PART 3General changes to legislation about pension schemes

Rules about modification of schemes

45Rules about modification of schemes

(1)The Pensions Act 1995 is amended as follows.

(2)In section 67 (the subsisting rights provisions)—

(a)in subsection (3), omit paragraph (b) and the “or” before it;

(b)after subsection (3) insert—

(3A)Regulations may provide for cases in which the subsisting rights provisions do not apply.

(3)In section 67A (the subsisting rights provisions: interpretation), in subsection (3) (meaning of “protected modification”), after paragraph (a) insert—

(aa)on taking effect would or might result in any subsisting right of a member of the scheme which is a right to benefits in respect of which there is a pensions promise becoming, or being replaced with, a right to benefits under the scheme rules in respect of which there is no pensions promise,

(ab)on taking effect would or might result in any subsisting right of a member of the scheme which is a right to retirement income in respect of which there is a pensions promise becoming, or being replaced with, a right to benefits other than retirement income,

(ac)on taking effect would or might result in any subsisting right of—

(i)a member of the scheme, or

(ii)a survivor of a member of the scheme,

which is not a right or entitlement to collective benefits becoming, or being replaced with, a right or entitlement to collective benefits under the scheme rules,.

(4)In subsection (3)(b) of that section, after “rules” insert “, other than a pension that is a collective benefit”.

(5)In subsection (5)(a) of that section, after “paragraph (a)” insert “, (aa), (ab), (ac)”.

(6)In subsection (9) of that section—

(a)in paragraph (a), after sub-paragraph (vii) insert—

(viii)regulations made under Schedule 17 to the Pensions Act 2014;

(ix)regulations made under Schedule 18 to the Pensions Act 2014;

(x)regulations made under Part 2 of the Pension Schemes Act 2015;;

(b)in paragraph (b), after sub-paragraph (v) insert—

(vi)regulations made under paragraph 17 of Schedule 17 to the Pensions Act 2014;

(vii)regulations made under paragraph 6 of Schedule 18 to the Pensions Act 2014;

(viii)regulations made under section 34 of the Pension Schemes Act 2015;.

(7)In section 124 (interpretation), in subsection (1), at the appropriate places insert—

  • “pensions promise” has the meaning given by section 5 of the Pension Schemes Act 2015;;

  • “retirement income” has the meaning given by section 7 of the Pension Schemes Act 2015;.