The Occupational and Personal Pension Schemes (Modification of Schemes - Miscellaneous Amendments) Regulations 2016

Amendment of the Occupational Pension Schemes (Modification of Schemes) Regulations 2006

2.  After regulation 7B (amendment of schemes for adjustment measure) of the Occupational Pension Schemes (Modification of Schemes) Regulations 2006(1) insert—

“Modification of schemes: revaluation of guaranteed minimum pensions

7C.— (1) The trustees of a trust scheme may by resolution passed before 6th April 2017 modify the scheme for the purposes of —

(a) revaluing earnings factors for the purposes of section 14 (earner’s guaranteed minimum pension) of the 1993 Act in accordance with section 16(2) (revaluation of earnings factors for the purposes of section 14: early leavers etc.) of that Act as substituted by paragraph 16 of Schedule 13 to the Pensions Act 2014; and

(b) where the scheme contains a rule or provision that would require or permit the increases referred to in section 16(3) of the 1993 Act to be applied to an earner whose service in contracted-out employment ceased on the second abolition date with effect from a relevant year before the last service tax year, disapplying that rule or provision to the extent that it does not require or permit such increases.

(2) Modifications made by resolution under paragraph (1)—

(a) must only have effect from 6th April 2016 or such later date as may be specified; and

(b) may have effect from a date before the resolution is passed.

(3) In this regulation—

“contracted-out employment” has the meaning given in section 8 (meaning of “contracted-out employment” etc.) of the 1993 Act(2);

“earnings factors” has the meaning given in section 181(1) (general interpretation) of the 1993 Act;

“last service tax year” has the meaning given in section 16(2) of the 1993 Act as substituted by paragraph 16 of Schedule 13 to the Pensions Act 2014;

“relevant year” has the meaning given in section 16(5) of the 1993 Act(3);

“the second abolition date” has the meaning given in section 181(1) of the 1993 Act(4).”.

(1)

S.I. 2006/759. Regulation 7B was inserted by S.I. 2015/879.

(2)

Section 8 is amended by paragraph 7 of Schedule 13 to the 2014 Act.

(3)

The definition of “relevant year” in section 16(5) was substituted by paragraph 4 of Schedule 2 to the Welfare Reform and Pensions Act 1999 (c. 30).

(4)

The definition of “the second abolition date” was inserted by paragraph 43(2) of Schedule 13 to the 2014 Act.