The Occupational Pension Schemes (Administration, Investment, Charges and Governance) (Amendment) Regulations (Northern Ireland) 2024

Amendment of the Occupational Pension Schemes (Scheme Administration) Regulations N.I.

2.—(1) The Occupational Pension Schemes (Scheme Administration) Regulations (Northern Ireland) 1997(1) are amended in accordance with paragraphs (2) to (5).

(2) In regulation 1(2) (interpretation) after the definition of “the Solvency 2 Directive”(2) insert—

““specified performance-based fees” has the same meaning as in regulation 2(1)(3) of the Occupational Pension Schemes (Charges and Governance) Regulations (Northern Ireland) 2015;”.

(3) In regulation 23(1)(4) (annual statement regarding governance)—

(a) after sub-paragraph (a) insert—

“(aza) state the amount of any specified performance-based fees incurred in relation to each default arrangement (if any) during the scheme year, calculated in accordance with regulation 25(1)(a), as a percentage of the average value of the assets held for the purposes of that default arrangement during the scheme year;”;

(b) after sub-paragraph (cb)(5) insert—

“(cc) state the results of any calculations required by virtue of regulation 25A;”.

(4) In regulation 25(1)(6) (assessment of charges and transaction costs)—

(a) in sub-paragraph (a) after head (iii) add—

“(iv) the specified performance-based fees incurred in respect of assets in the scheme; and”;

(b) in sub-paragraph (b) after “charges” insert “, specified performance-based fees”.

(5) After regulation 25 insert—

“Assessment of asset allocation

25A.— (1) The trustees or managers of a relevant scheme to which this provision applies must, at intervals of no more than one year, calculate the percentage of relevant scheme assets allocated to each of the asset classes in paragraph (3).

(2) This provision applies to a relevant scheme unless it is a collective money purchase scheme which is not a qualifying collective money purchase scheme.

(3) The asset classes are—

(a) cash;

(b) bonds creating or acknowledging indebtedness, issued by—

(i) a company;

(ii) His Majesty’s Government in the United Kingdom; or

(iii) the government of any country or territory other than the United Kingdom;

(c) shares listed on a recognised stock exchange;

(d) shares not listed on a recognised stock exchange;

(e) infrastructure comprising of physical structures, facilities, systems or networks that provide or support essential public services and including water, gas and electricity networks, roads, telecommunications facilities, schools, hospitals and prisons;

(f) property which does not fall within sub-paragraph (e);

(g) instruments creating or acknowledging indebtedness which do not fall within sub-paragraph (b); and

(h) any other assets which do not fall within sub-paragraphs (a) to (g).

(4) In making the calculation required under paragraph (1), the trustees or managers of the relevant scheme must have regard to any guidance issued by the Department by virtue of paragraph 2(2)(b) of Schedule 18 to the Pensions Act (Northern Ireland) 2015 (power to impose requirements relating to administration or governance).

(5) Where relevant scheme assets are invested in a collective investment scheme, the trustees or managers of the relevant scheme must refer to the assets held by the collective investment scheme when making the calculation required by paragraph (1).

(6) In this regulation—

“collective investment scheme” has the same meaning as in regulation 1(2) of the Occupational Pension Schemes (Investment) Regulations (Northern Ireland) 2005;

“default arrangement” has the same meaning as in regulation 25;

“qualifying collective money purchase scheme” has the meaning given in regulation 2(1) of the Occupational Pension Schemes (Charges and Governance) Regulations (Northern Ireland) 2015;

“recognised stock exchange” has the meaning given by section 1005 of the Income Tax Act 2007(7);

“relevant scheme assets” means—

(a)

in relation to a relevant scheme which is not a qualifying collective money purchase scheme, the assets allocated to that scheme’s default arrangements; and

(b)

in relation to a qualifying collective money purchase scheme, the assets held for the purposes of the scheme.”.

Commencement Information

I1 Reg. 2(1)(2) in operation at 30.3.2024, see reg. 1(1)

I2 Reg. 2(3)(a)(4) in operation at 30.3.2024 with application in accordance with reg. 1(3)

I3 Reg. 2(3)(b)(5) in operation at 30.3.2024 with application in accordance with reg. 1(4)

(1)

See also regulation 2 of S.R. 2023 No. 158

(2)

The definition of “the Solvency 2 Directive” was inserted by paragraph 7(2)(b) of Schedule 2 to S.I. 2015/575

(3)

The definition of “specified performance-based fees” is inserted by regulation 5(2)(a)(v) of these Regulations

(4)

Regulation 23 was added by regulation 17(1) of S.R. 2015 No. 309

(5)

Sub-paragraph (cb) was inserted by regulation 2(2)(a)(iii) of S.R. 2021 No. 272

(6)

Regulation 25 was added by regulation 19 of S.R. 2015 No. 309 and paragraph (1) was amended by regulation 2(3)(a) of S.R. 2021 No. 272

(7)

2007 c. 3; section 1005 was substituted by paragraph 1 of Schedule 26 to the Finance Act 2007 (c. 11) and amended by paragraph 55 of Schedule 2 to the Taxation (International and Other Provisions) Act 2010 (c. 8)