The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 1997

The Occupational Pension Schemes (Member-nominated Trustees and Directors)Regulations 1996

5.—(1) The Occupational Pension Schemes (Member-nominated Trustees and Directors) Regulations 1996(1) shall have effect with the following amendments.

(2) In regulation 2(1)—

(a) in the definition of “eligible members” omit the words “or in regulation 5(2)”;

(b) in the definition of “member” after the word ““member”” insert the words “shall be construed in accordance with regulation 3 and”;

(c) for the definition of “relevant self-administered scheme” substitute—

• ““relevant self-administered scheme” means an approved scheme which is—

  (a)

  a small self-administered scheme, as defined in regulation 2(1) of the Retirement Benefits Schemes (Restriction on Discretion to Approve) (Small Self-administered Schemes) Regulations 1991, or

  (b)

  a scheme which satisfies paragraph (b) of that definition and, if it satisfied paragraph (a) of that definition, would be a scheme which the Commissioners of Inland Revenue would not be prohibited by those regulations from approving under section 591 of the Taxes Act”; and

(d) after the definition of “relevant statutory scheme” insert—

• ““relevant wholly insured scheme” means a scheme under which all the benefits are secured by contracts of insurance or annuity contracts, some or all of which are with an insurance company (as defined in section 96(1) of the Insurance Companies Act 1982) which—

  (a)

  is or is connected with the sole trustee of the scheme, but

  (b)

  is not and is not connected with the employer;”.

(3) For regulations 3 substitute—

“Scheme membership

3.— (1) Subject to the following provisions of this regulation, in determining at any time after the first scheme year of the scheme for the purposes of sections 16 to 21 and these regulations (so far as those sections and these regulations relate to the number of members which a scheme comprises or to the statutory consultation procedure) whether or not a person is a member or whether he is a member of a specified description, a person shall be treated as becoming or ceasing to be a member or, as the case may be, a member of that description at the beginning of the scheme year following that in which he actually becomes or ceases to be a member or, as the case may be, a member of that description.

(2) If a member ceases to be a member before the statutory consultation procedure begins, he shall not be treated as a member by virtue of paragraph (1) for the purposes of that procedure (but this paragraph does not affect the application of paragraph (1) to persons who cease to be members of a specified description whilst remaining members).

(3) Where paragraph (1) applies and the statutory consultation procedure begins in one scheme year and ends in another, for the purposes of that procedure the question whether a person is a member or a member of a specified description at any time during that procedure shall be determined in accordance with that paragraph immediately before the start of that procedure.

(4) The trustees of a scheme may determine—

(a) that paragraph (1) shall not apply in relation to the scheme at any time on or after the date of the determination; or

(b) that, for the purposes of any statutory consultation procedure beginning on or after that date—

(i) the question whether a person is a member at any time during that procedure, or

(ii) the question whether a member is a member of a specified description at any such time, or

(iii) both those questions,

shall be determined at a time no more than two months before the start of that procedure.

(5) A determination under paragraph (4) may apply as respects all the provisions to which paragraph (1) refers or only to provisions specified in the determination, and may be revoked or amended by a further determination.

(6) Paragraphs (1) to (5) are without prejudice to paragraph 8(3) of Schedule 1.

(7) For the purposes of sections 16 to 21 and these regulations, “member”, in relation to a scheme, does not include any person whose service is only pensionable service by virtue of qualifying him for death benefits (unless by virtue of any of the previous provisions of this regulation he is at any time treated as a member by virtue of previous membership).”.

(4) In regulation 4 (exceptions from member-nominated trustee requirements), omit paragraph (2).

(5) In regulation 5, omit paragraphs (2) and (3).

(6) In regulation 6 (exceptions from member-nominated director requirements)—

(a) in paragraph (1) after sub-paragraph (j) insert—

“(ja) which is a relevant wholly insured scheme;”; and

(b) omit paragraph (2).

(7) In regulation 9(2) (permitted notice time for proposals by employer for alternative arrangements under section 17)—

(a) in sub-paragraph (b)(ii) for the word “otherwise” substitute the words “in any other case (except where the approval of alternative arrangements ceases to have effect by virtue of paragraph (1)(d)(ii) of regulation 20)”; and

(b) at the end of sub-paragraph (c)(ii) add the words

“or

(iii) in a case where the approval of alternative arrangements for the scheme has ceased to have effect by virtue of paragraph (1)(d)(ii) of regulation 20, the date on which they did so,”.

(8) For regulation 13(5)(ii) substitute—

“(ii) with the omission from paragraph (2)(d)(i) of the words “(b) or (c)”;”.

(9) In regulation 15(2) (permitted notice time for proposals by employer for alternative arrangements under section 19)—

(a) in sub-paragraph (b)(ii) for the word “otherwise” substitute the words “in any other case (except where the approval of alternative arrangements ceases to have effect by virtue of paragraph (1)(f)(ii) of regulation 20)”; and

(b) at the end of sub-paragraph (c)(ii) add the words

“or

(iii) in a case where the approval of alternative arrangements for the scheme has ceased to have effect by virtue of paragraph (1)(f)(ii) of regulation 20, the date on which they did so,”.

(10) In regulation 20(1) (cessation of approval of appropriate rules and alternative arrangements)—

(a) for sub-paragraph (d) substitute—

“(d) in the case of an approval of arrangements under section17—

(i) on the date on which the employer gives notice under regulation 9(1)(b)(ii) in respect of the approval of new arrangements or the fresh approval of the existing arrangements; or

(ii) on the date on which the employer gives notice to the trustees of the scheme that he wishes to withdraw the approved arrangements;”; and

(b) for sub-paragraph (f) substitute—

“(f) in the case of an approval of arrangements under section 19—

(i) on the date on which the employer gives notice under regulation 15(1)(b)(ii) in respect of the approval of new arrangements or the fresh approval of the existing arrangements; or

(ii) on the date on which the employer gives notice to the company that he wishes to withdraw the approved arrangements;”.

(11) In regulation 23 (notices) for paragraph (1) substitute—

“(1) Subject to paragraphs (2) and (3), any notice to be given to a person under these regulations may be given only by being delivered to him or being left at or posted to his latest address known to the trustees of the scheme, and a notice which is posted shall be treated as having been given on the day it was posted.”.

(12) In Schedule 1 (the statutory consultation procedure)—

(a) in paragraph 6—

(i) in sub-paragraph (1)(a) for the words “will be ballotted only” substitute the words “may be ballotted”;

(ii) in sub-paragraph (2)(c) for the word “end” substitute the word “begin”; and

(iii) in sub-paragraph (3) omit the words “directly in accordance with paragraph 9(1)(a)”;

(b) in paragraph 8(2)(b)—

(i) after the words “proposed rules” insert the words “or arrangements”; and

(ii) for the word “end” substitute the word “beginning”; and

(c) for paragraph 8(3) substitute—

“(3) Where the objection period will begin before the end of the first scheme year, the trustees must determine for the purposes of paragraph 6(2)(c) and sub-paragraph (2)(b) the number which is to be taken as the number of eligible members at the beginning of the objection period.”.

(13) In paragraph 2(3) of Schedule 2 (prescribed appropriate rules) for the words “one of the nominees” substitute the words “one nominee in respect of each vacancy”.

(14) In Schedule 3 (modifications)—

(a) for paragraph 1(1)(e) substitute—

“(e) after section 18(8) insert—

“(9) Where, apart from this subsection, subsection (8) would apply in relation to a company, the company may determine that one or more of the provisions mentioned in that subsection shall not apply as mentioned in that subsection or shall so apply only in relation to some of the schemes to which they would otherwise apply.”;”;

(b) for paragraph 1(1)(g) substitute—

“(g) in section 21 at the end add—

“(9) In sections 16 to 19 “appropriate person” means—

(a) in a case where any employers have notified the trustees in writing that they wish to be consulted as to the nomination of the appropriate person, the person nominated by those employers to act for the employers for the purposes of this subsection, and

(b) otherwise, the person nominated by the trustees so to act.”.”;

(c) in paragraph 1(2)(a) after the words “sub-paragraph (1));” insert—

“(aa) the definition of “relevant wholly insured scheme” in regulation 2(1) applies with the substitution in paragraph (b) for the word “the employer” of the words “any of the employers”;”

(d) for paragraph 2(5)(a) substitute—

“(a) in paragraph (1)(d)—

(i) in paragraph (i) for the words “the date” onwards substitute the words “the date following the next date on which arrangements under that section are approved”; and

(ii) in paragraph (ii) for the words “the trustees” substitute the words “the eligible members”;”;

(e) for paragraph 3(5)(a) substitute—

“(a) in paragraph (1)(f)—

(i) in paragraph (i) for the words “the date” onwards substitute the words “the date following the next date on which arrangements under that section are approved”; and

(ii) in paragraph (ii) for the words “the company” substitute the words “the eligible members of the scheme”;”;

(f) for paragraph 8 substitute—

“Modifications of section 18: aggregation

8.— (1) Where, apart from this paragraph, in its application to a company to which sub-paragraph (2) applies, section 18 would not have effect with the modifications mentioned in paragraph 1(1)(d) and (e), it shall have effect with those modifications.

(2) This sub-paragraph applies to a company—

(a) to which section 18 applies by virtue of regulation 5(1); or

(b) which is—

(i) the trustee of two or more schemes which are relevant schemes in relation to the company, and

(ii) connected with a person who is the employer in relation to one or more of those schemes otherwise than by virtue of being that employer’s wholly-owned subsidiary (within the meaning of section 736 of the Companies Act 1985); or

(c) which is the trustee of a trust scheme which is not a relevant scheme in relation to that company.”.

(15) Where, apart from the amendments made by sub-paragraphs (2) to (14) above, anything done before 6th April 1997 would be treated as done under or in compliance with any requirement imposed by or under sections 16 to 21 of the Pensions Act 1995(2), it shall continue to be so treated despite those sub-paragraphs; and where the statutory consultation procedure (as defined in section 21(7) of that Act) was begun before that date, the validity of that procedure shall not be affected by the inclusion or exclusion of any person who by virtue of sub-paragraph (3) above is not to be treated as a member for the purposes of that procedure.

(1)

S.I. 1996/1216.

(2)

1995 c. 26.