The Occupational and Personal Pension Schemes (Automatic Enrolment) (Amendment) Regulations 2014

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend regulations 32I and 36 of the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010 (S.I. 2010/772).

Paragraph (2) of regulation 2 amends regulation 32I (contributions under alternative requirements during transitional periods) so as to provide that the modification to the alternative requirements during the transitional periods under regulation 32I applies to hybrid schemes that satisfy the alternative requirements under regulation 32G.

Paragraph (3) of regulation 2 amends regulation 36 (circumstances in which a scheme is not a qualifying scheme). Sub-paragraph (b) inserts a new paragraph (2A) into regulation 36. This provides that an average salary scheme which requires benefits to be revalued at less than the minimum rate is not prevented from being a qualifying scheme if both the scheme’s funding and statement of funding principles (or equivalent) assume that revaluation will be at or above the minimum rate. Sub-paragraph (a) makes a consequential amendment to regulation 36(1). Sub-paragraph (c) substitutes regulation 36(4) and (5). New regulation 36(4) provides that the minimum rate is, where the scheme is a scheme established under section 1 of the Public Service Pensions Act 2013 (c.25) (“the 2013 Act”) or is a new public body pension scheme as defined in section 30(5) of the 2013 Act, the relevant percentage specified in the Treasury order under section 9(2) of the 2013 Act or, in any other case, whichever is the least or lesser of the retail prices index, the general level of prices and 2.5%. New regulation 36(5) provides definitions.

A full impact assessment has not been produced for this instrument as it has no direct impact on businesses, the public sector or civil society organisations.