Pensions Act 2004

Pensions Act 2004

2004 CHAPTER 35

Commentary on Sections

Part 7 – Cross-Border Activities Within European Union

Summary

UK occupational pension scheme receiving contributions from European employer

Section 291: Duty of trustees or managers to act consistently with law of host Member State

1165. Subsection (1) places an obligation on the trustees or managers of a UK-based cross-border scheme receiving contributions to the scheme from a European employer to operate in accordance with the relevant social and labour laws of the host Member State in respect of the relevant members.

1166. Subsection (2) confers a regulation-making power to allow modification of UK pensions legislation in respect of UK-based cross-border schemes. The intention here is to avoid issues such as unnecessary dual regulation between the Regulator and the regulatory authority of another Member State.

1167. Subsection (3) provides that failure to operate in accordance with those laws may lead to the imposition of a civil penalty under section 10 of the Pensions Act (civil penalties). (The Regulator will also have the power to revoke both general authorisation and the specific approval for the pension scheme provider scheme to operate cross-border where it considers that such action is required.) Subsection (4) provides a definition of UK pensions legislation for this purpose.