EXPLANATORY NOTE
(This note is not part of the Regulations)
These Regulations provide that legislation that applies in relation to a person as trustee of an occupational pension scheme applies in relation to the National Employment Savings Trust Corporation (“the corporation”), which has a function of acting as trustee of the National Employment Savings Trust pension scheme established under section 67 of the Pensions Act 2008 (c.30), with prescribed modifications.
Regulation 2 provides that section 248 of the Pensions Act 2004 (c.35) (which prescribes knowledge requirements for individuals who exercise functions of the trustee, in respect of pension law and other matters) applies in relation to the corporation as if it were a company that is a trustee of an occupational pension scheme.
Regulation 3 modifies the Occupational Pension Schemes (Requirement to obtain Audited Accounts and a Statement from the Auditor) Regulations 1996 ( S.I. 1996/1975). The regulation exempts the corporation from the requirement, under regulation 2(1)(b) of those Regulations, to obtain an auditor’s statement prepared in accordance with regulation 4 of those Regulations about contributions made under an occupational pension scheme.
Regulation 4(a) modifies regulation 3 of the Occupational Pension Schemes (Investment) Regulations 2005 ( S.I. 2005/3378). It provides that the obligation imposed by regulation 2 of those Regulations on trustees of an occupational pension scheme to consult participating employers with respect to a proposed statement of investment principles is replaced by an obligation to consult the employers’ panel referred to in section 69 of the Pensions Act 2008.
Regulation 4(b) modifies regulation 16 of the Occupational Pension Schemes (Investment) Regulations 2005, by inserting new paragraphs (6) to (8) into that regulation. It disapplies the rule that employer-related investments made by trustees of a scheme must not exceed 20 per cent. of the current market value of the scheme. It also provides that government bonds are not to be regarded as employer-related investments for the purpose of the requirements that employer-related investments must not exceed a prudent level and that not more than 5% of the current market value of the scheme may be invested in investments which are employer-related investments in relation to a particular employer.
Regulation 5 contains a transitional provision with respect to the new regulation 16(7) inserted by regulation 4(b).
A full Impact Assessment has not been produced for these Regulations as they have no impact on the private or voluntary sectors.