The Occupational Pension Schemes (Fraud Compensation Levy) Regulations (Northern Ireland) 2006

Explanatory Note

(This note is not part of the Regulations)

These Regulations make provision for when a fraud compensation levy (“the levy”) is imposed on occupational pension schemes under Article 171 of the Pensions (Northern Ireland) Order 2005 (“the 2005 Order”). The levy is payable in order to meet expenditure payable out of the Fraud Compensation Fund (see section 188(3) of the Pensions Act 2004 (c. 35) for list of expenditure allowed). The Board of the Pension Protection Fund decides the amount of expenditure in respect of which the levy is to be imposed.

Regulation 3 provides for the imposition of the levy on the reference day and the maximum rate of the levy.

Regulation 4 defines the reference day.

Regulation 5 provides for the times when the levy is payable.

Regulation 6 makes provision relating to levy notices.

Regulation 7 makes provision relating to the circumstances in which any amount payable by way of levy may be waived.

Regulations 8 and 9 make provision in relation to any scheme which is a multi-employer scheme or has a partial guarantee from a relevant public authority.

Regulation 10 makes provision to avoid duplication of payments where the levy is payable under corresponding provisions which have effect in Great Britain.

Regulation 11 sets out the civil penalties the Pensions Regulator may impose where the levy payable has not been paid.

Regulation 12 amends the Occupational Pension Schemes (Employer Debt) Regulations (Northern Ireland) 2005 so that any unpaid levy in respect of a money purchase scheme will be treated as a debt due from the employer to the trustees or managers of the scheme.

The Pensions (2005 Order) (Commencement No. 7) Order (Northern Ireland) 2005 (S.R. 2005 No. 543 (C. 37)) provides for the coming into operation of Article 171(1), (4), (6) and (11) (remainder) of the 2005 Order, some of the enabling provisions under which these Regulations are made, for the purpose only of authorising the making of regulations, on 1st January 2006 and for all other purposes on 1st April 2006.

As these Regulations make in relation to Northern Ireland only provision corresponding to provision contained in regulations made by the Secretary of State for Work and Pensions in relation to Great Britain, the requirement to consult under Article 117(1) of the Pensions (Northern Ireland) Order 1995 and Article 289(1) of the 2005 Order does not apply by virtue of paragraph (2)(e) of each of those Articles.