The Occupational Pension Schemes (Scheme Administration) (Amendment) Regulations 2016

• Citation: S.I. 2016/427
• Sections: 9

Section 1 Citation and commencement

These Regulations may be cited as the Occupational Pension Schemes (Scheme Administration) (Amendment) Regulations 2016 and come into force on 6th April 2016.

Section 2 Amendment of the Occupational Pension Schemes (Scheme Administration) Regulations 1996

The Occupational Pension Schemes (Scheme Administration) Regulations 1996 are amended in accordance with regulations 3 to 7.

Section 3 Amendment of regulation 1

In regulation 1(2) (interpretation), in the definition of “relevant multi-employer scheme” , for the words from “in relation to” to “or which is” in the introductory words, substitute “which is or has been”.

Section 4 Amendment of regulation 1

For regulation 1(2ZA) (meanings for the purposes of the definition of “relevant multi-employer scheme”) substitute—

(2ZA) For the purposes of the definition of “relevant multi-employer scheme”, a participating employer is “connected” to another employer where either of the following conditions is satisfied—

(a) the first condition is that both employers—

(i) are or have been part of the same group of companies consisting of one or more holding companies and subsidiaries of any such companies within the meaning of section 1159(1) of the Companies Act 2006 (meaning of “subsidiary” etc. ); or

(ii) are or have been partnerships, each having the same persons as at least half of its partners;

(b) the second condition is that the participating employer which is not a company within the group referred to in paragraph (a)(i)—

(i) forms or formed a joint venture with that other employer within the group;

(ii) jointly employs or employed members of the scheme with that other employer within the group;

(iii) employs active members of the scheme following a transfer from that other employer within the group;

(iv) holds, held, controls or controlled at least 20% of the voting power in that other employer within the group; or

(v) is or was an employer 20% of whose voting power is or was held or controlled by that other employer within the group.

Section 5 Amendment of regulation 22

(1) At the end of regulation 22(5) (duty to appoint a chair of the trustees or managers) insert “(but see also paragraph (7))”.

(2) After regulation 22(6) insert—

(7) Paragraph (5) does not apply to a scheme established under section 67 of the Pensions Act 2008.

Section 6 Amendment of regulation 23

For regulation 23(1)(e) (annual statement regarding governance) substitute—

(e) be signed on behalf of the trustees or managers by—

(i) the chair; or

(ii) where the chair has ceased to hold office as chair for any reason and a replacement has not yet been appointed, a person appointed by the trustees or managers to act as the chair in the interim period.

Section 7 Amendment of regulation 27

(1) After regulation 27(2) (appointment of trustees) insert—

(2A) Paragraphs (1) and (2) override any provision of a relevant multi-employer scheme to the extent that it conflicts with those paragraphs.

(2) After regulation 27(7) insert—

(7A) Where a relevant multi-employer scheme was established by or under an enactment, other than a scheme established under section 67 of the Pensions Act 2008, before 6th April 2016 and the requirements of paragraphs (1) or (2) are not met on that date, the requirement in question must be met before the end of the period of six months starting with that date.

Section 8 Review of Part V (governance of relevant schemes) of the Occupational Pension Schemes (Scheme Administration) Regulations 1996

(1) The Secretary of State must from time to time—

(a) carry out a review of regulations 22 to 29 of the Occupational Pension Schemes (Scheme Administration) Regulations 1996 (including relevant definitions);

(b) set out the conclusions of the review in a report; and

(c) publish the report.

(2) The report must in particular—

(a) set out the objectives intended to be achieved by the regulatory system established by the regulations referred to in paragraph (1)(a);

(b) assess the extent to which those objectives are achieved; and

(c) assess whether those objectives remain appropriate and, if so, the extent to which they could be achieved with a system that imposes less regulation.

(3) The first report under this regulation must be published before the end of the period of five years beginning with the day on which these Regulations come into force.

(4) Reports under this regulation are afterwards to be published at intervals not exceeding five years.

Section 9 Amendment of the Occupational Pension Schemes (Investment) Regulations 2005

In regulation 1(2) of the Occupational Pension Schemes (Investment) Regulations 2005 (interpretation), in paragraph (d) of the definition of “default arrangement” , for “(8)” substitute “(9)”.