PENSIONS Citation, commencement and interpretation 1 1 These Regulations may be cited as the Occupational Pension Schemes (Internal Controls) Regulations 2005 and shall come into force on 30th December 2005. 2 In these Regulations “ the Act ” means the Pensions Act 2004. Amendment of the Act 2 After section 249 of the Act (requirement for knowledge and understanding: supplementary) insert— Requirement for internal controls 249A 1 The trustees or managers of an occupational pension scheme must establish and operate internal controls which are adequate for the purpose of securing that the scheme is administered and managed— a in accordance with the scheme rules, and b in accordance with the requirements of the law. 2 Nothing in this section affects any other obligation of the trustees or managers of an occupational pension scheme to establish or operate internal controls, whether imposed by or by virtue of any enactment, the scheme rules or otherwise. 3 This section does not apply in relation to— a a scheme which— i is established by or under an enactment (including a local Act), and ii is guaranteed by a public authority; b a pay-as-you-go scheme; c a scheme which is made under section 2 of the Parliamentary and other Pensions Act 1987 (c. 45) (power to provide for pensions for Members of the House of Commons etc. ) . 4 But subsection (3) does not disapply this section in relation to any scheme the trustees or managers of which are— a authorised under section 288 (general authorisation to accept contributions from European employers), or b approved under section 289 in relation to a European employer. 5 In this section— “enactment” includes an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament; “internal controls” means— arrangements and procedures to be followed in the administration and management of the scheme, systems and arrangements for monitoring that administration and management, and arrangements and procedures to be followed for the safe custody and security of the assets of the scheme; “local authority” means— in relation to England, a county council, a district council, a London borough council, the Greater London Authority, the Common Council of the City of London in its capacity as a local authority or the Council of the Isles of Scilly, in relation to Wales, a county council or county borough council, in relation to Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39) (constitution of councils), an administering authority as defined in Schedule 1 to the Local Government Pension Scheme Regulations 1997 ( S.I. 1997/1612 ) (interpretation); “pay-as-you-go scheme” means an occupational pension scheme under which there is no requirement for assets to be set aside in advance for the purpose of providing benefits under the scheme (disregarding any requirements relating to additional voluntary contributions); “public authority” means— a Minister of the Crown (within the meaning of the Ministers of the Crown Act 1975 (c. 26) ), a government department (including any body or authority exercising statutory functions on behalf of the Crown), the Scottish Ministers, the National Assembly for Wales, or a local authority. . Codes of Practice 3 The discharge of the duty imposed by section 249A(1) of the Act is a prescribed matter for the purposes of section 90(2)(k) of that Act (codes of practice). Signed by authority of the Secretary of State for Work and Pensions. Stephen C. Timms Minister of State, Department for Work and Pensions 8th December 2005