The Occupational Pension Schemes (Transfer Values etc.) (Coal Staff and Mineworkers' Schemes) (Amendment) Regulations 2006
In accordance with section 185(1) of the Pension Schemes Act 1993 and section 83(11) of the Welfare Reform and Pensions Act 1999 he has consulted such persons as he considers appropriate.
Citation, commencement and interpretation1.
(1)
These Regulations may be cited as the Occupational Pension Schemes (Transfer Values etc.) (Coal Staff and Mineworkers' Schemes) (Amendment) Regulations 2006 and shall come into force on 6th February 2006.
(2)
In these Regulations—
Amendment of the Transfer Values Regulations2.
(1)
Regulation 7 of the Transfer Values Regulations (manner of calculation and verification of cash equivalents) is amended in accordance with this regulation.
(2)
In paragraph (1) for “paragraph (2) or (5)” substitute “paragraph (2), (2A) or (5)”.
(3)
“(2A)
Where a member, in relation to whom a cash equivalent is to be calculated and verified, is a member of a scheme modified by—
(a)
the British Coal Staff Superannuation Scheme (Modification) Regulations 19946; or(b)
the Mineworkers' Pension Scheme (Modification) Regulations 19947,the cash equivalent of his bonus shall be calculated and verified by the actuary to reflect the fact that a reduced bonus, or no bonus, may become payable in accordance with the provisions governing the scheme in question.
(2B)
For the purposes of paragraph (2A) “bonus” means any—
(a)
augmentation of his benefits; or
(b)
new, additional or alternative benefits,
which the trustees of the scheme in question have applied to the member’s benefits, or granted to him in accordance with the provisions governing that scheme, on the basis of findings as to that scheme’s funding position.”.
Amendment of the Pension Credit Benefit Regulations3.
(1)
Regulation 24 of the Pension Credit Benefit Regulations (manner of calculation and verification of cash equivalents) is amended in accordance with this regulation.
(2)
In paragraph (1) for “paragraph (2) or (5)” substitute “paragraph (2), (2A) or (5)”.
(3)
“(2A)
Where an eligible member, in relation to whom a cash equivalent is to be calculated and verified, is a member of a scheme modified by—
(a)
the British Coal Staff Superannuation Scheme (Modification) Regulations 1994; or
(b)
the Mineworkers' Pension Scheme (Modification) Regulations 1994,
the cash equivalent of his bonus shall be calculated and verified by the actuary to reflect the fact that a reduced bonus, or no bonus, may become payable in accordance with the provisions governing the scheme in question.
(2B)
For the purposes of paragraph (2A) “bonus” means any—
(a)
augmentation of his benefits; or
(b)
new, additional or alternative benefits,
which the trustees of the scheme in question have applied to the eligible member’s benefits, or granted to him in accordance with the provisions governing that scheme, on the basis of findings as to that scheme’s funding position.”.
Amendment of the Valuation Regulations4.
(1)
Regulation 4 of the Valuation Regulations (manner of calculation and verification of cash equivalents) is amended in accordance with this regulation.
(2)
In paragraph (1) for “paragraph (2) or (5)” substitute “paragraph (2), (2C) or (5)”.
(3)
“(2C)
Where a transferor, in relation to whom a cash equivalent is to be calculated and verified, is a member of a scheme modified by—
(a)
the British Coal Staff Superannuation Scheme (Modification) Regulations 1994; or
(b)
the Mineworkers' Pension Scheme (Modification) Regulations 1994,
the cash equivalent of his bonus shall be calculated and verified by the actuary to reflect the fact that a reduced bonus, or no bonus, may become payable in accordance with the provisions governing the scheme in question.
(2D)
For the purposes of paragraph (2C) “bonus” means any—
(a)
augmentation of his benefits; or
(b)
new, additional or alternative benefits,
which the trustees of the scheme in question have applied to the transferor’s benefits, or granted to him in accordance with the provisions governing that scheme, on the basis of findings as to that scheme’s funding position.”.
Signed by authority of the Secretary of State for Work and Pensions.
These Regulations make amendments which relate to schemes referred to in the British Coal Staff Superannuation Scheme (Modification) Regulations 1994 (S.I. 1994/2576) (“the British Coal Scheme”) and the Mineworkers' Pension Scheme (Modification) Regulations 1994 (S.I. 1994/2577) (“the Mineworkers' Scheme”).
Regulation 2 amends the Occupational Pension Schemes (Transfer Values) Regulations 1996 (S.I. 1996/1847) where a cash equivalent transfer value is being calculated for a member of the British Coal Scheme or the Mineworkers' Scheme. Where such a member has been awarded a bonus, or bonuses, the amount of the cash equivalent transfer value payable in respect of such bonuses shall reflect that the bonuses are not guaranteed and could be reduced in the future, as a result of the scheme’s funding position.
Regulation 3 makes amendments to the Pension Sharing (Pension Credit Benefit) Regulations 2000 (S.I. 2000/1054) similar to those made in regulation 2.
Regulation 4 makes amendments to the Pension Sharing (Valuation) Regulations 2000 (S.I. 2000/1052) similar to those made in regulation 2.
A full regulatory impact assessment has not been produced for this instrument as it has a negligible impact on the costs of business.