(This note is not part of the Regulations)
These Regulations prescribe the description of schemes which are exempt from the requirement in section 252(2) of the Pensions Act 2004 (c. 35) (“the Act”) that trustees or managers of an occupational pension scheme with its main administration in the United Kingdom must not accept funding payments unless the scheme is established under irrevocable trust. These Regulations also prescribe the description of a scheme which is exempt from the requirement in section 255(1) of the Act, that an occupational pension scheme with its main administration in the United Kingdom must be limited to retirement-benefit activities.
Regulation 2 provides for the description of those schemes which are exempt from the requirements of section 252(2) of the Act.
Regulation 3 provides for the description of a scheme which is exempt from the requirements of section 255(1) of the Act.
As these Regulations are made before the expiry of the period of six months beginning with the coming into force of the provisions of the Act by virtue of which they are made, the requirement for the Secretary of State to consult such persons as he considers appropriate does not apply. The Secretary of State has, however, carried out a consultation exercise in respect of regulation 2.
Section 252(2) of the Act transposes Article 8 of Directive 2003/41/EC (“the Directive”) on the activities and supervision of institutions for occupational retirement provision. Article 8 requires legal separation of the assets of an occupational pension scheme and those of a sponsoring employer. Section 255(1) of the Act transposes Article 7 of the Directive. Article 7 requires that occupational pension schemes are limited to retirement-benefit activities. The transposition of Articles 7 and 8 of the Directive is detailed in the Transposition Table that accompanied the Act. A copy of that Table has been placed in the libraries of both Houses of Parliament. Copies may be obtained from the Department for Work and Pensions, Better Regulation Unit, 4th floor, Adelphi, 1-11 John Adam Street, London WC2N 6HT.
A Regulatory Impact Assessment has not been prepared for this instrument as it has no impact on business, charities or voluntary bodies.