Energy Act 2023

Participation in qualifying pension schemes and transfer of assets and rights

2 (1) The Secretary of State may by regulations make such pensions provision as the Secretary of State considers appropriate—

(a) in preparation for or in connection with the designation of a person under section 162(1), or

(b) otherwise in connection with the making of a transfer scheme under paragraph 1 of Schedule 9.

(2) “Pensions provision” means provision in connection with a qualifying pension scheme, including provision for—

(a) enabling an entity to which sub-paragraph (3) applies to participate in the scheme;

(b) the division of the scheme into different sections;

(c) the participation in the different sections of different persons (including entities to which sub-paragraph (3) applies);

(d) the allocation of assets, rights, liabilities or obligations between the different sections;

(e) the transfer of assets and qualifying accrued rights from the scheme to another pension scheme (whether or not a qualifying pension scheme), without the need for any approval or consent to the transfer;

(f) the valuation of assets and qualifying accrued rights in accordance with provision made by the regulations, for the purposes of their allocation to a particular section or for the purposes of their transfer as mentioned in paragraph (e);

(g) the discharge of liabilities in respect of qualifying accrued rights that are transferred.

(3) This sub-paragraph applies to the following entities—

(a) the ISOP;

(b) an associate of the ISOP;

(c) any other entity which employs a person—

(i) whose contract of employment is transferred by a transfer scheme under paragraph 1 of Schedule 9, and

(ii) who is an active member of the qualifying pension scheme at the relevant time.

(4) Regulations under sub-paragraph (1) may have retrospective effect.

(5) Before making regulations under sub-paragraph (1), the Secretary of State must consult—

(a) the trustee of the qualifying pension scheme or schemes in question, and

(b) the person who is the principal employer in relation to that scheme or those schemes.