The Pension Schemes Act 2021 (Commencement No. 5) Regulations 2021

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations bring into force provisions in Part 1 of the Pension Schemes Act 2021 (c. 1) (“the Act”). They are the fifth commencement regulations to be made under the Act. Part 1 of the Act provides the legislative framework to enable the establishment and operation of collective money purchase pension schemes.

Regulation 2 of these Regulations brings into force on 13th December 2021 paragraphs 13 and 23 to 25 of Schedule 3, section 11 insofar as it relates to paragraph 13 and section 48 insofar as it relates to those provisions.

Paragraphs 11 and 13 of Schedule 3 amend the Pensions Act 2004 (c. 35) by inserting requirements into section 90(2) of that Act for the Pensions Regulator to issue a code of practice relating to the process for making an application for authorisation of a collective money purchase scheme and the matters that the Pensions Regulator expects to take into account in deciding whether a scheme meets the authorisation criteria under Part 1 of the Act.

Paragraphs 23 to 25 of Schedule 3 to the Act amend the Pensions Act 2014 (c. 19). Paragraph 25 amends Schedule 18 to that Act so that the powers in that Schedule are exercisable in relation to collective money purchase schemes. Schedule 18 to the Pensions Act 2014 permits the Secretary of State to make regulations which limit or prohibit particular types of administration charge in relation to specified schemes. Paragraph 24 amends section 54(2) of the Pensions Act 2014 to prescribe the procedure for exercising the powers in paragraphs 1 and 3 of Schedule 18 to that Act to make provision for the first time in relation to collective money purchase schemes.

An impact assessment has been produced in relation to the provisions of the Act and a copy is available at www.legislation.gov.uk. A hard copy of this impact assessment can be obtained from the Department for Work and Pensions, First Floor, Caxton House, Tothill Street, London SW1H 9NA.