The Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010

Further conditions applicable to automatic enrolment schemes E+W+S

[F1 35.— (1) The conditions prescribed for the purposes of section 17(1)(c) (automatic enrolment schemes) of the Act are—

(a) that the scheme must be—

(i) an occupational pension scheme within section 18(a) or (b) (occupational pension schemes) of the Act; or

(ii) a personal pension scheme where the operation of the scheme—

(aa) is regulated by a competent authority; and

(bb) is carried on by a person who is in relation to that activity authorised by a competent authority; and

(b) where the scheme is an occupational pension scheme within the meaning of section 18(b) (occupational pension schemes) of the Act or a personal pension scheme where the operation of the scheme is carried on in accordance with sub-paragraph (a)(ii) by a person authorised by a competent authority other than that of the United Kingdom, the regulatory requirements applicable must provide that—

(i) at least 70% of the relevant benefits will be designated for the purpose of providing the jobholder with an income for life; and

(ii) the benefits payable to the jobholder under the scheme are payable no earlier than they would be under pension rule 1 in section 165(1) of the Finance Act 2004; [F2 and]

[F2 (c) except as provided in paragraph (1A), that the provisions governing any part of an occupational pension scheme or of a personal pension scheme that provides money purchase benefits must not include a provision that allows for—

(i) any amount to be deducted from any payments made to the scheme by or on behalf or in respect of the jobholder;

(ii) any amount to be deducted from any income or capital gain arising from the investment of such payments; or

(iii) the value of the jobholder’s rights under the scheme to be reduced by any amount,

where the amount is to be paid to a third party under an agreement between the employer and the third party.]

[F3 (1A) Paragraph (1)(c) does not apply where an employer has entered into a legally enforceable agreement with a third party before 10th May 2013 under which an amount is to be paid to the third party in one or more of the ways set out in paragraph (1)(c)(i) to (iii).]

(2) For the purposes of this regulation—

“competent authority” has, as the case may be, the meaning given in—

(a)

[F4 paragraph (40) of Article 4(1) of Regulation (EU) 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012;]

(b)

[F5 paragraph 22 of Article 4 of Directive 2004/39/EC] [F5 paragraph 26 of Article 4 of Directive 2014/65/EU] of the European Parliament and of the Council on markets in financial instruments;

(c)

paragraph 1(h) of Article 2 of Directive 2009/65/EC of the European Parliament and of the Council on the co-ordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities; or

(d)

[F6 Article 13(10) of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II);]

“regulatory requirements” includes provisions of legislation that concern tax;

“relevant benefits” means—

(a)

any money purchase benefits applicable to the jobholder; and

(b)

in relation to a defined benefits scheme, or the defined benefits element of a hybrid scheme, that provides for a sum of money to be made available for the provision of benefits to a member, that sum]

[F7 “third party” means any person other than—

(a)

the jobholder;

(b)

where the scheme is an occupational pension scheme, the trustee or manager of the scheme; or

(c)

where the scheme is a personal pension scheme, the provider of the scheme.]

Textual Amendments

F1 Reg. 35 substituted (1.7.2012) by The Occupational and Personal Pension Schemes (Automatic Enrolment) (Amendment) Regulations 2012 (S.I. 2012/1257), regs. 1(2)(a), 5

F2 Reg. 35(1)(c) and word inserted (14.9.2013) by The Occupational and Personal Pension Schemes (Automatic Enrolment) (Amendment) Regulations 2013 (S.I. 2013/2328), regs. 1(2), 2(2)

F3 Reg. 35(1A) inserted (14.9.2013) by The Occupational and Personal Pension Schemes (Automatic Enrolment) (Amendment) Regulations 2013 (S.I. 2013/2328), regs. 1(2), 2(3)

F4 Words in reg. 35(2) substituted (1.1.2014) by The Capital Requirements Regulations 2013 (S.I. 2013/3115), reg. 1(2), Sch. 2 para. 74

F5 Words in reg. 35(2) substituted (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 5 para. 12 (with reg. 7)

F6 Reg. 35(2)(d) substituted (1.1.2016) by The Solvency 2 Regulations 2015 (S.I. 2015/575), reg. 1(2), Sch. 2 para. 33(2)

F7 Words in reg. 35(2) inserted (14.9.2013) by The Occupational and Personal Pension Schemes (Automatic Enrolment) (Amendment) Regulations 2013 (S.I. 2013/2328), regs. 1(2), 2(4)