EXPLANATORY NOTE
These Regulations bring into force provisions in Parts 1, 3 and 5 of the Pension Schemes Act 2021 (c. 1) (“the Act”). They are the sixth commencement regulations to be made under the Act. These Regulations also contain a transitional provision in relation to section 3 of the Act (qualifying schemes).
Regulation 2 brings the provisions it lists into force on the day after the day these Regulations are made.
Regulation 2(a) and (b) brings into force section 111(2)(b) of the Act (inspection of premises), to the extent that it adds section 73(2)(db) of the Pensions Act 2004 (c. 35) to the provisions within section 73(2)(e) of that Act (inspection of premises). Section 111(2)(b) of the Act amends section 72(2)(e) of the Pensions Act 2004. The amendment expands the list of occupational pensions provisions in force in Northern Ireland the investigation of compliance with which is a permitted purpose for a person appointed by the Pensions Regulator (“the Regulator”) to inspect premises liable to inspection.
Regulation 2(c) brings into force the remainder of section 116 of the Act (minor and consequential amendments), except insofar as it inserts a reference to Part 1 of the Act into section 80 of the Pensions Act 2004 (offences of providing false or misleading information). Regulation 2(d) brings into force paragraphs 13 to 20 of Schedule 7 to the Act (the Pensions Regulator: minor and consequential amendments).
Section 116 of the Act introduces Schedule 7 to the Act, which contains minor and consequential amendments to primary legislation in consequence of the powers conferred on the Regulator by Part 3 of the Act (the Pensions Regulator).
Paragraphs 13 and 14 of Schedule 7 amend the Pensions Act 2004. Paragraph 13 adds further powers to the list in Part 4 of Schedule 1 to the Pensions Act 2004 (proceedings and delegation etc) of the Regulator’s powers in relation to which the Secretary of State can make regulations. Paragraph 14 adds a further power to the list in Part 4 of Schedule 2 to the Pensions Act 2004 (functions under this Act) of reserved regulatory functions exercisable by the Determinations Panel on behalf of the Regulator.
Paragraphs 15 to 17 of Schedule 7 amend the Pensions Act 2008 (c. 30). The amendments confer powers on the Regulator to issue penalty notices in the event of a failure to comply with a notice issued under section 72A of the Pensions Act 2004 (interviews) relating to the Regulator’s functions under Part 1 of the Pensions Act 2008 (pension scheme membership for jobholders).
Paragraphs 18 to 20 of Schedule 7 amend the Pension Schemes Act 2017 (c. 17). The amendments confer powers on the Regulator to issue penalty notices in the event of a failure to comply with a notice issued under section 72A of the Pensions Act 2004 relating to the Regulator’s functions under Part 1 of the Pension Schemes Act 2017 (Master Trusts).
Regulation 3 brings the provisions it lists into force on 1st August 2022. Regulation 3(a) brings into force the remainder of Part 1 of the Act (collective money purchase benefits), except paragraph 19 of Schedule 3. Paragraph 19 of Schedule 3 amends section 291 of the Pensions Act 2004 which has been repealed. Part 1 of the Act sets out the legislative framework to establish and operate collective money purchase pension schemes.
Regulation 3(b), (c) and (d) brings into force provisions of Part 3 of the Act which relate to the regime for collective money purchase schemes contained in Part 1 of the Act. Regulation 3(e) brings most of section 128 of the Act (Pension Schemes Act 2015: repeals) into force. Section 128 repeals uncommenced provisions in Parts 1 to 3 of the Pension Schemes Act 2015 (c. 8) concerning collective benefits, the categorisation of pension schemes and related matters. Regulation 3(e) excludes the repeal of section 44 of the Pension Schemes Act 2015 (removal of requirement to maintain register of independent trustees) from the commencement of section 128 of the Act. Section 44 of the Pension Schemes Act 2015 repeals the requirement for the Pensions Regulator to maintain a list of independent trustees which satisfy prescribed requirements.
Regulation 4 makes transitional provision. Regulation 4(1) provides that section 3 of the Act does not apply to a pension scheme which was established before 1st August 2022. Section 3 sets out the conditions for a pension scheme to be a qualifying scheme under the regime for collective money purchase benefits. Regulation 4(2) provides for a limited exception to regulation 4(1), in the case of sections of a pension scheme established before 1st August 2022 where certain conditions are satisfied.
An impact assessment has been produced in relation to the provisions of the Act and a copy is available at www.legislation.gov.uk. A hard copy of this impact assessment can be obtained from the Department for Work and Pensions, First Floor, Caxton House, Tothill Street, London SW1H 9NA.