The Maternity and Parental Leave etc and the Paternity and Adoption Leave (Amendment) Regulations 2008, SI 2008/1966

These regulations came into force on 23 July 2008 and will apply where the expected date of birth or adoption is on or after 5 October 2008. As reported in our July 2008 update, these regulations clarify the position in relation to benefits other than pay to which employees on additional maternity or adoption leave are entitled. However, it is not intended that there should be any effect on occupational pension accrual, which continues to apply to periods of paid maternity or adoption leave only.

View the regulations.

View the July 2008 update.

The Registered Pension Schemes (Transfer of Sums and Assets) (Amendment) Regulations 2008, SI 2008/1946

These regulations amend the Registered Pension Schemes (Transfers of Sums and Assets) Regulations 2006 (S.I. 2006/499). The amendments are required following amendments made by the Finance Act 2008 to section 172A of the Finance Act 2004.

The new regulations provide that where the obligation to pay a lifetime annuity or a dependant’s annuity has been transferred from one insurance company to another, the transfer will not be treated as an unauthorised member payment by virtue of being a surrender of a member’s rights to receive payments under the original annuity. However, this is only to the extent that the funds transferred are applied to the payment of the new annuity. The regulations achieve this by treating the new annuity as if it were the original annuity.

These regulations are due to come into force on 1 November 2008. 

View the regulations(30.2KB)(pdf).

The Personal and Occupational Pension Schemes (Amendment) Regulations 2008, SI 2008/1979 

These regulations come into force on 1 October 2008 and will permit self invested personal pensions (SIPPs) to hold protected rights (rights which arise when someone takes out a private pension in place of the Second State Pension). The regulations also repeal a provision which allowed protected rights to be used for paying a pension to someone who was not the pension scheme member’s spouse, civil partner or child thus making them consistent with the relevant tax legislation which has applied from 6 April 2006.

View the regulations.

The Pension Protection Fund (Entry Rules) Amendment Regulations 2008, SI 2008/1810

At present, if, during an assessment period, a scheme’s sponsoring employer is dissolved, that scheme ceases to be eligible to enter the PPF. It is possible, therefore, that the Board of the PPF are unable to transfer a scheme into the PPF solely because its sponsoring employer has been dissolved.

These regulations amend the Pension Protection Fund (Entry Rules) Regulations 2005 so that where an eligible scheme’s sponsoring employer is dissolved during a PPF assessment period that scheme remains an eligible scheme for PPF purposes and may transfer into the PPF if the necessary criteria are met. The amending regulations came into force on 2 August 2008.

View the regulations.

HMRC to relax definition of dependant

HMRC has published a draft order extending the exemption from taxation (as an unauthorised payment) to pensions paid on the death of a scheme member to financially dependent children over the age of 23 who are no longer in full time education or vocational training. The date from which the extension is to apply has yet to be announced.

View the draft Order (25.2KB)(pdf).