PENSIONS Citation and commencement 1 These Regulations may be cited as the Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2007 and shall come into force on 6th April 2007. Amendment of the Personal Pension Schemes (Disclosure of Information) Regulations 1987 2 1 Amend the Personal Pension Schemes (Disclosure of Information) Regulations 1987 as follows. 2 In Schedule 2 (information to be made available to individuals)— a omit sub-paragraphs (b) and (c) of paragraph 1; and b in paragraph 5 for “regulation 10(12) of the Personal and Occupational Pension Schemes (Protected Rights) Regulations 1987” substitute “regulation 12(12) of the Personal and Occupational Pension Schemes (Protected Rights) Regulations 1996 (death of member before effect given to his protected rights)”. 3 In Schedule 3 (other information), in paragraph 4 for “regulation 2(1)(b) of the Personal Pension Schemes (Appropriate Schemes) Regulations 1988” substitute “regulation 2(2)(b) of the Personal Pension Schemes (Appropriate Schemes) Regulations 1997 ”. Amendment of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 3 1 Amend the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 as follows. 2 For regulation 5 (short service benefit in lump sum form) substitute— 5 For the purposes of section 71(6) of the Act (basic principle as to short service benefit), the circumstances in which the trustees or managers of a scheme may provide for payment of short service benefit in the form of a lump sum before normal pension age are that the payment of a lump sum to the member is permitted in accordance with paragraph (a), (b), (e), (f) or (g) of the lump sum rule in section 166(1) of the Finance Act 2004 (lump sum rule). . 3 In regulation 8 (early retirement or deferred retirement) for paragraph (2) substitute— 2 The member’s benefit must not be payable before normal pension age except in the circumstances where the member has either— a met the ill-health condition specified in paragraph 1 of Schedule 28 to the Finance Act 2004 (registered pension schemes – defined benefits and money purchase arrangements – ill health condition) immediately before he became entitled to the benefit under the scheme; or b attained normal minimum pension age as defined in section 279 of that Act (other definitions). . Amendment of the Occupational Pension Schemes (Contracting-out) Regulations 1996 4 1 Amend the Occupational Pension Schemes (Contracting-out) Regulations 1996 as follows. 2 In regulation 1(2) (interpretation) for the definition of “overseas scheme” substitute— “overseas scheme” means an occupational pension scheme which has its main administration outside the member States but does not include a scheme which is contracted-out in the Isle of Man by virtue of satisfying section 9(2) or (3) of the 1993 Act as it has effect in the Isle of Man . . 3 In regulation 62(2) (fixed rate revaluation of guaranteed minimum pensions for early leavers)— a in sub-paragraph (e) for “6th April 2002, 4.5 per cent.” substitute “6th April 2002 but before 6th April 2007, 4.5 per cent.”; and b after sub-paragraph (e) add— f where that period of service terminates on or after 6th April 2007, 4 per cent. compound. . Amendment of the Protected Rights (Transfer Payment) Regulations 1996 5 1 Amend the Protected Rights (Transfer Payment) Regulations 1996 as follows. 2 In regulation 1(2) (interpretation) for the definition of “overseas scheme” substitute— “overseas scheme” means— an occupational pension scheme which has its main administration outside the member States; or a European pensions institution as defined in section 293(8) of the Pensions Act 2004 (functions of Regulator in relation to institutions administered in other member States), but does not include one which is contracted-out within the meaning of section 7(3) of the 1993 Act nor one in respect of which section 53 of the 1993 Act applies by virtue of section 52(1) of that Act. . Amendment of the Contracting-out (Transfer and Transfer Payment) Regulations 1996 6 1 Amend the Contracting-out (Transfer and Transfer Payment) Regulations 1996 as follows. 2 In regulation 1(2) (interpretation) for the definition of “overseas scheme” substitute— “overseas scheme” means— an occupational pension scheme which has its main administration outside the member States; or a European pensions institution as defined in section 293(8) of the Pensions Act 2004 (functions of Regulator in relation to institutions administered in other member States), but does not include a salary-related contracted-out scheme nor one in respect of which section 53 of the 1993 Act applies by virtue of section 52(1) of that Act. . Amendment of the Personal and Occupational Pension Schemes (Protected Rights) Regulations 1996 7 1 Amend the Personal and Occupational Pension Schemes (Protected Rights) Regulations 1996 as follows. 2 In regulation 8 (giving effect to protected rights by the provision of a lump sum) omit paragraph (2). Amendment of the Occupational Pension Schemes (Disclosure of Information) Regulations 1996 8 1 Amend the Occupational Pension Schemes (Disclosure of Information) Regulations 1996 as follows. 2 In regulation 5 (information to be made available to individuals)— a in paragraph (12ZA) for “(except excluded persons), within a reasonable period after the date” substitute “(except excluded persons), on, or before, or within a reasonable period after, the date”; and b after paragraph (15) add— 16 The requirement in paragraph (12ZA) does not apply in relation to a member or beneficiary whose only entitlement to benefits under the scheme is, or will be, to money purchase benefits. . Amendment of the Divorce etc. (Notification and Treatment of Pensions) (Scotland) Regulations 2000 9 1 Amend the Divorce etc. (Notification and Treatment of Pensions) (Scotland) Regulations 2000 as follows. 2 In regulation 1 (citation, commencement and interpretation) in paragraph (3) for the definition of “the other party” substitute— “the other person” means the other person to a marriage or civil partnership. . 3 In regulations 2(2) to (4), and 3 to 6 for “party”, wherever it occurs, substitute “person”. Amendment of the Pensions on Divorce etc. (Pension Sharing) (Scotland) Regulations 2000 10 1 Amend the Pensions on Divorce etc. (Pension Sharing) (Scotland) Regulations 2000 as follows. 2 In regulation 3 (circumstances in which an agreement is to be entered into, in order to be considered a “qualifying agreement”) after “divorce” insert “or dissolution of a civil partnership”. 3 In regulation 4 (prescribed form of provision) for paragraph (c) substitute— c a statement by the transferor and the transferee that they have received confirmation from the Secretary of State that shareable state scheme rights are held in the name of the transferor and that on the— i grant of decree of divorce; ii declarator of nullity of marriage; iii dissolution of civil partnership; or iv declarator of nullity of civil partnership, a pension sharing agreement will be implemented. . 4 In regulation 5 (circumstances in which an agreement is to be entered into, in order to be considered a “qualifying agreement”) after “divorce” insert “or dissolution of a civil partnership”. Amendment of the Stakeholder Pension Schemes Regulations 2000 11 1 Amend the Stakeholder Pension Schemes Regulations 2000 as follows. 2 In regulation 14 (charges and other permitted reductions in members’ rights)— a in paragraph (1) for “paragraphs (2) to (5)” substitute “paragraphs (2) to (5A)”; and b after paragraph (5) insert— 5A The value of a member’s rights under the scheme may be reduced by the amount of any payment made to discharge the liability of the trustees or managers in respect of any tax liability under the Finance Act 2004 in relation to that member. . Amendment of the Occupational Pension Schemes (Winding up etc.) Regulations 2005 12 1 Amend the Occupational Pension Schemes (Winding up etc.) Regulations 2005 as follows. 2 In regulation 3(1) (schemes to which section 73 of the Pensions Act 1995 does not apply)— a in sub-paragraph (j), for head (i) substitute— i the provisions of the scheme provide that any decision made by the trustees is made by the unanimous agreement of the trustees who are members of the scheme; or ; b in sub-paragraph (k)— i for head (i) substitute— i the provisions of the scheme provide that any decision made by the company in its capacity as trustee is made by the unanimous agreement of the directors who are members of the scheme; or ; ii at the end of head (ii) insert “or”; c at the end of sub-paragraph (l) omit “or”; and d omit sub-paragraph (m). 3 In regulation 8(4)(a) (entitlement to death benefits treated as arising before commencement of winding up period) for “former spouse” substitute “former spouse, former civil partner”. Amendment of the Occupational Pension Schemes (Fraud Compensation Payments and Miscellaneous Amendments) Regulations 2005 13 1 Amend the Occupational Pension Schemes (Fraud Compensation Payments and Miscellaneous Amendments) Regulations 2005 as follows. 2 In regulation 2 (prescribed schemes)— a in paragraph (1)— i in sub-paragraph (f)(i) for “all decisions which fall to be made by the trustees are made by unanimous agreement by” substitute “any decision made by the trustees is made by the unanimous agreement of”; ii in sub-paragraph (g)— aa for “where a company is a trustee” substitute “where a company is the sole trustee”; bb in head (i) for “are made by the unanimous agreement of all the directors” substitute “is made by the unanimous agreement of the directors”; cc in head (ii) for “one of the directors is a trustee who” substitute “one of the directors of the company”; iii at the end of sub-paragraph (j) insert “or”; iv at the end sub-paragraph (k) omit “or”; and v omit sub-paragraph (l); and b in paragraph (2) for “paragraph 1(a) to (l)” substitute “paragraph 1(a) to (k)”. Amendment of the Pension Schemes (Categories) Regulations 2005 14 1 Amend the Pension Schemes (Categories) Regulations 2005 as follows. 2 In regulation 2 (prescription of certain pension schemes as occupational pension schemes) after paragraph (5) add— 6 This regulation applies to the Pilots’ National Pension Fund which is a pilots’ benefit fund established under byelaws made by the Trinity House of Deptford Strond under section 15(1)(i) of the Pilotage Act 1983 . . Amendment of the Occupational Pension Schemes (Scheme Funding) Regulations 2005 15 1 Amend the Occupational Pension Schemes (Scheme Funding) Regulations 2005 as follows. 2 In regulation 17(1) (exemptions-general)— a in sub-paragraph (h)— i for “a scheme which has” substitute “a scheme with”; ii in head (i) for “all decisions which fall to be made by the trustees are” substitute “any decision made by the trustees is”; and iii in head (ii), for “who is an independent trustee” substitute “who is independent”; and b in sub-paragraph (i)— i for “a scheme which has” substitute “a scheme with”; ii for “where a company is a trustee” substitute “where a company is the sole trustee”; iii in head (i), for “is made only by the unanimous agreement” substitute “is made by the unanimous agreement”; and iv in head (ii), for “one of the directors is a trustee who” substitute “one of the directors of the company”. 3 In Schedule 3 (supplementary and consequential provisions) in paragraph 3(2)— a for “paragraph (1)(b)” substitute “sub-paragraph (1)(b)”; b for “(except excluded persons)” substitute “(except excluded persons or a member or beneficiary whose only entitlement to benefits under the scheme is, or will be, to money purchase benefits)”; and c for sub-paragraph (c) substitute— c an estimate by the actuary of the solvency of the scheme, or, if the actuary has made more than one estimate of solvency, the latest such estimate; d whether any payment has been made to the employer under section 37 of the 1995 Act— i in the case of the first summary funding statement issued in respect of the scheme, in the 12 months preceding the date on which it is prepared, and ii in the case of any subsequent summary funding statement, since the date of the last such statement, and, if so, the amount of the payment. . 4 In Schedule 4 (transitional provisions and savings) in paragraph 3— a in sub-paragraph (4) omit “and the trustees or managers have determined before that date” to the end of that sub-paragraph; and b in sub-paragraph (5) for “the effective date they have determined” substitute “an effective date which is no earlier than 22nd September 2005 and not more than three years after the effective date of the last valuation they received under the 1995 Act.”. Amendment of the Occupational Pension Schemes (Investment) Regulations 2005 16 1 Amend the Occupational Pension Schemes (Investment) Regulations 2005 as follows. 2 In regulation 1 (citation, commencement and interpretation) in paragraph (2)(a)(i) in the definition of “small scheme” for “by unanimous agreement by” substitute “by the unanimous agreement of ”. 3 In regulation 12(1) (restrictions on employer-related investments) for “applies to trust schemes” substitute “applies to schemes”. Amendment of the Occupational Pension Schemes (Regulatory Own Funds) Regulations 2005 17 1 Amend the Occupational Pension Schemes (Regulatory Own Funds) Regulations 2005 as follows. 2 In regulation 10(8) (postponement) for “given in regulation 11” substitute “given in regulation 3 of the Occupational Pension Schemes (Cross-border Activities) Regulations 2005 (meaning of “European employer” and “host member State” in Part 7 of the Pensions Act 2004).”. 3 Omit regulation 11 (meaning of “European employer”). 4 In regulation 15(1) (exemptions)— a in sub-paragraph (h)— i for “a scheme which has” substitute “a scheme with”; ii in head (i) for “all decisions which fall to be made by the trustees are” substitute “any decision made by the trustees is”; and iii in head (ii), for “who is an independent trustee” substitute “who is independent”; and b in sub-paragraph (i)— i for “a scheme which has” substitute “a scheme with”; ii for “where a company is a trustee” substitute “where a company is the sole trustee”; iii in head (i), for “is made only by the unanimous agreement” substitute “is made by the unanimous agreement”; and iv in head (ii), for “one of the directors is a trustee who” substitute “one of the directors of the company”. Amendment of the Occupational Pension Schemes (Cross-border Activities) Regulations 2005 18 1 Amend the Occupational Pension Schemes (Cross-border Activities) Regulations 2005 as follows. 2 In regulation 2 (interpretation)— a in paragraph (1) in the definition of “segregated multi-employer scheme” in sub-paragraph (b) for “a specified part or proportion” substitute “a specified proportion”; b in paragraph (3) for “Where a scheme is a segregated multi-employer scheme” substitute “Subject to paragraph (4), where a scheme is a segregated multi-employer scheme”; and c after paragraph (3) add— 4 This paragraph applies where— a a European employer is an employer in relation to a segregated multi-employer scheme; b that European employer is an associate of one or more employers in relation to that scheme. 5 Where paragraph (4) applies, all sections of the scheme that receive contributions from at least one of the employers referred to in that paragraph are together to be treated as a separate scheme for the purposes of regulations 7(2)(d) and 8(5). 6 In paragraph (4)(b) “associate” has the meaning given in section 435 of the Insolvency Act 1986 (associated employer). . 3 In regulation 3 (meaning of “European employer” and “host member State” in Part 7 of the Pensions Act 2004) for paragraph (1) substitute— 1 Subject to paragraphs (2) to (4), in Part 7 of the Act “European employer” means a person who in relation to a host member State either— a employs qualifying persons in that member State; or b is a qualifying self-employed person in that member State, and is making (or proposes to make) contributions to a scheme either in respect of a qualifying person or in respect of himself as a qualifying self-employed person. . 4 In regulation 5 (applications for general authorisation to accept contributions from European employers: established schemes which are carrying on cross-border activity)— a in paragraph (1)— i in sub-paragraph (b) for “section 288;” substitute “section 288; or”; and ii after that sub-paragraph add— c the trustees or managers of that scheme apply, on or after 6th April 2007, to the Regulator for authorisation under section 288. ; b in paragraph (2) for “Subject to paragraph (3), such” substitute “Subject to paragraph (3) or (4), where the application is made before 22nd September 2008, such”; and c after paragraph (3) add— 4 In a case where the trustees or managers of a pre-23rd September 2005 scheme make an application on or after 22nd September 2008— a where the scheme is a money purchase scheme, such an application shall be made in a form which provides the information described in paragraphs 2 and 3 of Schedule 1; or b where the scheme is not a money purchase scheme, such an application shall be made in a form which provides the information described in paragraphs 2 and 4 of that Schedule. . 5 In regulation 7(2) (conditions for general authorisation to accept contributions from European employers) in sub-paragraph (d) for head (ii) substitute— ii where the application is made under regulation 5— aa in a case where the application is made on or after 6th April 2007 but before 22nd September 2008, that the scheme to which the application relates will, in the opinion of the Regulator, meet the statutory funding objective by 22nd September 2008; or bb in a case where the application is made on or after 22nd September 2008, that the scheme to which the application relates meets the statutory funding objective; or . 6 In regulation 10 (applications for approval in relation to particular European employer: established schemes which are carrying on cross-border activity)— a in paragraph (1)— i at the end of sub-paragraph (b) insert “or”; and ii after that sub-paragraph insert— c the trustees or managers of that scheme make an application for approval under section 289 in relation to one or more European employers on or after the end of that period. . b in paragraph (2), for “Subject to paragraph (3), the information to be contained in the notice of intention relating to such an application,” substitute “Subject to paragraph (3) or (4), the information to be contained in the notice of intention relating to such an application, where the application is made before 22nd September 2008”; and c after paragraph (3) add— 4 In a case where an application is made on or after 22nd September 2008— a where the scheme is a money purchase scheme, such an application shall be made in accordance with the provisions of paragraph 6(1), (2), (3) and (7) of Schedule 1; or b where the scheme is not a money purchase scheme, such an application shall be made in accordance with the provisions of paragraph 6(1), (2), (4) and (7) of that Schedule. . 7 In regulation 15(3) (ring-fencing of assets) at the beginning of sub-paragraph (b)(ii) insert “within a time specified by the Regulator (subject to any extension the Regulator may subsequently grant),”. 8 After regulation 18 (consequential amendment) add— Treatment of overseas residents: section 66A of the Pensions Act 1995 19 Where the provisions of an occupational pension scheme comply with these Regulations those provisions shall not contravene section 66A(3) of the Pensions Act 1995 to the extent that they would, apart from that section, have an effect with respect to the matters specified in paragraphs (a) to (c) of that section, which would be different according to whether that person works wholly in the United Kingdom or wholly or partly outside the United Kingdom. . 9 In Schedule 1 (additional information to be contained in applications for authorisation or approval) in paragraph 6(7)— i at the end of paragraph (h) omit “and”; and ii after paragraph (i) add— j the number of members in the scheme; and k whether the scheme has any external, contractual-based asset manager. . Amendment of the Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006 19 1 Amend the Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006 as follows. 2 In regulation 4(4) (excluded employers: occupational pension schemes) in the definition of “small occupational pension scheme”— a in sub-paragraph (a)(i) for “all decisions which fall to be made by the trustees are made by the unanimous agreement by” substitute “any decision made by the trustees is made by the unanimous agreement of”; and b in sub-paragraph (b)— i for “where a company is a trustee” substitute “where a company is the sole trustee”; ii in head (i) for “are made by the unanimous agreement of all the directors” substitute “is made by the unanimous agreement of the directors”; and iii in head (ii) for “one of the directors is a trustee who” substitute “one of the directors of the company”. Amendment of the Occupational Pension Schemes (Trustees’ Knowledge and Understanding) Regulations 2006 20 1 Amend the Occupational Pension Schemes (Trustees’ Knowledge and Understanding) Regulations 2006 as follows. 2 In regulation 2 (exceptions for trustees of small schemes)— a in paragraph (1)(a) for “all decisions which fall to be made by the trustees are made by the unanimous agreement by” substitute “any decision made by the trustees is made by the unanimous agreement of”; and b in paragraph (2)— i for “where a company is a trustee” substitute “where a company is the sole trustee”; ii in sub-paragraph (a) for “made by the unanimous agreement of all the directors” substitute “made by the unanimous agreement of the directors”; and iii in sub-paragraph (b) for “one of the directors is a trustee who” substitute “one of the directors of the company”. Amendment of the Occupational Pension Schemes (Member-nominated Trustees and Directors) Regulations 2006 21 1 Amend the Occupational Pension Schemes (Member-nominated Trustees and Directors) Regulations 2006 as follows. 2 In regulation 1(2) (citation, commencement and interpretation) for the definition of “relevant small occupational pension scheme” substitute— “relevant small occupational pension scheme” means a scheme with fewer than twelve members, where— all the members are trustees of the scheme and either— the provisions of the scheme provide that any decision made by the trustees is made by the unanimous agreement of the trustees who are members of the scheme, or the scheme has a trustee who is independent in relation to the scheme for the purposes of section 23 of the 1995 Act (power to appoint independent trustees), and is registered in the register maintained by the Authority in accordance with regulations made under subsection (4) of that section; or all the members are directors of a company which is the sole trustee of the scheme, and either— the provisions of the scheme provide that any decision made by the company in its capacity as trustee are made by the unanimous agreement of the directors who are members of the scheme, or one of the directors of the company is independent in relation to the scheme for the purposes of section 23 of the 1995 Act, and is registered in the register maintained by the Authority in accordance with regulations made under subsection (4) of that section; . 3 In regulation 2 (exemptions from requirement to have member-nominated trustees)— a at the end of paragraph (n) omit the word “or”; and b after paragraph (o) add— p is set up under section 18 of the Government of Wales Act 1998 ; q is designated as an existing scheme by virtue of article 15 of the Railway Pensions (Protection and Designation of Schemes) Order 1994 (designation of existing schemes). . 4 In regulation 3 (prescribed exemptions from requirement to have member-nominated directors of corporate trustees)— a omit the word “or” at the end of paragraph (p); and b after paragraph (q) add— r is set up under section 18 of the Government of Wales Act 1998; s is designated as an existing scheme by virtue of article 15 of the Railway Pensions (Protection and Designation of Schemes) Order 1994. . 5 In column 2 in the table in the Schedule— a in the fifth row for “ 2001/3649 ” substitute “ S.I. 2001/3649 ”; and b in the sixth row for “ 2002/3227 ” substitute “ S.I. 2002/2327 ”. Revocations 22 Regulation 4 of the Occupational Pension Schemes (Winding Up) (Modification for Multi-employer Schemes and Miscellaneous Amendments) Regulations 2005 (amendment of the Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations 1996) is revoked. Signed by authority of the Secretary of State for Work and Pensions. James Purnell Minister of State, Department for Work and Pensions 12th March 2007