Explanatory Note
(This note is not part of the Regulations)
These Regulations:—
(a)amend the terms of the reference scheme set out in section 12B of the Pensions Act 1995 (compliance with which is a condition of obtaining a contracting-out certificate under the Pension Schemes Act 1993), and
(b)make miscellaneous amendments to regulations relating to occupational pensions.
Regulation 1 deals with citation and commencement.
Regulation 2 makes an amendment to the reference scheme relating to the pensions that schemes must offer widows or widowers of members of the scheme.
Regulation 3 makes amendments to the Occupational Pension Schemes (Contracting-out) Regulations 1996 which relate to the circumstances in which schemes may change the mode of contracting-out, approval of arrangements for schemes ceasing to be contracted-out, supervision of schemes that have ceased to be contracted-out, and the transitional arrangements for salary related schemes becoming money purchase schemes.
Regulation 4 makes an amendment to the Occupational Pension Schemes (Disclosure of Information) Regulations 1996 limiting the range of members certain basic information about the scheme has to be given to.
Regulation 5 makes amendments to the Occupational Pension Schemes (Scheme Administration) Regulations 1996 relating to the manner and terms of appointment of professional advisers as regards conflicts of interest and to the ineligibility of trustees to act as actuary or auditor.
Regulation 6 makes amendments to the Occupational Pension Schemes (Investment) Regulations 1996 extending the meaning of “employer” to cover schemes in respect of which there are no active members, amending the list of investments to which the restrictions do not apply, and amending the transitional provisions.
An assessment of the compliance cost for employers of the measures arising from the Pensions Act 1995, including regulations, has been placed in the libraries of both Houses of Parliament. Copies can be obtained by post from the Department of Social Security, the Adelphi, 1—11 John Adam Street, London, WC2N 6HT.