The Occupational Pension Schemes (Charges and Governance) Regulations 2015

[F1[F2Assessment of charges – qualifying collective money purchase schemesU.K.

This section has no associated Explanatory Memorandum

7A.—(1) If the trustees make the choice under regulation 6A(1) to assess charges in accordance with this regulation, the following provisions apply.

(2) Trustees must calculate the value of members’ rights under the scheme at reference points set at equal intervals during the charges year of no more than 3 months (but see paragraphs (3), (6) and (7)).

(3) Where trustees change the intervals between reference points chosen for the purposes of paragraph (2) during the charges year, the start of the first new interval must commence on the day following the reference point at the end of the previous interval.

(4) The limit of permitted charges under—

(a)a collective single charge structure; or

(b)a collective existing rights charge in a collective combination charge structure,

is exceeded if the charges imposed on the members annually exceed the average of the reference point values multiplied by the applicable percentage.

(5) The applicable percentage is—

(a)in the case of a collective single charge structure, 0.75%; and

(b)in the case of a collective existing rights charge in a collective combination charge structure, the percentage in Column 2 of the table—

(i)in regulation 6A(3), where a collective contribution percentage charge is imposed; and

(ii)in regulation 6A(4), where a collective flat fee is imposed.

(6) Where members have rights under the scheme at only one reference point referred to in paragraph (2), paragraph (4) is to be read as if the words “average of the reference point values” read “value at the reference point”.

(7) Where members have no rights under the scheme at a reference point referred to in paragraph (2), paragraph (4) is to be read as if the words “average of the reference point values” read “value of members’ rights under the scheme on the final day of the charges year or, if there are no members who have such rights on that day, on the final day on which there are members who have such rights,”.

(8) In this regulation monthly, 2 monthly and 3 monthly intervals are to be treated as equal intervals.

F3(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6(12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]]

Textual Amendments