Many pension schemes contain a provision in their amendment power that the scheme rules cannot be amended without HMRC (or Inland Revenue) agreement, consent, approval or confirmation (or similar wording). However, since April 2006, it has not been possible to comply with this requirement, as HMRC no longer gives such approval/consent. Transitional regulations allow this provision to be disregarded until April 2011, but after this date trustees of affected schemes should pass a resolution to remove the requirement from their rules before any further rule amendment is made10 . Trustees who are passing a resolution for another purpose before April 2011 (for example to preserve the requirement to make a payment to a participating employer) may like to deal with this issue at the same time.

Agenda item 3 – Trustees should check whether their scheme amendment power contains the wording described above and liaise with their legal advisers regarding a trustee resolution.