C1PART 1PENSION SCHEME MEMBERSHIP FOR JOBHOLDERS
C1CHAPTER 1EMPLOYERS' DUTIES
Quality requirements
23AF1Alternative quality requirements for UK defined benefits schemes
1
The Department may by regulations provide that a defined benefits scheme that has its main administration in the United Kingdom satisfies the quality requirement in relation to a jobholder if any one or more of the following is satisfied—
a
the scheme is of a prescribed description and satisfies the quality requirement under section 20 in relation to that jobholder;
b
the cost of providing the benefits accruing for or in respect of the relevant members over a relevant period would require contributions to be made of a total amount equal to at least a prescribed percentage of the members' total relevant earnings over that period;
c
in the case of each of at least 90% of the relevant members, the cost of providing the benefits accruing for or in respect of the member over a relevant period would require contributions to be made of a total amount equal to at least a prescribed percentage of the member's total relevant earnings over that period.
2
For this purpose—
“contributions” means contributions to the scheme by, or on behalf or in respect of, a relevant member;
“relevant earnings” means earnings of a prescribed description;
“relevant members” means members of the scheme of a prescribed description;
“relevant period” means a period specified in or determined in accordance with the regulations.
3
A percentage prescribed under subsection (1)(b) or (c) must be at least 8%.
4
Regulations under subsection (1)(b) or (c) may make provision—
a
about how to calculate whether the requirement is satisfied, including provision requiring the calculation to be made in accordance with prescribed methods or assumptions;
b
requiring benefits of a prescribed description to be disregarded in determining whether the requirement is satisfied;
c
that a scheme only satisfies the requirement if the scheme actuary certifies that it does; and for this purpose “scheme actuary” has the prescribed meaning.
5
Section 13(3) (meaning of “earnings”) applies for the purposes of this section as it applies for the purposes of that section.
Pt. 1 applied (with modifications) (1.7.2012) by The Automatic Enrolment (Offshore Employment) Order 2012 (S.I. 2012/1388), arts. 1(1), 2 (with art. 5)