The Pensions on Divorce etc. (Charging) Regulations 2000

Charges in respect of pension sharing activity — method of recovery

9.—(1) Subject to paragraphs (7) and (8), a person responsible for a pension arrangement may recover the charges specified in regulations 3, 5 and 6 by using any of the methods described in paragraph (2).

(2) The methods of recovery described in this paragraph are—

(a) subject to regulation 7 requiring the charges referred to in paragraph (1) to be paid before the implementation period for the pension sharing order or provision is commenced;

(b) deduction from a pension credit;

(c) deduction from the accrued rights of the member;

(d) where a pension sharing order or provision is made in respect of a pension which is in payment, deduction from the member’s pension benefits;

(e) where liability in respect of a pension credit is discharged by the person responsible for the pension arrangement in accordance with paragraph 1(2), 2(2), or 3(2) of Schedule 5 to the 1999 Act (mode of discharge of liability for pension credits), deduction from payments of pension credit benefit; or

[F1 (f) deduction from the amount of a transfer value which is calculated in accordance with regulation 24 of the Pension Sharing (Pension Credit Benefit) Regulations 2000 (manner of calculation and verification of cash equivalents).]

(3) A person responsible for a pension arrangement shall not recover charges referred to in paragraph (1) by using any of the methods described in paragraph (2)(b), (c), (d), (e) or (f) unless—

(a) a pension sharing order or provision corresponding to any order or provision specified in subsection (1) of section 28 of the 1999 Act has been made;

(b) the implementation period has commenced;

(c) where a pension sharing order has been made, the person responsible for a pension arrangement is not aware of an appeal against the order having begun on or after the day on which the order takes effect;

(d) there are charges which are unpaid and for which the party, to whom paragraph (2)(b), (c), (d), (e) or (f) applies, is liable;

(e) the person responsible for the pension arrangement has issued a notice of implementation in accordance with regulation 7 of the Provision of Information Regulations;

(f) the person responsible for a pension arrangement specifies in the notice of implementation that recovery of the charges may be made by using any of those methods; and

(g) 21 days have elapsed since the notice of implentation was issued to the parties to pension sharing in accordance with the requirements of regulation 7 of the Provision of Information Regulations.

(4) If a pension sharing order or provision includes provision about the apportionment between the parties to pension sharing of any charge under section 41 of the 1999 Act or under corresponding Northern Ireland legislation, by virtue of section 24D of the Matrimonial Causes Act 1973 M1 (pension sharing orders: apportionment of charges) or section 8A of the Family Law (Scotland) Act 1985 M2 (pension sharing orders: apportionment of charges), the recovery of charges using any of the methods described in paragraph (2) by the person responsible for the pension arrangement shall comply with the terms of the order or provision.

(5) A person responsible for a pension arrangement shall not recover charges referred to in paragraph (1) by using any of the methods described in paragraph (2), from a party to pension sharing, if that party has paid in full the proportion of the charges for which he is liable.

(6) A person responsible for a pension arrangement may recover charges by using any of the methods described in paragraph (2)(b), (c) or (d)—

(a) at any time within the implementation period prescribed by section 34 of the 1999 Act (“implementation period");

(b) following an application by the trustees or managers of an occupational pension scheme, such longer period as the [F2 Pensions Regulator] may allow in accordance with section 33(4) of the 1999 Act (extension of time for discharge of liability); or

(c) within 21 days after the end of the period referred to in sub-paragraph (a) or (b).

(7) Where the commencement of the implementation period is postponed, or its operation ceases in accordance with regulation 4 of the Pension Sharing (Implementation and Discharge of Liability) Regulations 2000 M3 (postponement or cessation of implementation period where an application is made for leave to appeal out of time) a person responsible for a pension arrangement may require any outstanding charges referred to in paragraph (1) to be paid immediately, in respect of—

(a) all costs which have been incurred prior to the date of postponement or cessation; or

(b) any reasonable costs related to—

(i) the application for leave to appeal out of time; or

(ii) the appeal out of time itself.

(8) Paragraph (7) applies even if, prior to receiving the notification of the application for leave to appeal out of time, a person responsible for a pension arrangement has indicated to the parties to pension sharing that he will not be using the method of recovery specified in paragraph (2)(a).

Textual Amendments

F1 Reg. 9(2)(f) substituted (6.4.2016) by The Pension Sharing (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/289), regs. 1(2), 3(4)

F2 Words in reg. 9(6)(b) substituted (6.4.09) by S.I. 2009/615, reg. 1(2), 13(3)

Marginal Citations

M1 1973 c. 18. Section 24D is inserted by paragraph 4 of Schedule 3 to the Welfare Reform and Pensions Act 1999.

M2 Section 8A is inserted by paragraph 7 of Schedule 12 to the Welfare Reform and Pensions Act 1999.

M3 S.I. 2000/1053.