The Occupational Pension Schemes (Independent Trustee) Regulations 1990

Explanatory Note

(This note is not part of the Regulations)

These Regulations are made under sections 57C and 57D of the Social Security Pensions Act 1975 and section 21 of the Social Security Act 1990. Sections 57C and 57D were inserted into the Social Security Pensions Act 1975 by paragraph 1 of Schedule 4 to the Social Security Act 1990.

Section 57C requires that, when an insolvency practitioner or the official receiver is acting in relation to an employer, the practitioner or official receiver must ensure that there is an independent trustee of any occupational pension scheme of which the employer’s employees are members.

Regulation 2 adds to the requirements that must be satisfied by a person before that person can be regarded as “independent”.

Regulations 3 and 4 respectively modify sections 57C and 57D in their application to “centralised schemes” and “paid-up schemes”.

Regulation 5 modifies sections 57C and 57D in their application to cases where the employer is a partnership which the courts in England and Wales have jurisdiction to wind up. The sections apply without these modifications in cases where the employer is a Scottish partnership.

Regulation 6 describes those occupational pension schemes to which sections 57C and 57D are not to apply.

Regulation 7 says that sections 57C and 57D do not apply where an insolvency practitioner or the official receiver started to act in relation to the employer before those sections came into force.

The proposals in respect of these Regulations were not referred to the Occupational Pensions Board because these Regulations are made before the end of the period of 6 months beginning with the coming into force of paragraph 1 of Schedule 4 to the Social Security Act 1990 and are made consequential upon that enactment. Consequently, by virtue of section 61(5) of the Social Security Act 1986, section 61(2) and (3) of the Social Security Pensions Act 1975 (which requires the Secretary of State to refer proposals to make any regulations for the purposes of Part IV of that Act to the Occupational Pensions Board and the Board to make a report on them) does not apply to these Regulations.