The Occupational and Personal Pension Schemes (Disclosure of Information) (Requirements to Refer Members to Guidance etc.) (Amendment) Regulations (Northern Ireland) 2022

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 2014 (“the 2014 Regulations”) and in so doing consequentially modify the effect of related provisions of the Pension Schemes (Northern Ireland) Act 1993 (“the 1993 Act”) as follows.

Regulation 2(2) corrects, by updating, the definition of “pensions guidance” in the 2014 Regulations. Regulation 2(6) inserts regulations 18C to 18E into the 2014 Regulations.

Regulation 18C sets out the procedures which the trustees or managers of an occupational pension scheme must follow to ensure that a “relevant beneficiary” (“B”) has received “appropriate pensions guidance” (both terms as defined in paragraph (10) of that regulation) and the conditions that must be satisfied after they receive an application, or a communication made in relation to an application, from B on or after 1st June 2022 to transfer rights to flexible benefits accrued under the scheme or to start receiving flexible benefits provided by the scheme. Regulation 18C(3) sets out the circumstances in which these requirements do not apply to applications for a transfer of rights to flexible benefits (as defined in regulation 2 of the 2014 Regulations). Regulation 18C also sets out the circumstances in which B may opt out of receiving appropriate pensions guidance.

Regulation 18D makes consequential modifications to the effect of sections 95 and 97J of the 1993 Act. These modifications modify the effect of the requirements imposed on trustees or managers of occupational pension schemes that provide money purchase benefits to carry out a qualifying member or their survivor’s request to transfer their pension benefits within 6 months of the date of their application or giving of a transfer notice. The effect of these modifications is to disapply those requirements where the trustees or managers are unable to proceed with an application under section 91(1), or a transfer notice under section 97G(4), of the 1993 Act within that 6-month period because the requirements set out in regulations made under section 109B of the 1993 Act relating to the receipt of appropriate pensions guidance, or the opting out of receiving such guidance, have not been satisfied (see further above in relation to regulation 18C made under section 109B of the 1993 Act).

Regulation 18E sets out the related record-keeping requirements of the trustees or managers.

Regulation 2(3) to (5) makes consequential amendments to the 2014 Regulations. Paragraph (3) amends regulation 4(7) so that the requirement in that regulation (for trustees or managers to provide a postal and electronic address for any request for further information or other enquiry from a member) does not apply where information is given verbally by trustees or managers in accordance with regulation 18C(4) or (7). Paragraphs (4) and (5) consequentially amend regulations 18A and 18B to disapply the requirements in those regulations to provide information on pensions guidance where regulation 18C applies.

The Financial Guidance and Claims Act 2018 (Commencement No. 1) Order (Northern Ireland) 2022 (S.R. 2022 No. 107 (C. 12)) provides for the coming into operation of section 19(7) of the Financial Guidance and Claims Act 2018, which inserts section 109B into the 1993 Act, one of the enabling provisions under which these Regulations are made, for the purpose only of authorising the making of regulations on 15th March 2022.

An assessment of the cost to business of these Regulations is detailed in a Regulatory Impact Assessment, a copy of which has been laid in the Business Office and the Library of the Northern Ireland Assembly. Copies of the Assessment are available from the Department for Communities, Social Security Policy, Legislation and Decision Making Services, Level 6, Causeway Exchange, 1-7 Bedford Street, Belfast BT2 7EG or from the website: https://www.communities-ni.gov.uk/articles/pension-information. A copy of the Assessment is also annexed to the Explanatory Memorandum which is available alongside this Statutory Rule on the website: http://www.legislation.gov.uk/nisr.