respect of payments made to an occupational or personal pension scheme under a court restitution order under section 19 Pensions Act 2004 or a repatriation order made by the Pensions Regulator under section 21 Pensions Act 2004.
The Occupational Pension Schemes (Contracting-out) (Amount Required for Restoring State Scheme Rights) Amendment Regulations 2005 SI 891
Effective 21 April 2005.
Set out how to calculate the additional state pension of a member of a contracted-out pension scheme which is in wind up where that member has chosen to have his additional state pension reinstated. This applies where the effective date of the calculation is on or after 21 April 2005.
The Pensions Increase (Review) Order 2005 SI 858
Effective 11 April 2005.
Specifies an increase of 3.1% for pensions beginning before 12 April 2004. For pensions beginning after 12 April 2004, the percentage increase ranges from 0.26% to 3.1%.
The Social Security (Graduated Retirement Benefit) (Amendment) Regulations 2005 SI 846
Effective 5 April 2005.
Correct error made in the Social Security (Graduated Retirement Benefit) Regulations regarding when certain provisions take effect.
The Occupational Pension Schemes (Levies) Regulations 2005 SI 842
Effective 1 April 2005.
Impose the administration levy, the initial levy and the PPF Ombudsman levy.
The Social Security (Inherited SERPS) (Amendment) Regulations 2005 SI 811
Effective 6 April 2005.
Modify the calculation of the proportion of a lump sum payment which is accrued in respect of a widowed person’s additional pension so that it is increased in line with the additional pension for widowed persons.
The Social Security (Contributions) (Amendment) Regulations 2005 SI 778
Effective 6 April 2005.
Amend the Social Security (Contributions) Regulations 2001 in relation to payment of Class 3 NICs following the issue of gender recognition certificates under the Gender Recognition Act 2004.
Amend the 2001 Regulations to e xempt contributions to a pension scheme made on behalf of workers seconded to the UK by US employers from Class 1 NICs liability.
The Retirement Benefit Schemes (Increase in Permitted Maximum in Transitional Cases) Order 2005 SI 723
Effective 6 April 2005.
Increases the permitted maximum used in the calculation of benefits payable to a class of employees from an approved retirement benefit scheme (under the Income and Corporation Taxes Act 1988) from £100,000 to £150,000.
The Retirement Benefit Schemes (Indexation of Earnings Cap) Order 2005 SI 720
Effective 16 March 2005.
Sets the earnings cap for the year of assessment 2005-06 at £105 600.
The Occupational Pension Schemes (Winding up etc) Regulations 2005 SI 706
Effective 6 April 2005.
Set out how the scheme’s assets and liabilities are to be determined and how certain benefits are to be treated. They predominantly apply to schemes that begin winding up after 6 April 2005. They also exclude certain schemes from the application of section 73 Pensions Act 2004 (preferential liabilities on winding up). For schemes in wind up before that date, the priority order under the Pensions Act 1995 continues to apply.
The Personal and Occupational Pension Schemes (Indexation and Disclosure of Information) (Miscellaneous Amendments) Regulations 2005 SI 704
Effective 6 April 2005.
Remove the requirement to index pensions derived from protected rights accrued pre 6 April 1997. The change affects pensions coming into payment on or after 6 April 2005.
Ensure that the new policy on indexation is reflected in the treatment of hybrid schemes, transfers between pension schemes and pension credits (held as a result of a pension share).
Introduce a new disclosure requirement for occupational pension schemes.
The Occupational Pension Schemes (Independent Trustee) Regulations 2005 SI 703
Effective 11 April 2005.
Provide details about the powers of the Pensions Regulator in relation to his duty to compile and maintain a register of persons who satisfy prescribed conditions as an independent trustee.
The Transfer of Employment (Pension Protection) Regulations 2005
Effective 6 April 2005
Provide that where the transferee’s pension scheme is not a money purchase scheme the value of the benefits provided must be at least 6% of pensionable pay and go on to define what “relevant contributions” are for the purposes of the Pensions Act 2004.
The Occupational and Personal Pension Schemes (General Levy) Regulations 2005 SI 626
Effective 1 April 2005
Make provision for the imposition and payment of the general levy to meet the cost of the Pensions Ombudsman, the Pensions Regulator and the legal assistance scheme under the Pensions Act 2004. The general levy is calculated on a sliding scale depending on the number of members that a scheme has.
The Occupational Pension Schemes (Employer Debt) Regulations 2005 SI 678
Effective 6 April 2005.
Replace the Occupational Pension Schemes (Deficiency on Winding Up etc.) Regulations 1996 for schemes not in wind-up before 6 April 2005. They provide that for the purpose of calculating section 75 debts, liabilities in respect of pensions are to be valued on the basis that the trustees will purchase annuities. They also provide for the calculation of section 75 debts in relation to multi-employer schemes.
The Register of Occupational and Personal Pension Schemes Regulations 2005 SI 597
Effective 6 April 2005.
Revoke the Register of Occupational and Personal Pension Schemes Regulations 1997.
Prescribe the pension schemes which are registrable and the information relating to the schemes which is registrable. They also establish an information service known as the Pension Tracing Service to help people get back in touch with pension schemes they are a member of and have lost touch with.
The Stakeholder Pension Schemes (Amendment) Regulations 2005 SI 577
Effective 6 April 2005
Provide for “lifestyling” to be applied to stakeholder scheme members who have made no choice as to how their contributions should be invested. Lifestyling can be introduced from at least 5 years before a member’s retirement date. A number of other technical amendments are made.
The Contracting-out, Protected Rights and Safeguarded Rights (Transfer Payment) Amendment Regulations 2005 SI 555
Effective 6 April 2005.
Amend the Contracting-out (Transfer and Transfer Payment) Regulations 1996, the Protected Rights (Transfer Payment) Regulations 1996 and the Pension Sharing (Pension Credit Benefit) Regulations 2000. They allow transfers of guaranteed minimum pensions to be made to overseas schemes and arrangements and remove the condition that the transferring scheme must establish that the member has permanently emigrated overseas.
The Guaranteed Minimum Pensions Increase Order 2005 SI 521
Effective 6 April 2005.
Specifies an increase of 3% for the part of guaranteed minimum pension attributable to earnings factors for the tax years 1988-89 to 1996-97.
The Social Security (Retirement Pensions etc) (Transitional Provisions) Regulations 2005 SI 469
Effective 6 April 2005.
Modify the deferral of entitlement to state pensions introduced by the Pensions Act 2004 to accommodate those who had already elected to defer their entitlement to State Pension or Shared Additional Pension for at least 12 months (and so become entitled to elect to receive a lump sum) when the relevant Pensions Act 2004 provisions came into force. In particular, they prescribe the period for which the lump sum is to be calculated and allow for the lump sum to be calculated in a way beneficial to the claimant. They also simplify the transition from the old incremental rate of 1/7th% to the new rate of 1/5th%.
The Social Security (Graduated Retirement Benefit) Regulations 2005 SI 454
Effective 6 April 2005.
Introduce an increase in the incremental rate from 1/7th% to 1/5th%. They also introduce a lump sum reward for those who have deferred their entitlement to their graduated retirement benefit for at least 12 months and for widows and widowers where their deceased spouses deferred entitlement to their graduated retirement benefit for at least 12 months as at the date of death.
The Social Security (Deferral of Retirement) Pensions Regulations 2005 SI 453
Effective 6 April 2005.
Prescribe the day on which the accrual period begins for those who elect to defer claiming their State pension for at least 12 months and receive a lump sum and identify the circumstances in which the amount of retirement pension will be excluded in the calculation of the lump sum.
Make minor amendments to the Social Security (Widow’s Benefit and Retirement Pensions) Regulations 1979.
The Social Security Pensions (Low Earnings Threshold) Order 2005 SI 217
Effective 6 April 2005.
Specifies that the low earnings threshold for the tax years following 2004-05 shall be £12,100.
The Social Security Revaluation of Earnings Factors Order 2005 SI 216
Effective 6 April 2005.
Increases earnings factors for specified tax years relevant to the calculation of additional pension in the rate of any long-term benefit, of any guaranteed minimum pension or to any other calculation required under Pension Schemes Act 1993.
The Social Security (Contributions) (Amendment) Regulations 2005 SI 166
Effective 6 April 2005.
Amend The Social Security (Contributions) Regulations 2001 by increasing the earnings limits and thresholds and the prescribed equivalents.
The Occupational Pension Schemes (Winding up, Deficiency on Winding up and Transfer Values) (Amendment) Regulations 2005 SI 72
Effective 15 February 2005.
Stipulate that the liabilities of salary-related occupational pension schemes will be calculated on a “full buy-out” basis for the purpose of calculating a section 75 debt on a sponsoring employer where the winding-up commences on or after 15 February 2005.
This article first appeared in our Pensions update January 2006. To view this publication please click here to download it as a pdf in a new window.
