Amendment of the Occupational and Personal Pension Schemes (Disclosure of Information) RegulationsN.I.
13.—(1) The Occupational and Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 2014(1) are amended in accordance with paragraphs (2) to (19).
(2) In regulation 2(1) (interpretation)—
(a)after the definition of “the 2014 Act”(2) insert—
““the 2021 Act” means the Pension Schemes Act 2021;”;
(b)after the definition of “accrued rights” insert—
““actuarial valuation”, in relation to a collective money purchase scheme, has the meaning given by section 71(2) of the 2021 Act;
“the available assets of the scheme”, in relation to a collective money purchase scheme, has the meaning given by section 53(2) of the 2021 Act;”;
(c)after the definition of “cash balance benefit”(3) insert—
““collective money purchase scheme” means a scheme or a section of a scheme which is a collective money purchase scheme for the purposes of Part 2 of the 2021 Act (collective money purchase benefits: Northern Ireland);”;
(d)in the definition of “illustration date” after “Schedule 6” insert “and in Schedule 6A(4)”;
(e)after the definition of “member” insert—
““multi-annual reduction” has the meaning given by regulation 2 of the Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations (Northern Ireland) 2022;”.
(3) In regulation 4 (application of these Regulations)—
(a)for paragraph (1)(5) substitute—
“(1) Subject to paragraphs (2), (3), (6) and (9), the trustees or managers of an occupational pension scheme that falls within paragraph 1 of Schedule 1 must give information in accordance with regulations 6, 8, 9 to 17, 18 to 22, 24 and 25 and, where the scheme falls within Article 35 of the 1995 Order (investment principles) or the scheme is a relevant scheme within the meaning of the Occupational Pension Schemes (Scheme Administration) Regulations (Northern Ireland) 1997(6), regulation 29A(7).”;
(b)after paragraph (8)(8) add—
“(9) Regulations 12A(9), 17, 18B(10), 19(11) and 25(12) do not apply to a collective money purchase scheme.
(10) For the purposes of these Regulations, where a pension scheme is divided into sections, each section that is a collective money purchase scheme is to be treated as a separate scheme.”.
(4) In regulation 8 (material alterations to basic scheme information) after paragraph (5) add—
“(6) This regulation does not apply where regulation 8A applies.”.
(5) After regulation 8 insert—
“Scheme closure: collective money purchase schemes
8A.—(1) In relation to a collective money purchase scheme, the information specified in paragraphs (2) and (3) must be given in accordance with this regulation.
(2) The information listed in paragraphs 30 to 33(13) of Schedule 2 must be given as soon as practicable and in any event no more than one month after a decision by the trustees to pursue continuity option 3.
(3) The information listed in paragraphs 34 to 38 of Schedule 2 must be given as soon as is practicable and in any event no more than one month after the date on which the Regulator notifies the trustees in accordance with section 89(4) of the 2021 Act (continuity option 3: conversion to closed scheme).
(4) The information must be given to all members and beneficiaries of the scheme except for excluded persons.
(5) In this regulation, and in Schedule 2, “continuity option 3” is the conversion of the scheme into a closed scheme in accordance with sections 85 (continuity options) and 89 of the 2021 Act and regulations made section 89 of that Act.”.
(6) After regulation 17 (statements of benefits: money purchase benefits) insert—
“Statements of benefits: collective money purchase schemes
17A.—(1) The information mentioned in paragraph (2) must be given in accordance with this regulation to a member of a collective money purchase scheme who is not—
(a)an excluded person, or
(b)a member to whom benefits under the scheme have, or are about to, become payable.
(2) The information is—
(a)for active members, the information listed in Parts 1, 2 and 4 of Schedule 6A;
(b)for deferred members, the information listed in Parts 1, 2, 3 and 5 of Schedule 6A, and
(c)for pension credit members, the information listed in Parts 1 and 3 of Schedule 6A.
(3) The information must be given—
(a)no more than 12 months after the effective date of the first actuarial valuation, and
(b)thereafter, no more than 12 months after the end of each scheme year.
(4) In this regulation, “the effective date” is the date by reference to which the available assets of the scheme are determined.
(5) A notification need not be given under regulation 27 in relation to the information on the website that is also given to the person in accordance with paragraphs 15 and 16 of Schedule 6A.”.
(7) In regulation 18A(14) (information to be given on request and on a member providing certain information) after paragraph (2) insert—
“(2A) In relation to a collective money purchase scheme, information given in accordance with paragraph (2)(a) must include a statement that—
(a)there is no promise or guarantee as to the rate or amount of benefits provided under the scheme, and
(b)the rate or amount of benefits may fluctuate, which may result in—
(i)reduced benefits before benefit becomes payable;
(ii)reduced benefits after benefit becomes payable.”.
(8) In regulation 22 (changes to benefits) after paragraph (2) add—
“(3) This regulation does not apply where regulation 22B applies.”.
(9) After regulation 22 insert—
“Benefit adjustment information: collective money purchase schemes
22A.—(1) Information listed in paragraphs 15 to 20(15) of Schedule 7 must be provided in accordance with this regulation to members and beneficiaries of a collective money purchase scheme.
(2) The information must be given each time an actuarial valuation is obtained—
(a)as soon as reasonably practicable after the certification of the actuarial valuation by the scheme actuary, and
(b)no less than 6 weeks before any adjustment to the rate or amount of benefits provided under the scheme following the latest actuarial valuation is applied, where reasonably practicable.
Incorrect benefit adjustments in collective money purchase schemes
22B.—(1) The information listed in paragraphs 21 to 27 of Schedule 7 must be given in accordance with this regulation where—
(a)the scheme is a collective money purchase scheme, and
(b)a benefit adjustment has not been applied in accordance with the scheme rules or (as the case may be) the latest actuarial valuation.
(2) The information must be given as soon as reasonably practicable to members and beneficiaries who have been or will be affected by the failure to apply the benefit adjustment in accordance with the scheme rules or (as the case may be) the latest actuarial valuation.”.
(10) In regulation 24(6) (occupational pension schemes during winding up) before sub-paragraph (a) insert—
“(za)in relation to a collective money purchase scheme, in accordance with paragraph 4 of Schedule 6 to the Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations (Northern Ireland) 2022 (continuity option 1: transfer out and winding up);”.
(11) In regulation 27(1)(16) (provision of information on a website) for “regulation 29A provides” substitute “regulations 29A and 29B provide”.
(12) In regulation 29A(2) (publishing charges and transaction costs and other relevant information) after sub-paragraph (b) insert—
“(ba)paragraph (1)(cza);”.
(13) After regulation 29A insert—
“Additional publication requirements for collective money purchase schemes
29B.—(1) In relation to a collective money purchase scheme, the information specified in paragraphs (2) to (4) must be published in accordance with this regulation.
(2) The following information must be published no more than one month after the date on which the Regulator notifies the applicant of its decision to authorise the scheme—
(a)a statement explaining the design of the scheme, which must contain the information listed in Part 1 of Schedule 9B, and
(b)the scheme’s rules.
(3) The information listed in Part 2 of Schedule 9B must be published no more than 3 months after the latest actuarial valuation is sent to the Regulator.
(4) The model used to calculate information specified in paragraphs 5, 6, 19, 20 and 23 to 25 of Schedule 6A must be published as soon as reasonably practicable after information is first provided in accordance with regulation 17A.
(5) Where there is a change in relation to the information listed in paragraph 4 or 5 of Schedule 9B, the statement mentioned in sub-paragraph (2)(a) must be altered accordingly, and published before or as soon as practicable after the change.
(6) Each time the document specified in sub-paragraph (2)(b) is changed after it is first published, the changed version must be published before or as soon as possible after (and in any event within 3 months after) the change.
(7) A notification need not be given under regulation 27 in relation to the information on the website that is published in accordance with this regulation.
(8) Where a person requests the trustees of the scheme to provide the information referred to in paragraph (2), (3) or (4) in hard copy form, the trustees of the scheme must give that information to the person in hard copy form where, but only where, the trustees are satisfied that it would be unreasonable for that person to obtain it from the website on which it is published.
(9) Where information is required to be given in hard copy form in accordance with paragraph (8), it must be given within 2 months of the date the request is made.
(10) In this regulation, “published” means made publicly available free of charge on a website.”.
(14) In Schedule 2 (basic information)—
(a)in paragraph 15(d) after “increased” insert “or decreased”;
(b)in paragraph 16(17) after “including” insert “where appropriate”;
(c)after paragraph 18 insert—
“18A. In respect of a collective money purchase scheme, a statement that—
(a)there is no promise or guarantee as to the rate or amount of benefit provided under the scheme, and
(b)the rate or amount of benefits may fluctuate, which may result in—
(i)reduced benefits before benefit becomes payable;
(ii)reduced benefits after benefit becomes payable.
18B. In respect of a collective money purchase scheme, a summary of the rules governing how the rate or amount of benefits provided under the scheme is to be adjusted from time to time, including—
(a)that annual benefit calculations and any adjustments of the rate or amount of benefits are applied to all the members of the scheme without variation;
(b)where relevant, an explanation of how any multi-annual reduction permitted under the scheme rules operates and the effect it may have on the rate or amount of benefits provided under the scheme, and
(c)the arrangements in place for making any adjustments to the rate or amount of benefits provided to pensioner members.”.
(d)after Part 3 (lifestyling) add—
“PART 4N.I.Scheme closure: collective money purchase schemes
30. A statement that a decision has been made to pursue continuity option 3.
31. A summary of the reasons for the decision in paragraph 30.
32. An estimate of when information will be provided in accordance with paragraphs 34 to 38.
33. A statement that the scheme will continue to operate in respect of its current members and beneficiaries.
34. A statement confirming that the scheme will be closed, which must include whether it will be closed to new contributions or new members (or both).
36. The date the scheme will begin to operate as a closed scheme.
37. A statement explaining any impact that the closure will have in relation to accrued rights to benefits under the scheme, including any differences in impact for active, deferred and pensioner members.
38. The arrangements for—
(a)the future operation of the scheme, and
(b)where the scheme will be closed to new contributions, any scheme or section of a scheme to which future contributions may be made.”.
(15) In Schedule 3 (information to be given on request)—
(a)in paragraph 2 after “rules” insert “(except where regulation 29B applies)”;
(b)after paragraph 10 insert—
“10A. In respect of a collective money purchase scheme, the latest actuarial valuation.”;
(c)in paragraph 22—
(i)after “money purchase scheme” insert “other than a collective money purchase scheme”;
(ii)for “increases”, in each place where it occurs, substitute “increases or decreases”.
(16) After Schedule 6 (statements of benefits: money purchase benefits and cash balance benefits(18)) insert Schedule 6A as set out in Schedule 1 to these Regulations.
(17) In Schedule 7 (information to be given by schemes that relates to accessing benefits)—
(a)in the heading after “benefits” insert “and to benefit adjustments”;
(b)after paragraph 6 insert—
“6A. In relation to a collective money purchase scheme, a statement that—
(a)there is no promise or guarantee as to the rate or amount of benefit provided under the scheme, and
(b)the rate or amount of benefits may fluctuate, which may result in—
(i)reduced benefits before benefit becomes payable;
(ii)reduced benefits after benefit becomes payable.”;
(c)in paragraph 10—
(i)after “increased” insert “or decreased”;
(ii)after “increases” insert “or decreases”;
(d)after Part 3(19) (information to be given to members having an opportunity to transfer flexible benefits) add—
“PART 4N.I.Information to be given by collective money purchase schemes about benefit adjustments
15. Where benefit is not yet payable to the person—
(a)the amount representing the member’s share of the available assets of the scheme;
(b)the period for which that amount applies;
(c)except where information under this paragraph is provided to the person for the first time—
(i)any adjustment to that amount since the previous year, both in monetary terms and as a percentage increase or decrease;
(ii)where applicable, an explanation of why that amount has been adjusted or, as the case may be, remained the same, and
(d)an explanation of when an adjustment in that amount may next occur.
16. Where benefit is payable to the person—
(a)the amount of benefit that is payable;
(b)the period for which that amount applies;
(c)except where information under this paragraph is provided to the person for the first time—
(i)any adjustment to the amount of benefit payable from the previous year, both in monetary terms and as a percentage increase or decrease;
(ii)an explanation of why the amount of benefit payable has been adjusted or, as the case may be, remained the same, and
(d)an explanation of when an adjustment in the amount of benefit payable may next occur.
17. Any rights or options a person may be entitled to exercise in the event of a member or beneficiary dying, and any procedures for exercising those rights or options.
18. A statement that there is no promise or guarantee as to the amount of benefit that may be provided under the scheme, that the rate or amount of benefits may fluctuate, and that this may result in reduced benefits.
19. A summary of the method and assumptions used to calculate the benefit adjustments.
20. The postal and electronic address to which enquiries relating to the information provided in accordance with regulation 22A should be sent.
21. The level of the benefit adjustment that should have been applied in accordance with the latest actuarial valuation and the schemes rules.
22. The level of the benefit adjustment that was actually applied.
23. Where the benefit adjustment that was actually applied was not the adjustment that should have been applied in accordance with the latest actuarial valuation and the schemes rules, any proposed remedial actions.
24. A timetable for implementing any remedial actions.
25. A statement indicating whether the failure to apply the benefit adjustment in accordance with the scheme rules or (as the case may be) the latest actuarial valuation has resulted in any negative impact on the scheme’s ongoing ability to deliver the pension benefits envisaged under the design of the scheme.
26. Where there is a likely negative impact on the scheme’s ongoing ability to deliver the pension benefits envisaged, details of any proposed actions to address the negative impact.
27. An explanation of what the trustees will do to ensure benefit adjustments are applied correctly in future.”.
(18) In Schedule 8 (information to be given by schemes about winding up) in paragraph 7 for “Either” substitute “Except in the case of a collective money purchase scheme, either”.
(19) After Schedule 9A(20) (information to be give on the pensions guidance and members’ benefits) insert Schedule 9B as set out in Schedule 2 to these Regulations.
S.R. 2014 No. 79; relevant amending Regulations are S.R. 2014 No. 204, S.R. 2015 No. 154, S.R. 2018 No. 53, S.R. 2018 No. 165, S.R. 2019 No. 115, S.R. 2021 No. 272 and S.R. 2022 No. 115
The definition of “the 2014 Act” was inserted by regulation 3(1)(a) of S.R. 2015 No. 154
The definition of “cash balance benefit” was inserted by regulation 3(1)(b) of S.R. 2015 No. 154
Schedule 6A is inserted by Schedule 1 to these Regulations
Paragraph (1) was amended by regulation 3(2) of S.R. 2018 No. 53 and regulation 3(2) of S.R. 2019 No. 115
Regulation 29A was inserted by regulation 3(6) of S.R. 2018 No. 53 and amended by regulation 5(3) and (4) of S.R. 2018 No. 165, regulation 3(3) of S.R. 2019 No. 115 and regulation 5(a) of S.R. 2021 No. 272
Paragraph (8) was added by regulation 4(5) of S.R. 2015 No. 154
Regulation 12A was inserted by regulation 3(3) of S.R. 2018 No. 53
Regulation 18B was inserted by regulation 6 of S.R. 2015 No. 154 and amended by regulation 2(5) of S.R. 2022 No. 115
Regulation 19 was amended by regulation 7 of S.R. 2015 No. 154
Regulation 25 was amended by regulation 73(5) of S.R. 2014 No. 204
Paragraphs 30 to 38 are inserted by paragraph (14)(d) of this regulation
Regulation 18A was inserted by regulation 6 of S.R. 2015 No. 154 and amended by regulation 2(4) of S.R. 2022 No. 115
Paragraphs 15 to 27 are inserted by paragraph (17)(d) of this regulation
Regulation 27 was amended by regulation 3(5) of S.R. 2018 No. 53
Paragraph 16 was amended by regulation 10(5) of S.R. 2015 No. 154
The heading to Schedule 6 was amended by regulation 73(7) of S.R. 2014 No. 204
Part 3 was added by regulation 12(3) of S.R. 2015 No. 154
Schedule 9A was inserted by regulation 13 of S.R. 2015 No. 154