SCHEDULES
SCHEDULE 2Basic information
PART 1Information to be given by occupational pension schemes that fall within paragraph 1 of Schedule 1
1
The conditions persons must meet to become members of the scheme and a summary of the categories of persons who are eligible to become members of the scheme.
2
How persons who are eligible to be members of the scheme are admitted to it.
3
A summary of what can be done with a member's accrued rights where the member leaves pensionable service before normal pension age, including whether accrued rights can be transferred out of the scheme, converted into an annuity F5, designated as available for the payment of drawdown pension and commuted to a lump sum.
4
A statement relating to the matters mentioned in paragraph 3—
a
as to whether a charge may be made, and
b
that further information is available on request.
F34A
Where the member has flexible benefits, a statement explaining the circumstances in which the member may transfer accrued rights to flexible benefits out of the scheme.
4B
F16Subject to paragraph 4C where the member has safeguarded benefits (which has the meaning given in section 48(8) of the Pension Schemes Act 2015 (independent advice in respect of conversions and transfers)), a statement that the member may be required to take independent advice before the member may—
a
convert any of the safeguarded benefits into different benefits that are flexible benefits under the scheme;
b
transfer safeguarded benefits to another pension scheme with a view to acquiring a right or entitlement to flexible benefits; and
c
withdraw an uncrystallised funds pension lump sum (which has the meaning given in paragraph 4A of Schedule 29 to the Finance Act 2004 (uncrystallised funds pension lump sum)).
F144C
Paragraph 4B does not apply to a member of an occupational pension scheme that is an unfunded public service defined benefits scheme, unless it is a scheme in relation to which section 95(2A)(a)(i) of the 1993 Act has been disapplied, pursuant to section 95(2B) of that Act (ways of taking right to cash equivalent).
5
Whether the scheme is a tax registered scheme or, if not, whether an application for the scheme to become a tax registered scheme is under consideration by the Commissioners for Her Majesty's Revenue and Customs.
6
A statement that explains whether transfers can be made into the scheme, including whether such transfers can be made in accordance with F6Chapters 1 and 2 of Part 4ZA of the 1993 Act (transfers and contribution refunds).
7
The arrangements, if any, for the payment by members of additional voluntary contributions.
8
A summary of how the contributions, if any, payable by the employer and the member are calculated.
9
Where the scheme is the National Employment Savings Trust Corporation established under section 75(1) of the Pensions Act 2008 M1, a statement of the maximum amount, if any, of contributions that may be paid in any tax year in relation to a member of the scheme.
10
A statement that—
a
the F19Money and Pensions Service is available at any time to assist members and beneficiaries with—
i
pensions questions, and
ii
issues they have been unable to resolve with the trustees or managers of the scheme,
b
the Pensions Ombudsman M2 may investigate and determine certain complaints or disputes about pensions that are referred to the Ombudsman in accordance with the 1993 Act, and
c
the Regulator may intervene in the running of schemes where trustees, managers, employers or professional advisers have failed in their duties.
11
The postal and electronic address at which each of the bodies referred to in paragraph 10 may be contacted.
F1812
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
If a member of the scheme has to give a period of notice to terminate their pensionable service, the length of that period of notice.
14
Whether, and if so on what conditions (if any), a member of the scheme, whose pensionable service has terminated before normal pension age, may re-enter pensionable service.
15
The following information about benefits payable under the scheme (referred to in this paragraph as “benefits”)—
a
what the benefits are,
b
how benefits are calculated,
c
how the scheme defines pensionable earnings, if appropriate,
d
how and when benefits in payment are increased F23or decreased, if appropriate,
e
the rate at which rights to benefits accrue, if appropriate,
f
the conditions on which benefits are payable,
g
when benefits (including survivor's benefits) are payable.
16
Where the member has money purchase benefits, a statement that the value of the pension will depend on several factors including F24where appropriate the amount of the contributions paidF7, any cost of exercising any right to transfer the benefits, any charges payable, the age at which the member accesses the benefits”, the performance of F8investments and any cost of converting the benefit into an annuity.
F116A
Where the member has rights to cash balance benefits, a statement that the value of the pension will depend on several factors including the amount of contributions paidF9, any cost of exercising any right to transfer the benefits, any charges payable, the age at which the member accesses the benefits, any guaranteed interest or bonuses F10applied and any cost of converting the benefits into an annuity.
17
Except where the scheme is a public service pension scheme, a statement that the scheme annual report will be given on request.
18
1
The scheme's internal dispute resolution arrangements.
2
The postal or electronic address and job title of the person who should be contacted to use those arrangements.
3
This paragraph does not apply to a scheme within section 50(8) of the 1995 Act M3 (requirement for dispute resolution arrangements).
F2118A
In respect of a collective money purchase scheme, a statement that—
a
there is no promise or guarantee as to the rate or amount of benefit provided under the scheme, and
b
the rate or amount of benefits may fluctuate, which may result in—
i
reduced benefits before benefit becomes payable;
ii
reduced benefits after benefit becomes payable.
18B
In respect of a collective money purchase scheme, a summary of the rules governing how the rate or amount of benefits provided under the scheme is to be adjusted from time to time, including—
a
that annual benefit calculations and any adjustments of the rate or amount of benefits are applied to all the members of the scheme without variation,
b
where relevant, an explanation of how any multi-annual reduction permitted under the scheme rules operates and the effect it may have on the rate or amount of benefits provided under the scheme, and
c
the arrangements in place for making any adjustments to the rate or amount of benefits provided to pensioner members.
PART 2Information to be given by occupational pension schemes not falling within paragraph 1 of Schedule 1 and schemes that are established under the Salvation Army Act 1963
19
The following information about benefits payable under the scheme (referred to in this paragraph as “benefits”)—
a
what the benefits are,
b
how benefits are calculated,
c
how the scheme defines pensionable earnings, if appropriate,
d
how and when benefits in payment are increased, if appropriate,
e
the rate at which rights to benefits accrue, if appropriate,
f
the conditions on which benefits are payable,
g
when benefits (including survivor's benefits) are payable.
20
A statement that explains whether transfers can be made into the scheme, including whether such transfers can be made in accordance with F11Chapters 1 and 2 of Part 4ZA of the 1993 Act.
21
A summary of what can be done with a member's accrued rights where the member leaves pensionable service before normal pension age, including whether the accrued rights can be transferred out of the scheme, converted into an annuityF12, designated as available for the payment of drawdown pension and commuted to a lump sum.
22
A statement relating to the matters mentioned in paragraph 21—
a
as to whether a charge may be made, and
b
that further information is available.
F422A
Where the member has flexible benefits, a statement explaining the circumstances in which the member may transfer accrued rights to flexible benefits out of the scheme.
22B
F17Subject to paragraph 22C where the member has safeguarded benefits (which has the meaning given in section 48(8) of the Pension Schemes Act 2015), a statement that the member may be required to take independent advice before the member may—
a
convert any of the safeguarded benefits into different benefits that are flexible benefits under the scheme;
b
transfer safeguarded benefits to another pension scheme with a view to acquiring a right or entitlement to flexible benefits; and
c
withdraw an uncrystallised funds pension lump sum (which has the meaning given in paragraph 4A of Schedule 29 to the Finance Act 2004).
F1522C
Paragraph 22B does not apply to a member of an occupational pension scheme that is an unfunded public service defined benefits scheme, unless it is a scheme in relation to which section 95(2A)(a)(i) of the 1993 Act has been disapplied, pursuant to section 95(2B) of that Act.
23
1
The scheme's internal dispute resolution arrangements.
2
The postal or electronic address and job title of the person who should be contacted to use those arrangements.
3
This paragraph does not apply to a scheme within section 50(8) of the 1995 Act.
24
A statement that—
a
the F20Money and Pensions Service is available at any time to assist members and beneficiaries with—
i
pensions questions, and
ii
issues they have been unable to resolve with the trustees or managers of the scheme,
b
the Pensions Ombudsman may investigate and determine certain complaints or disputes about pensions that are referred to the Ombudsman in accordance with the 1993 Act, and
c
the Regulator may intervene in the running of schemes where trustees, managers, employers or professional advisers have failed in their duties.
25
The postal address and electronic address at which each of the bodies referred to in paragraph 24 may be contacted.
F1326
A statement setting out—
a
which benefits—
i
are provided by means of the setting aside of resources (other than assets at the disposal of the employer of any person who is employed in relevant employment) for a benefit, before the benefit becomes payable, that are related to the intended rate or amount of benefit; and
ii
are not provided by that means; and
b
the manner in which any benefits mentioned in sub-paragraph (a)(i) are secured.
27
A statement that most of the provisions of the 1995 Act do not apply to the scheme.
28
Where the member has money purchase benefits, a statement that the value of the pension will depend on several factors including the amount of the contributions paid, the performance of investments and the cost of converting the benefit into an annuity.
F228A
Where the member has rights to cash balance benefits, a statement that the value of the pension will depend on several factors including the amount of contributions paid, any guaranteed interest or bonuses applied and the cost of converting the benefits into an annuity.
PART 3Lifestyling
29
A statement explaining lifestyling, its advantages and disadvantages, and either—
a
that lifestyling will be adopted, indicating when lifestyling is likely to be adopted, or
b
that lifestyling has been adopted.
F22PART 4Scheme closure: collective money purchase schemes
30
A statement that a decision has been made to pursue continuity option 3.
31
A summary of the reasons for the decision in paragraph 30.
32
An estimate of when information will be provided in accordance with paragraphs 34 to 38.
33
A statement that the scheme will continue to operate in respect of its current members and beneficiaries.
34
A statement confirming that the scheme will be closed, which must include whether it will be closed to new contributions or new members (or both).
35
The date the scheme will begin to operate as a closed scheme.
36
A statement explaining any impact that the closure will have in relation to accrued rights to benefits under the scheme, including any differences in impact for active, deferred and pensioner members.
37
The arrangements for—
a
the future operation of the scheme, and
b
where the scheme will be closed to new contributions, any scheme or section of a scheme to which future contributions may be made.
Sch. 2 Pt. 4 inserted (1.8.2022) by The Occupational Pension Schemes (Collective Money Purchase Schemes) (Modifications and Consequential and Miscellaneous Amendments) Regulations 2022 (S.I. 2022/337), regs. 1(3), 13(14)(d)