Pensions Act 2004

[F1 249A. Requirement for internal controls E+W+S

(1) The trustees or managers of an occupational pension scheme must establish and operate internal controls which are adequate for the purpose of securing that the scheme is administered and managed—

(a) in accordance with the scheme rules, and

(b) in accordance with the requirements of the law.

(2) Nothing in this section affects any other obligation of the trustees or managers of an occupational pension scheme to establish or operate internal controls, whether imposed by or by virtue of any enactment, the scheme rules or otherwise.

(3) This section does not apply in relation to—

[F2 (za) a public service pension scheme;]

(a) [F3 any other scheme] which—

(i) is established by or under an enactment (including a local Act), and

(ii) is guaranteed by a public authority;

(b) a pay-as-you-go scheme;

(c) a scheme which is made under [F4 paragraph 8, 12 or 16 of Schedule 6 to the Constitutional Reform and Governance Act 2010] (power to provide for pensions for Members of the House of Commons etc.) .

[F5 (d) the Scottish Parliamentary Pension Scheme as defined in section 4 of the Scottish Parliamentary Pensions Act 2009 (asp 1).]

(4) But subsection (3) does not disapply this section in relation to any scheme the trustees or managers of which are—

(a) authorised under section 288 (general authorisation to accept contributions from European employers), or

(b) approved under section 289 in relation to a European employer.

(5) In this section—

• “enactment” includes an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament;

• “internal controls” means—

  (a)

  arrangements and procedures to be followed in the administration and management of the scheme,

  (b)

  systems and arrangements for monitoring that administration and management, and

  (c)

  arrangements and procedures to be followed for the safe custody and security of the assets of the scheme;

• “local authority” means—

  (a)

  in relation to England, a county council, a district council, a London borough council, the Greater London Authority, the Common Council of the City of London in its capacity as a local authority or the Council of the Isles of Scilly,

  (b)

  in relation to Wales, a county council or county borough council,

  (c)

  in relation to Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39) (constitution of councils),

  (d)

  an administering authority as defined in Schedule 1 to the Local Government Pension Scheme Regulations 1997 (S.I.1997/1612) (interpretation);

• “pay-as-you-go scheme” means an occupational pension scheme under which there is no requirement for assets to be set aside in advance for the purpose of providing benefits under the scheme (disregarding any requirements relating to additional voluntary contributions);

• “public authority” means—

  (a)

  a Minister of the Crown (within the meaning of the Ministers of the Crown Act 1975 (c. 26)),

  (b)

  a government department (including any body or authority exercising statutory functions on behalf of the Crown),

  (c)

  the Scottish Ministers,

  (d)

  the National Assembly for Wales, or

  (e)

  a local authority.]

Textual Amendments

F1 S. 249A inserted (30.12.2005) by The Occupational Pension Schemes (Internal Controls) Regulations 2005 (S.I. 2005/3379), regs. 1(1), 2

F2 S. 249A(3)(za) inserted (1.4.2015) by Public Service Pensions Act 2013 (c. 25), s. 41(2), Sch. 4 para. 20(a) (with Sch. 11 para. 8); S.I. 2015/4, art. 4(1)(b)

F3 Words in s. 249A(a) substituted (1.4.2015) by Public Service Pensions Act 2013 (c. 25), s. 41(2), Sch. 4 para. 20(b) (with Sch. 11 para. 8); S.I. 2015/4, art. 4(1)(b)

F4 Words in s. 249A(3)(c) substituted (24.10.2011) by Constitutional Reform and Governance Act 2010 (c. 25), s. 52, Sch. 6 para. 46; S.I. 2011/2485, art. 2(1)(2)(c)(ii)

F5 S. 249A(3)(d) inserted (1.9.2009) by The Scottish Parliamentary Pensions Act 2009 (Consequential Modifications) Order 2009 (S.I. 2009/1682), art. 1(1), Sch. para. 2