In our January update, we noted that the above Regulations, which make a series of changes to pensions legislation with effect from 6 April 2009, had been published for consultation.
The final Regulations are very similar to the consultation draft and the key provisions include:
- a power allowing trustees to amend their rules by resolution to reflect the change to the statutory cap on increases to pensions in payment under the Pensions Act 2004 and the forthcoming change to the statutory revaluation cap under the Pensions Act 2008. The exercise of these powers will require employer consent and cannot be used retrospectively or to increase indexation or revaluation rates;
- an extension to the circumstances under which actuaries must give a certificate under the Occupational Pension Schemes (Scheme Funding) Regulations 2005 where they have sole power under a scheme’s rules to determine the contribution rate. The provision of a certificate will also apply where the actuary has the power under the scheme rules to set any, but not necessarily all, of the contribution rates;
- the removal of most of the exemptions from the employer-related investment restrictions in accordance with the IORP directive. Some of the provisions included in the draft Regulations have been removed pending a further consultation exercise on this subject; and
- a power for TPR to impose a fine on employers who fail, without reasonable excuse, to comply with the consultation requirements under the Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006.
View the regulations.
View the explanatory note (241 KB pdf) to the Regulations.