Pensions Act 2008

[F123AAlternative quality requirements for UK defined benefits schemesE+W+S
This section has no associated Explanatory Notes

(1)The Secretary of State may by regulations provide that a defined benefits scheme that has its main administration in the United Kingdom satisfies the quality requirement in relation to a jobholder if any one or more of the following is satisfied—

(a)the scheme is of a prescribed description and satisfies the quality requirement under section 20 in relation to that jobholder;

(b)the cost of providing the benefits accruing for or in respect of the relevant members over a relevant period would require contributions to be made of a total amount equal to at least a prescribed percentage of the members' total relevant earnings over that period;

(c)in the case of each of at least 90% of the relevant members, the cost of providing the benefits accruing for or in respect of the member over a relevant period would require contributions to be made of a total amount equal to at least a prescribed percentage of the member's total relevant earnings over that period.

(2)For this purpose—

  • “contributions” means contributions to the scheme by, or on behalf or in respect of, a relevant member;

  • “relevant earnings” means earnings of a prescribed description;

  • “relevant members” means members of the scheme of a prescribed description;

  • “relevant period” means a period specified in or determined in accordance with the regulations.

(3)A percentage prescribed under subsection (1)(b) or (c) must be at least 8%.

(4)Regulations under subsection (1)(b) or (c) may make provision—

(a)about how to calculate whether the requirement is satisfied, including provision requiring the calculation to be made in accordance with prescribed methods or assumptions;

(b)requiring benefits of a prescribed description to be disregarded in determining whether the requirement is satisfied;

(c)that a scheme only satisfies the requirement if the scheme actuary certifies that it does; and for this purpose “scheme actuary” has the prescribed meaning.

(5)Section 13(3) (meaning of “earnings”) applies for the purposes of this section as it applies for the purposes of that section.

(6)The Secretary of State must from time to time review any regulations in force under subsection (1).

(7)A review must be carried out—

(a)during 2017, and

(b)after that, no more than three years after the completion of the previous review.]

Textual Amendments